Implementing CSR Procurement

Approach and Policy

│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.

│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.

│Policy

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

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 35% for Japan, 54% for the China area, and 11% for the ASEAN area.

│Targets and Action Plan

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

Material Issues for Casio	FY2021 Targets and KPI	FY2021 Performance	Evaluation	FY2022 Targets and KPI
Promoting CSR procurement	(1) Implement CSR education at Casio sites and at suppliers, and implement onsite audits in China	Implemented CSR education at Casio sites and at suppliers, and implemented onsite audits at 8 suppliers in China	○	(1) Implement CSR education at Casio sites and at suppliers, and implement onsite audits at a total of 10 suppliers in China and Thailand
Promoting CSR procurement	(2) Conduct CSR surveys	Conducted CSR surveys of 455 suppliers worldwide Surveys collected from 454 of 455 companies	○	(2) Conduct CSR surveys Conduct CSR surveys of all suppliers, and collect surveys from all of them