Suppliers

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.

Basic Approach to Purchasing

A Purchasing Policy Based on Fairness, Impartiality and Sincerity

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.

Murata's Purchasing Policies-Purchasing Attitudes

  • Murata's buyers will responsibly carry out purchasing operations, practicing good manners and following the dictates of common sense.
  • Murata's buyers will maintain friendly relationships with suppliers, but have no personal interest with them.
  • Murata's buyers will accomplish dealings in compliance with all relevant laws, rules, in-house regulations and societal norms.

Legal Compliance in Purchasing

Thorough Legal Compliance in Our Training, Operational Diagnoses and Systems

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 Act) to prevent violations due to lack of awareness.

In fiscal 2016, we worked to promote education on the Subcontract Act and our internal control system for purchase requests. We held 73 training sessions on these subjects for related departments (with approximately 1,410 participants, including representatives of affiliated companies) , and made active use of DVD materials in explaining the Subcontract Act and informing employees of what they need to know when requesting a purchase. In the future, by carrying out such training on a continual basis, we will make steady efforts to raise employee awareness even further. In addition, by managing the entire chain of our purchasing operations in our purchasing system, and by controlling those operations in the system itself, we have put in place a structure to prevent violations of laws and regulations from occurring.

About the Subcontract Act
The Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (Subcontract Act) prohibits the outsourcer from using its advantageous standpoint to the detriment of the legitimate interests of the subcontracted business operator.

Diagnosis of the Legality, Efficiency and Propriety of Purchasing Operations at Group Companies in Japan and Abroad 

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.

Supplier Consultation Channels

Two Channels for Consultation on Improper Conduct

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 Two Consultation Services

CSR Procurement

Requiring CSR Procurement of Our Suppliers

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, prohibiting child labor, and occupational health/safety records at suppliers as part of CSR procurement. We require suppliers to take positive measures with regard to CSR. 

We request our suppliers to accept our CSR requirements under CSR Agreements and take necessary actions.

Beginning this fiscal year, we are conducting individual surveys of the status of compliance with CSR at our suppliers. In the future, in addition to continuing these surveys, we intend to conduct audits, etc., of any suppliers that survey results suggest require improvement.

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.

Percentage of Suppliers that have undertaken CSR Agreements (As of March 31, 2017)

Japan 95%
Overseas 90%

Working with Suppliers to Improve Product Quality

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.

Basic Attitudes that Murata Requires of Suppliers (Outline)

  • Compliance with laws and regulations as well as social norms
  • Promotion of sound business management
  • Emphasis on quality, lead times and stable supply
  • Emphasis on initiatives targeting reduced environmental impact (green procurement)
  • Emphasis on Value Engineering activities
  • Emphasis on information disclosure
  • Emphasis on measures to accelerate material procurement
  • Observance of confidentiality
  • Emphasis on IT application
  • Elimination of antisocial forces
  • Promotion of management of conflict minerals

For more detailed explanations of these items, please visit: https://www.murata.com/about/procurement/expectations