KONICA MINOLTA

About Konica Minolta

Giving Shape to Ideas

Responsible Supply Chain

Implementing CSR Procurement

Environmental Collaboration Aimed at Strengthening the Management of Chemical Substances Included in the Supply Chain

UN Global Compact

In 2009, Konica Minolta signed the Global Compact, which consists of 10 principles, related to human rights, labor, the environment, and anti-corruption, advocated by the United Nations.

The Global Compact is a set of voluntary action principles for businesses proposed in 1999 by then UN Secretary-General Kofi Annan and officially established at the United Nations Headquarters in 2000. It is an initiative to achieve sustainable growth on a global scale by encouraging businesses to act as upstanding members of the international community by demonstrating responsible, creative leadership in solving various worldwide problems, including global warming, environmental problems, and economical stratification in society.

Konica Minolta participates in the Working Group on Supply Chains and the Working Group on Human Rights Due Diligence with the Global Compact Network Japan, and it makes use of these experiences in its CSR procurement initiatives.

Responsible Business Alliance (RBA)

Konica Minolta joined the EICC (now rebranded to the RBA) in October 2013, and has been acting as a member to strengthen its CSR procurement in the supply chain.

The RBA, which is made up of more than 100 companies, including the world’s leading electronics manufacturers and their major suppliers, works to improve human rights, ethics, health, and safety in the supply chain.

EICC

The RBA Code of Conduct (Source: RBA materials)

Labor

  1. Freely Chosen Employment
  2. Young workers
  3. Working Hours
  4. Wages and Benefits
  5. Humane Treatment
  6. Non-Discrimination
  7. Freedom of Association

Environment

  1. Permits & Reporting
  2. Pollution Prevention
  3. Hazardous Substances
  4. Solid Waste
  5. Air Emissions
  6. Materials Restrictions
  7. Water Management
  8. Energy Consumption and Greenhouse Gas Emissions

Management Systems

  1. Company Commitment
  2. Management Accountability and Responsibility
  3. Legal and Customer Requirements
  4. Risk Assessment and Risk Management
  5. Improvement Objectives
  6. Training
  1. Communication
  2. Worker Feedback, Participation and Grievance
  3. Audits and Assessments
  4. Corrective Action Process
  5. Documentation and Records
  6. Supplier responsibility

Health & Safety

  1. Occupational Safety
  2. Emergency Preparedness
  3. Occupational Injury & Illness
  4. Industrial Hygiene
  5. Physically Demanding Work
  6. Machine Safeguarding
  7. Sanitation, food, housing
  8. Health & Safety Communication

Ethics

  1. Business Integrity
  2. No lmproper Advantage
  3. Disclosure of Information
  4. Intellectual Property
  5. Fair Business, Advertising and Competition
  6. Protection of Identity and Non-Retaliation
  7. Privacy
  8. Responsible Sourcing of Minerals

Konica Minolta’s CSR Procurement Initiatives

Working to improve labor conditions (human rights), ethics, the environment, and safety and health in the supply chain

Companies have to take social responsibility not only for their own products but also for improving labor conditions (human rights), ethics, the environment and health and safety in the supply chain used to deliver products to customers. In line with this recognition, Konica Minolta promotes CSR procurement that pursues these kinds of improvements together with its business partners who supply and produce materials such as raw materials, parts and components, as well as Group production sites, with the aim of establishing a sustainable society in which human rights are respected.

Laws such as the California Transparency in Supply Chains Act and the UK Modern Slavery Act 2015 have been enacted in recent years. More than ever, companies’ human rights initiatives must also address the issues of slavery and human trafficking. In response to social demands like these, the RBA* has been updating its code of conduct and various systems. As an RBA member, Konica Minolta will make use of the RBA framework to address these social issues.

*1
Supply chain: The series of activities involved in delivering a product or service to a customer, ranging from procurement and production to distribution and sales.
*2
Responsible Business Alliance (RBA): Organization that promotes CSR in the supply chain

Konica Minolta’s CSR Procurement Promotion Program

Konica Minolta strives to ensure socially responsible procurement by requesting suppliers to participate in CSR activities, assessments, and audits, and helping them to improve.

Konica Minolta has implemented a four step CSR procurement promotion program to address any issues related to labor conditions (human rights), ethics, the environment and health and safety in its supply chain.

The scope of the program covers suppliers from which the Group directly purchases materials and contracts work. There are 1,158 suppliers that Konica Minolta directly pays to purchase materials for production. Of these materials for production, 59% is mechanical components, 27% is electrical components, 6% is chemical components, and 9% is other components.

Fiscal 2017 procurement categories
Based on number of suppliers

First, suppliers are requested to carry out CSR activities based on clearly articulated standards to be maintained in line with Konica Minolta’s procurement policies and Supplier Code of Conduct. Suppliers from which the Group makes purchases directly are asked to acknowledge and implement the Code to their upstream suppliers.

About 120 suppliers identified to be particularly important to Konica Minolta’s business in terms of transaction volume or the irreplaceability or importance of the parts they handle are requested to use the Responsible Business Alliance's Self-Assessment Questionnaire (RBA SAQ) to carry out a CSR assessment that confirms their level of implementation of the Konica Minolta Supplier Code of Conduct. Where assessment results do not meet targets, Konica Minolta requests suppliers to implement corrective actions.

Further, the Group conducts CSR audits on suppliers that are especially important for its business and on suppliers that did not achieve targets despite making improvements. CSR audits are carried out primarily in the style of Konica Minolta CSR Audits*1, with an RBA third-party audit (VAP audit*2) conducted in case as appropriate.

Konica Minolta provides support to help suppliers improve any issues that come to light through the CSR assessments and CSR audits. The aim of Konica Minolta’s CSR procurement promotion program is ultimately to empower its suppliers to implement self-directed CSR activities.

Finally, the Group sometimes considers ending business with suppliers that do not make any improvement at all despite the support provided.

*1
Konica Minolta CSR Audit: Konica Minolta auditors who have RBA qualifications implement an audit based on RBA Audit standards.
*2
RBA third-party audit (Validated Audit Program [VAP] audit): An audit conducted by a third-party auditing organization certified by the RBA to confirm the status of compliance with the RBA Code of Conduct based on audit standards, identify points for improvement, and encourage correction. As a third-party CSR audit, the RBA VAP audit is one of the most trusted in the world.

Konica Minolta uses the RBA Code of Conduct as the Konica Minolta Supplier Code of Conduct, which it provides in Japanese, English, and Chinese. See the RBA Code of Conduct for other languages.

Konica Minolta’s CSR Procurement Promotion Program
Konica Minolta’s CSR Procurement Promotion Program

Targets and Results

Plan Period
FY2014 to FY2016
Key Measures and KPIs Targets Performance Target Year
FY2014 FY2015 FY2016
Percentage of suppliers requested to carry out CSR activities 100% implementation - 100% 100% End of fiscal 2016
Number of CSR assessments: All Group production sites and important suppliers conducted assessment Group production sites: All sites
Suppliers: More than 130 suppliers
- Implemented at 16 group production sites and 57 important suppliers Implemented at 3 group production sites and 79 important suppliers
Number of CSR audits: Audits conducted at particularly important Group production sites and suppliers Group production sites: 3 sites
Suppliers: 2 suppliers
Implemented at 1 particularly important group production site Implemented at 1 particularly important supplier Implemented at 2 particularly important group production sites and 1 particularly important supplier
Plan Period
FY2017 to FY2019
Key Measures and KPIs Targets Performance Target Year
FY2017
Percentage of suppliers requested to carry out CSR activities 100% implementation 100% End of fiscal 2019
Number of CSR assessments: All Group production sites and important suppliers conducted assessment Group production sites: All sites
Suppliers: More than 120 suppliers
Implement at 3 group production sites and 50 important suppliers
Number of CSR audits: Audits conducted at particularly important Group production sites and suppliers Group production sites: 2 sites
Suppliers: 2 suppliers
Implement at 2 particularly important group production sites and 1 particularly important supplier

Requesting CSR Activity to Suppliers

Suppliers are requested to conduct CSR activities using Konica Minolta’s procurement policies and the Konica Minolta Supplier Code of Conduct, in order to get suppliers to understand and promote the CSR procurement policies and standards required by Konica Minolta.
In fiscal 2017, while requesting suppliers to undertake CSR activities, Konica Minolta also confirmed their cooperation with the policies and standards in a written consent. The response rate was 97%.

CSR Assessments Using a Self-Assessment Questionnaire

CSR assessments using a Self-Assessment Questionnaire are conducted at production sites and important suppliers, in order to assess the level of implementation of the Konica Minolta Supplier Code of Conduct.
Konica Minolta has conducted CSR assessments using the self-assessment questionnaire based on the RBA framework since fiscal 2009. Konica Minolta classifies the results of the self-assessment questionnaire from rank A to C. The targets for overall scores are rank A for all Group production sites and rank B or higher for all suppliers. In fiscal 2017, 3 Group production sites and 50 suppliers implemented the assessment, with all production sites achieving rank A and all suppliers achieving rank B or higher on the overall score. These assessment results met the target, but suppliers whose scores for specific components such as labor issues (human rights), ethics, environment, or health and safety revealed weaknesses were asked to make voluntary improvements. It is also notable that there was a trend toward relatively low scores in the area of ethics.

Fiscal 2017 results of CSR assessment for suppliers

CSR Audits

Konica Minolta has been promoting improvement to the audit findings in its major production sites since 2014, by implementing RBA third party audit (VAP audit) at first. Based on this knowledge, Konica Minolta CSR Audits have been introduced at the companies who produce the main units for multifunction printers/printing equipment. In fiscal 2017, the audit target was expanded to include not only the company manufacturing the main unit of the multi-function printers, but also materials for multi-function printers, including the company that produces consumables such as toner cartridges, etc., and a CSR audit was conducted. These CSR audits uncovered several issues, such as management of total working hours, implementing training in areas such as labor and ethics, and the construction of an internal auditing system. To solve these issues, the audited company created and implemented an improvement plan, and a follow-up audit showed that the improvements have been completed.

At Konica Minolta Business Technologies (WUXI) Co., Ltd., located in China, an RBA third-party audit (VAP audit) was conducted in fiscal 2014 and made corrective actions. In fiscal 2017, the new internal audit system was used to conduct a self-evaluation and make improvements on problem areas such as labor, safety and health. The internal audit system will remain in use in the future to make continued improvements.

Konica Minolta Business Technologies (Dongguan) Co., Ltd. in China, and Konica Minolta Business Technologies (Malaysia) Sdn. Bhd. have already gone through Konica Minolta CSR audits. In order to improve issues identified by their audits in fiscal 2016, the two companies established internal audit systems and implemented training about RBA audit standards and CSR issues to their internal auditors. This led to the establishment of systems that enable continuous improvement. The two sites are also continuing to work on improvements concerning some of their remaining labor issues.

A Konica Minolta CSR Audit was conducted to Konica Minolta Supplies Manufacturing France. Although the audit showed the commonly observed issue of a need to set up an internal audit system, there were no particular issues uncovered regarding immigrant labor and child labor based on the RBA standards (A1.4 and A2.1). A follow-up audit will be conducted in fiscal 2018 with plans to assure the status of improvements.

Allied Precision Manufacturing in Malaysia implemented a Konica Minolta CSR audit in fiscal 2015, and took corrective actions with Konica Minolta’s support. A follow-up audit was implemented in fiscal 2016, confirming that improvements to ethics, environment, and management systems had been completed. The company is still working on improving certain issues.


Konica Minolta CSR Audit at Konica Minolta Supplies Manufacturing France S.A.S.

In addition, a Konica Minolta CSR audit was done in fiscal 2016 at Dong Guan Konka Mould Plastic Co., Ltd. in China, and corrective actions were taken with Konica Minolta’s support. A follow-up audit was implemented, confirming that improvements to the environmental issues had been completed. The company is still working on improving certain issues.

A Konica Minolta CSR Audit was also conducted at the factory which produces information product on a consignment basis in China. The Konica Minolta CSR Audit showed that the consigned production factory has incorporated a management system based on the RBA Code in the areas of labor, ethics, environment, safety and health, and confirmed that there is a firm framework in place for making continued improvements.

Support and Incentives for Suppliers

Aiming to encourage suppliers to engage in self-directed CSR activities, Konica Minolta explains to suppliers the social expectation for CSR procurement, including customer demands, and provides education related to RBA audit standards required in CSR audits. Also, based on audit results the Group provides suppliers with support for improvements that make use of Konica Minolta’s knowledge.

In fiscal 2017 activities, a Chinese manufacturer Dong Guan Konka Mould Plastic Co., Ltd which was implemented Konica Minolta CSR Audit in fiscal 2016. was given support to conduct its own internal audit the following year, including education to their internal auditors. This support is helping the company to establish a framework for its own continuous improvement.

Training for Relevant Personnel at Konica Minolta

In order to succeed with CSR procurement, the Konica Minolta Group must ensure that relevant personal understand its CSR procurement objectives and tools for implementation. In 2015, education was given to a total of around 60 relevant personnel on topics such as CSR-related laws and regulations in and outside Japan, social trends, and questionnaire-based CSR assessments.


Internal education at Konica Minolta Business Technologies (DONGGUAN) Co., Ltd.

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