[Priority issue 3] Enhance Value Chain Management from the Viewpoint of CSR
Note: The article on this page is taken from Sustainability Report 2016.
Briefings for the business partners at FUJIFILM.
The Fujifilm Group is implementing the Fujifilm Group Procurement Policy to ensure procurement from the viewpoint of CSR based on a recognition of the importance of CSR and corporate ethics.
The Group aims to achieve growth along with its suppliers through business activities, and to this end deals with suppliers in a fair and appropriate manner, while helping them deepen their understanding of the importance of promoting CSR activities across the supply chain. We are thus enhancing partnerships with our suppliers’ understanding to fulfill our CSR.
- （1）Identify the CSR status of major suppliers and notify
FH’s expectation and improvement requirements
- （2）Ensure compliance with legislation concerning biodiversity in procurement
Integrated Management of Procurement Information
Supporting prompt management decision-making by linking to the procurement BCP system
Fuji Xerox launched operation of a new system that enables unified management of procurement-related information on a global scale. It consists of enhanced Electronic Data Interchange (EDI)* functions for e-commerce with major suppliers and its Procurement Business Continuity Plan (BCP) system. The number of document types handled in the system has been increased in the enhanced EDI system. The new system also supports a progress management function that handles various inquiries and responses between Fuji Xerox and its suppliers. Such inquiries and responses can be viewed by procurement managers and related staff members in Fuji Xerox, under appropriate access controls. This enables full organizational management of procurement information, improving administrative integration and efficiency not only in Fuji Xerox procurement departments but also for its suppliers.
The procurement BCP system was built by linking various databases that support the creation and execution of BCPs, commencing operations in 2012. This system has significantly reduced the time spent on managing risk issues. Connecting the EDI and the procurement BCP systems enables integrated management of all the procurement information held in different production sites in a timely manner. Further, linking the EDI system with the databases under the BCP system would improve procurement work efficiency and enhance responsiveness in the event of an emergency or disaster.
* EDI (Electronic Data Interchange): Exchanging order forms, invoices, and other trading information in electronic format between the computers of companies and related organizations over a network.
Better Product Quality together with Business Partners
Supporting improvements in the production environment
To continue to be able to offer products with high reliability, close collaboration with business partners is indispensable. As a part of value chain management, FUJIFILM Imaging Systems (Suzhou) Co., Ltd. and FUJIFILM (China) Investment Co., Ltd. have together started a work process improvement activity to assist their business partners in China to realize a stable supply of high quality medical equipment. We continuously access to partners’ production line to revise the production processes, create procedural manuals, and offer advice. This close collaboration with business partners helps to create an environment that ensures the supply of safe products with stable quality, enabling us to construct value chains that can win our customers’ trust.
The number of failures has significantly decreased through revision of work processes, etc.
Third-Party Opinion on “Enhance Value Chain Management from the Viewpoint of CSR”
Expectations for future activities based on the Guiding Principles on Business and Human Rights
Mr. Minoru Matsuzaki
・Member, Caux Round Table Japan
・Researcher, Social Design Lab., Rikkyo University
Served as CSR advisor at a business corporation before becoming a researcher. During his corporate career, he had been involved in the management of the MDGs committee of the Global Compact Network Japan (GCNJ) and corporate-side manager for the NGO-Business Network meetings hosted by the Japan NGO Center for International Cooperation (JANIC). In 2012, the Nippon CSR Consortium was set up as the venue for businesses, NGOs and NPOs to converge and deliberate on various social issues, and he acts as the secretariat for its management.
Globalization of economic activities holds the potential to create negative aspects in the value chain. Society calls for companies to manage the full spectrum of their business activities. In the G7 Summit held in Schloss Elmau in Germany, a policy of “promoting responsible global supply chains” was advocated, and “the UN Guiding Principles on Business and Human Rights” was strongly supported.
I can see that the Fujifilm Group recognizes that enhancing value chain management from the viewpoint of CSR is a priority issue and is putting a PDCA cycle appropriately into practice, reflecting the distinctive characteristics of each business operation throughout the Group. And these activities are making steady progress each year. In FY2015, it is particularly noteworthy that the Group has introduced checklists at suppliers and briefing sessions for business partners and suppliers and has made solid progress in achieving zero production line stops in areas where labor risks are high.
Its corporate policy of strengthening its partnerships with suppliers and overcoming issues through collaboration is vital in solidifying sustainable business management.
I look forward to the review of the UN Guiding Principles on Business and Human Rights within the framework of Fujifilm's rules and code of conduct, in order to achieve further advances in and consolidation of these activities.
Response to the third-party opinion
We sincerely appreciate your high evaluation of one of our priority issues, which is to enhance value chain management from the viewpoint of CSR. We now operate our business across a broad range of industries. And we are working together with our suppliers to enhance our CSR activities across the entire value chain in all industries in order to meet the expectations of each industry and its customers, including the electronics industry where the demand for CSR procurement has been growing in recent years. In face of the rising expectations to address human rights issues in the supply chain that has been pointed out, we intend to take action on human rights and other social issues in cooperation with our suppliers, focusing particularly on raising awareness of the importance of CSR procurement within the Group, as well as dissemination and consolidation of these activities.
(CSR Group, Corporate Planning Division, FUJIFILM Holdings)