The Fujitsu Group is supported by many suppliers in Japan and abroad, and it is committed to building long-term relationships of trust with those 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.
Fujitsu's procurement 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.
From a perspective of CSR promotion across the whole supply chain, we work together with our suppliers to implement procurement activities grounded in the principles of CSR. In March 2006, we published our CSR PROCUREMENT GUIDELINES regarding respect for human rights, labor, health and safety and fair trade, and asked our suppliers to comply with it.
Furthermore, since 2007, we have been conducting written surveys every year to ascertain progress status and CSR activities systems at our suppliers. We surveyed 530 suppliers in FY 2014, and of the 200 major suppliers among them, about 90 percent were found to be actively engaged in CSR activities.
At Fujitsu, corporate responsibility for conflict materials*1 is an important CSR issue. Together with group companies and suppliers, Fujitsu is implementing measures to improve the transparency of the supply chain in procurement and ensure responsible procurement of minerals. In FY 2014, Fujitsu has participated in the "Responsible Minerals Trade Working Group" by the Japan Electronics and Information Technology Industries Association (JEITA) to gather information, while investigating our suppliers and answering inquiries from customers.
*1 Conflict minerals:
Conflict minerals are minerals whose mining or trading finances armed groups and fosters conflict, or that 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).
Through education and training, Fujitsu keeps employees in charge of procurement informed of the importance of CSR-conscious procurement activities. In FY 2014, 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 2015, we will continue similar education to further increase our procurement staff's awareness of CSR issues.
The Fujitsu Group has set out the basic requirements for environmentally sound procurement of components, materials and products in the Fujitsu Group Green Procurement Direction and we 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 measures to reduce their environmental burden. We also ask that our component-related suppliers build a chemical substances management system (CMS*2), which is a structure to reliably implement chemical substances management. With regards to CMS, Fujitsu auditors directly inspect the production facilities of our suppliers, and check the CMS formation and operational conditions. If any items are found to be unsatisfactory after inspections, Fujitsu files requests to correct these items or provides support on system formation.
We are also promoting CO2 emissions reduction on the part of our suppliers. Specifically, by providing written materials on activity examples and methods and through explanatory meetings, we are asking our suppliers to understand the importance of these themes and to undertake activities with specific goals. The Fujitsu Group will continue to work together with our suppliers towards lessening the environmental impact of our supply chain.
Chemical substances management system. Refers to a means or a system to properly manage the chemical substances contained in products.
To stably supply products and services in the event of major disasters or 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 2014 we surveyed roughly 690 major suppliers (at about 1,880 sites) by questionnaire. We analyzed the results from around 1,820 sites (as of September 30) and provided feedback to our suppliers.
For this questionnaire survey, Fujitsu formulated its own original content, but in fiscal 2013, an investigation subcommittee was established under the umbrella of the Japan Electronics and Information Technology Industries Association (JEITA) Materials Committee, assembled products manufacturers and component manufacturers participated in planning, and measures to standardize as an industry got underway. Efforts moved forward to formulate a questionnaire survey covering risk management items from a procurement standpoint focused on supply responsibility needed of suppliers, and it was made available to the public by the JEITA Materials Committee in September 2014.Fujitsu also proactively participated in the planning of these subcommittee activities and began utilizing it from FY2014 questionnaire survey.
In addition, Fujitsu conducts annual surveys on BCM initiatives with 220 major solutions-related suppliers. Feedback is analyzed and implemented as necessary.
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, we added to agreements with suppliers' 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, along with its suppliers, has set the goal of eliminating information security breaches, and we are implementing ongoing measures to prevent such breaches and to prevent recurrences. 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 and social network services. There has also been a rapid increase in opportunities to use smart devices such as smartphones and tablet PCs. It is necessary to prevent not only emails sent by mistake, theft and the loss of PC's and smart devices, but also new kinds of risks involving information leaks such as internal crimes and cyber terrorism. As such, when Fujitsu consigns suppliers, Fujitsu sets the same standards for both domestic and overseas entrusted suppliers regarding the information security management and the handling of personal information, promoting education and awareness.
We have thus become committed to accurately ascertaining the latest changes in the ICT environment and deterring 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.
Moreover, 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.
(For suppliers of software development, services, or hardware manufacturing)
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.
In its rule on internal reporting, Fujitsu forbids detrimental treatment toward its own personnel or the personnel of suppliers who have made reporting.
In 1997, Fujitsu established its suppliers' performance review (SPR) system, in which about 200 major suppliers in the component business 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 have partially revised in 2013 the review system developed in 2004, and have reviewed some 1,300 companies. Among them, we have provided the results of the evaluation as feedback to about 200 of our main suppliers.
Furthermore, with our main suppliers, we hold dialogues in which managing officers directly share the results of our evaluation and explain our business outlook and procurement strategies. There were 56 such meetings in FY 2014.
Since 1997, we have held Fujitsu Suppliers' Reception 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 2014 event was held in January 2015 and was attended by approximately 630 representatives from some 340 domestic and overseas suppliers.
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