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Supplier Assessment for Impacts on Society

KPI

  • Item

    Ratio of new suppliers that business was commenced with after conducting a social impact assessment

  • FY 2014 results

    100%

Responsible departments

Raw Materials Procurement Department, Indirect Materials Procurement Department, Global Procurement Division

Stance and target

Why is "Supplier Assessment for Impacts on Society" a critical issue to be addressed?
Explanation of the reason and background

The raw materials used in the major products of the Yokohama Rubber Group contain many petrochemical products (chemicals) including various types of synthetic rubber that can cause environmental pollution and the lack of communication with local residents that live near production plants could have a negative impact. In addition, if materials used at business locations are purchased from local suppliers, there could be cases of fair trade not being conducted or costs increasing resulting from delivery delays, defective parts, etc.
In addition, in response to the possibility of profits from transactions involving minerals (tantalum, tin, tungsten, and gold) in conflict areas being used as funding for anti-social organizations, the Securities and Exchange Commission (USA) established the Dodd-Frank Act that calls for the identification of refiners. We have selected social impact assessments of suppliers as a critical issue to be addressed from both the perspective of the stable procurement of raw materials and the perspective of ethics.

Social impact assessment at the start of new business relationships

When newly adopting raw materials, we request suppliers to answer a questionnaire on (1) whether a framework for just and fair trade has been established, (2) external communication frameworks, and (3) what kind of activities they conduct. In addition, we also ask suppliers to participate in CSR supplier study meetings and to cooperate with surveys on conflict mineral use.

Recognition of social impact in the supply chain

We recognize that in some countries and regions where our business locations are located there is the possibility of corruption related to commercial transactions, compliance, or anti-competitive behavior occurring due in part to the impact of culture or customs.

Countermeasures in response to suppliers found to have a significant impact

We request that corrective action is taken by suppliers that are found to have a significant impact, and promote improvements together. In malicious cases, we propose penalties such as limitations on some transactions.

Vision (attainment goal) / target

As production sites expand on a global level going forwards, we aim to conduct appropriate procurement in each country and region and increase the ratio of appropriate procurement. To that end, we aim to establish a structure that conducts a social impact assessment at the time contracts are entered with new suppliers to confirm that there are no issues in advance.

Measures for vision achievement

We hold CSR supplier study meetings to share information on corporate scandals and response to these matters.
In addition, we request surveys and checks on suppliers the provide raw materials that compose the products of the Yokohama Rubber Group to ensure that conflict materials are not used.

Responding to conflict minerals

At the Yokohama Rubber Group, we endeavor to take into consideration human rights, society, and the environment in our global procurement activities.
As part of these efforts, we do not intentionally use minerals (tantalum, tin, gold, and tungsten) from conflict areas in the Congo.

Review of FY 2014 activities

We conducted various questionnaires, survey, and audits with 74 companies that we commenced businesses with during FY 2014, and there were no items that required improvement. We conducted business transactions based on these results.
For products delivered to customers that are listed on the stock market in the US, there were no raw materials that used minerals (tantalum, tin, tungsten, and gold) coming from conflict areas.

Issues and future improvement measures

We recognize the continual acquisition and management without exception of results of surveys and assessment on the social impact of suppliers of raw materials used in the products of the Yokohama Rubber Group as an important issue.