Supply Chain CSR
Supply Chain CSR Vision
Epson aspires to be an indispensable company, one that seeks to build mutually beneficial relationships with all its business partners, including suppliers, by asking them to uphold the highest standards of integrity and ethics while, at the same time, respecting their autonomy and independence.
We are particularly adamant that our business partners meet the following requirements:
(1) Strictly forbid acts of bribery and collusion with their business partners and refuse to engage themselves in illegal or unethical business practices.
(2) Hold their business partners to the same strict standards that Epson upholds with regard to compliance with laws and maintenance of human rights, suitable labor conditions, the environment, ethics, quality, and information security, and support improvements to any of these areas as needed.
(3) Develop and maintain open relationships with their business partners and work with them to increase the competitiveness of the entire supply chain, based on mutual trust and mutual benefit.
These supply chain ethics requirements are based on the Code of Conduct of the Responsible Business Alliance (RBA), of which Epson is a member. Epson, which has mapped each of its supply chain initiatives to one or more of the Sustainable Development Goals (SDGs) of the United Nations, will help to achieve the SDGs by taking action throughout the supply chain.
Sustainable Procurement Policy
Maintaining mutually beneficial relationships with suppliers is one of the keys to attaining the goals outlined in Epson’s Management Philosophy. This is why Epson’s Principles of Corporate Behavior states that Epson seeks to maintain mutually beneficial relationships with its suppliers, sales channels, collaborators, and other business partners, whom Epson asks to live up to the highest standards of ethical conduct while respecting their autonomy and independence.
In addition to good partnerships with suppliers, the Epson’s Basic Procurement Policy requires adherence to high ethical standards and strict compliance in all supply chain operations. Further, it states that we will strive to reduce the environmental impacts of our procurement activities and always seek stable and reasonable QCD (quality, price and delivery) from suppliers.
Epson Group Procurement Guidelines includes a Code of Conduct pertaining to labor, health, safety, environment, ethics, and management systems. This Code of Conduct is based on the Responsible Business Alliance (RBA) Code of Conduct. Epson uses the Epson Group Procurement Guidelines to inform all suppliers about our requirements and to request their adherence to them.
Supply Chain Strategy
- Providing products and services that create customer value
- Meet customers’ quality, delivery and price requirements, and position Epson to sustainably create products and services that will delight customers around the world and earn their trust.
- Contributing to environmental conservation
- Minimize the negative impacts of our production processes on society, environment, and natural resources.
- Reduce environmental impacts over the life cycle of products and services.
- Complying with laws, engaging in proper business practices, and operating with high ethical standards
- Implement systems to ensure compliance with local laws, internal rules, and corporate ethics.
- Maintain fairness, honesty, and promises.
- Act with integrity and avoid any association with bribery, corruption, and extortion.
- Maintain open and honest communication with stakeholders with appropriate information disclosures.
- Respecting basic human rights
- Eliminate all forms of discrimination based on race, gender, nationality, physical abilities, religion, and so on.
- Prohibit any type of inhumane treatment, including forced labor, slave labor, and child labor.
- Ensuring safe, healthy, and fair working environments
- Maintain a safe and secure work environment.
- Ensure that evaluations, work hours, and wages are fair.
- Implementing business continuity management (BCM)
- Establish systems to prevent occupational and industrial accidents and to restore operations promptly in the event of an interruption.
The Epson Group’s global supply chain is managed to ensure sustainability and the responsible sourcing of minerals.
The Sustainable Procurement Committee is made up of personnel from all of Epson’s divisions and manufacturing companies, with the Seiko Epson CSR procurement department providing administrative oversight. The committee discusses targets and action plans to address supply chain issues. After they are approved by the chief officer of supply chain management (SCM), the targets and action plans are communicated throughout the Epson Group. The chief officer of SCM monitors the progress of action plans.
Mid-term Target (KGI) and KPI
Epson has set mid-term targets and major action items for each year.
Mid-term targets (achieve by 2020)
Sustainable procurement: All critical suppliers earn no less than a medium-risk rank.
Conflict minerals: Ensure that minerals are sourced only from smelters certified by the RMI's Responsible Mineral Assurance Process.
FY2019 Major Action Items, Plans, and Results
|1||Ask suppliers to complete a CSR SAQ
|- Key direct material suppliers asked to complete a CSR SAQ: 100%
- HR agencies and onsite vendors at major Epson Group manufacturing sites asked to complete a CSR SAQ: 100%
|2||Provide high-risk suppliers with feedback on their CSR SAQ results and support corrective action
|High-risk suppliers provided with their score, rank and feedback: 100%|
|3||Complete corrective action plans by high-risk suppliers
|- High-risk suppliers audited by a 3rd party in FY2019 that completed their corrective action plans: 100%
- Percentage of suppliers rated high risk based on the SAQ that completed their corrective action plans: 70% (5/7 suppliers)
|4||Ask suppliers to complete a conflict mineral survey
KPI: Targeted suppliers 100%
|Targeted suppliers surveyed: 100%|
FY2020 Major Action Items
|Action items, KPIs|
|1||Ask major suppliers to complete a CSR self-assessment questionnaire (SAQ) to check compliance
1) Major suppliers provided with feedback on CSR SAQ results
2) High-risk suppliers that completed their corrective action plans
KPI: 100% (No high-risk suppliers)
|2||Customers that responded to CSR survey requests (including conflict free mineral survey requests)
|3||Smelters certified by the RMI's Responsible Mineral Assurance Process per the conflict mineral survey