CSR procurement

Sanyo has established SANYO Code of Conduct as part of its Sustainability Activities promotion activities, and together with its business partners that have an impact on its business activities, the Company is committed to complying with its social responsibilities. These include respecting human rights, giving consideration to the working environment, protecting the global environment, and protecting the human body against chemical substances.

1. International Adaptation

SANYO Code of Conduct respects the 10 principles in the four areas defined by the United Nations Global Compact (Human Rights, Labour, Environment and Corruption Prevention), the requirements of the United Nations Guiding Principles on Business and Human Rights, OECD due diligence guidance for responsible corporate conduct based on the Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises, and ILO's Declaration on Fundamental Principles and Rights at Work.

2. Compliance with applicable laws

We comply with the laws and regulations of the relevant countries and regions in our activities overseas (entire supply chain) as well as in Japan.

3. Execution system

In-house system to promote this activity

Audit and quantitative assessments are contracted to an external third party and collaborated.

Quantitative assessments are conducted for Audit of suppliers who have a record of continuous production of at least a certain size (covering approximately 90% of production). If there are nonconforming items, corrective measures and support for remedial actions are provided.

Certification is valid for three years for A-rank (90 points or more for CoC quantitative assessment), two years for B-rank (80 points or more and less than 90 points), and one year for C-rank (60 points or more and less than 80 points).

Prior to Audit

  • Sanyo CoC Guidelines Briefing Session
  • Issuance of application form for assessment
  • Collection of declarations of compliance and confidentiality

Audit

  • Response to Web assessment and submission of supporting materials and trails
  • Web assessment rating and assessment
  • Assessment meetings, corrective actions and local Audit as needed

Issuance by the certification body

  • Pass criteria: 60 points or more

Rank A: 90 points or more (valid for 3 years)

Rank B: 80 points or more but less than 90 points (valid for 2 years)

Rank C: More than 60 points but less than 80 points (valid for 1 year)

Assessment standards for CSR auditing

Evaluation items: Basic requirements: 27 items in four fields
  • See Sanyo Code of Conduct (CoC) Basic Guidelines
Evaluation method: Evaluate each item on a 6-point scale
  • For nonconformities, we will set a deadline and request a correction report by the deadline. After that, we will confirm that the correction is correct and issue a certificate.
Severity item (Regardless of the overall score, if any one of the following is judged to be nonconforming, the evaluation will be failed.)
  • Below-minimum employment (CoC: B-2)
  • Employment in Forced Labor (CoC: B-3)
  • Jobs below the minimum standard of living (CoC: B-5)
  • Existence of Disciplinary Punishment and Discrimination (CoC: B-6)

Metrics and Targets

Ratio of CSR plants ranked by Audit A: 90% or more (fiscal 2030)

Actual progress

CSR Plant Audit

  FY2021 FY2022 FY2023
Ratio of A-ranked plants 75.9% 79.4% 84.9%

Initiatives for CSR procurement throughout the Supply Chain

Modeling Our Plant in CSR procurement

In order to continue CSR Audit A-rank certification of our in-house sewing plants operated in Aomori and Fukushima, we are promoting initiatives to fulfill our social and environmental responsibilities and realize sustainable manufacturing activities in accordance with our Business Conduct Standards (CoC).

In addition, through these activities, we aim to contribute to solving issues throughout the supply chain by promoting improvement support for the plants of other companies that support our manufacturing.

Declaration of implementation of responsible business conduct in the textile industry

Sanyo understands the purpose of the Guidelines for Corporate Behavior in the Textile Industry prepared by the Japan Textile Industry Federation, and in accordance with these Guidelines, has announced the Declaration on the Implementation of Responsible Corporate Behavior in the Textile Industry in order to respect the human rights of all workers, including foreign technical interns, who are involved in the manufacture of our products.

"Declaration of Responsible Corporate Behavior in the Textile Industry"

The purpose of the "Guidelines for Business Conduct in the Textile Industry" published by the Japan Federation of Textile Industries on August 31, 2022 is understood. Textile-related companies that promote efforts to respect human rights in accordance with these guidelines will issue a "Declaration on the Implementation of Responsible Corporate Behavior" with each company disclosing the details of such efforts on their own websites, etc.

The aim is to further expand and visualize efforts to respect human rights in Japan's textile industry.

Partnership Building Declaration

Sanyo declares and announces its "Declaration of Building Partnerships" with the aim of further building mutually beneficial relations with its business partners. We have formulated our own SANYO Code of Conduct for our business partners, and have been promoting the rationalization of transactions.

In addition, as one of the actions to support the community by creating correct clothing, which is a strengthening item, we endorse the purpose of White Logistics Promotion Campaign and express our declaration of voluntary action.

What is the Partnership building declaration?

The Council for the Promotion of Partnerships to Cultivate the Future, consisting of representatives of the business and labor sectors and related ministers, was established on May 18, 2020, with the aim of building sustainable co-existence and co-prosperity relationships throughout the supply chain. The Council's objectives are as follows.

By posting the "Partnership building declaration" formulated in the name of the company's representatives on the portal site, we are making each company's efforts "visible."

Purpose

  • In light of the impact of the new type of coronavirus infectious disease, efforts will be made to prevent "bringing about the terms and conditions of transactions" among SMEs and micro-businesses, and to continue optimizing subcontracting transactions.
  • Efforts to increase value added throughout the supply chain and new collaboration such as open innovation across scale and affiliation will be promoted.