Sustainability

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CSR Procurement (Initiatives for Supply Chain)

The Kyowa Hakko Kirin Group is working to conduct open and fair CSR Procurement to ensure a stable supply of high-quality products. As part of its efforts, the Group stipulates the Kyowa Hakko Kirin Group Procurement Policy, which pronounces its determination to promote CSR Procurement in collaboration with suppliers.

We have also compiled the Kyowa Hakko Kirin CSR Procurement Guidebook*, in which the CSR Code of Conduct is stipulated for suppliers to follow.

With the understanding and cooperation of its suppliers, the Group is promoting legal compliance and environmental protection across the entire supply chain.

Kyowa Hakko Kirin Group Procurement Policy

To provide customers with safe and reliable products and services with clear value propositions, and thereby to fulfill the Kyowa Hakko Kirin Group’s management philosophy whereby “The Kyowa Hakko Kirin Group companies strive to contribute to the health and well-being of people around the world by creating new value through the pursuit of advances in life sciences and technologies”, the Kyowa Hakko Kirin Group (hereafter referred to as ”the KHK Group”) is committed to fair and open procurement with the cooperation of our suppliers.

  1. Steady focus on quality
    1. (1)In procurement practices, we place a high priority on pursuing safety and quality in accordance with the “KHK Group Basic Policy on Quality,” while also taking costs into account.
    2. (2)We welcome new ideas and technical solutions for increasing customer value from suppliers.
  2. Fair and open business dealings
    1. (1)We select suppliers based on their performance in quality (Q), cost (C), delivery (D), reliable supply, CSR efforts, technological expertise and ability to propose innovative ideas, etc.
    2. (2)We use a competitive bidding and selection process for procurement to ensure fairness to all suppliers.
  3. Ensuring regulatory and ethical compliance
    1. (1)We observe social norms as well as the letter and spirit of laws and regulations, and conduct business in a sensible and socially responsible manner.
    2. (2)Employees engaged in procurement practices shall not have personal conflicts of interest with any supplier. They shall not receive from any supplier rewards or gifts which deviate from social norms. They shall not force any supplier to make donations to the Group nor to buy products and services from the Group. They shall not impose a reciprocal business arrangement on any supplier.
  4. Environmental stewardship
    1. (1)We observe environmental laws, regulations, and ordinances, voluntary industry standards for the environment, and our own voluntary standards, to help society maintain a harmonious coexistence with nature.
    2. (2)We conduct environmentally sensible, nonpolluting procurement practices in accordance with the KHK Group’s “Basic Policy on Environmental, Safety and Productive Safety”.
  5. Coevolving relationships of mutual trust with suppliers
    1. (1)We strive to establish long-term, coevolving relationships of trust with suppliers. We work with suppliers to manage and avoid risks so as to minimize their impacts on society and the KHK Group’s business.
    2. (2)We take the utmost care when managing personal information and confidential business information provided to us by suppliers, and do not disclose them to internal or external parties without the explicit approval of the original suppliers of such information.
  6. Promotion of CSR procurement
    We actively promote CSR procurement and commit to sustainable social development with suppliers.
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Gaining Updates on Suppliers and Performing Supplier Audits

Since 2012, the Group has been conducting questionnaire surveys to obtain updates on CSR activities conducted by its suppliers. The results of the fiscal 2015 survey allowed us to verify that suppliers were maintaining a high level of compliance with our standards in the areas of quality policy, legal education, harassment prevention, labor law compliance management, and measures against industrial accidents. Furthermore, suppliers were also found to be gradually stepping up their efforts every year for environmental initiatives, including implementation of environmental surveys of upstream suppliers and protection of biodiversity.

To encourage improvements, the survey findings are fed back to the respondents, and case examples are shared at meeting sessions with suppliers. In the fiscal 2015 meeting, initiatives of five suppliers to combat global warming were shared and discussed. In fiscal 2016, we organized a lecture by an expert under the theme of “How to plan and assess measures to enhance corporate value through CSR activities,” and shared information and views with our suppliers. We also conduct hearings and plant inspections as part of our quality control audits of suppliers in order to gain updates on their CSR efforts and make assessments.

We will strengthen our partnerships with our suppliers in order to continue promoting CSR initiatives across the entire supply chain within and outside Japan.



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