Murata observes all laws and ordinances in its purchasing, and expects the same compliance, along with due consideration for the community and environment, by its suppliers as they conduct their corporate activities. We believe that CSR procurement helps to build mutual trust and prosperity.
At Murata, we believe it is important to establish relations of trust and prosperity with our suppliers. In our purchasing operations, we ensure a spirit of courtesy, fairness, impartiality and sincerity, respect for laws and ordinances, avoidance of private conflicts of interests, and conformity with social ethics. Throughout the supply chain, we try to ensure that our corporate activities take into account community and environmental needs.
Murata provides its suppliers with information regarding its basic approach to purchasing and transaction methods via a business transaction guidebook and a Murata Purchasing Department Website.
In accord with the following basic approach to purchasing, our buyers conduct transactions with our suppliers in a fair, just and sincere manner.
As a company with a compliance-oriented management, Murata insists on observance of laws and ordinances relating to purchasing. In particular, we organize annual briefing sessions to give employees a full understanding of the terms of the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors (Subcontract Law) to prevent violations due to lack of awareness.
In fiscal 2010, we held eight briefing sessions on the Subcontract Law, with approximately 120 attendees, and one briefing session on legal and contract-related matters for personnel in charge of purchasing, with approximately 15 attendees. We also held an E-test on CSR and socially responsible procurement for all domestic personnel in charge of purchasing. We aim to raise employee awareness of these issues through regular sessions in the future. We also seek to preempt legal violations by creating a system in which all the Company’s purchasing operations are managed under a single purchasing system, and instituting a set of controls in the system.
About the Subcontract Law
The Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (Subcontract Law) prohibits the outsourcer from using its advantageous standpoint to the detriment of the legitimate interests of the subcontracted business operator.
The Purchasing Department manages and examines materials purchasing based on the regulations of our Criteria for Diagnosis of Purchasing Operations and Guidelines for Operational Diagnosis Implementation. The Criteria specify items to be examined in purchasing operations, and the Guidelines cover procedures and methods for operational diagnosis planning, implementation, reporting, improvement progress management and compilation of the final report. Based on these documents, we diagnose the legality, efficiency and propriety of purchasing operations.
To ensure maximal rigor in procurement, we give regular training to employees in all the kinds of legislation relating to purchasing transactions to keep up and deepen their understanding and awareness of the legal issues.
Group companies overseas are also included.
Suppliers can use two types of consultation service in the event of apparent legal violation or social impropriety arising in dealings with Murata.
The first is an e-mail Company hotline, direct to the manager of the Purchasing Department. The second is a Corporate Ethics Hotline (see “Compliance”) operated by a third-party organization, which can be accessed via telephone, fax or e-mail. We are bolstering our stance on compliance by continually urging suppliers to make use of these services when appropriate.
Two Consultation Services
As a company with global operations, we demand respect for CSR throughout the supply chain, including suppliers.In materials procurement, we require suppliers not only to give consideration to the environment through green purchasing, but have also considered human rights and occupational health/safety records at suppliers as part of CSR procurement. We require suppliers to take positive measures with regard to CSR.
In a selection of suppliers, decisions take account of candidates’ CSR record, as provided in the business transaction guidebook, which sets conditions for selection of suppliers. With regard to CSR procurement, we aim to extend unified standards to all our business bases including overseas units, only some of which are now covered.
By providing guidance enabling suppliers to continuously improve quality themselves, Murata increases the quality of product procurement (raw materials and equipment), enabling it to keep up and improve its own product quality levels.
When the number of abnormalities discovered in products from a supplier reaches a certain level, Murata discusses the matter with the supplier and sets improvement topics and targets. Progress reports are compiled regularly. Murata also performs annual or more frequent analyses and appraisals of quality management competence, responsiveness to cost, lead time and technology requests, and financial position. We pinpoint overall points for improvement and develop topics.
For more detailed explanations of these items, please visit: http://www.murata.com/corporate/procurement/posture.html
Hiromi Soga
Administration Sec.,
Purchasing Dept.,
Production Engineering Unit
Murata Manufacturing Co., Ltd.
Working with Suppliers to Fulfill Our Responsibilities to the Community
Sustainable CSR procurement is a priority for Murata. In this endeavor, the cooperation of suppliers is indispensable. We have required suppliers to comply with all items in Basic Attitudes that Murata Requires of Suppliers, with particular attention given to observance of laws, ordinances and social norms. We aim to work together with suppliers in fulfilling social responsibilities, with suppliers fully observing laws and social norms in countries and regions where business activities are carried out.