This website uses cookies. By using the site you are agreeing to our Privacy Policy.

Top of the page.


[Priority issue 3] Enhance Value Chain Management from the Viewpoint of CSR "Outline of Activities in FY2015 : Enhancement of CSR Procurement Activities"

 

Note: The article on this page is taken from Sustainability Report 2016.


Promoting Comprehensive CSR Activities with Major Suppliers

Fujifilm Group

In response to social expectations for reinforced CSR activities across the entire value chain, the Fujifilm Group has been examining the actual status of CSR in the major suppliers at each of our operating companies, as well as making efforts to improve things by constructing a cooperative system based on mutual trust with our partners.

Fujifilm

[Image]

Customer expectations on activities for human rights and the environment to be improved right across the value chain are increasing day by day. To respond to these expectations, Fujifilm’s affiliated companies (97 companies within and outside Japan) are using a group-wide checklist*1 to check the risks on their own company’s business activities, including CSR, once per year. If there are items that do not meet the standards, they actively establish the plans for improvements or carry out their own risk assessment. In FY2015, the number of questions in the checklist was narrowed down to improve business efficiency, but we also included more questions on human rights and environmental conservation.

Meanwhile, we provided training to the persons responsible for procurement (buyers) at Fujifilm and the group companies within Japan and China on the importance of keeping a CSR perspective in procurement, based on our Procurement Policy that was revised in March 2015. We produced CSR Procurement Guidelines to encourage them to promote CSR activities, and clarified the self-check items for suppliers. These Guidelines were sent out to all ongoing suppliers of chemicals and major parts and equipment for our products, OEM manufacturers, and business partners of Group companies in China, and we held briefing sessions for these suppliers and business partners, seeking to increase their understanding.

In order to monitor CSR efforts by our business partners, we extracted the major items common to the global supply chain CSR initiative such as the UN Global Compact and EICC*2, and also included expert opinions from both within and outside the Group. We established a Fujifilm Supplier CSR Checklist that includes 58 selected questions. From FY2015 to FY2016, this checklist was deployed in one after another, to ensure that it was used by the business partners responsible for over 80% of the total procurement amount for each business division in the Fujifilm, and the Group companies within Japan and China.

These efforts were implemented by the persons responsible for CSR, including a staff member who has passed auditor training under ISO SA8000 relating to human rights and labor, to incorporate the expectations of the global society and requests from our customers.

Future Prospects

  • In FY2016, in addition to implementing the Fujifilm Supplier CSR Checklist, we will expand our CSR procurement activities to Europe and the U.S. We also plan to implement onsite inspections of Group production sites and business partners’ factories, etc., to lead to further and more effective improvements.

*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

Fuji Xerox

[Image]

Labor strikes and other problems are occurring with higher frequency at factories in southern China, where Fuji Xerox has its major production sites. To assess the state of operation at suppliers and to make improvements, Fuji Xerox has engaged in ethical procurement, placing priority on the southern China region. In FY2015, Fuji Xerox of Shenzhen accomplished “zero production line stops caused by CSR risks at suppliers.”

Meanwhile, similar disputes related to the environment, human rights and labor broke out with greater frequency in eastern China and in Southeast Asia as well. For this reason, ethical procurement has grown in importance in these regions. Customers are also seeking greater improvement in CSR action at Fuji Xerox production sites.

For this reason, it was decided that the knowhow accumulated in CSR at our own production sites and ethical procurement at Fuji Xerox of Shenzhen will be applied in eastern China and Vietnam. To kick off the measure, person in charge of CSR promotion from headquarters and production and procurement assembled at the Shenzhen office for a CSR session. At the session, participants engaged in hands-on learning on how to identify and confirm problems, using the production lines at Fuji Xerox of Shenzhen as a workshop. Additionally, the participants confirmed that they would strengthen coordination between related persons at the production sites.

Future Prospects

  • CSR management at the production sites and ethical procurement will be strengthened in both eastern China and Vietnam. CSR management will be restructured for production sites at Fuji Xerox Hai Phong (Vietnam) and Fuji Xerox of Shanghai. Activities will be promoted to create a scheme under which suppliers in the two regions will be visited by expert staffers in the areas of the environment, personnel administration, etc., to assess supplier conditions and give support for improvement.

Progress in Procurement from the Viewpoint of CSR

Response to Conflict Minerals

[Image]

The Fujifilm Group has declared that it will not use any minerals mined or refined by illegal practices, and does not take part, directly or indirectly, in supporting such activities. Further, it has clearly declared in the basic policy for procurement transactions that we are sincerely addressing the issue of conflict minerals.

Since 2010, Fujifilm has been providing an internal education program concerning conflict minerals. It also participates in the working group on Responsible Procurement of Minerals formed by JEITA*1 in 2011, and created internal guidelines to gather information concerning any conflict minerals in our supply chain using the CFSI*2 Conflict Minerals Reporting Template. We are working to gather such information and improve its accuracy in cooperation with our suppliers.

In FY2015, we held briefing sessions for our suppliers to raise awareness of the need to make efforts to avoid conflict minerals and ask for improvements in the accuracy of the procurement information provided to us.

In spite that Fuji Xerox is not registered with the U.S. Securities and Exchange Commission (SEC), it participates in the working group on Responsible Procurement of Minerals organized by JEITA in 2013, and conduct surveys on the origins of the minerals used for its products, in order to clarify the absence of any involvement of armed groups in its supply chain, as well as cooperating with the survey conducted by customer companies which are registered with SEC.

In FY2015 survey, the response rate to the questionnaire to our primary partners increased from the previous year to 97.3% and no involvement of any armed group was identified.

*1 Japan Electronics and Information Technology Industries Association (JEITA): This industry organization aims to foster the sound production, trade, and consumption of electronic devices and components, thereby contributing to economic development and cultural promotion in Japan.
*2 CFSI (Conflict-Free Sourcing Initiative): This international private sector organization supports companies in addressing the issue of conflict materials. The template for conflict materials reporting provided by CFSI is an investigation and information management tool for procurement of raw materials.

Future Prospects

In FY2016 Fujifilm is continuing to gather wider and more accurate information through regular briefings with suppliers and by providing support to individual companies.

Fuji Xerox will aim to maintain the response rate and accuracy of the survey in FY2016.

Note: The article on this page is taken from Sustainability Report 2016.


   
Footer starts here.