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.

EICC (Electronic Industry Citizenship Coalition)

Konica Minolta joined the EICC* in October 2013, and has been acting as a member to strengthen its CSR activities in the supply chain.

The EICC, 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

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. Wastewater and Solid Waste
  5. Air Emissions
  6. Stormwater management
  7. Materials restrictions
  8. Energy Consumption and Greenhouse Gas Emissions


EICC Code of Conduct (from EICC materials)

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 and Participation
  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 EICC* has been updating its code of conduct and various systems. As an EICC member, Konica Minolta will make use of the EICC’s framework to address these social issues.

*
EICC (Electronic Industry Citizenship Coalition): An organization promoting CSR in the supply chain for the electronics industry

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 existing and new suppliers from which the Group directly purchases materials and contracts work. There are approximately 1,200 suppliers that Konica Minolta directly spends to for materials for production.

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 relay this request to 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 Electronic Industry Citizenship Coalition’s Self-Assessment Questionnaire (EICC 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 use the EICC’s auditing standards. Konica Minolta CSR Audits, which are conducted by Konica Minolta’s auditors who have EICC auditor qualifications, are carried out as the primary audit with an EICC third-party audit (VAP audit*) conducted 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.

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

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

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

Fiscal 2016 Targets and Results

Fiscal 2016 Targets Fiscal 2016 Results
  • Request that suppliers carry out CSR activities
  • CSR assessment: All Group production sites and important suppliers complete assessment
  • CSR audit: Audits completed at particularly important Group production sites and suppliers
  • Request that suppliers carry out CSR activities: 100% implementation
  • CSR assessment: Completed by 19 Group production sites and 79 important suppliers
  • CSR audit: Completed for three particularly important Group production sites and two suppliers

CSR Requests 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 2016, CSR requests were made to all suppliers.

CSR Assessments Using a Self-Assessment Questionnaire

CSR assessments using a Self-Assessment Questionnaire are conducted at all 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 EICC 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 2016, 19 Group production sites and 79 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.

Results of CSR assessment for suppliers (percentages for rank on overall and specific components)

Results of CSR assessment for suppliers (Scores on overall and specific components)

CSR Audits

Audits of Konica Minolta’s Production Sites

Konica Minolta Business Technologies (WUXI) Co., Ltd., located in China, implemented an EICC third-party audit (VAP audit*1) in fiscal 2014 and made corrective actions. In fiscal 2016, an EICC third-party audit (VAP closure audit) was implemented, confirming that corrective actions in health and safety, environment, and management systems had been completed. Improvements are still continuing on certain labor issues.

Moreover, a Konica Minolta CSR audit*2 was implemented in fiscal 2016 at Konica Minolta Business Technologies (DONGGUAN) Co., Ltd. in China and Konica Minolta Business Technologies (Malaysia) Sdn. Bhd. in Malaysia. No issues were identified regarding EICC standards related to migrant workers and child labor (A1.3, A2.1). In fiscal 2017, a follow-up audit will be carried out to confirm the status of improvements.


VAP closure audit at Konica Minolta Business Technologies (WUXI) Co., Ltd.

Audit results

Audits of Suppliers

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.

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.


CSR audit at Dong Guan Konka Mould Plastic Co., Ltd.

*1
EICC third-party audit (Validated Audit Program [VAP] audit): An audit conducted by a third-party auditing organization certified by the EICC to confirm the status of compliance with the EICC Code of Conduct based on audit standards, identify points for improvement, and encourage corrective action. As a third-party CSR audit, the EICC VAP audit is one of the most trusted in the world.
*2
Konica Minolta CSR Audit: Using EICC’s audit standards, Konica Minolta auditors with EICC audit certification carry out audits.

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 EICC 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 2016, Konica Minolta supported improvements at Allied Precision Manufacturing and Dong Guan Konka Mould Plastic Co., Ltd., both of which implemented Konica Minolta CSR Audits. After providing CSR education, Konica Minolta worked together with the two companies to establish a corrective action plan for the issues identified in the CSR audit. Konica Minolta held meetings to verify the progress on improvements and offered advice as appropriate. Most improvements have been completed.

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.

Initiatives for Socially Responsible Logistics

Pursuing socially responsible logistics practices by promoting CSR activities at logistics partners

In cooperation with DHL Supply Chain Ltd., Konica Minolta is working hard to ensure that partners contracted to provide logistics services are using socially responsible business practices. This initiative is conducted in cooperation with logistics partners to improve issues and strengthen measures in CSR-related issues in areas such as labor (human rights), ethics, environmental preservation, and safety and health. Through this initiative, the Group seeks to solve social issues while working together with logistics partners to increase Konica Minolta’s corporate value by ensuring that customers can purchase its products with peace of mind, knowing that CSR has been taken into account throughout the supply chain.*

*
Supply chain: The series of activities involved in delivering a product or service to a customer, ranging from procurement and production to logistics and sales.

Fiscal 2016 Targets and Plans

Fiscal 2016 goals and targets Fiscal 2016 results
  • Carry out assessment with logistics suppliers and complete improvements
  • Assessments carried out by eight logistics suppliers and improvements completed

CSR Assessment Using Self-Assessment Questionnaire and Improvements

CSR assessments using Self-Assessment Questionnaires are implemented by important logistics suppliers to assess their level of implementation of the Konica Minolta Supplier Code of Conduct.

In fiscal 2015, eight suppliers implemented this CSR assessment and results showed overall scores ranked B or higher, achieving the target. In fiscal 2016, Konica Minolta helped these suppliers, working in cooperation with DHL, to improve specific issues with lower scores by making suggestions for improvements based on its knowledge and experience.

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