Promotion of CSR Procurement
Promoting CSR procurement based on purchasing polices and fair transaction
OMRON has been implementing CSR procurement* based on fair transactions with suppliers of materials, parts and products, in accordance with the OMRON Group purchasing policies.
In April 2007, OMRON updated its purchasing policies, emphasizing "ecology" (reduction of environmental impact) and "compliance" (observance of laws, regulations and social norms) as key programs. Efforts are underway to share and promote these key programs across the entire supply chain. OMRON will further strengthen CSR procurement to meet the expectations of its customers and society at large.
* CSR procurement refers to efforts to extend a company’s CSR commitment to cover purchasing and procurement processes, while requiring suppliers/business partners to practice CSR. Requirements include legal and regulatory compliance, forbiddance of forced labor and child labor, respect for human rights and diversity, forbiddance of illegal trading, and appropriate management of chemical substances, and observance of regulations related to substances contained in products.
Cooperating with suppliers to promote CSR procurement
To promote CSR procurement in tandem with its suppliers, OMRON concentrates its efforts on sharing information regarding CSR matters with suppliers, as well as assessment and appropriate management of CSR practices implemented by suppliers.
In 2007, OMRON conducted a questionnaire survey targeting its main suppliers in Japan and China to observe the status of their CSR practices. Questions were based on the items required by the Supply Chain CSR Promotion Guidebook issued by the Japan Electronics and Information Technology Association (JEITA). In 2008, OMRON conducted a simple questionnaire survey using a supplier survey form to examine the status of CSR practices at virtually all partners in China.
With a projected increase in suppliers in emerging markets, OMRON plans to clarify the items that need to be evaluated from a CSR perspective before starting business with any particular supplier. Moreover, OMRON will continue to collect information regarding the trend of managing conflict minerals, which is an emerging supply chain issue.
By continuously implementing these activities, OMRON aims to adopt clearly stipulated CSR procurement standards across the entire supply chain, while strengthening relations with its suppliers. This will allow OMRON to promote CSR procurement involving its supply chain.
Addressing the Issue of Conflict Minerals
Profits from the trading of minerals mined in the Democratic Republic of Congo and its neighboring nations have been used to finance armed rebel groups, allowing them to continue fighting and encouraging ongoing inhumane acts, such as violence, plunder, abuse, human trafficking, and child labor. For this reason, such minerals are called “conflict minerals” and include tin, tantalum, tungsten, and gold.
Aiming to bring conflict to an end by cutting off the source of funds for armed groups, the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law on July 21, 2010. Section 1502 of Dodd-Frank Act has mandated that companies registered with the Securities and Exchange Commission (SEC) must publicly disclose their use of conflict minerals.
By upholding the purpose of the Dodd-Frank Act and fulfilling our corporate social responsibility, OMRON is determined to promote procurement of minerals in a responsible manner. We also ask our suppliers to avoid the use of conflict minerals. Should the use of any conflict minerals in OMRON Group products be discovered, we will take corrective action as quickly as possible.