Global

Home > CSR > CSR Performance > Fair Operating Practices > CSR Management in the Supply Chain

CSR - Corporate Social Responsibility
Committed to People, Committed to the Future.

CSR Management in the Supply Chain

Supply Chain Checks and Audits

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.
Toshiba distributes to suppliers worldwide the Toshiba Group Procurement Policy and the Supplier Expectations to promote understanding of our stance on CSR in procurement.
In FY2012, Toshiba Group revised our Procurement Policy to add provisions on the consideration of human rights and promotion of the use of conflict-free minerals. We also requested that some 10,000 of our suppliers comply with our revised Procurement Policy.

Focus issues

In addition to problems 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.

To Top

Procurement Policy (CSR-related Requirements): Checks and Audits on Compliance

Toshiba Group monitor the status of CSR management of its ongoing suppliers at manufacturing sites at the time of quality audits and request improvements and provide 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, management systems and the state of their operations.

CSR Survey of suppliers
  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

Human resources, 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  

Human resources, 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 Conflict minerals Toshiba conducted a pilot survey. 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 for cooperation in the Toshiba Group Procurement Policy; inquire their degree of understanding of issues related to conflict minerals  and their approaches to such issues Toshiba Group conducted an on-line survey of its suppliers
Items covered by the CSR Survey
Category Items
Human rights and labor conditions
  1. Prohibition of forced labor
  2. Prohibition of inhumane treatment
  3. Prohibition of child labor
  4. Prohibition of discrimination
  5. Appropriate wages
  6. Working hours
  7. Workers' freedom of association
Occupational health and
safety Equipment safety measures
  1. Equipment safety measures
  2. Workplace safety
  3. Workplace sanitation
  4. Occupational accidents and occupational diseases
  5. Emergency response
  6. Consideration concerning work that is physically onerous
  7. Facilities safety and sanitation
  8. Employee health management
Major survey items during the audit of outsourced Toshiba-brand manufacturers
Category survey items
Status of 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 ISO14001certification
Status of 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

To Top

CSR Awareness in the Supply Chain

CSR Guidebook Published

We urge our suppliers to promote their CSR and provide necessary support for the same. In November 2011, we held seminars, inviting the managers from 81 key suppliers to explain our management philosophy and procurement policy.
In addition, in order to guide the suppliers in incorporating CSR into their operations, we developed the Toshiba Group Supply Chain CSR Deployment Guidebook* to introduce our policies on management of health and safety and the environment in four languages - Japanese, English, Chinese and Thai. The Guidebook is also available on our corporate website.

* 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)

Status Survey

Toshiba Group holds seminars on environmental measures, human rights, and occupational health and safety, and conducts a survey on the situation regarding the procurement policy (including self-audit).

Suppliers participating in seminars and those covered by the survey
Topic Seminars Surveys Field Audit
Human rights and safety 11,032 6,928 1,339
Environment 22,190 23,309 5,080

(Cumulative data for FY2007-2012) (Unit : Number of supplier companies)

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
Topic Support Suspension of transactions
Human rights and safety 1,208 8
Environment 4,253 38

(Cumulative data for FY2007-2012) (Unit:Number of supplier companies)

Examples of supplier guidance and instructions (FY2012)
Environmental Activities
  • Guidance on procedures for carrying out a drill based on the assumption that an abnormality has occurred
  • Guidance on carrying out REACH surveys at neighboring business sites
  • Support in establishing management systems at companies to which production is outsourced
Human Rights and Occupational Health & Safety
  • Review of 2S and 3-area management (roads, work areas, and storage)

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 2012, 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 Group 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

Support for the Use of Conflict-Free Minerals

For humanitarian reasons, Toshiba Group’s policy stipulates that raw materials such as gold, tantalum, tungsten, and tin mined in the Democratic Republic of the Congo and adjoining countries experiencing armed conflicts must not be used. In October 2011, we built an internal system for conflict minerals and established the Toshiba Group Conflict Mineral Policy and publicized it on our website.
As a part of our efforts to carry out due diligence, in November 2011 we began participating in the Responsible Minerals Trade Working Group of JEITA*1, thereby establishing closer ties with industry organizations. We also investigated the use of conflict minerals and smelters of suppliers using the EICC-GeSI*2 Conflict Minerals Reporting Template.
We are also a participant in the Public-Private Alliance for Responsible Minerals Trade (PPA), which is a private public project advocated by the US Government. We hope to eliminate the fund sources of armed groups and provide economic support to the Democratic Republic of the Congo and adjoining countries. In February 2012, we exchanged opinions with a US NGO (Enough Project) and A SEED JAPAN, which are working on issues related to conflict minerals.

In 2011, we conducted a pilot survey of 300 suppliers in the semiconductor and other sectors using the “EICC-GeSI Conflict Minerals Reporting Template” to identify their use, and to single out smelters of conflict minerals.
In 2012, we surveyed a total of about 10,000 suppliers on their understanding of the issue of conflict minerals, and what initiatives the suppliers had in place.
From 2013 on, the Group continue surveying suppliers about any potential use of conflict minerals or implicated smelters, using the “EICC-GeSI Conflict Minerals Reporting Template.”

Toshiba Group Conflict Minerals Initiatives (PDF:58K)

*1 Japan Electronics and Information Technology Industries Association
*2 Global e-Sustainability Initiative (an initiative for achieving integrated social and environmental sustainability through ICT)

Toshiba Group Conflict Mineral Policy

We are taking steps to develop and implement a policy prohibiting use of cassiterite (tin ore), wolframite (tungsten ore), coltan (tantalum ore) and gold, or their derivatives, 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.

  • In this regard, we will carry out supply chain due diligence with reference to the OECD guidance. We will use the EICC-GeSI due diligence tool to communicate up and down our supply chain.
  • Once a validated supply chain is established through initiatives such as full-fledged smelter verification under EICC-GeSI’s Conflict-Free Smelter Program or development of a mineral tracing program, we will require our suppliers to procure the minerals through that validated supply chain.
  • Our efforts are not intended at altogether banning procurement of minerals from the DRC and adjoining countries but to assure sourcing from responsible sources in the region.
  • We ask our suppliers to cooperate with us in our efforts to assure procurement of non-conflict minerals.

Suppliers

To Top

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)

To Top

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 FY2012 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-wide 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.

To Top