Governance

Supply chain
management

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Basic approach

As a group that is close to our people’s lives, supporting their daily lives through products and services, we believe that it is important to fulfill our social responsibility through working not alone but together with all of our business partners.
Striving to form relationships of trust with all of our business partners, we have set out our approach to the provision of products and services and the way in which we build relations in our Charter of Corporate Ethics.

Charter of Corporate Ethics (extract)

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Publication of “Declaration of Partnership Building”

Guided by our “Charter of Corporate Ethics,” we will promote sincere corporate activities based on high ethical standards, always from the perspective of corporate social responsibility, and thoroughly ensure transactions respect human rights by complying with “Mitsuuroko Group Human Rights Policy.”
We will continue to carry out corporate activities that are fair and respect human rights, building more positive and mutually prosperous relationships with our business partners with an aim to increase the added value of the entire supply chain and realize sustainable growth.

Declaration of Partnership Building

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Declaration of Partnership Building

We declare that we will focus efforts on the following matters in order to build new partnerships by promoting collaboration and mutual prosperity with supply chain and value-creating business operators.

Mutual prosperity throughout the supply chain, and new collaboration transcending business scales, affiliations, etc.

We will increase added value throughout the supply chain by reaching out, through our direct suppliers, to their suppliers (from “Tier N” to “Tier N+1”), and we aim to create mutual prosperity with our business partners through collaboration that goes beyond existing trade relationships and business scales, etc.
From the perspective of work style reform or ensuring business continuity in times of disaster, we will support our business partners by helping them to introduce telecommuting systems, advising them on business continuity planning (BCP), or providing other forms of assistance.
While deepening collaboration among companies, we will also work to reduce CO2 emissions, increase energy efficiency, and contribute to local communities.

Compliance with “Promotion Standards”

We will comply with the desirable trade practices set forth for main contractors and subcontractors (“Promotion Standards” prescribed in the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises), actively working to correct trade practices and business customs that obstruct the partnership building.

  • Method for determining prices
    We will not demand unreasonable cost reductions. When determining transaction prices, we will consult with subcontractors if requested to do so, and fully discuss prices to ensure that appropriate profit for subcontractors is included, taking into consideration factors such as rises in labor costs. When concluding agreements that include determined transaction prices, we, as the main contractor, will state and issue the terms of the contract in writing.
  • Terms of payment by bill, etc.
    In principle, payments will be made in cash.
  • Intellectual property and know-how
    We will not request our subcontractors enter unilateral nondisclosure agreements, or take advantage of our trading position to demand disclosure of know-how or transfer of intellectual property rights without compensation.
  • Work style reform and relations
    To enable our subcontracting business partners to carry out work style reforms, we will not place orders that have tight delivery deadlines with or make sudden changes to the specifications of jobs without compensating them appropriately. When disasters or other such events occur, we will not impose unilateral trading burdens on subcontractors, and upon the resumption of operations, we will continue business relationships to the best of our ability.
Other matters

We will uphold our “Charter of Corporate Ethics” and the “Mitsuuroko Group Human Rights Policy,” conducting business that is fair and respectful of human rights.