Society > Together with Business Partners Promotion of CSR Procurement

To fulfill our corporate social responsibilities throughout the entire supply chain, including our suppliers, we are conducting a range of initiatives while formulating action principles for procurement departments, as described below.

Action Principles

In accordance with the Mitsubishi Chemical Holdings (MCHC) Group Charter of Corporate Behavior, we are working to contribute to the realization of KAITEKI.

Employees involved in procurement operations are working to implement CSR procurement in accordance with various rules and internal regulations, such as the Procurement Policy established by the Group based on this concept, (Groupwide in scope) and the Procurement Compliance Code of Conduct (for all domestic affiliates).

Procurement Policy
  1. 1Fair and equitable selection of supplier
  2. 2Open opportunity for transactions
  3. 3Establishment of relationship of trust
  4. 4Compliance with laws and regulations, as well as social norms
  5. 5Moderate action

Selecting and Reevaluating Suppliers

In selecting and re-evaluating suppliers, we confirm that they do not have any relationship with anti-social forces. In addition, suppliers involved in the manufacturing of pharmaceuticals are evaluated focusing on the following five criteria based on our supplier selection standards. The Company is also responsible for the procurement functions of its domestic Group companies and selects and re-evaluates suppliers based on the same standards for raw materials procured by subsidiaries. To ensure and maintain business continuity, even in an emergency, we request in advance that our major suppliers (determined based on annual transaction value, inability to find alternative supply, and other factors) keep a certain quantity of pharmaceutical raw materials on hand for continuous supply.

Evaluation Points
  • Quality assurance level
  • Technical capabilities
  • Continuity and stability of supply
  • Price and business conditions
  • Corporate attitude (CSR initiatives include compliance with laws and regulations, environmental protection, working environment, and respect for human rights)

Establishing a Sustainable Supply Chain

To build and strengthen a sustainable supply chain, we are sharing MCHC's “Developing Cooperative Business Practices with Suppliers and Business Partners – Guidebook” with our business partners. Also, in line with the purpose of this guidebook, we have conducted a survey to check the status of CSR initiatives such as ensuring environmental conservation, respect for human rights, and occupational safety and health. In fiscal 2019, 50 companies responded. The total value of transactions with these 50 companies accounts for 99% of our total direct material purchases.

We will continue to conduct this survey in order to get business partners to confirm the items they should prioritize and effectively promote their CSR activities.

Survey Flow
  1. 1Each supplier responds to the survey
    (Self-assessed at three grades (1 to 3 points) for each item)
  2. 2We calculate the average score for each item
  3. 3We feedback the score to each company

Training on Laws and Regulations

The Company's procurement departments regularly conduct training on the laws and regulations related to procurement. In this way, we have worked to ensure rigorous compliance awareness.

Applicable Main Laws and Regulations

  • Act on Securing Quality, Efficacy and Safety of Products Including Pharmaceuticals and Medical Devices (Pharmaceuticals and Medical Devices Act)
  • Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc. (Chemical Substance Control Law)
  • Industrial Safety and Health Act
  • Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (Subcontracting Act)
  • Foreign Exchange and Foreign Trade Act (Foreign Exchange Act)
  • Other laws and regulations concerning import and export

Consideration for Human Rights

We have established procurement rules in line with our procurement policy that stipulate that we conduct our procurement activities by giving full consideration for human rights. We share MCHC's “Developing Cooperative Business Practices with Suppliers and Business Partners – Guidebook” with business partners and also conduct a survey to check the status of their efforts to respect human rights.