Response to New Trends: CSR procurement

Fujifilm Group Procurement Policy

In this policy, "procurement" includes not only procurement of parts and materials used for products but also various trade activities such as procurement of indirectly related materials, maintenance and management of facilities, etc.

I. Basic Procurement Concepts

As a responsible member of the international community, the Fujifilm Group seeks to contribute to the development of society and enhancement of the quality of life of people throughout the world by providing top-quality products and services. In order to achieve these objectives, we perform procurement activities based on the following basic concepts:

1. Rational selection standards
   We will select suppliers based upon rational and clear standards, such as quality, price, delivery assurance and operating stability, so as to procure superior goods and services from the most competitive sources. Decisions on procurement are made by the Procurement Division, which is independent from other divisions.
2. Openness and fairness
   We will impartially provide all Japanese and overseas suppliers with opportunities to supply their products and services to us. In addition, we will vigorously strive to procure these not only from suppliers involved in past transactions, but from newcomers as well.
3. Corporate social responsibility (CSR)
   In conducting our procurement activities, we will seek to proactively fulfill our role as a good corporate citizen contributing to the society by taking into consideration CSR related factors such as compliance to regulations, product quality/safety, environment conservation, information security, fair trade, ethics, workers' safety/hygiene, human rights, and fair labor practices.

We will seek our suppliers' understanding of our policies and ask them to perform procurement activities by following the Procurement Guideline below to establish and further beneficial partnerships based on mutual trust.

II. Procurement Guideline

Fujifilm Group requests all suppliers related to our procurement activities to follow the ten principles below:

1. Suppliers, by the development and provision of socially beneficial goods and services in a safe and responsible manner, shall strive to earn the satisfaction and confidence of consumers and customers, while taking necessary measures to protect personal data and customer related information.
2. Suppliers shall promote fair, transparent, free competition and sound trade. They shall also ensure that their relationships and contacts with government agencies and political bodies are of a sound and proper nature.
3. Suppliers shall engage in communication with members of society at large, including active and transparent disclosure of corporate information.
4. Suppliers shall strive to respect diversity, individuality, and differences of their employees to promote safe and comfortable workplaces.
5. Suppliers shall recognize that a positive involvement in resolution of environmental issues is an essential part of their activities and existence, and shall therefore approach these issues more proactively.
6. As "good corporate citizens," suppliers shall actively engage in philanthropic activities, and other activities of social benefit.
7. Suppliers shall reject all contacts with organizations involved in violation of the law or accepted standards of responsible social behavior.
8. Suppliers shall observe laws and regulations applying to their overseas activities and respect the culture and customs of other nations and strive to manage their overseas activities in such a way as to promote and contribute to the development of local communities.
9. Senior management executives of suppliers shall assume the responsibility for implementing this guideline and for taking all necessary action in order to raise awareness in their corporation, and inform their group companies and business partners of their responsibility. Senior management executives shall also heed the voice of their stakeholders, both internally and externally, and promote the development and implementation of systems that will contribute to a greater understanding of business ethics.
10. In the case of incidents contrary to the principles of this guideline, senior management executives of suppliers must investigate the cause of the incident, develop reforms to prevent recurrence, and make information publicly available regarding their intended actions for reform. After the prompt public disclosure of information regarding the incident, authority and responsibility for the event should be clarified and disciplinary action should be taken in all areas responsible including the highest levels of management where necessary.