Building Good Relationships with Suppliers
In order for the Kurita Group to fulfill its social responsibilities, its suppliers who provide raw materials, supplies, and perform services also need to cooperate with the Group’s CSR initiatives.The Group has newly formulated the Kurita Group CSR Procurement Guidelines to set out the Group’s common policy on procurement and expectations of suppliers, such as respecting basic human rights, preserving the earth’s environment, and complying with laws, regulations, and social norms.
Kurita Group Procurement Policy
The Kurita Group has established the Kurita Group Procurement Policy, which sets out our basic commitment as follows:“Kurita Group will promote social responsibility-oriented procurement activities throughout its supply chain, share the recognition with suppliers and strive for mutual prosperity based on mutual trust.”
- To conduct transactions in consideration of basic human rights, occupational health and safety, and preservation of the global environment in compliance with laws and regulations as well as social norms;
- To provide fair and equal business opportunities to the suppliers, to conduct transactions in reliable quality, at competitive and reasonable prices, based on appropriate specifications and standards;
- To procure materials and services that enables continuous and stable supply of our products and services to customers, and contribute to the sustainable development of the society; and
- To forbid entering into any transaction that would benefit antisocial forces or terrorist groups
The Kurita Group is undertaking appropriate procurement activities in line with the Kurita Group Procurement Policy.
As our system for promoting these activities, the Group Manager of the Operational Improvement Group, Engineering Division is in charge of promoting procurement activities based on the policy.
The policy is promoted at domestic Group companies and overseas operating companies through the business management divisions of their respective supervising headquarters divisions.
Initiatives in Fiscal 2018
Revision of Procurement Operation Regulations
The Company has revised its previous Purchasing Operation Regulations based on the Kurita Group Procurement Policy to create the revised Procurement Operation Regulations.
These set out the implementation of appropriate procurement activities that emphasize social responsibility as a regulation related to supplies, equipment, labor and services required in the Company’s business activities.
Supplier Questionnaire Survey
The Company requires its suppliers to understand its compliance activities such as observing the Subcontract Act and confidential information management, and confirms the appropriateness of its transactions with them by conducting Surveys on Transactions with Kurita Water Industries Ltd. This survey targets suppliers who fall under the category of subcontractors as provided in the Subcontract Act and is conducted once a year by the secretariat of the E&S Committee, which is in charge of compliance activities. In fiscal 2018, the survey was sent out to 952 companies, of which 667 responded for a response rate of 70%. If the E&S Committee secretariat considers a status check or improvement to be necessary in some cases after confirming the responses, it instructs the relevant department to respond and conducts a follow-up check on the result of the response.
Public-Interest Whistle-Blowing and Helpline
The Company has created Public-Interest Whistle Blower Protection Rules and strives to quickly discover misconduct. In accordance with these rules, an advising and reporting liaison that makes use of an independent organization was established,and employees of the Company and its domestic Group companies, as well as suppliers, such as outsourcing service providers, can use the liaison. A “Supplier Helpline” was also launched so that suppliers can seek advice on issues such as concerns and worries they have about business with the Kurita Group. The helpline was not used in fiscal 2018.
Status of Transactions
In fiscal 2018, the Company placed orders with 2,444 companies and its transaction volume was 92,947 million yen. The ratio between Japan and Overseas transaction volumes is as follows.
Communication with business partners
The Company creates opportunities to communicate with its business partners in an effort to strengthen its partnership with them. The table below shows the major initiatives we took in fiscal 2018.
|Name||Purpose and contents||Number of companies that participated|
|Liquid transfer training session||Safety training on liquid transfer||18|
|Transportation safety and quality meeting||Safety training provided to companies to which transportation is outsourced||10|
|Meeting with subcontractors||Explanations of forecasts of orders to be placed in the following fiscal year and new initiatives/ Kurita Group Procurement Policy||70|
|Safety Conference||Safety training and explanations of revised safety rules||80|