CSR in Purchasing and Procurement

Print
Print Help
Change Text Size

Revising purchasing policies to promote CSR procurement

In conformance with the 'open, fair and global' purchasing policy set forth in 1999, OMRON has implemented fair transactions with its partners. In April 2007, this policy was revised with the aim of promoting CSR procurement, specifying key programs of 'ecology (reduction of environmental impact)' and 'compliance (observance of laws, regulations and social norms)'.

Soliciting supplier cooperation in CSR procurement

OMRON's goal is to fulfill CSR across the entire supply chain. Accordingly, OMRON has decided to take steps to initiate and promote CSR procurement in cooperation with its suppliers. The steps include: (1) sharing information regarding CSR considerations with suppliers; (2) assessment of status of CSR practices by suppliers, and (3) appropriate management. In fiscal 2006, OMRON explained the revised purchasing policy and made eight items of requests to suppliers to share OMRON's philosophy behind the promotion of CSR procurement.

<OMRON Group Purchasing Policies>

Basic policies: OPEN:Our procurement is based on an "open" policy and the principles of free competition.
FAIR:We place importance on partnership based on fairness and equality.
GLOBAL:We seek good international partners.
Key policies: ECOLOGY:We carry out procurement activities that contribute to reducing adverse impact on the global environment.
COMPLIANCE:We strictly comply with laws, ordinances, and social standards by maintaining a high level of morality.

Concluding CSR procurement contracts with suppliers in China

In response to the rapid expansion of business in China, OMRON initiated CSR procurement in this region ahead of others.

In fiscal 2006, new purchasing contracts including CSR provisions were negotiated with 136 suppliers and had been reached with approximately 75% of them by the end of fiscal 2006.

Continually advancing green procurement

The basic green procurement policy at OMRON is to not purchase or use any raw materials or parts that contain banned chemical substances.

According to this policy, new green supplier certification standards were established in May 2004. Key requirements include the need for suppliers to acquire third-party environmental management certifications (such as ISO 14001) and to provide information on hazardous chemical substances contained in parts or materials they supply. Asking cooperation from suppliers, OMRON has been promoting green procurement.

In fiscal 2006, green suppliers numbered 848 in Japan, which represented approximately 93% of its total purchasing cost.

For the future, OMRON is determined to ensure and maintain procurement of materials and parts free from banned substances.

: My work began by earning the understanding of suppliers Katsunori Kandori
Development IT Promotion Group Cost Management Innovation Center; In fiscal 2006, we explained OMRON's revised purchasing policy and requests to suppliers, to help them understand CSR procurement that OMRON intends to achieve. As a result, we were able to gain positive consensus and support for OMRON's purchase initiative from many companies.