We shall conduct transactions based on symbiosis and EQCD (environment, quality, cost, and delivery).
(1) Conducting Transactions Fairly
We shall observe all applicable laws and regulation and conduct transactions with fairness and transparency.
(2) Establishing Partnerships with Suppliers
We shall select and establish partnerships with suppliers that are able to supply products with appropriate quality, price, and delivery lead time.
Eliminating Human Rights Violations from the Entire Supply Chain
Requirements for suppliers in the procurement policy are summarized in the CSR Procurement Policy, which clearly specifies fulfilling social responsibility for respecting human rights throughout the entire supply chain. In addition, all suppliers are notified in writing and required to comply with the policy. We also surveyed suppliers both in Japan and outside Japan to confirm they have measures for respecting human rights and to check for any human rights violations in their business practices. That survey revealed no child labor, forced labor, or other such problems. If any such problem was discovered, we would require the supplier to promptly correct the problem. We also continue to survey suppliers on an ongoing basis to ensure there are no human rights violations in their business practices or supply chains, such as child labor, forced labor, or human trafficking. Future contracts with suppliers will clearly prohibit child labor, forced labor, or human trafficking to ensure transactions do not involve either Shimadzu or the supplier in any human rights violations.
Measures and Policies for Conflict Minerals
We have established capabilities for avoiding conflict minerals* within Shimadzu and, in FY 2016, established the Shimadzu Group Policy Regarding Conflict Minerals. It prohibits using any raw materials that contain conflict minerals that directly or indirectly fund armed groups or involve actions against humanity. If any parts or raw materials used in Shimadzu products are discovered to contain any conflict minerals, Shimadzu will immediately meet with the supplier to discuss appropriate actions, such as immediately discontinuing the use of such part or raw material. That does not mean Shimadzu will not accept any conflict minerals produced in the Democratic Republic of Congo or its adjoining countries, but rather that Shimadzu will only accept those that are procured in accordance with appropriate laws that prevent funding armed groups in those regions (certified as DRC conflict-free). By managing transactions in accordance with the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and by investigating refineries using the Conflict Minerals Reporting Template (CMRT), which is based on the Conflict-Free Sourcing Initiative (CFSI), we are implementing measures to understand the status throughout the entire supply chain and avoid using such materials.
Compliance with the Modern Slavery Act 2015
Shimadzu opposes slave labor and human trafficking, recognizes internationally declared human rights, and conducts business practices accordingly. We are also in the process of complying with the Modern Slavery Act 2015 that Britain enacted in 2015. Therefore, each year since October 2016, Shimadzu has been publishing the measures implemented during that year and planned for the future. The measures for FY 2017 are scheduled to be published in September 2018.
Currently, no cases of problems with child labor or forced labor have been discovered in our procurement activities. If any are discovered, corrections will be promptly implemented to quickly resume business activities that are respectful of human rights.
Informational Presentations for Suppliers
It is essential that we form a partnership with suppliers, who are central to our supply chain, to ensure human rights are respected in procurement activities and promote reducing our environmental impact. To promote a deeper understanding of our measures, each year we conduct informational presentations in two locations, Kyoto and Tokyo, for suppliers, which is attended by over 500 companies each year.
Informational Presentations for Suppliers