The Fujitsu Group is committed to building long-term relationships of trust with our suppliers by continuously learning from each other. We also strive to achieve harmonious coexistence with our suppliers so that both of us, as good partners, can further exert our respective strengths.
In addition, we support suppliers' efforts to enhance their BCM (business continuity management) capabilities and compliance.
In procurement, Fujitsu's policy is based on harmonious coexistence with its suppliers, fair and proper evaluation and selection of suppliers, and the promotion of socially responsible procurement activities. Guided by this policy, Fujitsu conducts procurement activities worldwide.
We work together with our suppliers to implement procurement activities grounded in the principles of CSR. In particular, in March 2006, we published our CSR PROCUREMENT GUIDELINES, which state our requirements such as respect for human rights, labor, health and safety and fair trading, asking our suppliers for their strict compliance in writing. Furthermore, in November 2011, we revised our CSR PROCUREMENT GUIDELINES to clarify our stance on the conflict minerals issue.
Since 2007, we have continuously conducted written surveys every year to ascertain progress status and CSR activities systems at our suppliers.
We surveyed 743 suppliers in FY 2012 and out of the 200 major suppliers surveyed, about 80% were found to be actively engaged in CSR activities.
In FY 2013, in addition to the conventional CSR activities, we will be heavily focused on the survey and information disclosure of conflict minerals*1, aiming at ensuring transparency in the supply chain and practicing responsible mineral sourcing.
*1 Conflict minerals:
Conflict minerals are minerals whose mining or trading finances armed groups and fosters conflict, or are closely related to such issues as human rights abuses or labor issues. The Dodd-Frank Wall Street Reform and Consumer Protection Act enacted in July 2010 requires U.S. and foreign companies listed on U.S. stock exchanges to report the use of conflict minerals such as tantalum, tin, tungsten, gold and any other minerals named by the U.S. State Department to the U.S. Securities and Exchange Commission (SEC).
Addressing the Conflict Minerals Issue
We view the responsibility of corporations regarding conflict minerals as an important CSR issue, and work together with Fujitsu Group companies and suppliers to increase the transparency of the supply chain in purchasing activities and to ensure responsible mineral sourcing practices.
Through education and training, Fujitsu keeps employees in charge of procurement informed of the importance of CSR-conscious procurement activities. In FY 2012, we held training on such themes as compliance with the laws governing subcontracting and worker dispatching, information security, and personal information protection in procurement activities as well as CSR-conscious procurement and green procurement activities.
In FY 2013, we will continue similar education to further increase our procurement staff's awareness of CSR issues.
We have set out the basic requirements for environmentally sound procurement of components, materials and products in the Fujitsu Group Green Procurement Direction and are working with our suppliers on green procurement activities.
Specifically, the Fujitsu Group requests that all of its suppliers establish an environmental management system (EMS) (subject to third-party certification, in principle), which is designed to ensure that suppliers continuously implement environmental burden reduction. We also ask that our suppliers build a chemical substances management system (CMS*2) based on the JAMP*3 guidelines for the management of chemical substances included in products.
In regard to CMS, we monitor the status of CMS creation at our material/parts suppliers and, if their systems are inefficient, provide support with additional monitoring when we receive plans for improvement. By providing support for building their CMS throughout the Fujitsu Group, we work to improve the management level for chemical substances in products in the supply chain.
As new activities starting in FY 2010, we are undertaking activities involving limiting and reducing CO2 emissions and conserving biodiversity. We ask our suppliers to understand the importance of these themes and undertake activities with specific goals.
Furthermore, we support our suppliers' efforts in this area by providing biodiversity conservation guidelines for them which include concrete examples of such efforts and information on ways of promoting such activities. We also hold seminars related to CO2 emissions reduction and biodiversity conservation. In 2011 and 2012, Fujitsu's purchasing unit held woodland preservation activities. This experience allowed both the unit and our suppliers to reconfirm the importance of preserving woodlands as they worked hard together in removing weeds and thinning trees.
The Fujitsu Group will continue to work together with our suppliers towards lessening the environmental impact of our supply chain.
*2 CMS: Chemical substances management system. Refers to a means or a system to properly manage the chemical substances contained in products.
Joint Article Management Promotion Consortium
To ensure the stable supply of products and services to our customers in the event of major disasters and other unexpected contingencies, Fujitsu has made a continuous commitment to strengthening the BCM capabilities of our suppliers since FY 2007. This commitment is based on the belief that strengthening BCM capabilities throughout the entire supply chain is essential.
Each year, Fujitsu conducts a questionnaire survey of its suppliers on how they address BCM. In FY 2012 we surveyed roughly 760 major suppliers (at about 1,960 sites) by questionnaire. We analyzed the results from around 1,780 sites (as of September 1) and provided feedback to our suppliers.
In February 2013, as part of efforts to strengthen BCM capabilities in the supply chain, we held a briefing on BCM for suppliers, attended by 133 individuals representing 104 companies. At the briefing, we shared survey analysis results and information on the latest trends involving BCM in an effort to further promote BCM activities.
Furthermore, in FY 2012, we held a total of five BCM training seminars for around 315 people representing around 200 of our major suppliers related to the solution business. In March 2013, each of these suppliers submitted reports concerning the status of BCM promotion. Fujitsu assessed the reports and provided feedback.
In FY 2013, we plan to conduct a survey, shifting the emphasis from BCP formulation to BCP execution, and hold a briefing for our suppliers on further BCM enhancement.
The Fujitsu Group is dedicated to ensuring compliance throughout our entire supply chain.
Every year, we conduct a written survey to assess the status of compliance system formation in our suppliers' supply chains, which will verify the thoroughness of compliance enforcement. Also we are promoting business transactions with the consideration of risk assessment by identifying the products and regions that are concerned with high risk of labor and other problems and by determining whether or not we are procuring from the regions in question.
In addition, in February 2012, we revised our agreements with suppliers by adding provisions on the elimination of anti-social forces and other such groups, for the purpose of preventing damage by anti-social forces (and avoiding any encouragement of their activities). The Fujitsu Group will have no relationship whatsoever with anti-social forces, including through suppliers.
The Fujitsu Group has set the goal of eliminating information security breaches and, along with our suppliers, we continuously implement measures to prevent such breaches and to prevent any reoccurrences should they still occur. These measures include education, enlightenment, auditing, and information sharing.
In recent years there has been a significant increase in commercial use of external services such as cloud computing in the wake of wider adoption of business continuity management and social networking services aimed at information sharing. With the rapid increase in opportunities to use smart devices such as smartphones and tablet PCs as infrastructures for these services and with the diversification and technological advances of related networks, we are facing the highest-ever potential risk of information leaks due to fast-changing technologies and environments.
We have thus become committed to accurately ascertaining the latest changes in the ICT environment and detering new kinds of risks involving information leaks that arise from the use of external services, servers, and smart devices. When we start business with a new supplier, we have made it a rule to explicitly state in the contract that the supplier shall manage information security and handle personal information at the same level as Fujitsu does. If any serious problem in information security occurs at a supplier, or if a supplier shows no improvement in its security management, we reconsider the business relationship with the supplier and may discontinue placing new orders.
In recent years, we have been working to implement information security measures equivalent to those used in our domestic (Japanese) activities for an increasing number of offshore development projects with overseas partners.
Fujitsu launched a confidential communication channel, called the "Compliance Line," available to all suppliers, in August 2009. The Compliance Line is to receive reports from suppliers on any matters of potential or actual non-compliance action with regard to our purchasing activities. Through the channels we have set up both internally and externally, we verify and investigate the facts of every report and respond quickly.
We forbid any kind of reprisal being taken against people making reports or the supplier itself as a result of the report.
In 1997, Fujitsu established its suppliers' performance review (SPR*4) system, in which about 200 major suppliers are comprehensively evaluated for their products and efforts from the standpoint of quality, technology, price, supply, the environment and reliability. Since FY 2008, the results of written surveys on matters related to CSR, information security, and BCM have been included in the evaluation.
For our partners in the solutions business, we developed a similar review system (PPR*5) in 2004. Since 2008, we have reviewed about 1,320 solution-related system supplier companies and provided the results as feedback to about 220 of our main suppliers.
With our main suppliers, we hold business review meetings (QBR*6) organized by our top management in which we directly share the results of our evaluation with suppliers and explain the outlook of our business and procurement strategies.
Suppliers' Performance Review
Partners' Performance Review
Quarterly Business Review
Since 1997, we have held Fujitsu Supplier Day to strengthen our partnership with suppliers. At these events, we present letters of appreciation to those suppliers who have made exceptional contributions to our business, and the company president and the VP in charge of Purchasing give presentations to share our procurement policies in line with Fujitsu's business plans.
The FY 2012 event was held in January 2013 and was attended by approximately 800 representatives from some 330 domestic and overseas suppliers.
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