Suppliers

Murata observes all laws and ordinances in its procurement, 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 buyers will responsibly carry out procurement 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 procurement

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 ongoing 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 2018, we worked to promote education on the Subcontract Act and our internal control system for purchase requests. We held 50 training sessions on these subjects for related departments (with 1,049 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 procurement operations in our procurement 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 procurement operations at Group Companies in Japan and abroad

At Murata, the Office of Internal Audit and accountants establish items to be examined and assess the materials procurement operations of materials procurement departments throughout the Group worldwide. Following procedures for operational diagnosis planning, implementation, reporting, improvement progress management, and compilation of the final report, we diagnose the legality, efficiency, and propriety of procurement 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. 

Supplier consultation window

Window for consultation on improper conduct

Suppliers can use consultation service in the event of apparent legal violation or social impropriety arising in dealings with Murata.

It is an e-mail Company hotline, direct to the director of the Procurement Division. The dedicated email address will be notified to suppliers at the start of the transaction.

We are bolstering our stance on compliance by continually urging suppliers to make use of this service when appropriate.

CSR procurement

“We contribute to the advancement of society by … being trustworthy and, together with all our stakeholders, thankful for the increase in prosperity.”

This is a quote from Murata’s Philosophy.

This phrase is a crystallization of the ideas that we see as most important as we work to advance our business together with our suppliers.

With honesty, fairness, and transparency as the guiding principles of its procurement activities, Murata has always sought to build partnerships with its suppliers, working to realize mutually satisfying and prosperous relationships based on the Murata Purchasing Policy. Going forward, we will seek to further enhance this principle in order to realize prosperity for all of our stakeholders, without changing its essence in any way.

A particular demand on us is the enhancement of our initiatives to reduce CSR risk, such as efforts to prevent corruption and responses to the issue of conflict minerals. In the context of CSR procurement, we are focusing efforts on the following three areas:

  • ① We have formulated a Murata CSR Charter, which rests on the foundation of the Murata Philosophy, and, based on this, a statement of “Our Expectations of Suppliers,” and we request our suppliers to comply with both.
  • ② When we open an account with a supplier, we conclude a CSR Agreement, and we request the supplier to agree to pursue their business activities in conformity with the Code of Conduct of the Responsible Business Alliance (RBA).
  • ③ Since 2017, we have been employing a “CSR Compliance Checklist.” In addition to enabling our suppliers to self-assess their level of compliance with our CSR requirements, these checklists also make issues visible. By sharing the results of CSR compliance checks with Murata, our suppliers are able to engage in two-way consultations regarding issues and corrective measures, enabling them to realize more efficient and fundamental solutions to any issues that have been discovered.

We believe that in order to effectively put these initiatives into practice, it is important for us to avoid simply making unilateral demands on our suppliers. Rather, we work together with our suppliers, based on the partnerships that we have built up with them.

In recent years, we have been required to expand the scope of these CSR activities from companies with which we are directly involved to our entire supply chain. Based firmly on the spirit of the Murata Philosophy, we will continue in our efforts to realize mutually satisfying and prosperous relationships with our stakeholders, working to build long-lasting trust and solid partnerships, expanding the scope and increasing the sophistication of our CSR procurement as we strive to realize a supply chain that all of our stakeholders can have confidence in.

Purchasing Policy:https://www.murata.com/en-global/about/procurement/policy

Percentage of suppliers that have undertaken CSR Agreements (As of March 31, 2019)

Japan 97%
Overseas 92%

CSR procurement that responds to environmental issues

Based on the Responsible Business Alliance (RBA) Code of Conduct, Murata decides on suppliers after presenting them with a list of environmentally-friendly items for implementation (*1).
In addition, we ask that our suppliers sign and comply with a letter of consent regarding our CSR procurement policies and code of conduct (*2).
We also work to survey and identify the status of compliance with CSR principles, including those related to environmental issues, at our existing suppliers. In our previous survey, we surveyed approximately five hundred companies, and verified that there was no need for auditing or concrete action.
Going forward, we will continue these surveys regularly, and we will conduct audits and apply other measures to any suppliers that survey results show are in need of improvement. 

(*1) Environmentally-friendly Items for Implementation by Murata’s Business Partners (Excerpt)
Social responsibility in relation to the environment based on local laws
Reduction of emissions and runoff: Efforts including monitoring, control, and treatment of air and water pollution
Efforts to conserve resources and energy through the establishment of voluntary targets and the realization of efficient use
Reduction of greenhouse gas emissions
Minimization of consumption of water
Establishment, operation, and maintenance of an environmental management system
Management, reduction, and recycling of waste
Reduction of resource use, recycling, the setting of voluntary targets for conservation of resources
Business activities that consider biodiversity

(*2) Letter of Consent regarding Murata’s CSR Procurement Policies and Code of Conduct
Signed when suppliers open an account to do business with us, this letter signifies their consent in conducting activities based on the Responsible Business Alliance (RBA) Code of Conduct.
Murata also participates in the following membership-based organization in order to cooperate more closely with our industry.

Membership-based organization:(JEITA)Japan Electronics and Information Technology Industries Association 

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
  • Promoting “Responsible Minerals Procurement”

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