[Priority Issue 3] Enhance Value Chain Management from the Viewpoint of CSR: Outline of Activities in FY2016 “Enhancement of CSR Procurement Activities”

In response to social expectations and customers' requests, the Fujifilm Group has been　examining the actual status of CSR in the major suppliers as well as making efforts to improve situations by constructing a cooperative system based on mutual trust with our partners.

Once a year, FUJIFILM affiliated companies (90 companies within and outside Japan) check and assess the risks involved in their business activities, including CSR aspects, using a group-wide checklist (*1). If any issues are identified, we make an improvement plan and implement it.

In terms of procurement, we provide training for suppliers and our own procurement officers based on our Procurement Policy, which was revised in 2015. This supplier survey utilizes the FUJIFILM Supplier CSR Checklist, comprising 58 questions, which was designed with external experts’ opinions and employs all the important items commonly found in global supply chain CSR initiatives, such as the UN Global Compact and EICC (*2). Since 2015, we have also been conducting supplier surveys aiming to cover over 80% of the total procurement amount in Japan and China. This survey was completed by all such divisions by the end of FY2016, and the response rate was approx. 93%. The survey results did not show any serious issues, however, regarding 10% of the suppliers, we plan to request suppliers’ cooperation to promote CSR activities for improvement under close communications.

*1 Group-wide checklist: A checklist of approx. 100 questions on general business management, adherence to laws and regulations, HR and labor management, health & safety, information security, purchasing, transport, accounting, R&D, manufacturing, sales, human rights and labor (child / forced labor, freedom of association, prohibition of discrimination, etc.), occupational health and safety, environmental preservation, and others (whistle-blowing system, etc.)

*2 EICC: Electronic Industry Citizenship Coalition and its code of conduct

Since 2007, Fuji Xerox has requested suppliers to conduct a self-assessment on their own CSR procurement using the CSR Self-Checklist in order to attain 90% or more compliance with the most important items in the list. The CSR Self-Checklist related to production materials is also revised every year, as social demand for CSR compliance in corporations (production plants) has increased in recent years.

Fuji Xerox also provides a range of support for suppliers to improve their CSR procurement so that suppliers can control their procurement from the same viewpoint as our own. For example, Fuji Xerox of Shenzhen (China) had a stability risk in their operations and product supply due to a production line suspension caused by a CSR issue at their suppliers. To alleviate this risk, we worked together with the suppliers as a part of our CSR procurement activities to improve their labor management over a period. As a result, Fuji Xerox of Shenzhen managed to reduce the time of production line stop resulting from the supplier’s CSR issue to zero in FY2015 and FY2016. In FY2016, Fuji Xerox of Shanghai also started an onsite survey and improvement support for their suppliers.