CSR activities in FY2017
Relationships with Business Partners
Basic Approach
The Basic Procurement Policy clarifies our direction with the concept of: globalization, fairness/impartiality, and environmental preservation. These principles are intended to build up relationships of trust with business partners and NTN Procurement Departments, as well as its related departments.
We work to conserve the environment through our activities as defined in the NTN Group Green Procurement Standards, giving priority to our business partners with outstanding performance for environmental conservation and environmental quality. We also encourage our partners to take proactive CSR actions positively and proclaim that in the NTN CSR Procurement Guidelines. Our domestic and overseas production bases work to ensure that supplies are procured locally or from the optimal locations.
Basic Procurement Policy
- We stress quality, cost advantage and on-time delivery from a global viewpoint, and we pursue stable procurement through prompt response to market changes.
- We abide by laws and ethics, and we promote fairness and equality in business.
- Through procurement activities, we strive to conduct business in a manner that protects the environment and preserves resources.
- We deepen understanding with suppliers, and we aim to create a partnership founded on trust that generates mutual prosperity.
Questionnaire survey for business partners
To raise recognition for the NTN CSR Procurement Guidelines and check compliance with them, we conducted a survey for our 293 business partners.
The questionnaire consisted of seven topics on the work being done by business partners for various issues. More than 87% of the respondents answered ‘completed’ or ‘on the way to accomplish’ for five topics such as the environment, the human rights and the labor issues, while fewer than 80% gave positive responses for the questions about business continuity management and social contributions.
The result of the survey is being used to provide the agenda for discussions to tackle problems for CSR activities. Through discussion and sharing examples of successful work, we support our business partner activities and ensure our supply chain management is robust.
■Survey results
Supplier Meeting
We held “Supplier Meeting” for the first time this year. The purpose of this event was to share a better understanding for our business activities with business partners, and to build up a teamwork. Representatives from 71 business partners attended. Summary of our business circumstances and our global business promotion were presented, and a lecture was given by outside instructor. The officers in charge of the Procurement requested the attendees to step up their CSR procurement activities on their activities. This event also included a social meeting between business partners and NTN, at top management level to get closer each other.
We will continue to hold the Supplier Meeting in the fiscal year ended March 31, 2019,the first year of our new Midterm Management Plan (DRIVE NTN 100). We will continue to reinforce the partnership between business partners with mutual trust.
Calling on business partners to step up their CSR procurement activities
Conflict minerals survey
We conduct a survey periodically, to ensure that certain materials and finished products do not contain particular materials that could be a source of funds for armed groups in conflict zones, misused for immoral issues such as human rights violations, illegal mining and smuggling. We respond to customer’s inquiries concerning conflict materials based on the results of this survey.
In the fiscal year ended March 31, 2018, we traced back through the supply chain to identify material refiners through a survey, requested to 293 business partners. More than 90% of partners responded, with answers indicating that thay do not use any conflict minerals.
We will continue to conduct the survey periodically. We will take appropriate countermeasures when any risk is found, to avoid mineral resource purchase from actual conflict zones or high-risk zones.
Business partner response rate
Subcontracting Act compliance work
Subcontracting self-auditor system
In the fiscal year ended March 31, 2018, we organized a new subcontracting self-auditor system to facilitate the business sites to autonomously comply with Subcontracting Act.
The Procurement Headquarters holds a Subcontracting self-auditor training course once a year to provide education for candidates who have basic knowledge of the Subcontracting Act and at least one year of practical experience. The course certified 42 new self-auditors who passed the certification test in the fiscal year ended March 31, 2018.
Subcontracting self-audits
The subcontracting self-audits are conducted at domestic bases. They were generally conducted in the presence of the Procurement Headquarters. In the fiscal year ended March 31, 2018, we switched to a system of self-audits led by subcontracting self-auditors. Subcontracting self-audits were done at 21 domestic bases (20 production bases and one research base). They were done in the presence of the Procurement Headquarters at seven of these bases to enable checks of the self-audit processes.
Procurement locally and from the most appropriate regions
Both in Japan and overseas, our worldwide production bases work to ensure that supplies are procured locally or from optimal suppliers in any location.
We work under the bases to maximize local procurement even under different business customs and other difficulties. Along with economic factors, the benefit to the local job market will be considered when making procurement decisions, as well.
Exchanging opinions between
Japan and overseas
■Ratio of Local Procurement (by region)
