Under the Basic Procurement Policy of the Shin-Etsu Polymer Group, we consider it important to promote CSR activities across the entire supply chain.
To achieve this goal, we aim to solicit understanding from business partners and promote CSR activities in tandem on the basis of the Shin-Etsu Chemical Group’s CSR Procurement Guideline.
1. Legal compliance
As the corporate philosophy, the Company conducts all of its business activities in a law-abiding spirit. Each and every staff member is made fully aware of corporate social responsibilities and they carry out their business activities in strict conformity with the law, business ethics and the various rules and regulations of the Company.
In its purchase and procurement activities, the Company acts in good faith and in a fair manner, and does not practice favoritism, nor make improper demands.
In addition, based on mutual trust, not only between the Company and the suppliers that the Company directly procures from, but also with vendors in the linked supply chain, all those companies involved carry out their business activities in strict accordance with the principal labor standards of International Labor Organization (ILO), any laws and regulations related to protection of the environment and business transactions including those of small- and medium-size enterprises.
2. Promotion of corporate social responsibility
The Company places primary importance on corporate social responsibility (CSR) activities. For the promotion of CSR, the cooperation of all the Company’s suppliers is essential, and we ask you to comply with the Company’s policies in the areas listed below. At the same time, we will strive to maintain mutual trust and close, friendly relationships.
(1) Strive to strengthen and promote conformance with social norms, business ethics and laws.
(2) Place first priority on assuring safety, protection against disasters and effective environmental preservation (Cooperate in "Green" environmentally friendly purchasing and procurement activities, and at the same time, each person should have a consciousness of the importance of these issues.
(3) Conduct risk management activities such as paying attention for accurate and fair disclosure of information on assuring the delivery of safe and reliable products and taking speedy measures to deal with various contingencies.
(4) Respect for human rigths and promote anti-discriminatory practice. Comply with the labor standards of the International Labor Organization (ILO) and prohibit unfair labor practices.
(5) Protect against the disclosure of classified information, personal confidentiality and respect the rights of the third party’s intellectual property.
(6) Pay attention to biodiversity preservation.
(7) Avoid the purchase of Minerals that are clearly involved in conflicts and human rights infringement in conflict-affected and high-risk areas (CHAHRA).
3. Supplier selection
The Company follows an open-door policy regarding its purchasing activities and globally seeks suppliers based on open, fair, impartial and equal-opportunity principles. The company selects suppliers in a rational and comprehensive manner, taking into consideration the following core considerations: 1. Globally competitive in product quality, price, delivery time and supply stability 2. Objective standards such as suppliers’ management stability, reliability and technological superiority. 3. Matters as mentioned in “2. Promotion of corporate social responsibility” above.
4. Development and review of the suppliers
The Company provides suppliers with the essential information necessary for transactions and also cooperates with suppliers’ VA and VE improvement activities as well as in activities related to the maintenance and improvement of product and service quality. The Company also routinely or as necessary promotes evaluation and review of suppliers’ performance.
＊VA : Value Analysis, VE : Value Engineering
Method for developing high value new products satisfying customers and improving existing products
Revision date: April 1, 2022
