Policies on Procurement Activities
NuFlare Technology has established and published the basic policies and NuFlare Technology SOC (Standards of Conduct) on procurement activities for directors and employees, and makes sure that its procurement activities are done according to the basic policies and SOC.
NuFlare Technology shall:
- (1)comply with all applicable laws, regulations and social standards;
- (2)implement procurement activities with sufficient consideration for the reduction of environmental impacts when selecting suppliers (hereinafter including prospective suppliers) and procurement items;
- (3)provide suppliers with equal opportunities for transactions with NuFlare Technology;
- (4)endeavor to establish better partnerships with suppliers based on mutual understanding and trust.
Policy for Selecting Suppliers
In selecting suppliers, NuFlare Technology shall give preference to those that satisfy the following six criteria. NuFlare Technology also gives preference to such suppliers in establishing an ongoing business relationship.
The suppliers shall:
- (1)abide by all applicable laws, regulations and social standards, and take human rights and environmental protection seriously;
- (2)conduct sound business operations;
- (3)have the ability to supply goods and/or services to NuFlare Technology with emphasis on adequate quality, price and delivery lead-time;
- (4)have the capability to provide a stable supply of goods and/or services and flexibility to respond quickly to supply/demand fluctuations;
- (5)possess technology that contributes positively to NuFlare Technology products;
- (6)have a plan to prevent interruptions in the supply of goods and/or services in times of unexpected circumstances that may affect the company and its supply chain.
NuFlare Technology considers the demands of its stakeholders from every perspective by drawing on a network of its global resources and promoting procurement activities in accordance with these demands. In this regard, NuFlare Technology requests that its suppliers comply with the following requests. NuFlare Technology also asks its suppliers to request that their own suppliers understand the Policies on Procurement Activities and adhere to the following requests.
- 1）Compliance with all applicable laws, regulations and social standards
Suppliers are required to ensure compliance with laws, regulations and appropriate social standards of the countries and/or regions in which they operate.
- Thorough compliance with relevant laws and regulations in the countries and/or regions in which they operate, including antitrust laws, commercial codes, subcontractor regulations, foreign exchange laws, personal information protection laws, copyright laws, etc.
- Prohibition of bribery (any gift, payment, consideration, monetary or material advantage or benefit of any kind which constitutes a corrupt and illegal practice)
- 2）Consideration for human rights, good labor practices and occupational safety and health
Suppliers are encouraged, in every sort of business activity, to respect basic human rights and strive to establish a safe and clean work environment. Suppliers need also to understand and comply with the "Toshiba Group Conflict Mineral Policy" (see Toshiba website).
- Prohibition of enforced labor, inhumane treatment (including slavery), human trafficking, child labor and discrimination
- Fair wage and work hour control, respect employees' rights to organize, etc.
- Establishment of a safe and clean work environment
- "Toshiba Group Conflict Mineral Policy"
- 3）Consideration for the global environment
Under the concept of "handing over the precious global environment to the next generation in a sound condition", NuFlare Technology requests its suppliers to promote environmental activities in harmony with production activities.
- Establishment of an environment protection system compliant with ISO14001 and further efforts to obtain certification from third parties
- Procurement of parts, components and materials with minimal environmental impacts (green procurement), including a reduction in the use of hazardous chemical substances
- Promotion of environmental protection such as establishment of an environmental policy, implementation of a system and provision of training and education
- 4）Maintain sound business operation
Sound business operation is required to maintain ongoing business. Accordingly, suppliers are requested to disclose their management policies and their status of business operations (including financial statements).
- 5）Securing excellent product quality
Suppliers are expected to establish a quality assurance system in accordance with the ISO9000 family of standards and make further efforts in obtaining certification from third parties in cooperation with NuFlare Technology. This system should help improve and maintain the quality of products delivered to customers.
- Compliance with the safety standards of the countries and regions in which suppliers operate (CCC, JIS, Electrical Appliance and Material Safety Law, UL, CE Marking, etc.)
- Furnishing goods and services on a continuous basis satisfying the specifications and quality required by NuFlare Technology
- 6）Offering goods and/or Services at appropriate prices
Suppliers are requested to provide goods and/or services at competitive prices and strive to reduce prices on a continuous basis so that NuFlare Technology can provide its customers with products that satisfy them financially.
- 7）Firm delivery commitment and establishment
Suppliers are requested to keep delivery commitments. They are also requested to establish a system for the stable and flexible supply of goods and/or services enabling them to ensure a continued supply and successfully respond to rapid supply-demand fluctuations.
- 8）Enhancement of technological capabilities
Suppliers are requested to continually improve their technological capabilities. This will enable NuFlare Technology to provide safe and excellent products made based on customer needs.
- 9）Ability to prevent interruptions in the supply of goods and/or services in times of unexpected circumstances
Suppliers are requested to have a plan for providing a continuous supply of goods and/or services in times of unexpected circumstances while sharing information with their supply chain, including the NuFlare Technology Group. Suppliers are also requested to offer assistance in the risk management activities during normal times.
- Assistance for continuous supply of goods and/or services in times of natural disaster, epidemic, fire, insurgence, terrorism, war, civil strife, etc.
- (June 2016)
Note: Laws and regulations to protect suppliers include the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade, Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors, Act on the Promotion of Subcontracting Small and Medium-sized Enterprises, and other laws and regulations, as well as guidelines established by the public sector.
NuFlare Technology Partner Hotline
The NuFlare Technology Partner Hotline (a whistle-blowing system for business partners) has been set up to be able to make Direct comnnication with Biz partnaers for violations of relevant laws and regulations, the NuFlare Technology Standards of Conduct, procurement policies of the company, business contracts, business ethics, etc. committed by persons involved with NuFlare Technology in the course of procurement or other business activities, or suspicions of such compliance violations, to NuFlare Technology, so that the company can take corrective measures. (Now only for domestic suppliers).
Those who have noticed any compliance violations committed by persons involved with NuFlare Technology in the course of procurement or other business activities, or who have suspicions of such compliance violations, are urged to report them to the company via the NuFlare Technology Partner Hotline.
Note: that the hotline will not accept reports about matters that are not related to the above (e.g. personal insults, abuse, etc.).
Reported matters will be verified and investigated, etc., and the reporters will be given information on the results, in principle.
Note: that the hotline may not contact reporters who have reported about matters that are not related to compliance violations.)
Reporters personal infomation will not be disclosed to anyone outside the Risk Management Committee Secretariat (NuFlare Technology Legal Affairs Section of the General Affairs Department) without approval from the reporters (themselves). NuFlare Technology ensures that maximum care will be taken so that it will not be possible for anyone outside the Risk Management Committee Secretariat to identify the reporters in the course of fact-checking, investigation, or other activities.
NuFlare Technology will never treat reporters or their companies unfavorably on the grounds of their reports.