Material Issues for Social Performance

Image: Implementing CSR Procurement

Implementing CSR Procurement

Social Issue

The rapid globalization of corporate operations has brought to light human rights violations, labor problems, and issues with environmental destruction, mainly at suppliers in developing countries. Casio recognizes that companies must undertake CSR efforts not only in their own organization but also throughout the entire supply chain.

Image:Related SDGs

Importance for the Casio Group

Casio is involved in many businesses, including timepieces, educational scientific calculators and musical instruments, and the Group procures materials from a wide range of suppliers in Japan, China and ASEAN countries. If suppliers anywhere in the world violate human rights, cause labor problems or harm the environment, Casio would face various risks: transactions with business partners could be suspended, the Casio brand could suffer reputational damage, suppliers’ employees could go on strike, and lawsuits could be filed, among other possibilities. Casio believes that pursuing sustainability initiatives across its entire supply chain will not only reduce these social and environmental risks, but also ensure that it can procure the needed materials safely and stably. For both these reasons, Casio is determined to fulfill its social responsibilities throughout its supply chain.

Targets and Action Plan

Casio has established Procurement Policies in order to execute its social responsibility to conduct fair and equitable transactions throughout the supply chain. The policies cover matters including legal compliance, respecting human rights, labor, safety, and health, as well as environmental protection such as biodiversity preservation and risk control of chemical contents and information security. Casio constantly improves its socially responsible procurement by obtaining the understanding and support of suppliers for the policies and building strong partnerships.

Procurement Policies

Casio aims to fulfill its social responsibilities, including compliance with relevant laws and social norms, and protection of the environment, through fair and equitable transactions throughout the supply chain by strengthening partnership with suppliers.

1. Fair and equitable transactions

Casio carries out fair and equitable transactions by providing equal opportunities to all suppliers (and candidates) in and outside Japan in accordance with its internally established procedures.

2. Compliance with laws and social norms

Casio’s procurement activities comply with all relevant laws, social norms, standards and treaties worldwide, including the protection of human rights, the prohibition of child labor, forced labor and discrimination, and avoiding the use of conflict minerals, and respect for freedom of association, the right to associate, and the right to collective bargaining, as well as ensure that absolutely no contact is made with organized criminal elements. Therefore, Casio requires its suppliers to observe the same legal and social requirements.

3. Environmental protection

Casio helps to protect the global environment through environmentally friendly procurement, which is based on the Casio Environmental Vision and Casio’s Environmental Declaration, in cooperation with suppliers.

4. Strengthening partnership with suppliers

Casio builds up relationship of trust with its suppliers through reciprocal efforts, such as merging and complementing mutual technological development abilities, supply chain cooperation, compliance with laws and social norms and protection of the global environment, which will benefit both parties.

5. Policies on supplier selection and transaction continuation

Casio initiates and continues transactions with suppliers based on comprehensive evaluation criteria, which include compliance with laws and social norms, environmental protection, proper information security, respect for intellectual property, sound and stable corporate management, superior technological development ability, right price and quality, stable supply capabilities and electronic transaction systems.

6. Securing right price and quality

Casio endeavors to secure right price and quality in order to provide its customers with stable supply of optimal products, which ensures that Casio gains the full confidence of customers around the world.

7. Prohibition of personal-interest relationships

Casio does not allow any employees to have personal-interest relationships with any suppliers.

In order to ensure compliance with the Procurement Policies together with its suppliers, Casio has established the Supplier Guidelines (available at link below). All of Casio’s suppliers in Japan and elsewhere have agreed to these guidelines to help Casio fulfill its social responsibilities.

Casio is also managing its supply chain more successfully by introducing a regular monitoring system that ensures that these guidelines are properly fulfilled.

Supplier Guidelines

System

An executive officer, who is also the senior general manager of the Production Headquarters, is responsible for the system, and a department has been established to promote CSR procurement within the Supply Chain Control Unit at Casio Computer Co., Ltd. The department is working to promote CSR throughout the supply chain while collaborating with relevant organizations such as the CSR promotion departments and production sites.

In addition, a Partners Hotline has been set up as a contact point for reports from suppliers concerning any potential fraud or compliance violations by Casio employees.

Figure: System

Casio Supply Chain

Casio carries out broad procurement over three regions, namely Japan, the China area, and the ASEAN area.

For a regional breakdown of the total value of Casio’s procurement, the ratios are approximately 39% for Japan, 49% for the China area, and 12% for the ASEAN area.

KPI and Performance for Material Issues

Evaluation ◎: All targets met, ○ : Most targets met, △ : Remaining issues outweigh results, × : No progress made

Material Issues for Casio FY2020 Targets and KPI FY2020 Performance Evaluation FY2021 Targets and KPI
Promoting CSR procurement (1) Implement CSR education at Casio sites and at suppliers, and hold awareness raising campaign during one vendor meeting in China Implemented CSR education at Casio sites and at suppliers, and held awareness raising campaign during one vendor meeting in China Presentation on human rights issues made by Casio headquarters (1) Implement CSR education at Casio sites and at suppliers, and hold awareness raising campaign during one vendor meeting in China
(2) Implement annual audit follow-ups Implement onsite audit follow-ups for production sites and suppliers Conducted follow-ups for CSR audits requested by customers at 3 production sites In China, conducted onsite inspections at 4 suppliers In Thailand, conducted onsite inspections at 8 suppliers (2) Implement annual audit follow-ups Continue audits of production sites, and those based on customer requests Implement production site audits, and document investigations Continue supplier onsite audits