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Suppliers: CSR Procurement


Toshiba Group Procurement Policy

Suppliers play a pivotal role in Toshiba Group's ability to provide quality products to its customers. To enable the suppliers to thoroughly understand Toshiba Group's procurement policy and secure their cooperation in promotion of CSR, we prepared a document outlining Toshiba Group's CSR stance in procurement in light of the Toshiba Group Procurement Policy and distributed it to all suppliers worldwide in February 2005. In May 2008, Toshiba Group revised its procurement policy, clarifying its expectations from suppliers concerning human rights, working environment, wages, etc.

CSR Procurement Promotion Structure

Toshiba strives to build sound partnerships with suppliers through fair trading in compliance with procurement-related laws and regulations.

A dedicated CSR organization established in April 2007 within the Corporate Procurement Division is working to ensure fulfillment of CSR in Toshiba Group's procurement and on the part of suppliers.

System Reinforcement for Ensuring Compliance in Procurement

It is essential to ensure that procurement complies with applicable laws and regulations worldwide. Toshiba Group has established a system for ensuring compliance concerning procurement, which is connected with the Toshiba Group Procurement Division.

Information related to compliance concerning procurement is thoroughly informed to Group-wide companies through this system.

Moreover, measures are thoroughly informed by means of Procurement Compliance Liaison Meetings, which are organized by the Corporate Procurement Division and attended by Compliance Managers and Compliance Coordinators.

Toshiba Group CSR Procurement Promotion Structure

figure of Toshiba Group CSR Procurement Promotion Structure

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CSR Procurement Checks and Audits

Toshiba distributes to suppliers worldwide the Toshiba Group Procurement Policy and the Supplier Expectations to promote understanding of our stance on CSR in procurement.

We also monitor the status of CSR management of our ongoing suppliers at manufacturing sites at the time of quality audits and request improvements and provide guidance as necessary. For new procurement transactions, we confirm conformity with Toshiba Group's procurement and selection policies not only with respect to the goods and services procured, but also suppliers' manufacturing sites, management systems and the state of their operations.

Since fiscal 2006, Toshiba has conducted CSR surveys of suppliers, when we surveyed 100 suppliers whose transactions with Toshiba Group constitute a high proportion, adding human rights, labor conditions, and occupational health and safety to the previous survey categories of quality, the environment, and information security. In fiscal 2007, we conducted a survey of 265 principal ongoing suppliers in Asia (excluding Japan), covering human rights, labor conditions, and occupational health and safety.

Items covered by the CSR Survey
Category Items
Human rights and labor conditions
  1. Prohibition of forced labor
  2. Prohibition of inhumane treatment
  3. Prohibition of child labor
  4. Prohibition of discrimination
  5. Appropriate wages
  6. Working hours
  7. Workers' freedom of association
Occupational health and safety
  1. Equipment safety measures
  2. Workplace safety
  3. Workplace sanitation
  4. Occupational accidents and occupational diseases
  5. Emergency response
  6. Consideration concerning work that is physically onerous
  7. Facilities safety and sanitation
  8. Employee health management

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CSR Enlightenment through the Supply Chain

CSR Guidebook Published

In June 2008, Toshiba published Toshiba Group Supply Chain CSR Implementation Guidebook, which is in conformity with the Supply-Chain CSR Deployment Guidebook published by the Japan Electronics and Information Technology Industries Association (JEITA). Toshiba Supply Chain CSR Implementation Guidebook is available on the Toshiba website.

This guidebook outlines common CSR items, such as CSR management, human rights and labor, occupational health and safety, environment, fair trading and ethics, product quality and safety, information security, and contribution to society, with the objective of sharing Toshiba's stance on CSR with suppliers and encouraging them to implement CSR.

Status Survey

Toshiba Group holds seminars on environmental measures, human rights, and occupational health and safety, and conducts a survey on the situation regarding the procurement policy (including self-inspection).

Number of suppliers participating in seminars and those covered by the survey in fiscal 2007 (Toshiba Group)
Content Participated in seminars
(No. of companies)
Covered by the survey
(No. of companies)
Environment 4,429 925
Human rights and labor 1,145 888

Actions on Suppliers in the event of Breach of the Procurement Policy

If a supplier violates the procurement policy, first of all, we request the supplier to implement remedial measures and provide guidance and support, as necessary. If the remedial measure is deemed to be unsatisfactory, we suspend transactions with the supplier.

Number of suppliers subject to guidance & support and suspension of transactions in fiscal 2007 (Toshiba Group)
Content Guidance & support
(No. of companies)
Suspension of transactions
(No. of companies)
Environment 719 11
Human rights and labor 198 3

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Green Procurement

For Products, Parts and Materials

Adhering to its Basic Policy for the Environment, Toshiba Group is implementing environmentally conscious approaches in all business processes and products, focusing on creation of new value in harmony with the Earth.

It is necessary to perform comprehensive assessment of environmental impacts of our products throughout their life cycles from production and usage through to recycling and final disposal. Toshiba Group is promoting green procurement as a measure to minimize environmental impacts in the production phase.

The objective of the Green Procurement Guidelines established in 2003 is to prioritize procurement of products, parts and materials with minimal environmental impacts from suppliers who are proactively promoting environmental protection. In order to promote business such that that environmental impacts and risks are reduced, such as through reduction in the use of hazardous chemical substances, initiatives throughout the entire supply chain are necessary. For that purpose, the cooperation of suppliers and our business partners is indispensable.

Toshiba thoroughly revised the Green Procurement Guidelines in 2006 to address emerging needs.

In our endeavors to contribute to the emergence of a sustainable society, we request our suppliers' cooperation in the promotion of green procurement. Also, we assess suppliers' environmental performance and conduct surveys on the presence of chemical substances in procurement items.

For Stationery and Other Office Supplies

With regard to procurement of stationery and other office supplies, Group-wide companies strive to select procurement items that have lower environmental impacts. For example, environmentally conscious products such as Eco Mark certified products, products made of recycled materials, recyclable products, and products that can be separated for collection are registered as environmentally recommended products for procurement by Toshiba Group.

We are implementing green procurement for personal computers, copiers, copier paper, stationery and other office supplies.

Thorough Compliance with the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors

In fiscal 2007, we conducted training for employees of group companies in Japan on the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors. We also trained internal auditors who specialize in the Act and conducted audits of group companies in Japan.

Regarding items requiring improvement as identified by the audits, follow-up is conducted in accordance with improvement plans to ensure thorough compliance.



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