Purchasing Activities with Fairness and Integrity
Our Concept of Sustainable Procurement
SII complies with the Seiko Group Procurement Activity Policy and in order to realize sustainable procurement, SII strives 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 of business partners,” as stated in the policy.
Seiko Group Procurement Policy
The Seiko Group will fulfill its social responsibilities by contributing to the realization of a sustainable society through the implementation of our corporate philosophy – creating “A future filled with smiles all over the world” and of being “A company that is trusted by society.” To this end, the Group has established three key aims for its procurement policy: 1) Coexistence and co-prosperity with business partners; 2) Promoting procurement activities with proper consideration for the environment, society, and corporate governance; and 3) Fair and impartial selection of business partners.
The Group will expand its procurement activities globally based on these three policy aims, which are described in greater detail below.
1. Coexistence and co-prosperity with business partners
The Seiko Group and its business partners aim to build a relationship of mutual trust over the long term. It is our goal to continue to prosper together by helping each other.
2. Promoting procurement activities with proper consideration for the environment, society, and corporate governance
We will respect global social norms and work together with our business partners to promote responsible procurement activities that involve proper consideration for the environment, society, and corporate governance.
We will promote procurement activities that take into consideration the following factors (among others):
(1) Compliance with laws, regulations, and social norms
(2) Respect for human rights
(3) Protection of occupational safety and health
(4) Promotion of global environmental conservation
(5) Promotion of business continuity planning (BCP)
(6) Prohibition of bribes (including illegal gifts, payments, and benefits) to any stakeholder
3. Fair and impartial evaluation of business partners
We respect “fair, transparent, and free competition,” which is a fundamental rule of a freely competitive society, and we evaluate our business partners based on the following criteria:
(1) The partner must be active in environmental, social, and corporate governance initiatives
(2) The partner must be highly trusted as a company (Stable business conditions, appropriate risk management system, etc.)
(3) The partner must have technological capabilities that can contribute to Seiko 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 criteria.
We aim to improve the value of our entire supply chain by conducting business in accordance with this Seiko Group Procurement Policy.
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
SII made efforts for the suitable implementation of a supplier certification system in FY 2022.
The Seiko Group formulated Procurement Guidelines that collect the items that suppliers should observe regarding the environment, human rights, labor, society, and other issues in FY 2022 and is moving forward with investigations of application. SII plans to deploy the applications prescribed by the Seiko Group in FY 2023.
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.
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.