VALQUA GROUPCSR Procurement Guidelines

VALQUA GROUPCSR Procurement Guidelines

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VALQUA GROUPCSR Procurement Guidelines

Introduction

In recent years, the roles and responsibilities expected by society of enterprises seeking sustainablegrowth have been steadily increasing. Furthermore, it has also become an important social responsibility
to disclose and explain results and challenges actively to stakeholders, as well as to improve corporate
activities through communications with stakeholders, in order to build relations of trust with them.
The VALQUA Group’s corporate philosophy—“THE VALQUA WAY”—consisting of “Value &Quality,” from which our corporate name derives, is also our core principle. Four “Corporate Principles”
and “Ten Action Principles” make it easy for employees to understand and practice that core principle.
Deeply understanding and practicing those principles serve as the foundations for the Corporate Group’s
CSR. With the VALQUA Group’s CSR concept based on “THE VALQUA WAY,” we promote“Collaboration with Stakeholders,” “Superior Quality,” and “Rules First.”
Based on “THE VALQUA WAY” and “CSR Concept,” we have established the “VALQUA GroupCSR Procurement Guidelines.” We would ask our suppliers to understand the purpose of the Guidelines
and provide their cooperation.
■THE VALQUA WAY■VALQUA Group’s CSR Concept

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VALQUA GROUPCSR Procurement Guidelines

Table of Contents

I. CSR Procurement Concept within the VALQUA Group………… 5

II. VALQUA Group’s Basic Procurement Policy…………. 5

III. VALQUA Group’s CSR Procurement Standards
1. Compliance with laws, regulations, and ethics………… 6

1) Ensuring compliance with laws and regulations in corporate activities
2) Prohibiting inappropriate provision or receipt of profits
3) Appropriately engaging in import and export activities
4) Respecting and protecting intellectual property rights
5) Information management
6) Ensuring security of information
7) Conflict minerals8) Labor
2．Principles of fair and free competition………71) Transparent purchasing
2) Fair and equitable purchasing activities
3．Environmentally conscious corporate activities………. 7

1) Complying with environmental laws, regulations, and rules
2) Ensuring maintenance and management in environmentally conscious production processes
3) Reducing and eliminating substances of concern
4) Preventing pollution and conserving the environment5) Air pollution
4. Considering human rights………… 81) Respecting personal information
2) Prohibiting harsh and inhumane treatment
3) Prohibiting discrimination
5．Health and safety………… 81) Risk management in workplaces
2) Health management

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VALQUA GROUPCSR Procurement GuidelinesI.

CSR Procurement Concept within the VALQUA GroupTo fulfill our corporate social responsibilities, it is essential not only for us to promote CSR in ouractivities, but also for suppliers to work on CSR. That is, we believe that social responsibility can befulfilled by having all companies in the entire supply chain participate in response to social needs.
Accordingly, we consider it crucial for CSR procurement that all suppliers understand our corporate
philosophy and CSR concept, and cooperate by agreeing with our procurement activities.

II. VALQUA Group’s Basic Procurement Policy

VALQUA Group’s Basic Procurement Policy

1. Compliance with laws, regulations, and ethics
The Corporate Group shall comply with laws, regulations, and social norms, practice soundand fair corporate activities, and ask suppliers to take CSR-conscious actions.
[Collaboration with Stakeholders][Rules First]

2. Principles of fair, free competition
The Corporate Group shall procure superior parts and services from suppliers and optimalareas throughout the world based on the principle of fair competition.
[Collaboration with Stakeholders][Superior Quality][Rules First]

3．Environmentally conscious corporate activities
The Corporate Group shall actively engage in the Earth-conscious procurement of materials
used in products.
[Collaboration with Stakeholders][Superior Quality]

4．Consideration of human rights
The Corporate Group shall practice corporate activities that ensure respect for human rights.
[Collaboration with Stakeholders]

5．Health and safety
The Corporate Group shall make efforts to prevent disasters by predicting potentially
dangerous or hazardous factors in enterprises, as well as conduct appropriate healthmanagement through activities for maintaining and enhancing health and safety in its
workplaces that allow employees to work with peace of mind.
[Superior Quality]
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VALQUA GROUPCSR Procurement Guidelines

III．VALQUA Group’s CSR Procurement Standards
1.

Compliance with laws, regulations, and ethics
1) Ensuring compliance with laws and regulations in corporate activities
The Corporate Group shall comply with the laws and regulations of the central and local
governments where it conducts corporate activities, as well as respect the International Codeof Conduct to the maximum extent possible.
2) Prohibiting inappropriate provision or receipt of profits
The Corporate Group shall prohibit providing or receiving inappropriate profits (including
direct provision or receipt or indirect provision or receipt through a third party). Inappropriate
payoffs to anti-social forces, insider trading, etc. also fall under such acts.
3) Appropriately engaging in import and export activities
The Corporate Group shall build an appropriate import and export management system andcarry out appropriate import and export procedures in accordance with the laws andregulations of each nation or region.
4) Respecting and protecting intellectual property rights(i) The Corporate Group shall respect a third party’s intellectual property rights and shall inno case make illegal use thereof.
(ii) The Corporate Group shall appropriately manage and use its own intellectual property toprevent misuse.
5) Information management
The Corporate Group shall strictly manage confidential information of which it may becomeaware through transactions and make efforts to maintain its confidentiality, as well as strictly
manage it to prevent disclosure to a third party without approval.
6) Securing information
The Corporate Group shall take control measures to protect against computer network threatsand prevent damage to itself or others.
7) Conflict minerals
The Corporate Group shall provide neither funding nor benefits, either directly or indirectly, toarmed groups who are guilty of serious human rights violations in the Democratic Republic of
the Congo and neighboring countries.
* Conflict minerals = tantalum, tin, tungsten, gold, or derivatives produced in the troubled areas
above8) Labor(i) Prohibiting labor under coercion
The Corporate Group shall prohibit forced labor, bonded labor, slave labor, andinvoluntary and inhumane prison labor.
5VALQUA GROUPCSR Procurement Guidelines(ii) Prohibiting child laborThis applies to children aged less than 15 years old, who are younger than the age at
which compulsory education is completed or the minimum working age in the relevant
country. This is predicated on the fact that the use of legitimate workplace trainingprograms that comply with all laws/regulations and rules is supported. The Corporate
Group shall prohibit workers less than 18 years old (young workers) from engaging innight work or other work that endanger their health and safety at risk including overtimework.
(iii)

Freedom of association
The Corporate Group shall respect employees’ right to organize.

2.

Principles of fair and free competition
1) Transparent purchasing
The Corporate Group shall practice procurement activities that are open to both domestic andoverseas markets from a long-term and international standpoint.
2) Fair and equitable purchasing activities
When selecting suppliers, the Corporate Group shall provide broad-ranging and fair
opportunities, and make selections in good faith after making comprehensive and equitableassessments of quality, prices, delivery time, capacity for technological development, etc.

3.

Environmentally conscious corporate activities
1) Complying with environmental laws, regulations, and rules
The Corporate Group shall duly manage and retain necessary data provided for in separate laws,
regulations, rules, etc., such as compliance with environmental laws and regulations,
regulations on substances contained in products, etc., as well as obtain all environmental
licenses (monitoring emissions, etc.), approvals, and registrations required.
2) Ensuring maintenance and management in environmentally conscious production processes
The Corporate Group shall build, maintain, and improve an environment management systemin the development and production of products.
3) Reducing and eliminating substances of concern
The Corporate Group shall identify and manage chemical substances that could cause harmwhen emitted into the environment, in order to handle, move, store, use, recycle, reuse, andprocess them safely.
4) Preventing pollution and conserving the environment
The Corporate Group shall appropriately treat polluted water and waste materials produced in
manufacturing processes and effluent treatment processes prior to disposal.
5) Air pollution
The Corporate Group shall discharge volatile organic compounds and by-products produced inworkplaces in a proper manner in accordance with environmental laws and regulations.
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VALQUA GROUPCSR Procurement Guidelines

4.

Considering human rights
1) Respecting personal information
The Corporate Group shall strictly manage the handling of personal information in its corporateactivities.
2) Prohibiting harsh and inhumane treatment
The Corporate Group shall prohibit harsh and inhumane treatment, such as sexual harassment,
abuse, physical discipline, psychological or physical coercion, verbal abuse, etc.
3) Prohibiting discrimination
The Corporate Group shall prohibit discrimination based on race, nationality, religion, age,disabilities, gender, marital status, sexual orientation, etc.

5. Health and safety
1) Risk management in workplaces
The Corporate Group shall assess risks to the safety of workplaces and ensure safety throughappropriate designs or technological means or management tools.
2) Health managementThe Corporate Group shall ensure there are procedures and systems for preventing, managing,
pursuing, and reporting work accidents or illnesses.

Issued in: April 2016

Production And Procurement Control Group

Valqua , Ltd.
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