KONICA MINOLTA

About Konica Minolta

Giving Shape to Ideas

Responsible Supply Chain

Implementing CSR Procurement

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Cooperating with External Organizations

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 various working groups of 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 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 200 companies, including the world’s leading electronics manufacturers and their major suppliers, works to improve worker rights (human rights and working conditions), ethics, health, and safety in the supply chain.

RBA logo

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 / Non-Harassment
  7. Freedom of Association

Environment

  1. Environmental Permits and Reporting
  2. Pollution Prevention and Resource Reduction
  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 and Illness
  4. Industrial Hygiene
  5. Physically Demanding Work
  6. Machine Safeguarding
  7. Sanitation, Food, and Housing
  8. Health and Safety Communication

Ethics

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

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. 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*2 has been updating its code of conduct and various systems. As an RBA member, Konica Minolta will make use of the RBA’s 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 is engaged in a program to promote CSR procurement by requesting suppliers participation in CSR activities, assessments, and audits, thus 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.
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 Supply Chain Code of Conduct. Suppliers from which the Group makes purchases directly are asked to acknowledge and implement the Code to their upstream suppliers.
About 110 suppliers identified to be particularly important to Konica Minolta’s business in terms of transaction volume, and the irreplaceability or importance of the parts they handle have been asked to use the Responsible Business Alliance's Self-Assessment Questionnaire (RBA SAQ) to carry out a CSR assessment that confirms the extent of their implementation of the Konica Minolta Supply Chain 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.
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 RBA Code of Conduct as the Konica Minolta Supply Chain 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 Duration
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 Duration
FY2017 to FY2019
Key Measures and KPIs Targets Performance Target Year
FY2017 FY2018 FY2019
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 Implement at 18 group production sites and 15 important suppliers Implement at 2 group production sites and 41 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 Confirmation of improvement of issues pointed out at 2 important group production sites Implement at 1 particularly important supplier
Plan Duration
FY2020 to FY2022
Key Measures and KPIs Targets Performance Target Year
FY2020 FY2021
Percentage of suppliers asked to take CSR activities 100% of suppliers asked to take CSR measures during the medium-term plan’s period (FY20-22) 100% Fiscal 2022
Number of CSR assessments CSR assessments carried out at all Group manufacturing sites and important suppliers (about 100 companies) 4 Group manufacturing sites, 40 suppliers 13 Group manufacturing sites, 30 suppliers
Number of CSR Audit CSR third-party audits (RBA-VAP) carried out at particularly important Group manufacturing sites and particularly important suppliers (total of seven sites) One supplier Two Group manufacturing sites, one supplier

Requesting CSR Activity to Suppliers

Suppliers worldwide are sent copies of Konica Minolta’s procurement policies and the Konica Minolta Supply Chain Code of Conduct and asked to comply with them. The aim is to get suppliers to understand and promote the CSR procurement policies and standards required by Konica Minolta.

From fiscal 2017 to fiscal 2019, while requesting suppliers to undertake CSR activities, Konica Minolta also confirmed their cooperation with the policies and standards by written consent. The response rate was 98%. In fiscal 2021, the Company conducted written confirmation of compliance in line with the revision of the Supply Chain Code of Conduct, and the collection rate was 100%.

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 Supply Chain Code of Conduct.
Konica Minolta has conducted CSR assessments using the self-assessment questionnaire based on the RBA since fiscal 2009. The CSR assessment evaluates site initiatives to address social issues such as labor (human rights) protection, ethics, and health and safety, as well as environmental issues such as minimizing environmental impact. 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. Rank C suppliers are considered to be high-risk, and CSR audits are conducted for those suppliers that have not achieved their targets even after implementing improvements.
In fiscal 2020, four Group production sites and 40 suppliers implemented the assessment, with all production sites achieving rank A and all suppliers achieving rank B or higher on their overall score. There were no high-risk rank C suppliers. 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. In addition, there was a trend toward relatively low scores in the areas of the environment and ethics.

Fiscal 2021 results of CSR assessment for supplier
(percentages for rank on overall and specific components)
Fiscal 2017 results of CSR assessment for suppliers

CSR Audits

Konica Minolta conducts CSR audits at the production companies and suppliers of MFPs, printing equipment, and consumables. CSR audits include Konica Minolta CSR Audits *1 conducted by Konica Minolta employees and RBA third-party audits (VAP audits) *2 conducted by RBA-certified third parties.

*1
Konica Minolta CSR Audits are performed by Konica Minolta auditors with RBA qualifications, using RBA auditing standards.
*2
RBA third-party audits (VAP audits): A third-party RBA-accredited auditing organization that verifies compliance with the RBA Code of Conduct based on auditing standards, identifies areas in need of improvement, and encourages corrective action. RBA is one of the most trusted third-party CSR audits in the world.

In the CSR audit, the Company uncovered issues related to the management of total working hours, the providing of education and training on labor and ethics, and the creation of an internal audit system. However, no issues were found in the RBA standards (A2.1, D7.1), particularly in relation to child labor and responsible mineral sourcing.

CSR Audit Results (10 companies in total)

  • Konica Minolta Business Technologies (Wuxi)
  • Konica Minolta Business Technologies (Dongguan)
  • Konica Minolta Business Technologies (Malaysia)
  • Konica Minolta Supplies Manufacturing Co., Ltd.
  • Konica Minolta Supplies Manufacturing France S.A.S.
  • Allied Precision Manufacturing
  • Dong Guan Konka Mould Plastic Co., Ltd.
  • Three contract manufacturers of MFP/printing equipment

In fiscal 2021, RBA third-party audits (VAP audits) were conducted at Konica Minolta Business Technologies (Wuxi) in China, Konica Minolta Business Technologies (Malaysia) and a contract manufacturer of MFP and printing equipment in China. Several issues were identified in the areas of labor, health and safety, and management systems. The most common issues were the management of working hours and the recording of work-related considerations by pregnant and childcare providing employees. The Company is developing corrective plans and improving the issues found and plans to conduct a closure audit in fiscal 2022 to confirm that the issues have improved.

In addition, an RBA third-party closure audit (VAP audit) was conducted in fiscal 2021 at a plant in Thailand that contract manufactures MFPs, and Konica Minolta has corrected the issues found during the RBA third-party audit (VAP audit), such as installing automatic fire extinguishing equipment, and training emergency response personnel and cafeteria workers. Nevertheless, it was found that labor management-related issues still need to be corrected due in part to the difficulty of securing employees as a result of COVID-19. Konica Minolta will continue to verify the status of corrective measures being taken at the contracted factories.


CSR Audit at Konica Minolta Business Technologies (Malaysia) Sdn.


CSR Audit at Konica Minolta Business Technologies (Wuxi) CO., Ltd.

Support for Improvement (Capacity Building) – Training Stakeholders and Support for Improvement

To build internal stakeholder and supplier capacity, Konica, Minolta provides training and support for corrective action based on the results of the CSR assessments and audits.
The training is designed to enable participants to understand the respect for human rights required by customers and society, societal demand for CSR procurement, legal and regulatory trends, the RBA Code of Conduct, and their relationship to business, so that they can make CSR procurement activities their own and actively take part.
In fiscal 2021, Konica Minolta trained approximately 100 employees from the human resources, procurement (buyer), environmental, and other divisions of Konica Minolta’s own manufacturing companies, and provided training at the plants of MFP contract manufacturers in China.

In its support of corrective action, Konica Minolta explains the objective and assessment content of RBA to suppliers who do not properly understand the questionnaire’s content at the time of the CSR assessment and provide advice on the required documents and initiatives. Konica Minolta also assisted the Dong Guan Konka Mould Plastic Co., Ltd. in China, which conducts Konica Minolta CSR audits, by training its internal auditors to help it build a system that enables it to voluntarily conduct internal audits make continuous improvements.


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

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