In today's world, people insist that companies respect certain social responsibilities, such as respect for human rights and the environment, in their procurement activities. Supplying outstanding quality and technologies is no longer sufficient. Beyond that, Panasonic strives to ensure that it does business only with suppliers that fulfill their social responsibilities in five areas: clean procurement; green procurement; compliance with laws and social norms; information security; and respect for human rights, labor, and occupational health and safety.
To ensure at employees involved in procurement activities better understand CSR procurement, and in order to raise their awareness of CSR procurement, we have created internal rules and manuals on CSR procurement, and disseminated the necessary information via handouts, our intranet, and training sessions.
We include CSR terms in our Standard Purchase Agreements with the suppliers who provide our parts and materials, those terms including items relating to human rights, items relating to providing a safe workplace, and items relating to concern for the environment. These agreements are premised on the understanding that the suppliers agree to abide by Panasonic's management philosophy, CSR procurement guidelines, and the "For Suppliers" documents. In addition, we distribute information to our suppliers about the CSR principles we wish them to observe. Periodically, we evaluate their CSR efforts, in addition to evaluating their standards regarding quality, cost, delivery, and services (QCDS), and business execution.
With regard to conflict minerals that fund organizations that behave without proper regard for human rights, engage in environmental destruction, practice corruption, and otherwise act unethically in conflict zones, we strive to adhere to the Organisation for Economic Cooperation and Development's (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.
Through these efforts, together with our suppliers, we strive to create sustainable supply chains.
Panasonic has summarized its core thinking on procurement in a 10-item set of Procurement Policy. The fundamental basis of this policy is the concept that, based on relationships of mutual trust, and through diligent study and cooperation, our suppliers are invaluable partners in creating the value our customers demand.
In the interest of ensuring Corporate Social Responsibility (CSR) in our supply chain, we have established a set of requests to our suppliers regarding CSR items as “For Suppliers,” which we expect our suppliers to observe.
The person responsible is Senior Managing Director Yoshiyuki Miyabe. (as of July 2015)
The department responsible is the Global Procurement Company. Each of our group Companies and their business divisions and other affiliated companies has its own procurement department.
The Global Procurement Company is responsible for CSR procurement activities at the company-wide level. It works together with the group Companies and their business divisions and other affiliated companies to strengthen our efforts in this area.
Each Company and business division draws up plans to follow and promote the company-wide rules and manuals, in order to keep the PDCA cycle in motion. Issues that arise in this process are addressed by the conference and other opportunities composed of executives responsible for the procurement functions in each Company and business division, which devises appropriate solutions.
We ask that all our suppliers endorse Fair and Appropriate Procurement Activities (Clean Procurement Declaration), and that they engage in fair business practices.
Our company embraces the concept that "a company is a public entity of society." We abide by the law in countries around the world, and we strive to promote business activities that are based on higher ethical views. In order to ensure that we procure products and services from our suppliers on a fair basis, we conduct periodic audits and training sessions for our employees. We conclude Standard Purchase Agreements with our suppliers that include the following terms.
To ensure the correct management and handling of information assets such as customer information, personal information, and information regarding technologies, quality, products, services, we ask suppliers to implement the same level of security as we do. Thus, we present to them our information security standards and provide information-security self-check sheets.
Panasonic respects the human rights of our suppliers' employees and strives to promote procurement activities that protect their working environment and health and safety. Currently, we have begun the process of formulating and testing tools that will allow us to measure the degree to which our suppliers abide by CSR principles.
We conclude Standard Purchase Agreements with our suppliers that include the following terms.