Purchasing Activities with Fairness and Integrity

Our Concept of Sustainable Procurement

In line with the establishment of the Seiko Holdings Procurement Activity Policy at Seiko Holdings Corporation, SII’s parent company, SII has decided to abolish the existing SII Purchasing Policy and to follow the Seiko Holdings Procurement Activity Policy.
In order to realize sustainable procurement, SII will strive to practice “Coexistence and co-prosperity with business partners,” “Promoting procurement activities with consideration for the environment, society, and governance,” and ”Fair and impartial evaluation and selection of business partners,” all of which are set forth in the Seiko Holdings Procurement Activity Policy.

Purchasing Policy

Seiko Holdings Group Procurement Policy

The Seiko Holdings Group has stated its procurement policy to be “Coexistence and co-prosperity with business partners,” “Promoting procurement activities with consideration for the environment, society, and governance” and “Fair and impartial evaluation and selection of business partners.” The Group will expand its procurement activities globally based on the following individual policies.

1. Coexistence and co-prosperity with business partners

The Seiko Holdings Group and its business partners aim to build a relationship of mutual trust over the long term, to continue to exist and prosper together by helping each other.

2. Promoting procurement activities with consideration for the environment, society, and governance

We will respect global social norms and work together with our business partners to promote procurement activities that consider the environment, society and governance.
We will promote procurement activities that take into consideration factors such as the following:
(1) Compliance with laws and regulations (The subcontract laws, foreign exchange laws, commercial codes, antitrust laws, personal information protection laws and others in each country and region)
(2) Respect for human rights
(3) Consideration for occupational health and safety
(4) Promotion of global environmental conservation (Green Procurement etc.)
(5) Promotion of BCP (Business Continuity Planning)
(6) Prohibition of bribes (such as illegal gifts, payments and benefits) to any stakeholder

3. Fair and impartial evaluation and selection of business partners

We respect the “fair, transparent and free competition” that is a fundamental rule of a freely competitive society and select business partners based on the following evaluation viewpoints.
(1) The partner must be active in environmental, social, and governance initiatives
(2) The partner must be highly trusted as a company (Stable business conditions, risk management system)
(3) The partner must have technological capabilities that can contribute to Seiko Holdings Group products
(4) The quality, price and delivery times of the items procured must be at appropriate levels
We will conduct comprehensive evaluations based on these and other viewpoints. In addition to sharing supplier certification standards within the Group based on the Seiko Holdings Group Procurement Policy, we will also aim to establish and utilize group-wide mechanisms for selecting business partners appropriately and to conduct activities to increase value throughout the entire supply chain.

Supplier Certification System

SII uses the Supplier Certification Criteria to select fair business partners and build the CSR framework based on the purchasing supply chain.

SII Group Supplier Certification Criteria

  • Existing framework to conduct fair and honest business, respect human dignity and achieve coexistence with society
  • Stable business condition
  • Environmental management system
  • Management system for quality and risk management

In FY 2020, we revised the Supplier Certification System to continually check whether the environmental, social, and governance systems of certified suppliers are in compliance with SII criteria, and in FY 2021, we will implement and establish the system.

Compliance with the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (Subcontract Act)

The Subcontract Act has a major significance in purchasing activities in Japan.
SII established the Subcontract Act Section at the head office to reinforce compliance with the Subcontract Act by cooperating with the SII Group's purchasing staff through activities including appropriate guidance to routine work and education.

In FY 2020, we carried out voluntary inspections of 9 purchasing divisions in Japan and confirmed there were no violations of the Subcontract Act.

Purchasing Risk Management

In our role as a manufacturer that provides products, it is important for us to minimize the risk of a disruption in our supply of parts. Our Purchasing Division clarifies key suppliers and comprehends manufacturing bases to promptly handle emergency situations in case of disasters like earthquakes. In addition, the division is promoting the selection of alternative suppliers or parts to prevent the interruption of parts supplies.

Basic Education Programs for Purchasing Divisions

In order to acquire basic knowledge of purchasing operations, our education programs have been widely provided not only to the employees and managers in purchasing division but also to the employees related to the purchasing practices including engineering, manufacturing, and production control. They are also encouraged to build up fundamental knowledge and awareness for CSR.

In FY 2020, we carried out intranet-based training for managers and personnel working on purchasing operations with the aim of ensuring basic knowledge and raising awareness. We will continue this training program.