Sumitomo Chemical is committed to building sound mutual relations with business partners based on the Basic Procurement Principles. In addition to ensuring fairness, equitability, and transparency in our transactions with business partners, we are also encouraging business partners to promote their CSR activities through our responsible procurement activities.
System for Responsible Procurement
Conflict-Free Procurement Policy
In order to fulfill its corporate social responsibility (CSR) in its procurement activities and build sound relationships with its suppliers, Sumitomo Chemical has been promoting CSR procurement.
In an environment in which the social responsibilities of corporations are growing, even if Sumitomo Chemical has no obligation to comply with a given law or regulation, if it relates to a social problem for which there is significant interest and there is a social demand to comply with it, as is the case with a U.S. rule* on conflict minerals, for example, Sumitomo Chemical works with its suppliers to ensure responsible procurement of raw materials.
- A final rule applying to companies that are publicly listed in the United States that was adopted by the U.S. government in August 2012 pursuant to Section 1502 of the Dodd Frank Wall Street Reform and Consumer Protection Act, which is known as the Conflict Minerals provision. The rule requires companies to disclose and report to the U.S. Securities and Exchange Commission the use in their products or production processes of conflict minerals, including tantalum, tin, gold, or tungsten, originating from the Democratic Republic of Congo or adjoining countries.
Sumitomo Chemical has been striving to fulfill its responsibilities as a member of society in every aspect of its business. Considering the compliance with laws and company rules one of its most important management principles, Sumitomo Chemical established the Basic CSR Policy in accordance with its business philosophy, management principles, and Corporate Charter for Business Conduct in November 2004. On the basis of this Policy, Sumitomo Chemical has been driving its CSR Procurement initiatives forward.
In addition, Sumitomo Chemical believes that suppliers are important business partners and that it is only able to realize CSR Procurement throughout the entire supply chain with the understanding and cooperation of suppliers. In this regard, Sumitomo Chemical would like to ask all of its suppliers to cooperate in fully understanding its Basic Procurement Principles.
In connection with CSR efforts for all suppliers of raw materials and packaging materials, Sumitomo Chemical has compiled five categories (as defined below) in the Sumitomo Chemical Supply Chain CSR Deployment Guidebook.
[This Guidebook is formulated on the basis of the JEITA Supply-Chain CSR Deployment Guidebook released by JEITA* in August 2006.]
- JEITA: the Japan Electronics and Information Technology Industries Association
Sumitomo Chemical Supply-Chain CSR Deployment Guidebook (Tutorial of CSR Items)
Ⅰ. Compliance with laws and Ethics
- Compliance with various business laws
- Prohibit impediment to free competition
- Prohibit abuse of a superior position
- Prohibit corruption and bribery
- Prohibit the offering and receiving of inappropriate profit and advantage
- Respect intellectual property
- Detect injustice promptly
- Prevent the leakage of personal information, customer and third party confidential information
Ⅱ. Human Rights and Labor
- Respect Human Rights
- Prohibit discrimination
- Regulate working hours
- Respect the rights to freedom of association
- Prohibit forced labor
- Prohibit child labor
- Pay appropriate wages
Ⅲ. Prevent Accident and Occupational Health and Safety
- Properly manage disasters and accidents
- Apply safety measures for equipment and instruments
- Promote safety in the workplace
- Promote hygiene in the workplace
- Promote health maintenance programs for employees
Ⅳ. Environmental Preservation
- Establish and apply an environmental management system
- Control hazardous chemicals in manufacturing
- Obtain government permits
- Minimize environmental pollution (water, soil, air)
- Promote waste reduction
- Promote resource and energy saving by reusing, reducing, and recycling (3R)
Ⅴ. Product Quality and Safety
- Establish and apply a quality management system
- Control hazardous chemicals in products
- Provide accurate information on products and services
- Prior consultation on manufacturing process change and Compliance with standards and specifications
Sumitomo Chemical CSR Supply-Chain deployment Guidebook
Sumitomo Chemical CSR Supply-Chain deployment Check Sheets*
- Check sheets contain Sumitomo Chemical's supplier self-evaluations and questionnaires.
Supplier self-evaluation is conducted once a year and the results are required to be submitted to Sumitomo Chemical as necessary.
In addition, Sumitomo Chemical will keep the original copies of Check Sheets received from suppliers for five years from the date of submission.
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