Social Responsibility
About
Partnership with Suppliers
Building Mutually Beneficial Relations with Suppliers and Contractors Based on Fair and Open Transactions
Basic Procurement Policies
Open and Fair Procurement Activities on a Global Basis
The Konica Minolta Group seeks to build mutually beneficial relations with our suppliers and contractors, our essential partners. By keeping our transactions fair and open, we hope to develop our business together with our suppliers and contractors, and achieve our common goal of providing excellent products.
Within the Konica Minolta Group, a business company of office equipment, Konica Minolta Business Technologies, Inc., (hereinafter referred to as Business Technologies), has transactions with the greatest number of suppliers and contractors. In addition to maintaining fair and free competition among suppliers, Business Technologies always emphasizes transparency in selecting its suppliers from around the world. Its Basic Procurement Policies feature five keywords: Open, Fair, Global, Compliance, and Ecology. The last two keywords represent the firm's dedication to fulfilling its corporate social responsibilities and to promoting green procurement, respectively.
To build solid partnerships, Business Technologies disseminates its Basic Procurement Policies among its suppliers and contractors, and shares information with them. Moreover, the Company seeks to achieve the objectives it holds in common with its suppliers, by exchanging information and technologies effective in improving environmental and other aspects of materials and components.
| Open | We procure in an open, transparent manner, and from a long-term global perspective, so as to achieve trust-based relationships with our suppliers, with whom we share the goal of synergistic growth. |
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| Fair | On the basis of free competition we maintain a win-win approach and implement rational evaluation criteria that benefit both sides. |
| Global | To achieve market superiority, we globalize our procurement activities so as to obtain parts/materials in the region that best suits our operational needs. |
| Compliance | We comply with all applicable laws, corporate ethics, internal policies, and regulations. |
| Ecology | We contribute to global and regional communities by protecting the environment and minimizing ecosystem impact in every region. |
Education of Procurement Staff Members
Compliance Education and Open and Fair Transactions to Build Mutually Beneficial Relations with Suppliers
To ensure openness and fairness in its transactions, Business Technologies provides educational programs for its procurement staff regarding Basic Procurement Policies and the Konica Minolta Group Conduct Guidelines.
Relations with Suppliers and Contractors
We promote thorough observance of the following items, stipulated in the Konica Minolta Group Conduct Guidelines:
- We always comply fully with anti-trust and competition laws, and conduct transactions in a manner that is fair, transparent, and promotes free competition.
- We do not unfairly discriminate between domestic and foreign suppliers; we procure and purchase in a manner that is fully transparent.
- We develop all business relations in a manner that honors the boundaries of socially or internationally accepted standards.
- We do not solicit or accept business entertainment beyond the socially accepted standard.
- We do not participate in any illegal or unfair transactions, even if requested by a customer or supplier.
- We make no personal investments or loans to any supplier. However, this restriction does not apply to the purchase of publicly traded stock.
- We do not place purchase or sale orders for any publicly traded stock or security of a company regarding which we possess insider information of a material nature that has not yet been disclosed to the public.
Strengthening Partnerships with Suppliers and Contractors
Establishing a Procurement Collaboration System
During fiscal year 2006, Business Technologies purchased parts and materials from 800 companies inside and outside Japan.
For these suppliers, the Company annually holds regular vendors' meetings at which it explains its procurement policies, together with results for the relevant fiscal year and plans for the coming year. Through such information sharing and disclosure, the Company seeks to promote open and fair transactions. The Company uses a Procurement Collaboration System, under which it renders cooperation and assistance to suppliers and contractors regarding their product quality, cost, delivery lead-time, and environmental and financial management.
In individual collaboration programs, the Company’s representatives visit its suppliers and contractors at their respective operations to discuss their situations and, if necessary, any problems that may have arisen. Based on these discussions, the representatives offer suggestions and assistance to improve the situation through joint efforts. Regarding problems relating to quality and environmental issues, the Company’s specialists in these areas help identify and resolve problems at suppliers’ operations. If suppliers have an adequate control system, the Company asks them to identify their own problems.
As part of the collaboration programs, in August 2006 the Company began training in Japan and China to develop what we call “environmental diagnosis specialists” for Konica Minolta’s suppliers and contractors. To date, Business Technologies has trained and certified a total of 362 such specialists, working for 207 companies.
Promoting Green Procurement
Promoting Green Procurement through Close Partnerships with Suppliers, to Meet RoHS and Other Requirements
To procure components and materials that have the minimum environmental impact, in selecting suppliers, Business Technologies evaluates the environmental consciousness of their products, in addition to product quality, cost, and delivery lead-time. As part of such efforts, in April 2005 the Company commenced green procurement programs in Japan and China, programs that incorporate initiatives to meet the requirements of the RoHS Directive. Concurrently, the Company began to survey harmful substances contained in parts and materials in response to the RoHS Directive, which took effect in the EU in July 2006. The Company continues its initiatives to remain RoHS–compliant with its environmental collaboration programs,, under which the Company will conduct initial diagnoses of new suppliers and regular diagnoses of existing suppliers.
During fiscal year 2006 a Japanese sales company of our image information products—Konica Minolta Business Solutions—established the PPC Paper Purchase Standards stipulating that copy paper to be supplied to customers should be procured with sufficient consideration paid towards minimizing the impact of deforestation, and preserving the flora and fauna of the forests, as well as protecting the local inhabitants; the company began to implement this policy from fiscal year 2007.
Procurement Risk Management
Procurement Risk Management Initiatives
Konica Minolta Group products comprise components and parts provided by many suppliers. Accordingly, a problem in our supply chain can impact the entire manufacturing flow and product delivery to our customers.
To prevent supply chain-related risks (suppliers' financial risks, disaster risks, country risks etc.), Business Technologies is seeking the cooperation of suppliers and contractors in its risk management initiatives. At the same time, the company has established a financial consulting system under which it offers financial information and support to suppliers and contractors of lower rank in financial assessment. To ensure the company's continued operation even in the event of an earthquake or other natural disaster, the company has built a global information network.
The company has also assessed the impact of potential disasters, simulating various cases in which material/component supply is halted due to damage suffered by suppliers and contractors. Through such simulations the company has estimated the duration until normal procurement activities can be resumed, and has also prepared a plan to help suppliers and contractors recover normal output level at the earliest possible stage.
