With the global demand for social responsibility in procurement—including consideration for the environment and human rights, satisfactory labor conditions, and fair trade—we at Panasonic are working to conduct our business with suppliers that not only provide excellent technology and quality but also honor social responsibilities including human rights and labor r, occupational health and safety, green procurement, clean procurement, compliance, and information security.
Panasonic considers the promotion of CSR in its procurement departments to be crucial and conducts periodic management reviews.
To ensure that 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 ask each of our suppliers to agree to our Supply Chain CSR Promotion Guidelines, which is a summary of our management philosophy, CSR procurement policies, and other matters with which we want our suppliers to comply. We also ask them to perform CSR self-assessments before we start doing business with them. We also enter into a Standard Purchase Agreement with them. This Agreement includes items related to CSR such as human rights, safe working environments, and consideration for the environment.
Furthermore, we conduct regular evaluations of supplier initiatives related to CSR in addition to evaluations related to standards for evaluating quality, cost, delivery, and service (QCDS) and to business results.
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.