"Declaration of Partnership Building"We hereby declare that we will focus on the following matters in order to build new partnerships by promoting cooperation,coexistence, and co-prosperity with our suppliers in the supply chain and businesses seeking to create value.
1. Coexistence and co-prosperity of the entire supply chain and new cooperation that transcends business scale andaffiliation
We will strive to increase the value added throughout the supply chain by reaching out, through our direct suppliers, to theirsuppliers (from “Tier N” to “Tier N + 1”). We also aim to build coexistent and co-prosperous partnerships with our suppliers
through cooperation that goes beyond the existing business relationships and company size. We will provide advice andother support, including helping our suppliers introduce teleworking, formulate their Business Continuity Plan (BCP) andpromoting health management, etc, from the perspective of business continuity in the event of a disaster or otheremergency and of work-style reforms.
2. Compliance with the “Promotion Standards”
We will comply with desirable trade practices between parent enterprises and subcontractors (“Promotion Standards” underthe Act on the Promotion of Subcontracting Small and Medium-sized Enterprises), and we will actively correct trade practices
and commercial customs that may hinder the establishment of partnerships with our suppliers.
① Price method
We will not make illogic requests for cost reduction. In determining transaction value, we will have discussion at least oncea year with suppliers, and fully negotiate to include and consider reasonable interests of subcontractors, such as impact fromincreased labor costs. In doing so, we act and make decision in accordance with ‘Cost negotiation guideline for reasonable
labor cost pass-through’. In case hike in material and energy costs arises, we will strive to pass on the increase
correspondingly and fully to purchase price. In the aspect of making agreement including for deciding prices, we shall present
terms and conditions and issue documented materials.
② Mold management and other cost burden
We shall address the issue for mold transaction to optimize, promote disposal of unnecessary molds, and not require
suppliers to store molds which have not been used for a long period of time, without charge.
③ Terms of payment by draft, etc.
All the payment incurred by business with supplier will be made in cash.
Payment due date will be within 30 days.
④ Intellectual property and knowhow
We will not urge subcontractors to enter into any one-sided non-disclosure agreement or take advantage of our trading
position to demand that they disclose their knowhow or transfer their intellectual property rights without compensation.
⑤ Consideration for work-style reforms at subcontractors
We will not require subcontractors, without proper cost compensation, to complete subcontract work inunreasonably short time periods, nor will we request sudden changes to the specifications of subcontract work, so that
subcontractors can also pursue work-style reforms. In the event of a disaster or other emergency, we will not impose aone-sided burden on subcontractors in terms of transactions, and upon the resumption of business operations, we will
give consideration to the continuation of business relationships as much as possible.
Establishment : March 15, 2022
Revision : May 17, 2024
MITSUBA Corporation Representative Director, President Katsuyoshi Kitada