Partnerships with suppliers
Partners in quality
To create excellent products that satisfy our customers, we place high priority on controlling quality, delivery schedules and the cost of components and materials procured from suppliers as well as confirming that supplier operations are environmentally responsible. We work fairly with all suppliers, setting selection standards based on such aspects as technological excellence, quality, supply capacity, environmental preservation activities and legal compliance, selecting only suppliers who meet our standards. In addition, to safeguard product and service quality, we share our management policies, technical strategies, and current issues with suppliers during such meetings including “EIZO Supplier Day.” We take time to provide, and highly value regular information exchange opportunities. We deal with a diverse array of suppliers in Japan, where 80% of our production takes place.
Partners in CSR
EIZO intends to fulfil our CSR across our entire supply chain by asking all business partners involved in procurement to actively promote CSR activities, including compliance, respect for human rights, environmental preservation and safety and health. We established the “EIZO Supplier Code of Conduct” in accordance with the “EIZO Group Principles of Conduct” and obtain “Supplier Declarations” to ensure compliance from all our suppliers. Suppliers report on their level of compliance based on a self-assessment and we undertake onsite audits as necessary.
Fair and equitable transactions
The “EIZO Group Principles of Conduct” unequivocally prohibit offering or accepting entertainment, gifts or other benefits that violate the law or deviate from generally accepted business practices. In addition to complying with the Principles of Conduct ourselves, we ensure our suppliers share a common understanding with us.
Responsible minerals procurement
Approach to responsible minerals policy
Concerns are rising with regard to mineral resources, which are significant as raw materials used in IT and electronic components. In conflict-affected and high-risk areas including the Democratic Republic of Congo (DRC) and adjoining countries, the mining of such minerals may result in funds for groups that engage in conflicts and illegal acts such as the violation of human rights including forced labour and child labour, environmental destruction, and money laundering. Accordingly, the use of these minerals could promote the activities of such groups.
Based on our view that it is our social responsibility to take this issue into consideration, the EIZO Group aims at procuring minerals from sources with no involvement in conflicts or illegal acts (i.e., to procure conflict-free minerals) for use in our products.
To realize this goal, we conduct surveys on our entire supply chain and check the survey results to ensure that specific minerals (the four mineral resources (tantalum, tin, tungsten, and gold) defined as conflict minerals by the U.S. Dodd-Frank Act, and cobalt) are procured from sources that have no relation with illegal activities. If we discover that a source may have a relation with illegal activities, we will take corrective actions.
Responsible Minerals Initiative (RMI)
Furthermore, we participate in the Responsible Minerals Initiative (RMI) and continuously support responsible minerals procurement from conflict-affected and high-risk areas.
The Due Diligence process
We disclose our Responsible Minerals Policy on our website and demand that our entire supply chain makes effort to use only conflict-free materials in components for our products.
Furthermore, targeting our entire supply chain, we annually conduct a country-of-origin survey regarding the specific minerals using the RMI’s Conflict Minerals Reporting Template (CMRT) and Cobalt Reporting Template (CRT) to check if any minerals procurement may have a relation with illegal activities.
When the responses from the supply chain members include smelters that are not conformant with the Responsible Minerals Assurance Process (RMAP) standards, we demand that the relevant member conducts a further detailed survey and/or an RMAP audit or consider procurement from other RMAP conformant smelters.
FY2020 survey results
In the conflict minerals survey, we collected more than 90% of the answers. This survey confirmed 254 smelters were RMAP smelters. In addition, no information was found regarding involvement in illegal activities in mineral procurement.
In the cobalt survey, we collected more than 85% of the answers. Through this survey, we obtained information on 65 smelters and confirmed that they include RMAP smelters. In addition, no information was found regarding involvement in illegal activities in mineral procurement. Smelter list
In FY2021, we will continue to work on due diligence activities to further identify smelters and improve the rate of mineral procurement from RMAP smelters. Collaborating with our suppliers and industry organizations, we will continue to strive to realize our goal to use only conflict-free materials.
EIZO Supplier Code of Conduct
Code of Conduct for Suppliers
The EIZO Group Principles of Conduct is established as a specific set of codes by which all EIZO group companies promote businesses in order to contribute to the development of a sustainable society and to realize a prosperous future society. In accordance with the principles, EIZO aims to carry out sound business practices globally in a socially responsible manner. To ensure this purpose throughout our whole supply chain, EIZO hereby requires its suppliers to comply with this EIZO Supplier Code of Conduct.
Last revised on Apr.1, 2021
- Suppliers are required to strictly prohibit forced labour and child labour.
- Suppliers are required to refrain from performing work that is likely to jeopardize the health or safety of young workers, pregnant women, and nursing mothers.
- Suppliers are required to properly secure working hours, holidays, and vacation for employees, to protect the health of employees. Work hours are not to exceed the maximum set by local law.
- Suppliers are required to compensate employees fairly and follow local wage laws and not to permit deduction from wages as a disciplinary measure.
- Suppliers are required to refrain from harsh and inhumane treatment to workers, including violence, intimidating words and deeds or any harassment ignoring personality.
- Suppliers are required to treat workers with dignity and not to engage in discrimination based on race, age, gender, sexual orientation, ethnicity, nationality, disability, religion, creed, social status etc. in hiring and employment practices.
- Suppliers are required to respect the rights of workers to associate freely and secure open and appropriate communication between workers and management.
- Suppliers are required to provide a healthy and safe working environment for employees under the leadership of management and the participation of employees, in accordance with applicable laws and regulations.
- Suppliers are required to verify potential emergencies and accidents, including disasters, and take the necessary safety countermeasures.
- Suppliers are required to inform the employees quickly, to take the necessary steps to provide treatment, to assist in returning to work and to take necessary measures to prevent recurrence, in the case a work-related accident or illness occurs.
- Suppliers are required to take necessary measures for risks that lead to health problems such as harmful chemical substances, noise, and harmful odours.
- Suppliers are required to evaluate physically demanding workloads and to control it.
- Suppliers are required to take safety measures and maintenance management with regards to the machinery and equipment used in the workplace.
- Suppliers are required to ensure safety and health (cleanliness) of the facilities, such as dormitories, dining facilities, and restrooms for employees.
- Suppliers are required to provide health and safety information and training in the employee's native or understandable language.
- Suppliers are requested to conduct the necessary health management programs to maintain employees' good health.
- Suppliers are required to comply with applicable environmental laws, regulations, and international treaties.
- Suppliers are required to make efforts to prevent environmental pollution and reduce environmental impact by conserving resources, promoting recycling, and reducing toxic and exhaust emissions.
- Suppliers are required to refrain from the use of chemical substances which are prohibited by laws, regulations, or international treaties. Suppliers are required to establish a control system for chemical substances covered by laws regulations, or standards, and properly disclose information.
- Suppliers are required to properly manage volatile organic compounds, fine particles and ozone-depleting substances emitted into the atmosphere and disclose information.
- Suppliers are required to make efforts to prevent environmental pollution and reduce environmental impact by properly managing water sources and wastewater and disclose information properly.
- Suppliers are required to make efforts to reduce energy consumption and greenhouse gas emissions by improving energy efficiency and using renewable energy. Suppliers are required to disclose energy and greenhouse gas emissions (scope 1 and 2).
- Suppliers are requested to design products and parts while considering resource saving, energy saving, and recycling to promote environmental friendliness.
- Suppliers are required to prohibit any and all forms of bribery, corruption, extortion, and embezzlement at all.
- Suppliers are required to inhibit from giving and receiving business entertainment, gifts, or any other benefits contrary to applicable laws and regulations or beyond general business customs.
- Suppliers are expected to promote sound and fair business management. Suppliers are required to disclose details regarding management policies and business conditions (including financial information) properly.
- Suppliers are required to respect and not to infringe the intellectual properties of third parties including customers and next tier suppliers.
- Suppliers are required to uphold standards of fair business, advertising, and competition.
- Suppliers are required to establish an appropriate and effective process that allows next tier suppliers or employees to anonymously report fraud, legal violations, etc. in their organization to the internal or the appropriate external agent without retaliation, intimidation, or other detrimental treatment.
- Suppliers are required to identify, assess and response risks to ensure that the procurement of mineral resources from conflict areas and high-risk areas does not contribute to human rights abuses or environmental destruction. Suppliers are required to disclose the information upon customer request.
- Suppliers are required to strictly manage and protect personal and confidential information regarding their companies, customers, and next tier suppliers.
- Suppliers are expected to take necessary measures related to information security in order not to damage their business or business partners.
- Suppliers are required to inhibit any relationship with anti-social groups or organizations.
- Suppliers are required to satisfy defined quality requirements, in order to provide safe products and services for our customers.
- Suppliers are required to disclose necessary information relating to products and services quickly and accurately.
- Suppliers are requested to promote a high standard with regards to product quality, technology, and delivery time. In addition, suppliers are requested to keep pricing reasonable.
- Suppliers are requested to keep their capacity to supply products in a stable manner and are requested to be flexible towards fluctuations in demand.
- Suppliers are expected to establish business continuity plans (BCP) that assumes emergencies such as natural disasters.
Suppliers are required to have established and implemented management systems for labor, health and safety, environment, ethics, and quality to comply with applicable laws and regulations and customer requirements. The management systems should include the following items:
- Statements of corporate policy and code endorsed by executive management.
- Establishing an organizational structure, responsibilities, and authorities to implement the management systems, managing implementation plans including the next tier suppliers, and a periodic review of management systems status.
- A process to identify and to monitor applicable laws, regulations, and customer requirements and to review the compliance on a regular basis.
- A process to identify risks and to implement the action plans and the objective settings for management and coping.
- A process for establishing and implementing objectives and implementation plans to improve the Supplier's performance, including a periodic assessment of Supplier's performance in achieving objectives.
- Programs for training all workers to implement Supplier's policies, procedures, and improvement objectives. Processes of maintaining the required competence and awareness.
- A process for communicating clear and accurate information about Supplier’s policies, activities and performance to workers, next tier suppliers, customers, and local communities.
- Ongoing processes to obtain feedback on or grievance from workers against practices and conditions covered by the Code and to foster continuous improvement.
- Periodic self-evaluations to ensure conformity to legal and regulatory requirements, the content of the Code, and customer requirements.
- A process for timely correction of deficiencies identified by internal or external assessments, inspections, investigations, and reviews.
- Creation and maintenance of documents and records to ensure regulatory compliance and conformity to company and customer requirements along with appropriate confidentiality to protect privacy.
- A process to communicate Code principle and requirements to Suppliers and to monitor Supplier compliance to the Code.
Mr. Manabu Arise
Senior Manager, Procurement