Together with Our Partners
Clarion considers partnership with our suppliers, not only in Japan but also in the global arena, very important. Recently, new technologies and services are introduced into automotive industry almost daily, which means we are experiencing rapid changes at all times. In order to respond to these changes, suppliers’ cooperation is indispensable. We believe that open and fair transactions will contribute to create products with better competitiveness and to establish a genuine WIN-WIN relationship with our partners.
In addition, with an aim to lessen environmental burden, we have established the “Green Purchasing Guidelines” in cooperation with our business partners. We shall further promote more eco-friendly purchasing activities giving importance to partnership with our suppliers.
Clarion aims to conduct open and fair transactions with its suppliers at all times sensibly and with sincerity. We seek new business partners both domestically and overseas as we expand our global purchasing/procurement activities in 7 Group manufacturing companies in 6 countries around the world. In the process of selection, we put importance on their approach to the environment and CSR in addition to their quality and R&D capabilities.
We value communication with our business partners, and aim to establish relationships by which both parties can share their strategies and improve each other’s competitiveness.
Briefing Meeting on Purchasing
In regards to CSR, our purchasing activities are supported by the necessary cooperation of our partners. We hold an annual meeting to give briefings and explanations on our purchasing policy and request cooperation with our CSR initiatives and eco-friendly activities. A total of 336 partner companies (Japan 153, China 131, Thailand 52) attended briefing meetings held between February and April, 2016 in Japan, China and Thailand. In the course of purchasing activities, we are promoting activities, with more consideration on environmental protection, laying out the “Green Purchasing Guidelines” as an example. Further, as we joined the Hitachi Group, we are also began communicating the “Hitachi Group CSR Activity Policy” to our business partners. We also have regular meetings with Hitachi’s CSR departments to share information.
Business partners commended at the Briefing Session of Purchasing Policy (Japan)
Annual Awards to Business Partners
We have a system in place for awarding our business partners annually to encourage their improvement activities and suggestions related to dealing with products with higher added value. The awards are presented to those partners whose performance with respect to Q (Quality), C (Costs), D (Delivery Time) and VEC* activities were particularly outstanding in that year. In fiscal 2015, the awards were given to 8 such companies in Japan, 6 in China and 3 in Thailand. From now on, we want to strengthen cooperation with our partners with these kinds of activities.
∗ VEC (Value Engineering for Customers) activities: VE activities were developed by the Hitachi Group.
VE is a technique for analyzing various factors related to costs and features in order to develop and offer products equipped with features customers want at minimal cost.
Education on Fair Trade with Our Business Partners
Responsible personnel in purchasing attend regular outside seminars in connection with Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (Subcontract Act) in order to ensure law compliance and fair trade transactions. In fiscal 2015, four staff members participated in the outside seminars. We are also making efforts for higher CSR awareness through regular divisional educational lectures.
We will continue to improve knowledge and competence of individual staffs through active use of outside seminars and e-learning on laws and regulations, and as well as on professional skills in purchasing operations.
Conflict Mineral Procurement Plan
In 2010, the “Wall Street Reform and Consumer Protection Act” (Dodd-Frank Act) was passed in American congress. Businesses registered with the SEC (The U.S. Securities and Exchange Commission) now have a duty to report if in-house products contain “Conflict Minerals*” produced in the Democratic Republic of Congo or neighboring countries (DRC Countries).
Clarion Group is fully aware of the human rights violations committed by armed groups in DRC countries, and that directly and/or indirectly the profits from the conflict minerals are used to support those groups.
Our procurement departments shall address this issue of establishing a sustainable supply chain of minerals avoiding procurements of such conflict minerals.
We wish all of our valuable suppliers to approve our policy on conflict mineral procurement. We also hope that our valuable suppliers will keep supporting our efforts in procurement of conflict free minerals.
* “Conflict Minerals” are tantalum, tungsten, tin and gold produced in the Democratic Republic of Congo and neighboring countries (DRC countries).