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Suppliers play a pivotal role in Toshiba Group's ability to provide quality products to its customers. To enable the suppliers to thoroughly understand Toshiba Group's procurement policy and secure their cooperation in promotion of CSR, we prepared a document outlining Toshiba Group's CSR stance in procurement in light of the Toshiba Group Procurement Policy and distributed it to all suppliers worldwide in February 2005.
In addition, we revised the Procurement Policy in May 2008, incorporating details of consideration for human rights and occupational health and safety explicitly in our guideline Supplier Expectations.
Toshiba strives to build sound partnerships with suppliers through fair trading in compliance with procurement-related laws and regulations.
A dedicated CSR organization established in April 2007 within the Corporate Procurement Division is working to ensure fulfillment of CSR in Toshiba Group's procurement and on the part of suppliers.
It is essential to ensure that procurement complies with applicable laws and regulations worldwide. Toshiba Group has established a system for ensuring compliance concerning procurement, which is connected with the Toshiba Group Procurement Division.
Information related to compliance concerning procurement is thoroughly informed to Group-wide companies through this system.
Moreover, measures are thoroughly informed by means of Procurement Compliance Liaison Meetings, which are organized by the Corporate Procurement Division and attended by Compliance Managers and Compliance Coordinators.
Toshiba Group CSR Procurement Promotion Structure  |
Toshiba distributes to suppliers worldwide the Toshiba Group Procurement Policy and the Supplier Expectations to promote understanding of our stance on CSR in procurement.
We also monitor the status of CSR management of our 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.
Since fiscal 2006, Toshiba has conducted CSR surveys of suppliers, when we surveyed 100 suppliers whose transactions with Toshiba Group constitute a high proportion, adding human rights, labor conditions, and occupational health and safety to the previous survey categories of quality, the environment, and information security. In fiscal 2007, we conducted a survey of 265 principal ongoing suppliers in Asia (excluding Japan), covering human rights, labor conditions, and occupational health and safety.
Continuing with the efforts, in fiscal 2008, we conducted field audits for major business partners in Thailand on issues of worldwide concern such as human rights, occupational health and safety and environmental protection.
| Category | Items |
|---|---|
| Human rights and labor conditions |
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| Occupational health and safety |
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We urge our suppliers to promote their CSR and provide necessary support for the same. In June 2008, we held seminars, inviting the managers from 64 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 Implementation 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.
TOSHIBA Group Supply-Chain CSR Deployment Guidebook (English)(PDF:149KB)TOSHIBA Group Supply-Chain CSR Deployment Guidebook (Japanese)(PDF:418KB)TOSHIBA Group Supply-Chain CSR Deployment Guidebook (Chinese)(PDF:260KB)TOSHIBA Group Supply-Chain CSR Deployment Guidebook (Thai)(PDF:219KB)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-inspection).
| Topic | Seminars | Surveys | Field Audit |
|---|---|---|---|
| Human rights and safety | 3,373 | 2,065 | 245 |
| Environment | 8,115 | 4,010 | 1,988 |
(Cumulative data for FY 2007-2008) (Unit:No. of supplier companies)
If a supplier violates the procurement policy, first of all, 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.
| Topic | Support | Suspension of transactions |
|---|---|---|
| Human rights and safety | 756 | 8 |
| Environment | 1,913 | 31 |
(Cumulative data for FY 2007-2008) (Unit:No. of supplier companies)
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.
The objective of the Green Procurement Guidelines established in 2003 is to prioritize procurement of products, parts and materials with minimal environmental impacts from suppliers who are proactively promoting environmental protection. In order to promote business such that that environmental impacts and risks are reduced, such as through reduction in the use of hazardous chemical substances, initiatives throughout the entire supply chain are necessary. For that purpose, the cooperation of suppliers and our business partners is indispensable.
Toshiba thoroughly revised the Green Procurement Guidelines in 2006 to address emerging needs.
In our endeavors 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 conduct surveys on the presence of chemical substances in procurement items.
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.
In Japan, in fiscal 2008 also, we conducted education on the Act against Delay in Payment of Subcontract Proceeds, Etc. for all employees of group companies as well as audit for 138 group companies engaged in such transactions.
Regarding items requiring improvement as identified by the audits, follow-up is conducted in accordance with improvement plans to ensure thorough compliance.
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