Supply Chain Management

Supply Chain CSR Procurement

Disseminating Supplier Guidelines

Casio carries out the majority of its production outside Japan at Casio plants and manufacturing subcontractors (electronic manufacturing services). Every year, Casio holds briefings on its Procurement Policies in Southern China.

Initially, these briefings simply involved Casio explaining its business policies to suppliers and asking them to undertake initiatives. Since fiscal 2010, however, Casio has been using these briefings as an opportunity for two-way communication. Suppliers are invited to participate actively, for instance by asking those with exemplary CSR initiatives to present examples of their efforts to promote and improve CSR. This enables the sharing of useful case studies and know-how for addressing CSR. By working collaboratively with its suppliers in this way, Casio is continually improving the level of CSR performance in its supply chain.

In June 2009, Casio revised the Basic Business Agreement it signs with suppliers in Japan. Clauses were added to require measures such as legal compliance, respect for human rights, and environmental protection. The new agreement is being rolled out steadily.

Since 2019, a business strategy briefing has also been held in Japan every year to explain Casio’s procurement strategy and policies. In this way, Casio has set up opportunities to explain its Procurement Policies to major suppliers all over the world and is actively sharing and exchanging information to build close reciprocal relationships.

Briefing on Procurement Policies in Japan

This year, Casio invited 200 participants from about 150 business partners to a business strategy briefing for the first time in Japan. The future direction for products, development and technologies were laid out for each product category, and Casio asked business partners to actively make proposals with the aim of “co-creation.”

Image: Briefing on Procurement Policies
Image: Briefing on Procurement Policies

No decision has been made yet about a briefing this year due to the COVID-19 pandemic.

Supplier message

Image: Hiroyoshi Mori Executive Officer, and General Manager, Sales Department General Co., Ltd.
Hiroyoshi Mori
Executive Officer, and General Manager, Sales Department
General Co., Ltd.

The General Group, whose corporate creed is to create what cannot be imagined, aims to help build a prosperous society by supplying its products. We have manufacturing sites in Japan, China and Malaysia and our products are available around the world. Living up to the eight principles in our Charter of Action, we not only provide quality products, but also consider social norms and the environment as we make the most of our business to help build a sustainable world.

We have worked with Casio for about 30 years now, in particular providing tape cartridges for Casio’s NameLand product. In recent years, we have also been involved with the development of inkjet-related products. Going forward, we will follow Casio’s Procurement Policies. As a partner to Casio, we hope to contribute to the creation of products that enchant, surprise and delight their users.

Briefing on Procurement Policies in China

Casio carries out the majority of its production outside Japan at Casio plants and manufacturing subcontractors (electronic manufacturing services). Every year, Casio holds briefings on its Procurement Policies in Southern China. Business partners who have made particularly impressive contributions are recognized at these briefings.

Image: Briefing on Procurement Policies in China
Image: Briefing on Procurement Policies in China
Image: H.W. Chan, Managing Director, FAIR FUTURE INDUSTRIAL LTD.
H.W. Chan, Managing Director, FAIR FUTURE INDUSTRIAL LTD.

Comments on CSR by H.W. Chan, Managing Director, FAIR FUTURE INDUSTRIAL LTD.

I want to work together with Casio on CSR activities to create a future in which both companies flourish. With this goal, I consider various aspects such as human rights, safety and the environment.

No decision has been made yet about a briefing this year due to the COVID-19 pandemic.

Comprehensive Management of CSR Performance

In fiscal 2008, Casio started conducting a questionnaire survey*1 of principal suppliers in Japan on CSR performance in order to confirm the status of CSR procurement. In fiscal 2010, the survey was expanded to include suppliers in China and Thailand.

Based on the fiscal 2012 survey results and changes in society’s expectations, the questionnaire for suppliers was revised in fiscal 2013. Overlapping questions were eliminated and a new theme, policies for avoiding conflict minerals, was added.

The fiscal 2020 questionnaire was sent to 175 companies in Japan, and the response rate was 100%, clearly indicating suppliers’ high level of interest in CSR fulfillment. Responses were received from 301 companies (235 companies in China and 66 companies in Thailand), also for a response rate of 100%. Again, the great concern for CSR fulfillment among suppliers is clear.
Casio compiles and analyses the response data, and shares the results with suppliers, along with Casio’s approach to CSR procurement.

Since fiscal 2011, Casio has been conducting onsite audits of major suppliers in China and Thailand with local staff members of the CSR promotion projects launched at sites in those countries. In fiscal 2012, the company started planning onsite inspections performed mainly by local Casio staff, and the number of visits is increasing.

In fiscal 2020, Casio conducted onsite inspections at 4 companies in China. In Thailand, it conducted onsite inspections at 8 companies. Even with the suspension in inspections caused by the flooding, it has cumulatively covered almost all suppliers in Thailand. Going forward, Casio will continue onsite inspections with the aim of instilling commitment to CSR throughout the supply chain.
CSR inspections were also conducted at the request of a major distribution customer at three of Casio’s plants.

  • *1 The questionnaire was prepared in accordance with a Supplier Checklist for CSR Procurement based upon the Guidebook for Supply Chain Implementation of CSR Procurement published by the Japan Electronics and Information Technology Industries Association (JEITA). It covered: (1) human rights and labor conditions; (2) health and safety; (3) the environment; (4) fair transactions and ethics; (5) quality and consumer safety; (6) information security; and (7) social contribution.

A list of the items included in each category of the questionnaire is available here. (PDF)

Questionnaire results

Questionnaire given to a total of 476 suppliers
Responses to all questions received from 476 suppliers (100% response rate)

Status of responses by CSR category

China and Thailand
An abstract five-point evaluation system (for example: 5 = sufficient measures, 3 = not enough measures, and 1 = no measures) was used until fiscal 2018. Starting in 2019 however, specific achievement levels are listed for each and every question, just like in Japan, which started doing this in fiscal 2018. This helps to more objectively assess the current state of CSR activities at suppliers. In addition, the guidelines for further improvement have also been clarified.

As a result, the evaluation scores were lower than last year, but there were no serious problems requiring an urgent response. In addition, points for improvement were progressively clarified for each supplier and improvement measures were requested.

Responses by CSR category in China and Thailand
  Responses by CSR category
0 Overall Promotion of Corporate Social Responsibility 3.8
Ⅰ Human Rights and Labor 4.5
Ⅱ Occupational Health and Safety 4.3
Ⅲ Environment 4.5
Ⅳ Fair Trading 4.4
Ⅴ Product Quality and Safety 4.6
Ⅵ Information Security 4.4
Ⅶ Contribution to Society 3.7
Total 4.4
Image: Responses by CSR category in China and Thailand

Japan
Points for improvement were progressively clarified for each supplier and, after discussion, improvement measures were requested.

Japan responses by CSR category
  Responses by CSR category
0 Overall Promotion of Corporate Social Responsibility 3.7
Ⅰ Human Rights and Labor 4.2
Ⅱ Occupational Health and Safety 4.2
Ⅲ Environment 4.3
Ⅳ Fair Trading 4.0
Ⅴ Product Quality and Safety 4.3
Ⅵ Information Security 4.1
Ⅶ Contribution to Society 3.4
Total 4.1
Image: Japan responses by CSR category

Selection of new suppliers

Based on the Procurement Policies, before Casio starts doing business with a new supplier, a comprehensive evaluation is carried out. The prospective supplier is checked based on the following criteria: compliance with laws and social norms, environmental protection measures, proper data protection, respect for intellectual property rights, management soundness and stability, outstanding technology development capabilities, ability to provide the desired price, quality, and a stable supply, and capabilities for online transactions.

Promotion of green procurement with business partners

With the cooperation of suppliers, the Technical Planning Department in the CS Headquarters at Casio Computer Co., Ltd. is promoting green procurement that considers supplier measures to protect the global environment.

Click here for more details

Improving CSR across the supply chain

Image: Improving CSR across the supply chain

Responsible minerals sourcing

Where minerals such as tin, tantalum, tungsten, gold (3TG) are mined in conflict-affected or high-risk areas such as the Democratic Republic of Congo (DRC), the revenue from the mining and trading of these minerals is a source of funding for armed groups and anti-government forces carrying out atrocities and human rights abuses. Minerals sourced from such conflict-affected or high-risk areas have the potential to promote conflict, human rights violations and environmental degradation.

Casio considers mining to be an intensive process involving social and environmental risks, and believes the mining of metals and minerals, including conflict minerals (3TG) and those in the DRC, as well as other minerals and minerals in other regions, must be managed.

Casio’s stance is that we want no part in any human rights violations or environmental destruction. While sourcing minerals that originate in conflict-affected or high-risk areas, we will not, by any means, tolerate, knowingly profit from, contribute to, assist with or facilitate the commission by any party of any form of human rights violations or abuses, or support operations that result in the degradation of socioeconomic and environmental stability.

Casio also requires its suppliers to adhere to this policy and expects them to support and promote compliance within the supply chain.

As part of this responsible minerals sourcing policy, Casio will:

Conduct due diligence on prioritized minerals in accordance with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas;

Require suppliers to conduct due diligence on prioritized minerals in accordance with OECD Guidance and provide routine reporting using the tools developed by the Responsible Minerals Initiative (RMI) to enable supply chain transparency;

Work cooperatively with its supply chain, industry groups (RMI), government, civil society, and other organizations to develop the supply of responsibly sourced minerals when sourcing prioritized minerals that originate in conflict-affected or high-risk areas;

As a member of the Responsible Mineral Trade Working Group of the Japan Electronics and Information Technology Industries Association (JEITA), work to improve conflict mineral survey activities in the supply chain through industry collaboration;

Continue to collect relevant information regarding industry trends in the US, customer reactions and movements in the EU and other regions;

Adopt a policy of using minerals that are legally mined or acquired, even where those minerals were mined in the Democratic Republic of Congo (DRC) or its neighboring countries, and regardless of any conflict in that region;