CSR InitiativesBuilding Good Relationships with Suppliers

The Kurita Group Approach

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 Procurement Policy, as a common policy on procurement for the Group, as well as the Kurita Group CSR Procurement Guidelines to set out the Group’s expectations of suppliers, such as respecting basic human rights, preserving the earth’s environment, and complying with laws, regulations, and social norms.

Policy

  • 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.

Promotion System

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 Group companies in Japan and overseas through the business management divisions of their respective supervising headquarters divisions.

Main Initiatives

Formulation of Procurement Operation Regulations

Based on the Kurita Group Procurement Policy the Company has formulated 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.

CSR Requirements for Suppliers

The Kurita Group considers it vital to obtain cooperation from suppliers in order to conduct business in accordance with its CSR Policy across the entire supply chain. To this end, we have established the Kurita Group CSR Procurement Guidelines, and we have asked suppliers to understand and implement the Kurita Groups policies regarding matter such as human rights, safety, and environmental improvement, and the response that we require of them, and to provide appropriate information. In particular, we ask major suppliers to conduct a self-evaluation based on the guidelines and to implement improvement measures. From fiscal 2019 to fiscal 2020, we requested suppliers for self-evaluation of 28 items in total related to human rights, occupational safety and health, the environment, compliance with laws and regulations, quality and safety, information management, and relations with anti-social forces. We received results from suppliers that account for 46% of the order amount of whole group, and it was confirmed that the average value of all suppliers satisfied the Group's standards in all items. On the other hand, for the suppliers who did not meet the standards of some items, we implemented individual measures towards improvement.

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 E&S Committee, which is in charge of compliance activities. In the event that status checks or improvements are deemed necessary after responses are confirmed, the E&S Committee instructs the relevant department to respond and conducts a follow-up check on the result of the response.

  FY2018 FY2019 FY2020
Number of companies surveyed 952 995 1,058
Number of respondents 667 680 719
Response rate (%) 70.1 68.2 68.0

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 dispatch staff and suppliers, 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.

Status of Use of Supplier Helpline

  FY2018 FY2019 FY2020
Number of cases 0 0 1

Status of Business Dealings

The status of business dealings with the Company’s suppliers is as follows.

  FY2019 FY2020
Number of suppliers 2,354 2,326
Transaction amount (Millions of yen) 98,443 91,369
Japan (%) 90.4 91.8
Overseas (%) 9.6 8.2

Communication with Suppliers

The Company provides opportunities for communication with suppliers and strives to strengthen its partnerships with them. The main initiatives conducted in fiscal 2020 were as follows.

Name Purpose / Details Number of participating companies
Roundtable discussion with suppliers Explanation of forecast for orders in the following fiscal year and explanation of new initiatives and policies 70
Liquid transportation operation training session Safety course regarding liquid transportation operations 11
Transportation safety and quality seminar Safety lecture for transportation service providers 10
Safety events Safety lectures, and explanation of revised safety rules 346
70th Anniversary Celebration Expressed gratitude to business partners on the occasion of our 70th anniversary 154