In-house Training on Sound and Fair Business Practices

Nihon Kohden provides regular compliance training to all of its employees to ensure they have correct understanding and awareness of sound and fair business practices. Departments involved in procurement provide annual training on specific laws and regulations affecting their operations, such as the Fair Competition Code and the Act against Delay in Payment of Subcontract Proceeds. In FY2022, 58 people attended these training sessions.

Enhance Relationships with Suppliers

Nihon Kohden requests business partners to conduct self-assessment on their environmental and quality activities, and, moreover, checks business partners’ understanding of and adherence to the Nihon Kohden Sustainable Procurement Standards through their answers to the Sustainability Questionnaire conducted every year.
Opinions expressed through the Questionnaire are fed back to procurement departments and utilized to realize fair and responsible procurement.

Results of the Sustainability Questionnaire in FY2022

In FY2022, we asked 100 of our business partners to answer our Sustainability Questionnaire and were grateful to receive cooperation from all of them. The questionnaire consisted of 22 questions in six areas: legal compliance and fair operating practices, human rights, quality, the environment, information management, and sustainability. In terms of questions about legal compliance and fair operating practices, and human rights, initiatives and implementation were underway, planned or under consideration in more than 90% of our business partners. In previous questionnaires, multiple business partners reported that they have engaged in social contribution initiatives. We continue to work with our business partners to deepen mutual understanding of our sustainable procurement standards and ensure fair trade practices.

Identification of key suppliers

Nihon Kohden has identified the following suppliers as key suppliers: suppliers of orders with large purchase amounts, suppliers who provide parts for major and strategic models, and suppliers who provide non-substitutable parts.

Results of the Supplier Questionnaire in FY2022

In FY2022, we conducted a Supplier Questionnaire for approx. 76 suppliers both in Japan and internationally and got responses.
The results of the survey revealed significant differences in the status of initiatives among suppliers. While many suppliers are working to build systems and implement various measures in the areas of Human rights, Quality, and Governance, many are facing challenges in the area of the Environment, such as climate change response initiatives and environmental data acquisition.

Measures to reduce risks

For suppliers with low scores, we are considering taking actions such as providing feedback on the survey results and requesting improvements. Additionally, several suppliers have reported events in the areas of Health and Safety and Information Security that have the potential to develop into serious incidents or accidents. In those cases we will promptly confirm the facts and support the supplier in taking appropriate corrective measures.

Supplier Questionnaire Content

Theme

Question

Sustainability Promotion
  1. Basic policy on sustainability promotion
  2. Promotion system for sustainability
  3. Signing and participating in sustainability-related organizations or initiatives

Environment
  1. Establishment and operation of environmental management systems as the basic policy on environmental initiatives
  2. Appropriate management in place to ensure compliance with environmental laws and regulations
  3. Identification of cases of non-compliance
  4. Reduction of Green House Gas emissions
  5. Reduction of chemical substances specified by laws and regulations in manufacturing processes and products
  6. Initiatives for waste reduction activities
  7. Sustainable and efficient use of resources (energy, water, raw materials, etc.)
  8. Management of wastewater and exhaust and reduction of air, soil, and water pollution
  9. Initiatives to reduce water consumption
  10. Initiatives for biodiversity conservation

Human Rights
  1. Basic policy on human rights
  2. Promotion system for respect for human rights
  3. Identification of cases of non-compliance
  4. Identification and assessment of risks regarding respect for human rights in operations
  5. Prohibition of forced labor practices or acts and hiring of underage children
  6. Management of night work and hazardous work
  7. Appropriate management of foreign workers
  8. Prohibition and appropriate management of discrimination and harassment
  9. Prohibition and appropriate management of discrimination in employment
  10. Appropriate management of employment of persons with disabilities
  11. Proper wage payment and compliance with laws and regulations
  12. Appropriate management of working hours
  13. Appropriate measures regarding the right to organize, collective bargaining, and collective action
  14. Establishment of consultation and reporting channel for human rights

Quality
  1. Establishment and operation of quality management systems as the basic approach to quality and safety of products and services
  2. Identification of cases of non-compliance
  3. Compliance with the safety standards specified by laws and regulations
  4. Responsible marketing and advertising
  5. Supplier’s responsibility for the supply chain
  6. Advance measures and response procedures for responding to emergency situations
  7. Advance measures and response procedures for handling a recall or complaint

Health and Safety
  1. Establishment of policy on health and safety
  2. Promotion system for health and safety
  3. Identification of occupational accidents and illnesses
  4. Identification of cases of non-compliance
  5. Appropriate management and the implementation of necessary safety measures in workplace
  6. Assumption of emergency situations such as disasters and accidents, and necessary Implementation of health management

Governance
  1. Building internal control system
  2. Board of Directors Evaluation

Compliance
  1. Compliance with applicable laws and regulations
  2. Identification of cases of non-compliance
  3. Establishment of reporting channel for misconduct
  4. Appropriate management to avoid inappropriate behavior toward antisocial forces
  5. Appropriate management to avoid improper actions against intellectual property rights

Information Security
  1. Promotion system for information security
  2. Identification of cases of non-compliance
  3. Initiatives to protect personal information
  4. Defensive measures including protection against cyber-attacks

Initiatives to Maintain and Improve Quality

To respond to customer needs, we strive to maintain and improve the quality of the components and materials we procure. We have new business partners cooperate with audits to confirm the appropriate operation of quality management systems, and have existing business partners cooperate with periodic reviews of operations and quality audits based on the quality of delivered components. We strive to further enhance quality by getting business partners themselves to understand that the quality of delivered components can have a significant impact on the quality of our end products.