Collaboration with Business Partners

The Kawasaki Group conducts procurement activities based on the following Basic Policies for Material Procurement.

Basic Policies for Material Procurement

Basic Policies

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.


Compliance

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 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.

Conflict Minerals

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.

Policy Regarding Procurement of Conflict Minerals

Armed groups that repeatedly commit inhumane acts such as killings, looting and sexual violence may derive capital from the four minerals of tin, tantalum, tungsten and gold (known as “conflict minerals”) being produced in the Democratic Republic of the Congo and its neighboring countries. As a result, there is a concern that these conflict minerals will lead to an escalation of problems.
The Kawasaki Heavy Industries Group has no intention whatsoever of being party to such conflicts or inhumane acts through the procurement or use of these conflict minerals in consideration of respect for human rights. Going forward, efforts will be made to tackle the issue of conflict minerals in close liaison with customers and suppliers.

Thorough Compliance

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 2012, we have held sessions, mainly for design and manufacturing divisions at plants and major affiliated companies. In fiscal 2017, the sessions attracted 844 participants. (Reference: To date, 4,293 people have attended the sessions.)

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