Supply Chain Management
The Kawasaki Group conducts procurement activities based on the following Basic Policies for Material Procurement.
Basic Policies for Material Procurement
Fair and Impartial Procurements
We will provide broad and impartial opportunities for our business partners, and will make selections with integrity and good faith after conducting comprehensive and fair evaluations of quality, price, delivery schedule, technological development capabilities, and other such factors.
Relationships with Business Partners
We seek to realize optimal quality, cost and delivery schedule together with stable procurement by taking a long-term perspective to build relationships of trust with business partners with the aim of mutual enhancement of competitiveness and prosperity.
We will observe related statutes and regulations as well as social norms. We will place information gained through procurements under appropriate controls, and will take thoroughgoing measures to protect confidential information and prevent leaks.
Consideration for human rights, labor and occupational safety and health
We will advance procurement activities that have consideration for human rights, the work environment and occupational safety and health.
Harmony with the global environment through green procurement
We will advance procurement that has consideration for the global environment with respect to the materials used in products.
In addition, the Basic Policies for Material Procurement as well as the Code of Conduct for Dealing with Business Partners and the Policy Regarding Procurement of Conflict Minerals, which are in line with the objectives of the Basic Policies, are disclosed on our website. The site informs business partners of our basic stance toward material procurement.
Basic Stance toward CSR Procurement
While conducting the Group’s business activities, it is essential to conduct procurement activities in line with our stance toward CSR that includes consideration for human rights, labor issues, occupational safety and health, and the global environment, in addition to compliance.
Accordingly, we have to gain the cooperation of our business partners, in addition to the Group, and actively promote CSR activities throughout the supply chain.
CSR Procurement Initiatives
We have released the CSR Procurement Guidelines on the website, where we request our business partners to strengthen their CSR efforts.
Additionally, in fiscal year ended March 31, 2017, we conducted a questionnaire-based survey with domestic business partners to assess the status of compliance with these guidelines. About 1,400 business partners responded to the survey. Based on the results of the survey, we will execute measures to strengthen CSR efforts throughout our entire supply chain.
In addition, we pursue CSR procurement on a global and Group-wide basis by disclosing its policies that conform to each business through the websites of the Group’s domestic and overseas companies.
In December 2013, Kawasaki posted its Policy Regarding Procurement of Conflict Minerals on its website, which states clearly that Kawasaki has no intention whatsoever of being party to conflicts or inhumane acts in the Democratic Republic of the Congo and neighboring countries through the procurement or use of the tin, tantalum, tungsten and gold—so called conflict minerals—that are produced in these countries.
Each year, Kawasaki holds a group workshop intended for procurement divisions within the Group to ensure compliance with procurement-related laws and regulations, particularly the Subcontractors’ Act (formally, the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors) and the Construction Industry Law. Of note, with regard to the Subcontractors’ Act, not limited to procurement department, we maintain proactive measures for dissemination and enlightening, as outlined below.
- In October 2009, we published a collection of examples of Subcontractors’ Act violations, using actual cases in which other companies had contravened this law.
- In April 2013, we posted a checklist for self-auditing compliance status pursuant to the Subcontractors’ Act on the corporate intranet. This checklist functions as a tool for identifying any administrative activity prone to violations of the Subcontractors’ Act and for correcting such situations.
- Since fiscal year ended March 31, 2012, we have held sessions, mainly for design and manufacturing divisions at plants and major affiliated companies. In fiscal year ended March, 2018, the sessions attracted 844 participants. (Reference: To date, 4,293 people have attended the sessions.)