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CSR - Corporate Social Responsibility
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CSR Management in the Supply Chain

Policy

Supplier audit in the Philippines
Supplier audit in the Philippines

In order to enable customers to use Toshiba products safely as well as to fulfill CSR in regards to human rights, labor, and the environment in cooperation with suppliers, Toshiba Group continues to ensure that its suppliers are also committed to improving working conditions and reducing their environmental impact.
We also believe that in addition to proper management of working hours and wages, ensuring improved communication between workers and managers, as well as paying attention to occupational health and safety and to the environment in areas around factories will boost employee morale and contribute to improved work efficiency.
Accordingly, Toshiba Group will continue to share its management know-how acquired through experience with suppliers worldwide, particularly those in emerging economies.
In addition to issues regarding the use of conflict-free minerals, there are increasingly diversified concerns about CSR among stakeholders, including laws on human trafficking and slavery, such as the California Transparency Act and the UK Bribery Act, and environmental issues. With a view to resolving these issues, Toshiba Group will focus its efforts on programs for CSR in the supply chain.

Thorough Implementation of Procurement Policy

Toshiba Group Procurement Policy was established in February 2005, which outlines Toshiba Group's procurement policy and CSR-related requirements. Toshiba Group requests suppliers to consider human rights, labor, occupational health and safety in their operations as well as environmental issues such as green procurement. In 2012, we added two items: respect for human rights and support for the use of conflict-free minerals to the supplier requirements, and requested some 10,000 suppliers to comply with this policy.
We explain and request to comply with the Toshiba Group Procurement Policy from all new suppliers.

Toshiba Group Procurement Policy

CSR Guidebook Published

To guide our suppliers to incorporate CSR into their operations, we developed the Toshiba Group Supply Chain CSR Deployment Guidebook* to introduce the view point of management policies on health and safety and the environment in four languages - Japanese, English, Chinese and Thai.

* The Guidebook complies with the Supply-Chain CSR Deployment Guidebook published by Japan Electronics and Information Technology Industries Association (JEITA)

TOSHIBA Group Supply-Chain CSR Deployment Guidebook (Japanese) (PDF:418KB)

TOSHIBA Group Supply-Chain CSR Deployment Guidebook (English) (PDF:149KB)

TOSHIBA Group Supply-Chain CSR Deployment Guidebook (Chinese) (PDF:260KB)

TOSHIBA Group Supply-Chain CSR Deployment Guidebook (Thai) (PDF:219KB)

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Procurement Policy: Checks and Audits on Compliance

Toshiba Group monitors the status of CSR management of its ongoing suppliers at manufacturing sites at the time of quality audits and request improvements and provides guidance as necessary. For new procurement transactions, we confirm conformity with Toshiba Group's procurement and selection policies not only with respect to the goods and services procured, but also suppliers' manufacturing sites, its management structure and their business conditions.

Thorough Implementation of the CSR Procurement Policy

Toshiba Group holds seminars to explain to suppliers its policies on the environment, human rights, labor, and safety. It also conducts supplier surveys to monitor CSR performance in accordance with the Toshiba Group Procurement Policy (including self-assessment) at each business site.

Suppliers participating in seminars and those covered by the survey (FY2013, Toshiba Group)

Topic Briefings Surveys (including self-assessment) Field Audit
Human rights and safety 5,008 1,638 419
Environment 3,404 3,975 679
Total 8,412 5,613 1,098

Thorough Implementation of the CSR Procurement Policy (Toshiba Group in Japan and overseas)

Thorough Implementation of the CSR Procurement Policy (Toshiba Group in Japan and overseas)

Actions on Suppliers in the Event of Breach of the Procurement Policy

If a supplier violates the procurement policy, we request the supplier to implement remedial measures and provide guidance and support, as necessary. If the remedial measure is deemed to be unsatisfactory, we suspend transactions with the supplier.

Suppliers subject to guidance & support and suspension of transactions (FY2013, Toshiba Group)
Topic Guidance and Support Suspension of transactions
Human rights and safety 432 43
Environment 348 1
Examples of supplier guidance and instructions (FY2013)
Environmental Activities
  • Guidance on reports on industrial waste to administrative authorities
  • Support in establishing management systems at companies to which production is outsourced
  • Guidance on improvement of rules and application methods
Human Rights and Occupational Health & Safety
  • Guidance on the corrective actions for dangerous working conditions
CSR Survey of suppliers (FY2006 - FY2012)
  Survey targets Survey items Remarks
Areas, items handled, etc. Number of companies
FY2006 100 suppliers having a high percentage of their business with Toshiba 100 Product quality, environmental initiatives, information security, human rights & labor, health and safety, etc. New survey items such as human rights, labor conditions, and occupational health and safety were included in addition to the previous categories such as quality, the environment and information security.
FY2007 Continuing major suppliers in Asia 265 Human rights & labor, health and safety, and environmental protection  
FY2008 Selected Thai suppliers  3

Labor, environment, procurement, etc.

(on-site audits)
No serious non-compliances were identified, however, Toshiba provided instructions with regard to improving H&S management structure and controlling oil leakages at the factory
FY2009 Selected suppliers in southern China, Malaysia, and Indonesia  3  

Labor, environment, procurement, etc.

(on-site audits)
No serious non-compliances were identified, however, Toshiba provided instructions with regard to improving H&S management structure and controlling oil leakages at the factory

FY2010

China-based companies to which Toshiba outsources the assembly of finished products under the Toshiba brand 17 locations at 16 companies CSR audits included interviews with employees, environmental protection efforts, labor management, and confirm CSR requirements to the secondary suppliers, and Toshiba requested improvements as necessary. Auditors confirmed that each supplier was emphasizing employee dialogues and improving its employee welfare programs. They also confirmed that each supplier’s environmental protection activities were appropriately managed through both measurements and certification by third parties.
FY2011 Suppliers of certain products 300 Pilot Survey for Conflict minerals Based on the results, we plan to carry out a full-scale survey in FY2013.
FY2012 Toshiba Group suppliers Approx. 10,000 in total Request to comply with Toshiba Group Procurement Policy; inquire as to the degree of their understanding of issues related to conflict minerals and their approaches to such issues Toshiba conducted a pilot survey of all Toshiba Group suppliers regarding their approaches to conflict minerals issues.
Major survey items during the audit of outsourced Toshiba-brand manufacturers
Category survey items
CSR management at the companies audited
  • Labor disputes
  • Communication with employees
  • Labor agreements and working hours
  • Workplace safety
  • Employee health conditions
  • Environmental initiatives such as the acquisition of ISO14001 certification
CSR management with regard to the supply chain of the companies audited
  • Adoption of CSR policy that encompasses consideration for human rights, labor conditions, and the environment;
  • Communication of the CSR policy to suppliers and their status of compliance with the policy; and compliance with laws
  • Regulations concerning plant wastewater and air emissions

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Partnership with Suppliers

Fair Trading with Suppliers

Toshiba Group strives to build sound partnerships with suppliers through fair trading in compliance with procurement-related laws and regulations.

Fair Trading with Suppliers

CSR Awareness in the Supply Chain

Toshiba Group requests suppliers to promote CSR and provide support for their efforts.

Activity Example: Briefing Session on Procurement Policy

Toshiba Group holds a “Briefing Session on Management Policy and Procurement Policy” every year. In FY2013, we invited the management of 90 major suppliers of Toshiba and requested their cooperation with and understanding of Toshiba Group’s CSR procurement policy.

With Suppliers

Toshiba Group, as part of its capacity building, strives to build better partnership with suppliers based on mutual trust through education for suppliers.

Activity Example: Initiatives at Toshiba Information Equipment (Philippines), Inc.

 Auditing of suppliers
Auditing of suppliers

In 2002, Toshiba Information Equipment (Philippines), Inc. (TIP), a production base for hard disk drives (HDD), became the first Asian company to acquire SA8000*1 certification. TIP not only objectively listens to its employees’ opinions in order to improve its work environment but has also spread this initiative to its suppliers. In order to enhance CSR management at its suppliers, TIP continues to implement monthly audits (12 suppliers per year). To date, a total of 137 audits have been conducted since 2005, when such audits began. TIP confirms the status of CSR initiatives at suppliers in accordance with the Toshiba Group Standards of Conduct, Toshiba Group Procurement Policy, SA8000 and OHSAS18001*2 standards, EICC Code of Conduct*3, and other guidelines. If suppliers fail to satisfy these standards, TIP demands corrective actions be taken and provides guidance and support for improvement. Major problems identified for improvement during audits include those related to labor conditions (e.g., working hours and holidays) as well as health and safety management in the workplace. Going forward, TIP will continue to support its suppliers in promoting CSR initiatives so as to establish long-term partnerships through auditing and guidance.

*1 SA8000 refers to a set of international standards established by Social Accountability International for evaluating work environments.
*2 OHSAS18001 (Occupational Health and Safety Assessment Series) is a set of standards for identifying occupational health and safety risks as well as measures to cope with the same, and it also serves to clarify where responsibilities lie.
*3 EICC is an abbreviation for the Electronic Industry Citizenship Coalition.

Activity Example: Participating in the supplier CSR promotion program of the department of labor and employment in the Philippines

KAPATIRAN

Toshiba Information Equipment (Philippines), Inc. (TIP) is promoting the KAPATIRAN supplier partnership program, which was introduced in 2011 by the Philippine Department of Labor and Employment. This program aims to create a system in which large companies (“Big Brothers”) guide and help small and medium enterprises (“Small Brothers”) to be to be compliant with general labor standards including occupational safety and health standards. TIP was the country's first electronic company that participated in the program.
Based on the program, TIP selects 10 companies from among its suppliers each year and educates and supports these companies for a period of one year. When the program is over, TIP submits a report to the Department of Labor and Employment. In addition to on-site training, TIP also invites external instructors for a variety of training programs.
Through this program TIP support its suppliers in promoting CSR management and also establishes strong partnerships with them.

Highlights of CSR Activities Priority Issue 2. CSR management in the supply chain Annual topics

Topics: Toshiba International Procurement Hong Kong Ltd. was chosen as a Gold award winner at the 2012 Hong Kong Awards for Environmental Excellence

 Toshiba International Procurement Hong Kong Ltd. was chosen as a Gold award winner at the 2012 Hong Kong Awards for Environmental Excellence

In May 2013, Toshiba International Procurement Hong Kong Ltd. became the first Japanese-affiliated company to win the Gold Award (first place) in the export and trade category at the 2012 Hong Kong Awards for Environmental Excellence* sponsored by the Hong Kong administrative authorities. The company received special recognition for its continuing environmental and CSR education activities for suppliers carried out through regular survey and on-site audits. The awards ceremony received a great deal of attention in Hong Kong’s mass media, which reported on the operations of the company winning the Gold Award in the export and trade category.

* Hong Kong Awards for Environmental Excellence program
Initiated by the Hong Kong Productivity Council in 2008, this environmental protection program evaluates and recognizes corporate environmental protection activities in 11 categories such as manufacturing, trade, logistics, and construction through public institutions (e.g., universities and environmental organizations) and selects and officially commends the best company in each category.

EICC Membership

In June 2011, Toshiba joined the Electronic Industry Citizenship Coalition (EICC), the electronics industry’s CSR promotion organization. In order to fulfill CSR for labor, occupational health and safety, the environment, and ethical standards throughout the supply chain in accordance with the spirit of the EICC Code of Conduct, we provided education on the Code of Conduct for those working in semiconductor manufacturing plants in Japan and overseas.

EICC

Addressing the Conflict Minerals Issue

Since Section 1502 on conflict minerals of the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) enacted in January 2013, requires company listed in the United States to investigate the use of conflict minerals mined in the Democratic Republic of the Congo and its adjoining countries, and report the results. Toshiba Group is not a listed company but as a company in the supply chain of listed companies will investigate and report it to our customers.
Prior to the enactment of the Act, Toshiba Group organized an internal system to address conflict minerals issues, and it established the “Toshiba Group Conflict Mineral Policy” and publicized it on its website in October 2011. For humanitarian reasons, Toshiba Group’s policy prohibits the use of raw materials such as tin, tantalum, tungsten, and gold mined in the Democratic Republic of the Congo and its neighboring countries, which are helping to violate human rights.

Toshiba Group Conflict Mineral Policy

We are developing and implementing a policy prohibiting use of tin, tantalum, tungsten*1, and gold, whose extraction or trade supports conflict in the Democratic Republic of Congo or adjoining countries, and/or contributes to inhumane treatment, including human trafficking, slavery, forced labor, child labor, torture and war crimes in the region.

We require our suppliers to cooperate with us in our efforts to assure procurement of non-conflict minerals in accordance with the Toshiba Group Conflict Mineral Policy.

*1 Derivatives of cassiterite, coltan and wolframite
*2 Global e-Sustainability Initiative (an initiative for achieving integrated social and environmental sustainability through ICT)

Toshiba Group Conflict Minerals Initiatives (PDF:58K)

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Toshiba Group’s Promotion Structure for the Use of Conflict-Free Minerals

Headed by a Executive Officer in charge of CSR, the Conflict Minerals Management Committee consisting of related corporate divisions promotes activities in accordance with the “Toshiba Group Conflict Mineral Policy Guidelines.” Each in-house company appoints a person responsible for conflict minerals and they share information at the In-house Conflict Minerals Management Committee meetings.

Toshiba Group’s Promotion Structure for the Use of Conflict-Free Minerals

Toshiba Group’s Promotion Structure for the Use of Conflict-Free Minerals

Conflict Minerals Survey

In FY2011, we conducted a pilot survey of some 300 Toshiba Group suppliers of our semiconductor department, etc. on the use of conflict minerals and about smelters.
In FY2012, we surveyed some 10,000 Toshiba Group suppliers to clarify to what extent they understood the issue of conflict minerals and what approaches they took toward this issue.
In June 2013, we started a full-scale survey of some 2,800 suppliers that may use 3TG* on the use of conflict minerals and to collect information on smelters, using EICC/GeSI Conflict Minerals Reporting Template. Prior to the survey, we held a briefing session for suppliers to explain the procedures of Toshiba Group conflict minerals survey. We explained about the current situation surrounding the conflict minerals issue, and requested them to cooperate in the survey to identify smelters. 440 companies in all participated both in Japan and overseas.

* Tin, tantalum, tungsten, and gold (referred to as “3TG”).

Toshiba Group’s approach to conflict minerals issues

Efforts in cooperation with industry organizations

In June 2011, Toshiba Group joined the Electronic Industry Citizenship Coalition (EICC), the electronics industry’s CSR promotion organization.
In November 2011, the Group participated in the Responsible Minerals Trade Working Group of JEITA* to cooperate with industry organizations. In May 2014, the Group joined the Conflict Free Sourcing Working Group within the Responsible Minerals Trade Working Group, and has worked to promote and raise awareness of conflict-free minerals procurement in cooperation with the automobile and electrical industries of Japan.

* Japan Electronics and Information Technology Industries Association

Responsible Minerals Trade Working Group

Participation in public-private partnership project

In November 2011, we joined the Public-Private Alliance for Responsible Minerals Trade (PPA), a public-private project advocated by the U.S. government. Through the PPA, we contribute to efforts to cut off sources of funding for armed groups and provide economic support to the Democratic Republic of the Congo and its neighboring countries.

Communication with NGOs

In February 2012, we exchanged opinions with NGOs such as the Enough Project in the U.S. and A SEED JAPAN, both of which are working on issues related to conflict minerals.
In February 2014, we joined a CSR mission to the U.S. organized by the Council for Better Corporate Citizenship (CBCC) and held dialogues with the Responsible Sourcing Network, an NGO in the U.S.

Green Procurement

Adhering to its Basic Policy for the Environment, Toshiba Group is implementing environmentally conscious approaches in all business processes and products, focusing on creation of new value in harmony with the Earth.
It is necessary to perform comprehensive assessment of environmental impacts of our products throughout their life cycles from production and usage through to recycling and final disposal. Toshiba Group is promoting green procurement as a measure to minimize environmental impacts in the production phase.

In accordance with the Green Procurement Guidelines established in 2003, Toshiba Group prioritizes procurement of products, parts, and materials with minimal environmental impacts from suppliers who are proactively promoting environmental protection. Later, as stricter statutory restrictions have come to be placed on chemical substances contained in products in order to reduce environmental impacts and risks (e.g., hazardous chemicals), environmental protection efforts throughout the entire supply chain have become indispensable.
Under these circumstances, Toshiba Group thoroughly revised the Green Procurement Guidelines in 2006 and 2011 to address emerging needs.
In our endeavor to contribute to the emergence of a sustainable society, we request our suppliers' cooperation in the promotion of green procurement. Also, we assess suppliers' environmental performance and survey and assess the presence of chemical substances in procured items.

Green Procurement Guidelines (English, Japanese and Chinese)

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Selection/Evaluation of Suppliers based on the Level of Greenness

With regard to the environmental performance, we conduct a voluntary assessment of the level of greenness of suppliers (Toshiba standards) based on the environmental standard ISO 14001. In selecting suppliers, we accord priority based on the ranks of the suppliers and also urge them to improve their level of greenness.

The level of greenness of suppliers during FY2013 was 97.9%
(includes Rank S and Rank A)

The level of greenness of suppliers during FY2012 was 97.9%(includes Rank S and Rank A)
Rank S (excellent)
Rank A (good)
Rank B (requires guidance)
Below Rank B (requires guidance)

For Stationery and Other Office Supplies

With regard to procurement of stationery and other office supplies, Group companies strive to select procurement items that have lower environmental impacts. For example, environmentally conscious products such as Eco Mark certified products, products made of recycled materials, recyclable products, and products that can be separated for collection are registered as environmentally recommended products for procurement by Toshiba Group.
We are implementing green procurement for personal computers, copiers, copier paper, stationery and other office supplies.

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