Relationships with Society

Procurement

Basic Philosophy of Supply Chain Management

  • 1.
    Emphasizing “fair business practices, transparency, and equal opportunities,” the Dexerials Group’s procurement is founded on relationships of mutual trust with suppliers.
    • “Fair business practices” means conducting procurement in accordance with prescribed policies and procedures.
    • “Transparency” means avoiding any arbitrary actions.
    • “Equal opportunities” means providing supplier with a level playing field.
  • 2.
    Dexerials also emphasizes cooperative relationship with suppliers in such areas as strengthening technological competence, assuring and improving the quality of parts and maintaining competitive prices.
  • 3.
    To preserve the global environment and realize a sustainable society, Dexerials strives for environmental management together with suppliers by observing the Green Procurement Policy.
  • 4.
    To ensure compliance with laws, regulations, and social standards and to realize contributions to society, Dexerials works not only internally but also with suppliers to achieve practical results.

For fair business practices, transparency, and equal opportunities in transactions

Based on the Basic Philosophy of Supply Chain Management, for the implementation of procurement with “fair business practices, transparency, and equal opportunities,” Dexerials is engaged in the following initiatives.

  • Respect for social standards and commercial practices, etc.
    Regarding procurement, in addition to obviously following the laws of each country, we respect the social standards, ethics and commercial practices, etc.
  • Anti-corruption
    When negotiating the conditions of a transaction with suppliers, including pricing and technical specifications, honesty and faithfulness are essential. With regard to businesspersons engaged in the procurement business, Dexerials ensures complete anti-corruption by prohibiting the reception of money, goods or services that aim to influence or that have the risk of influencing business decisions.
  • Publicizing the Dexerials procurement policy
    In order for suppliers to gain an understanding of Dexerials basic policies regarding legal compliance, respect for human rights, environmental conservation and products/service safety, we regularly holding individual explanatory meetings, for the thoroughness of relevant policies.
  • Handling information
    In addition to striving to disclose appropriate information to suppliers, we conduct appropriate management based on internal policies and procedures related to the Code of Conduct and information security so that confidential information from Dexerials and suppliers is not leaked.
  • Risk management
    In order for transactions to go smoothly, it is necessary for the Procurement Division to strive to prevent and predict dangers that could become factors that inhibit the procurement business. For that reason, when situations occur or may occur that will have a serious impact on business (quality issues, collapse of supplier business, disasters, labor disputes, etc.), crisis management information is shared with the Procurement Division, the Business Division and other relevant divisions and necessary risk avoidance measures are promptly drafted and implemented.
  • Selection of suppliers
    In line with the principles in the Basic Philosophy of Supply Chain Management, we strive to find new suppliers in accord with technical reforms and the supply environment (pricing changes, supply and demand balance, corporate social responsibility, etc.). In the selection of new suppliers, the most important and fundamental requirements are “stable management,” “legal compliance,” “environmental considerations,” and “technical capacity,” and we also evaluate results and expectations for quality, pricing, stable supply, technology services and environmental contribution.

Initiatives for legal compliance

Dexerials is engaged in employee training in order to ensure thorough procurement with “fair business practices, transparency, and equal opportunities.” Specifically, we have organized company-wide a subcontract law compliance committee comprising managers from procurement, production management and other relevant departments as members, and this committee confirms the status of compliance with subcontract law and shares information at the regular meetings. Also, we conduct internal audits with regard to the procurement business, and we provide training for relevant parties using improvement guidance based on the audit results.

Response to conflict minerals

Metals extracted by means of illegal mining by antisocial forces have become a global issue, and companies are required to take a responsible attitude toward procurement. Even among Dexerials products, four metals (gold, tin, tantalum, tungsten) in the scope of the Dodd-Frank Act in the U.S.* were being used, and an investigation has been requested from a client. The Dexerials Group promotes responsible procurement based on a policy of not using raw materials and parts that contain conflict minerals produced in the Democratic Republic of Congo or neighboring countries where armed conflicts are continuing, obviously involved in human rights violations or similar issues. As a product supplier, we check for trace levels of the relevant minerals in our products and provide the appropriate information to customers. Regarding procured raw materials and parts, in the selection stage, a survey is conducted among manufacturers about content and usage, and if content or usage is discovered, we strive to obtain reliable information by requesting the manufacturer to provide information about the refinery.

*Dodd-Frank Act: The Wall Street Reform and Consumer Protection Act financial regulatory reforms were enacted in 2010, and an additional clause was enacted in 2013 demanding a usage report for four metals designated as conflict minerals from all companies listed on the Securities and Exchange Commission (SEC).