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 170 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
  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 Improper 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*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.

In fiscal 2021, the Konica Minolta Supplier Code of Conduct was replaced with the Konica Minolta Supply Chain Code of Conduct. This new title is used to clarify that Konica Minolta’s code of conduct covers the entire supply chain, including Konica Minolta and its business partners.

*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 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 100 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 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. 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 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
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) 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
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

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%.

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 framework 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. It is also notable that there was a trend toward relatively low scores in the area of ethics and the environment.

Fiscal 2020 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 has been promoting improvement to the audit findings since 2014, by implementing RBA third party audit (VAP audit) at first. Based on this knowledge, Konica Minolta CSR Audits*1 have been introduced at the companies who produce the main units for multi-functional peripherals (MFPs)/printing equipment. In fiscal 2017, the audit target was expanded to include not only the company manufacturing the main unit of the MFPs, but also materials for MFPs, including the company that produces consumables such as toner cartridges, etc., and a CSR audit was conducted. Bases for the final production in Konica Minolta’s mainstay business, the Office Business, are mainly located in Japan, China, and ASEAN. Konica Minolta places great importance on audits at those bases in order to practice high-quality craftsmanship as a manufacturer and to carry out CSR-oriented production activities. The implementation rate of RBA third party audits (VAP audits) and Konica Minolta CSR Audits up through fiscal 2020 is 86%. 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 closure audit showed that the improvements have been completed. The non-conformance rate in RBA third party audits (VAP audits) and Konica Minolta CSR Audits was 7%. The completion rate for corrections of priority non-conformance points was 100%. The completion rate for correction of other non-conformities was 56%. Konica Minolta will continue to improve conformity through the use of plan-do-check-act (PDCA) cycles.

*1
Konica Minolta CSR Audits are performed by Konica Minolta auditors with RBA qualifications, using RBA auditing standards.

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 completed Konica Minolta CSR audits. In order to improve issues identified in their audits of 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.

In fiscal 2017, a Konica Minolta CSR Audit was conducted to Konica Minolta Supplies Manufacturing Co., Ltd. and Konica Minolta Supplies Manufacturing France S.A.S. 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 closure audit was conducted at Konica Minolta Supplies Manufacturing in fiscal 2018, and it confirmed that improvements to the labor (human rights) and management system had been completed. Konica Minolta also confirmed that the management system had been improved at Konica Minolta Supplies Manufacturing France.
Allied Precision Manufacturing in Malaysia implemented a Konica Minolta CSR audit in fiscal 2015, and took corrective actions with Konica Minolta’s support. A closure 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 closure 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 office equipment product on a consignment basis in China. 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.
In fiscal 2019, a new Konica Minolta CSR Audit was conducted at the factory that produces Office equipment products on a consignment basis in China, and improvement efforts were implemented with the support of Konica Minolta. A closure audit confirmed that improvements to some of the labor issues and the management system had been completed. The company is still working on improving certain issues.
In fiscal 2020, a new RBA third-party audit (VAP audit) was conducted at a factory that produces office equipment products on a consignment basis in Thailand. Issues with labor management were identified, and Konica Minolta will require the company to make ongoing 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 assessments and CSR audits. Also, based on the results of the assessments and audits, the Group provides suppliers with support for improvements that make use of Konica Minolta’s knowledge.

In fiscal 2017, a Chinese manufacturer, Dong Guan Konka Mould Plastic Co., Ltd., which implemented a 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. Every year, training is conducted on the importance of helping to create a sustainable society by promoting CSR procurement. Other topics include social trends related to CSR, trends in laws and regulations worldwide, and the need for internal CSR procurement initiatives. Training is provided to about 50 people each year, including members of the human resources, procurement (buyers), and environmental affairs departments in Konica Minolta, Inc. and its production sites.


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

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