Global Procurement
Taiyo Yuden Group shall procure the parts, material, technology, information and services most suitable for our products needs from the suppliers in the world.
Introduction
In recent years, socially conscious course of action based on high ethical standards is demanded in global business activity. In response to this demand, Taiyo Yuden Group is promoting the Corporate Social Responsibility (CSR) activities under the CSR Charter "To win the trust and goodwill of society, the TAIYO YUDEN Group will respect human rights, keep abreast of and comply with laws and international rules and regulations, and take a socially conscious course of action based on high ethical standards".
In this document, the concept of CSR procurement in Taiyo Yuden Group is indicated in "2. Taiyo Yuden Group Policy" and the minimum requirements for our supplier to comply with the code of conducts are indicated in "3. Request to Our Supplier".
As a member of Taiyo Yuden Group, we are requesting our suppliers to support and to enforce the CSR procurement practice in all the business activities.
Please submit the attached document "Agreement on CSR Procurement" to us with a signature of authorized representative.
Taiyo Yuden Group Policy
Taiyo Yuden Group shall procure the parts, material, technology, information and services most suitable for our products needs from the suppliers in the world.
Opportunity to have business with Taiyo Yuden Group is open to suppliers in the world based on equal and fair standard.
Compliance with the laws and the ethics shall be applied to the procurement activities of Taiyo Yuden Group.
Taiyo Yuden Group shall actively practice the CSR management in procurement activities and further establish sound partnership to build mutual trust and development.
Material Procurement Policy
Fair procurement will be practiced based on ethics. Taiyo Yuden Group will sincerely respond to a company who wishes to establish business partnership with us. Fair evaluation standard will be applied to the rating of the supplier evaluation. If the company fails to have business as a result of the evaluation, its reasons shall be disclosed upon request to the possible extent.
Procurement policy, procurement principle, registration process of the new supplier and various processes from purchase order to payment and corresponding contact persons are clearly indicated.
Taiyo Yuden Group shall conduct procurement based on written contract and strictly controls and manage the information acquired during the business transactions in accordance with the written contract.
Taiyo Yuden Group shall comply with laws and regulations related to procurement.
Unlawful acts such as intentional setting of an unfavorable negotiation with specific suppliers to their disadvantage, abuse of dominant bargaining position and other unreasonable restraint of trade or any suspicious acts shall not be conducted.
Taiyo Yuden Group shall promote "Green Procurement" in the procurement of the parts, materials and services to respect environmental conservation viewpoint.
CSR Activities for Suppliers
TAIYO YUDEN Group shares "TAIYO YUDEN Group CSR procurement requirements" with new suppliers in order to have new suppliers understand the Group's CSR policies including environmental problems. Also, TAIYO YUDEN Group starts to deal with suppliers that declare to comply with the requirements and pass evaluation by using RBA Self checksheet*.
TAIYO YUDEN Group conducts evaluation for existing suppliers by using RBA Self checksheet and conducts physical inspection audits for critical suppliers on a regular basis.
TAIYO YUDEN Group requests corrective actions from suppliers failing to meet the requirements.
Definition of critical suppliers
TAIYO YUDEN Group defines suppliers having high volume of business or supplying critical materials as critical suppliers.
Physical inspection audits
TAIYO YUDEN Group has conducted the physical inspection audits for 30 suppliers.
As a result of the audits, there were no material violations.
* RBA Self checksheet is based on RBA Code of Conduct. It sets human rights, labor, environment, health and safety, fair trade, ethics, management systems and the like as confirmation items, and it includes RBA requirements such as compliance of maximum working hours, legal minimum wages, avoidance of child labor, air emission control and the like.
TAIYO YUDEN Group participates in JAMP (Joint Article Management Promotion-consortium) and JEITA (Japan Electronics and Information Technology Industries Association) as a member in order to address environmental issues and regulatory compliance in collaboration with the industry.
JAMP (Joint Article Management Promotion-consortium)
JAMP manages information on chemical substances contained in an article appropriately and aims to establish and disseminate the concrete system to disclose and transmit the information through companies on supply chain smoothly.
Request to Our Suppliers
Taiyo Yuden Group has established a charter related to Corporate Social Responsibility (CSR Charter) and the CSR Code of Conduct, a specific code of conduct for the employees of Taiyo Yuden Group to abide by.
Our suppliers are requested to check the Taiyo Yuden Group CSR charter / CSR code of conduct and to support our practice.
Our Suppliers shall comply with the Responsible Business Alliance Code of conduct in all the business activities.
This is to request the compliance with the RBA Code of conduct in your supply chain (at least your tier 1 supplier) and to check the current compliance status.
TAIYO YUDEN Group is asking for all suppliers to comply with the RBA Code of conduct and to create the management system to promote continuous improvements.
Further, TAIYO YUDEN Group is asking for all suppliers to update the number of foreign workers by each employment form and ensure that the foreign workers did not pay fee to Local labor agents.
TAIYO YUDEN Group requests all suppliers to comply with the laws and regulations and the social norms of the country and the area where supplier conducts its business ("Regulations").
Followings are the list of some major Regulations.
For the compliance with the Regulations of the items above, suppliers will establish internal rules accordingly: The information shall be disseminated to all employees. If the need for a meeting with employees and/or a labor union arises, suppliers will correspond to it accordingly.
Supplier will create and maintain a communication process to allow employees to freely address their concerns on promoting CSR activities without fear of reprisal.
TAIYO YUDEN Group may export purchased goods delivered from our suppliers to various TAIYO YUDEN Group subsidiaries. In order to comply with applicable regulations and laws of trade or security related such as Foreign Exchange and Foreign Trade Act ("Foreign Exchange Act") in Japan, TAIYO YUDEN Group will arrange required procedures such as classification under Foreign Exchange Act and obtain necessary permission of governmental agency, if so required. If Materials delivered from our suppliers need classification under Ordinance of the Ministry Specifying Goods and Technologies Pursuant to Provisions of the Appended Table 1 of the Export Control Order, Ordinance of the Ministry Specifying Goods and Technologies Pursuant to Provisions of the Appended Table 2 of the Export Control Order, Appended Table of the Foreign Exchange Order, or Export Administration Regulation of USA (EAR) for products or product utilizing technology of USA, suppliers shall so inform us, regardless weather Material falls under the categories of "Applicable" or "Non-Applicable". If Material falls under the category of "Applicable", suppliers shall submit data designated by us, including but not limited to, Non-Application Certificate and parameter sheet.
Suppliers will take an initiative to promote the Environmental Preservation activities and Environmental Management to supply environment-friendly materials.
TAIYO YUDEN Group assesses suppliers' "Green Procurement Activities" annually, promoting study of alternatives for suppliers that are high risk.
Suppliers will take an initiative to promote the Environmental Preservation Activities and Environmental Management, supply environment-friendly materials and take following actions based upon understanding of TAIYO YUDEN Group Environment Charter and Fundamental Principle of Environment.
Suppliers will provide us with a plan, system and its structure to achieve the business continuity activity against calamity or accidents.
In case the supplier is affected by the calamity or accident, such a situation will not only affect the supplier but TAIYO YUDEN Group, its client and its stakeholders.
Suppliers will establish contingency plan in preparation of calamity such as earthquake, flood and other pandemics. Suppliers will indicate the estimated damage and its restoration plan, downsizing the affected risk etc.
Suppliers will create a quality control system in order to comply with the quality assurance provisions indicated in Master Purchase Agreement.
Business entertainment and Gifts that supplier provides to TAIYO YUDEN Group shall be within the bounds of socially accepted limits.
There may be cases that process audit for supplier will be conducted by TAIYO YUDEN Group's QA department for material process control and delivery compliance. TAIYO YUDEN Group may also conduct audit supplier's office and production site and request submission of self-check sheet designated by Procurement Department of TAIYO YUDEN Group in order to check supplier's performance on CSR and business continuity.
In this regard, supplier will understand the necessity of audit and cooperate with the audit.
TAIYO YUDEN Group requests existing suppliers and new suppliers to comply with the above requirements.
With respect to Responsible Minerals Procurement, TAIYO YUDEN Group is asking all suppliers the followings.
Specified requirements are as follows.
Survey results disclosed by supplier may be disclosed to our customers upon the customers' request.
*Conflict minerals
Minerals originating from the Democratic Republic of Congo or adjoining countries and financing armed groups
(tantalum and tungsten, tin, gold or their derivatives)