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Supply Chain Management (Procurement Policy)

Basic stance

The raw materials, goods and products used in the course of business activities are procured through a long supply chain that spans from the mining of resources to their processing, manufacturing and sale.
As a business operator, FP Corporation is responsible for procuring products and services that give consideration to environmental pollution, human rights issues and other concerns in that process.
The FP Corporation Group has established a CSR Procurement Policy based on the FP Corporation Action Charter and promotes consideration for the environment and society in its procurement activities.

CSR Procurement Policy

  1. Quality Standard
    In providing high-quality products in a manner that is valuable, safe and secure for customers, our procurement activities will place the highest priority on quality and safety in keeping with the Group Quality Policy while also placing an emphasis on cost.
  2. Fair Trade
    We will give comprehensive consideration to economic rationality, appropriate quality, strict adherence to delivery deadlines, compliance with social norms, care for social issues, environmental concerns and so on, and select suppliers in a fair and transparent fashion.
    Without a valid reason, we will not show favor to or unjustly disadvantage specific business partners.
  3. Compliance with Laws and Regulations
    In the course of our procurement activities we will respect laws and social norms and not violate them under any circumstances.
    We will not maintain ties of any kind with antisocial forces, and will repudiate any and all unreasonable demands.
  4. Consideration of Social Issues
    We will respect basic human rights, consider occupational health and safety, and endeavor to do business with and procure products and services from suppliers that do not engage in human rights violations such as unfair discrimination, forced labor or child labor.
  5. Environmental Considerations
    Based on the Group’s Environmental Policy, we will promote initiatives to reduce our environmental impact, and endeavor to do business with and procure products and services from suppliers that contribute to controlling or alleviating environmental issues such as climate change and biodiversity.
  6. Cooperating with Suppliers
    In order to give consideration to social issues and the environment throughout the supply chain in the course of procurement, we will forge long-term relationships of trust with suppliers and work towards co-existence and co-prosperity.
    We will work with suppliers to thoroughly implement proper risk management and prevention, and pursue initiatives to avoid impacting society and company management.

FPCO Group Procurement Guidelines

We have drawn up the FPCO Group Procurement Guidelines in accordance with our CSR Procurement Policy to present the actions we expect from our suppliers.

FPCO Group Procurement Guidelines

  1. Quality Standard
    The FPCO Group’s suppliers shall implement strict quality control at the stages of raw materials, research and development, production, transport and sales for the purpose of continually improving quality.
  2. Fair Trade
    The FPCO Group’s suppliers shall observe laws and implement fair and honest procurement activities with a strong sense of ethics.
  3. Compliance with Laws and Regulations
    For the purpose of continuously developing business in a fair and transparent manner, the FPCO Group’s suppliers shall comply with laws, ordinances and international norms at all times and always have sincere attitudes towards customers, business partners, shareholders, subcontractors, governmental institutions and local communities, as well as between employees.
  4. Consideration of Social Issues
    4-1 Prohibition of Child Labor and Forced Labor
    The FPCO Group’s suppliers shall not engage anyone in forced labor or allow children who are below the working age stipulated by national or local statutes to work.

    4-2 Appropriate Working Hours and Wage Management
    The FPCO Group’s suppliers shall ask their employees to properly manage their working hours, holidays and leaves of absence, pay them at least the statutory minimum wage and not unreasonably cut their wages.

    4-3 Respect for Human Rights and the Working Environment
    The FPCO Group’s suppliers shall respect all employees’ dignity and rights, not engage in any unjustifiable discrimination whatsoever against any of them, and endeavor to provide them with an environment that enables them to feel secure, to remain physically and mentally healthy and to demonstrate their capacity to the fullest degree.

    4-4 Respect for Workers’ Right to Unionize and Right to Collective Bargaining
    The FPCO Group’s suppliers shall build favorable relationships with employees through close communication with them.
  5. Environmental Considerations
    5-1 Environmental Conservation Activities
    The FPCO Group’s suppliers shall establish environmental management systems for the efficient and effective implementation of environmental activities and continuously conserve the environment.

    5-2 Effective use of Resources and Energy
    The FPCO Group’s suppliers shall seek to reduce environmental impacts throughout the product life cycle by undertaking the effective consumption of resources and energy, utilizing renewable energy and cutting CO₂ and GHG emissions in an effort to boost the sustainability of the environment and society.

    5-3 Prevention of Environmental Pollution and Waste Reduction
    The FPCO Group’s suppliers shall implement the 3R (reduce, reuse and recycle) initiative with respect to industrial waste to build a recycling society and strive to prevent environmental pollution.

    5-4 Preservation of Biodiversity
    Business cannot operate without various benefits from biodiversity throughout the product life cycle. The FPCO Group’s suppliers shall work to reduce the impacts on biodiversity through both business activities and social activities to secure permanent access to its benefits without using them up.

    5-5 Management of Use of Water
    The FPCO Group’s suppliers shall make effective use of water, which is indispensable for business activities, and reduce the consumption of water resources. They shall also ensure that their water discharge will have no adverse impact on the environment.
  6. Information Management
    The FPCO Group’s suppliers shall be strongly aware of the importance of protecting information assets under their possession or management to properly implement records, reports and others required under laws and ordinances, to store the records and to carry out proper information management that prevents the leakage of their own confidential information as well as that of customers, business partners and other parties.

Building a Sustainable Supply Chain

Human Rights Initiatives in Work Environments

The FP Corporation Group’s Action Charter prohibits all forms of discrimination and harassment. Through efforts to ensure this Action Charter takes root among all Group employees, we promote understanding of human rights issues. We also conduct harassment seminars for all employees and implement initiatives aimed at preventing harassment such as conducting workplace inspections at every site.

Supply Chain Management

FP Corporation pursues initiatives to respect human rights across the entire value chain from the manufacturing of products to their delivery to customers.
When we develop new products or construct new plants and other facilities, we conduct a variety of assessments relating to quality and the environment and assess the impact our activities would have on people and the local community as part of consideration for human rights.
In the supply chain, we verify that there are no human rights violations such as child labor or illegal employment at the production or distribution stages of anything we directly purchase, and require cooperation from our business partners in relation to this.
Moreover, the FP Corporation Action Charter specifies items relating to the “human rights, labor, the environment and anti-corruption, etc.” We promote efforts to put these ideas into practice in cooperation with all employees.