GUIDELINES Procurement Guidelines

Introduction

Since its founding, Sugino Machine Group has continued its business activities with the support of its business partners, customers, and local communities.
We hope to continue engaging in manufacturing while sharing our vision with many more people in the future.

We kindly request that our partners understand Sugino Machine’s management philosophy and CSR procurement policy and seek your support and cooperation in Sugino Machine Group’s procurement activities.

Sugino Machine Group’s Policy

For Sugino Machine Group’s policy, please refer to the ‘Sugino Philosophy’.

CSR Procurement Policy

Sugino Machine Group, under the motto “For All People and Society,” promotes its procurement activities from the following diverse perspectives.

Compliance

1.Compliance with laws and regulations

Comply with the laws, social rules, and business practices of each country and region.

2.Creating a healthy work environment

Do not tolerate impropriety in the workplace and strive to create an open work environment where impropriety is less likely to occur.

3.Procurement transactions

Implement open, fair, and understandable procedures both domestically and internationally, and aim for mutual prosperity with business partners, working together to solve social issues throughout the entire supply chain.

4.Responsibility in mineral sourcing

Implement measures to avoid the use of raw materials that may cause human rights issues.

e.g., minerals extracted from the Democratic Republic of Congo and surrounding countries that fund armed groups in the region, as well as mineral resources mined in areas or by organizations where child labor and exploitation are prevalent.

5.Prohibition of corruption

Eliminate actions that might suggest collusion with political or administrative entities and build a healthy relationship between the public and private sectors. Do not engage in entertainment, gifts, or other forms of benefit exchange aimed at obtaining or maintaining unfair advantages or preferential treatment.

6.Information management

Commit to the appropriate acquisition, use, disclosure, management, and protection of personal and confidential information.

7.Protection of intellectual property

Protect intellectual property as well as respect the intellectual property of others.

8.Response to anti-social forces

Take a resolute stance against anti-social forces and organizations, and never engage with them.

9.Management of import/export transactions

When exporting or importing technologies or goods regulated by the laws and regulations of each country or region, ensure proper export and import procedures and management.

10.Prohibition of conflicts of interest

Do not undertake actions that benefit individuals, customers, business partners, or third parties contrary to our company’s benefit.

Respect for Human Rights

1.Respect for Personality and Human Rights

Understand internationally recognized human rights and, based on laws and labor practices, respect the human rights of people involved in business activities

2.Fair Recruitment

Strive to ensure equal employment opportunities and practice fair recruitment processes with an emphasis on respecting fundamental human rights.

3.Prohibition of Forced Labor, Child Labor, and Human Trafficking

We strictly prohibit and do not tolerate any form of forced labor, child labor, or human trafficking.

4.Working Hours and Holidays

Commit to reducing overtime and ensure that employees are not required to work beyond the legal limits set by the laws of the countries or regions where we operate. Provide employees with the holidays and annual leave mandated by the laws of those countries or regions.

5.Wages and Employee Benefits

Adhere to laws concerning minimum wages, overtime pay, and other compensation requirements established in the countries or regions where we operate. We are committed to paying a living wage and providing the benefits mandated by law.

6.Prohibition of Inhumane Treatment

Prohibit any form of inhumane treatment, including psychological, physical, or sexual abuse, corporal punishment, and harassment.

7.Prohibition of Discrimination

Prohibit discrimination based on race, beliefs, gender, age, social status, nationality, ethnicity, religion, disability, sexual orientation, or any other characteristic.

8.Freedom of Association and the Right to Collective Bargaining

Respect the rights of employees to freely form and join labor unions, participate in collective bargaining, and engage in peaceful assemblies. Additionally, provide an opportunity and environment where workers can discuss labor conditions and management practices with top management without fear of discrimination, retaliation, intimidation, or harassment.

Ensuring Safety and Quality

1.Value of products and services

Accurately understand social needs and provide valuable products and services that pursue quality and cost accepted by customers.

2.Safety of products and services

Develop, produce, and provide products and services with careful consideration of safety.

3.Provision of clear information

Provide clear and appropriate information to support customers in making reasonable choices about our products and services.

4.Development of new technologies and products

Strive to develop new technologies and products, and provide excellent goods and services to customers and consumers.

5.Maintaining and enhancing development capabilities

To maintain and enhance our ability to develop new technologies and products, we are committed to nurturing talent and fostering a positive corporate culture.

6.Prevention of occupational accidents

Establish procedures and systems for the prevention, management, recording, monitoring, and reporting of injuries and illnesses caused by occupational accidents.

7.Measures for tasks with heavy physical loads

To prevent employee injuries and illnesses caused by tasks with heavy physical loads, identify activities such as manual handling of raw materials, lifting heavy objects, extremely repetitive manual work, and prolonged standing. Implement measures such as regular breaks, use of assistive tools, and task segmentation.

8.Safety measures for machinery

To prevent worker injuries, assess the hazards of machinery and implement measures such as legal inspections, protective measures (warning labels, use of protective gear, interlocks, and barriers).

Environmental Responsibility

1.Compliance with environmental regulations and ordinances

We comply with environmental regulations and local regulations. Additionally, we establish environmental management systems such as ISO 14000.

2.Management of hazardous substances

We adhere to technical standards related to environmental impact substances, prohibit the delivery of products and parts containing banned substances, and promote the disclosure of information regarding the chemical substances contained in the products and parts we supply.

3.Initiatives toward carbon neutrality

To achieve carbon neutrality by 2050, we will actively promote the reduction of energy consumption and the use of renewable energy across all business activities.

4.Pollution prevention

To prevent environmental pollution of the air, water, and soil, we identify pollutants and sources of pollution, and implement appropriate management, including the addition of pollution control equipment and review of production line processes in our factories.

5.Reduction of resource usage

Effectively utilize resources such as minerals, raw materials, and fossil fuels to reduce their usage.

6.Waste management

We manage and handle waste through appropriate methods, focusing on reduction and recycling efforts.

Contribution to Social Participation and Development

1.Commitment to mutual trust

We respect the cultures and traditions of countries and regions around the world and strive to build mutual trust with local communities and stakeholders. We collaborate with a wide range of stakeholders, including NPOs, local communities, and government agencies, to work towards a sustainable society.

Management

1.Risk Management

To prevent the occurrence of emergencies or minimize damage in case they happen, we establish and operate a risk management system.

2.Ensuring information security

To prevent the leakage of confidential information and minimize damage if it happens, we establish, operate, and strengthen information security measures.

3.Complaint handling

We establish a system to receive requests and complaints from customers and report and address them promptly and accurately.

4.BCP (Business Continuity Plan)

We implement an effective Business Continuity Plan (BCP) to quickly resume operations and fulfill our supply responsibilities to customers even during large-scale disasters or outbreaks of infectious diseases. We also conduct training and drills as preparation for imminent crises to enhance the organization’s crisis management capabilities.