Supply Chain CSR
Supply Chain CSR Vision
Epson seeks to create customer value as guided by our Management Philosophy in order to win and maintain the trust of its stakeholders into the future and to contribute in an ongoing way to the development of society. Epson will fulfill its corporate social responsibility through actions designed to achieve its Management Philosophy.
When suppliers take the same approach as Epson to human rights, labor conditions, the environment, compliance, ethics, quality, and information security, Epson can work together to solve society's challenges and contribute to the making of a sustainable society.
Each of these activities ties in to a Sustainable Development Goal (SDG), one of the United Nations' international efforts to attain a sustainable society. Epson is contributing to reaching the SDGs by taking action throughout the supply chain.
Major Action Items/ KPIs
Epson sets and acts upon medium-range targets, major action items, and KPIs for achieving its supply chain CSR vision.
Medium-range targets (achieve by 2020)
Socially responsible procurement: Risk ranking of key suppliers shall be middle risk or better
Conflict minerals: Procure minerals only from smelters certified by the RMI's Conflict-Free Smelter (CFS) Program.
FY2018 Major Action Items
|FY2018 major action items and KPIs|
|1||Understand Epson Supplier Code of Conduct (based on RBA) and get 100% compliance|
|2||100% implementation of SAQ to determine compliance status|
|3||Complete improvements on 100% of issues from SAQ/on-site audits|
|4||100% implementation of conflict minerals survey|
Supply Chain Management
Epson considers suppliers to be important partners in its business activities. As such, our procurement is designed to develop mutually beneficial trusting relationships with our business partners based on the concepts of fairness, coexistence, transparency, and co-prosperity.
Epson also believes its responsibility for products and services include not only ensuring high-quality products for the market but also that its entire supply chain upholds appropriate standards in respect to human rights, labor, and the environment. Therefore, we recognize the importance of taking CSR initiatives hand in hand with our suppliers. Ensuring that the products and services we provide our customers continue to be outstanding in every respect including quality, price, and eco-friendliness requires having suppliers we can trust. For that reason, we practice fair and transparent trade with our suppliers and build trusting relationships thereby. Epson believes that it is only with such partnerships that we can enjoy "harmonious development" supported by rapport with international and local communities.
Currently, Epson deals with about 1,500 suppliers to procure product raw materials, components, and services. Some 24% of the value of our procurement comes from Japan and 76% from elsewhere. Outside Japan, most of our non-Japanese procurement comes from China, Asia and Oceania.
Socially Responsible Procurement Policy
Epson's procurement initiatives are designed to develop mutually beneficial trusting relationships with our business partners around the world based on the concepts of fairness, coexistence, transparency, and co-prosperity.
Epson sets a Basic Procurement Policy and Epson Group Procurement Guidelines to ensure that suppliers understand Epson's Management Philosophy when we procure from them. We have also established the Epson Supplier Code of Conduct, which describes CSR requirements in respect to human rights, health and safety, environmental conservation, ethics, and more. We expect our suppliers to comply with this code, which is based on the Responsible Business Alliance (RBA) Code of Conduct.
Epson has in addition arranged content that follows the Management Philosophy, Principles of Corporate Behavior, and Basic Procurement Policy into six items to form a supply chain strategy. The entire supply chain works together with these as their highest priority.
Supply chain strategy
- Provide products and services that create customer value
- Ensure quality and delivery that put the customer first and a price that is competitive, and establishes a framework that can continually create products and services that delight customers around the world and win their trust
- Work proactively for environmental conservation
- Minimize adverse effects of manufacturing processes on society, the environment, and natural resources
- Endeavor to reduce environmental burdens over the life cycle of products and services
- Comply with laws and social norms and take actions based on high ethical standards
- Establish and comply with national laws, internal rules, and corporate ethics
- Practice fairness: keep your promises, do not lie, and do not hide anything
- Persist in acting sincerely, eliminating all types of malfeasance including bribery, corruption, and extortion
- Disclose information appropriately to ensure transparency, and be accountable to society
- Respect for 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
- Ensure safe, healthy, and fair working environments
- Achieve a climate and working environment where safety and cleanliness are maintained and workers can work at peace and in health
- Achieve a fair working environment with appropriate evaluations, work hours management, and payment of wages
- Establish business continuity management (BCM)
- Establish means to prevent occupational and industrial accidents and a framework so that business can promptly resume if there is an emergency
Socially Responsible Procurement Promotion Framework
The Epson Group works as a whole to practice socially responsible procurement and respond to conflict minerals so that we fulfill our social responsibility throughout the supply chain.
The Sustainable Procurement Committee is a Group cross-organizational body made up of personnel from all Epson's operations divisions and from the procurement departments of Epson Group companies, with administrative oversight provided by the Seiko Epson Head Office department that supervises socially responsible procurement. The committee discusses targets and action plans, gets them approved by the party responsible for supply chain management (SCM), communicates them to the entire Group, and puts those targets and action plans into effect. The party responsible for SCM periodically reviews the progress of those initiatives.