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Theme 3 : Growing with Society

CSR Procurement Guidelines

CSR Procurement Guidelines

CSR Procurement Guidelines

Komatsu Group CSR Procurement Guidelines : What we would like to ask our business partners in the supply chain

(Established on August 30, 2011; Revised on April 1, 2019)

1. Operations for Sound Management

  1. Build a system or operational structure designed to meet various risks.
  2. Establish legal and transparent decision-making processes concerning management.
  3. Conduct appropriate accounting procedures, tax filing and settlement of accounts.
  4. Place importance on communication with stakeholders (customers, shareholders, business partners, employees, etc.).
  5. Ensure that top management will be notified promptly when any abnormal condition develops and that your company will be able to promptly and accurately respond to the situation(s).
  6. Fulfill accountability to society through active disclosure of corporate information.

2. Thorough Enforcement of Compliance

  1. Engage in business operations while complying with the laws and regulations, as well as the rules of the business community in the countries and regions where we conduct business operations. In addition, make efforts to respect internationally accepted standards.
  2. Define a code of conduct, comprising company rules, under the leadership of senior management, and develop a corporate climate that places top priority on compliance.
  3. Establish a compliance regime, in accordance with the scale and characteristics of the company, that prevents the company, executives, and employees from engaging in illegal conduct, and promptly addresses situations where issues have occurred (e.g. a whistle-blowing system).

3. Product Safety, QCD and Technology Innovation

  1. Comply with the laws and regulations concerning product safety and deliver products and services which will offer safety and peace of mind to customers.
  2. In addition to maintaining the quality and cost competitiveness of products and services which your company delivers to customers, stand by the agreed upon date of delivery and supply your products in a stable manner.
  3. Establish a quality management system and make efforts to maintain and improve it.
  4. Constantly engage in technology development and provide innovative, safe and environmental-friendly products and services.

4. Considerations for the Environment

  1. Continue efforts to reduce environmental impact resulting from business operations.
  2. Appropriately manage chemical substances contained in products.
  3. Build up environmental management systems such as the ISO14000 series and "Eco Stage."

5. Measures to Respect Human Rights, Appropriate Labor Conditions and Occupational Safety and Health

  1. Respect human rights including the rights to freedom of association and collective bargaining.
  2. Never get involved, directly or indirectly, in any child or forced labor.
  3. Create a work environment where there is no discrimination or harassment in any aspect of employment.
  4. Respect the rights of workers, through payment of fair wages and proper working hours management.
  5. Establish a system for occupational labor health and safety, under the leadership of top management, and create a working environment where all employees can work safely and healthily.
  6. Establish fair and equitable human resource system, and pay attention to human resource development and employee education as well.
  7. Give consideration to improving communication between top management and employees.

6. Fair Business Practices

  1. Comply with all related laws and regulations and engage in free and fair competition and business transactions.
  2. Respect intellectual properties of other parties and work to prevent infringement thereof. Appropriately handle information (including personal information) of your company and other companies.
  3. Never accept inappropriate cash, gifts or other favors.
  4. Carry out proper foreign trade transactions (goods and technologies) while complying with the related laws and regulations.
  5. Never have any relationship with antisocial forces or groups.

7. Social Contributions and Co-existence with the Local Community

  1. Engage in social contribution activities based on your company's management principle(s) and support employees' volunteer activities.
  2. Place importance on co-existence with local communities which is the foundation of your business, and proactively support the growth of local communities.

8. Spread of the guidelines throughout the Entire Supply Chain

  1. Encourage business partners of the company to observe the items stipulated in the guidelines. Make efforts to encourage the spread of these guidelines into the entire supply chain.
  • These guidelines will be revised as needed.
komatsu csr, Procurement Division