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Corporate InformationSustainability

Hitachi's Aims: Fostering a Corporate Culture of Fairness with Our Partners

There is a growing idea that companies should build their businesses with a view to promoting CSR throughout the supply chain, not just around the company's operations. This view informs such global initiatives as the Guidelines for Multinational Enterprises of the Organisation for Economic Co-operation and Development (OECD) and the United Nations' Global Compact and Guiding Principles on Business and Human Rights.

In seeking to be a company that continually fulfills its social responsibility throughout the value chain, Hitachi strictly adheres to laws and regulations and acts in a moral and fair manner with all its business partners. We thoroughly promote the compliance of our employees in all business activities, including procurement, manufacture, sales, export, and taxation. To fully carry out our responsibilities as a corporate citizen, we not only encourage business sites to implement their own investigation and reporting systems for any improprieties but also promote the utilization of a compliance reporting system to prevent or promptly address such indiscretions.

By enhancing activities to raise our suppliers' awareness, we are advancing the creation of a framework to carry out ethical actions and fulfill our social responsibility together with our business partners, thereby fostering a corporate culture of fairness throughout the supply chain.

Fiscal 2016 Overview of Activities

In fiscal 2016, we reflected the findings of the human rights due diligence (HRDD) working group from the previous fiscal year in our CSR procurement activities. At the same time, we fully revised our guidebook for suppliers into the Hitachi Group CSR Procurement Guidelines in an attempt to further propagate the concept among our suppliers. In addition, we conducted document-based and on-site audits to strengthen our supply chain from a global perspective.

Main Plans and Results

Engaging in Responsible Procurement

Partially achieved
Partially achieved
Not achieved
Not achieved
Main Plans and Results:Engaging in Responsible Procurement
Policies FY 2016 goals/plans Results in FY 2016 Achievement level FY 2017 goals/plans
Contribution to continuation of Hitachi's operations by working with suppliers to secure supplies
  • Regularly update information on parts and suppliers
  • Verified information on parts and suppliers and created non-workday contact list for 200 production sites outside Japan
Partially achieved
  • Continue to regularly update information on parts and suppliers
Reinforcement of supply chain from global perspective
  • Implement written survey for 200 companies and on-site audits for 20 companies as part of supplier monitoring
  • Host two seminars for Chinese suppliers
  • Revised questions on check sheet used in CSR monitoring (self-checks)
  • Implemented on-site audits for 20 companies
  • Hosted seminar for Chinese suppliers, attended by 45 employees from 32 companies
  • Continue supplier monitoring by reviewing number of companies and regions targeted for monitoring
  • Implement survey based on revised check sheet by targeting primary suppliers in China, Malaysia, and Vietnam
  • Implement CSR audit at supplier plants in China, Malaysia, and Vietnam
  • Host seminars for suppliers in China
  • Send Procurement Guidelines; analyzing certificates sent by suppliers and deliberating on next steps
  • Formulate policies in response to European regulations on conflict minerals and examine ways to reflect the above in Conflict Minerals Procurement Policy
  • Restructure CSR procurement activities based on fiscal 2015 findings of HRDD working group
  • Revise Procurement Guidelines and distribute to suppliers
  • Revise details of supplier monitoring
  • Distributed Hitachi Group CSR Procurement Guidelines, revised in January 2017, to all primary suppliers
  • Introduced revisions to the Guidelines to procurement members of business units and Group companies at Hitachi Group CSR Green Procurement Committee
  • Revise contents of Hitachi Group CSR Procurement Guidelines when appropriate; run PDCA cycles and promote CSR procurement activities
  • Revise Guidelines approximately every three years

Promoting Work Practices in Line with International Ethics Codes

Hitachi's Approach

Given the globalization of the economy and the increasingly borderless nature of corporate activities, our business increasingly spans countries and regions with different governmental and economic frameworks, trade practices, and sets of values. Common worldwide principles in the form of initiatives and guidance are becoming increasingly important in order to thoroughly implement fair business practices around the globe and to avoid any risks that could impede business activities.

Hitachi has formulated in-house regulations in line with widely accepted international standards to govern important business practices, such as bribery prevention, ensuring of fair competition, and tax compliance, and these regulations are made known to and thoroughly implemented across the Hitachi Group. There is ongoing global debate concerning each of these issues, and demands regarding corporate behavior and the interpretation of relevant rules and regulations are constantly evolving. We thus regularly review and update our in-house regulations as appropriate in responding to society's demands. We will continue to act in a thoroughly responsible manner as members of both the global and local community.

Engaging in Responsible Procurement

Hitachi's Approach

International initiatives like the UN Global Compact have prompted companies worldwide to give greater thought to CSR and green procurement under which they take social and environmental concerns into considera­tion when selecting suppliers, thereby strengthening CSR activities throughout the supply chain.

As a company that procures products and services from suppliers in regions and countries around the world, Hitachi was quick to introduce CSR and green procurement policies, which are being meticulously implemented by all Group companies. High expectations have been placed on the Electronic Industry Citizenship Coalition's Code of Conduct in recent years as an international CSR standard for the industry. We are further evolving our procurement activities in line with this code, not only reviewing our own CSR standards but also auditing and cooperating with the CSR initiatives of our suppliers.

Moreover, Hitachi has taken the lead in responding to the issue of conflict minerals, which has been the focus of public concern in recent years, by scrutinizing the countries where raw materials are mined in order to prevent infringements on human rights by countries engaged in conflict. Keeping abreast of global trends, we will continue to share and strengthen on a Group-wide basis our commitment to fulfilling our social responsibilities throughout the supply chain.

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