Fair Operating Practices
BasicPolicy

With the shared goal of sustainable social development, we will build good relationships with oursuppliers and partners and fulﬁll our social responsibilities through our business activities.

Long-Term Goals●(Under review)

Priority Initiatives●Draft Supplier CSR Guidelines and gain the cooperation of suppliers tobuild and operate a CSR procurement system(Based on the speciﬁc topics within three core subjects̶ human rights,
labor practices and the environment)■ Toward Fair and Transparent Transactions
Mandom established the Antimonopoly Act Compliance Program back in July 2004, which was revised in 2010, to establish fair andtransparent business transactions and build stable relationships of trust as a good partner to all with whom we are engaged.
Our legal affairs ofﬁce holds seminars for the sales division and purchasing department based on this program. The purchasing
department also participates in outside seminars related to purchasing and procurement to acquire greater knowledge.
Once a year, Code of Conduct education is carried out at all Japan-based divisions in the Mandom Group at which time various
guidelines on procurement and sales are read together to instill their principles in employees.
Since September 2007 the Mandom Group has been expanding the scope of its Helpline System to include business partners. See
below for more details.
Mandom Ofﬁcial Website
CSR Information●Fair Operating Practices■ Building and Implementing a CSR Procurement System■ Building and Implementing a CSR Procurement System
We have selected "the building and implementing a CSR procurement system" as a CSR material issue and are engaged in drafting
supplier CSR guidelines and gaining the cooperation of suppliers to achieve this goal.
As times change in an age of rapid globalization, social and environmental issues are becoming more varied and complex. We
currently give consideration and take action based on our Procurement Guidelines, but we need to strengthen their implementation,
which includes making ongoing improvements and revisions to prevent new social and environmental issues from arising andthereby avoiding such risks. Another reason for better implementation is to be able to continue responding to expectations anddemands from a broad range of stakeholders.
We strive to achieve fairness and transparency in all transactions and will try to gain the cooperation of our partners as we practicedue diligence with respect to speciﬁc topics in core areas such as human rights, labor practices and the environment, alongside
taking other measures to build a sustainable and CSR procurement system.
Mandom Ofﬁcial Website
CSR Information●Fair Operating Practices

42 M a n d o m K o h D o h R e p o r t 2 0 1 8

■ About the Mandom Group's Supplier CSR Guidelines ( Ver. 2)
To move toward sustainable procurement, we issued the Mandom Group Supplier CSR Guidelines (Ver. 2) in November 2017, asked
all of our suppliers to develop an understanding of these guidelines, and started monitoring using the CSR Procurement
Self-Assessment Tool Set recommended by the Global Compact Network Japan.
Going forward, we will secure the understanding and cooperation of all our suppliers̶through steps such as requesting that theseguidelines be shared with secondary, tertiary, and overseas suppliers̶and we will continue discussions, working step-by-step tomake our supply chain more transparent.

■ Mandom Group Supplier CSR Guidelines (Version 2)Mandom Group values our suppliers as partners in promoting sustainable development. We extend our support to suppliers thatcomply with the Guidelines as set forth below.

Corporate Governance

1. Understand and comply with laws and regulations, relevant

voluntary standards and international conventions related tobusiness operations.

2. Develop policies and a code of conduct related to CSR andprovide in-house support and training.

3. Structure an internal control system to conduct compliancemanagement.

4. Establish a business continuity plan.

The Environment

1. Structure a system to promote environmental management andset goals for continuous improvement.

2. Implement measures to save energy, reduce greenhouse gases,
prevent pollution and conserve biodiversity.

3. Ensure proper management of chemicals and waste disposal.
Fair Operating Practices

1. Ensure fair, transparent and free business transactions andrespect contractual terms.

1. Respect human rights and avoid complicity in any human rights

2. Respect property rights and prevent infringement.
3. Eliminate any involvement with groups that make illegal

2. Respect diversity and prohibit discrimination.
3. Respect the lifestyles of indigenous peoples and local

4. Prevent all forms of corruption, including coercion and bribery.
5. Establish a customer inquiries function to receive and deal with

Human Rights
violations.

communities.

4. Eliminate all forms of harassment.

demands of the company or the general public.

complaints and feedback from outside the company.

Quality and Safety

1. Structure a management system that ensures quality and safety

Labor

1. Recognize and adopt international rules regarding labor.**Including the Universal Declaration of Human Rights, theILO's Core Labor Standards, the ten principles of the UN's
Global Compact, the UN's Guiding Principles for Businessand Human Rights, and the OECD's Guidelines forMultinational Enterprises.

2. Provide equal oppor tunities for upskilling and careerdevelopment for all employees.

3. Provide a safe and clean work environment and care for
employees' health.

4. Ensure workers are paid fair wages and ensure proper
management of working hours.

5. Eliminate forced labor, child labor, and inhumane treatment ofworkers.

6. Respect local religions, traditions, and customs.
7. Support the effective recognition of the freedom of associationand the right to collective bargaining.

of goods and services.

2. Provide appropriate information that ensures quality and safetyof goods and services.

3. Provide products and services that contribute to sustainable
development.

Information Security

1. Implement strict information security practices to ensure

conﬁdential information (including personal information) ishandled safely.

Supply Chain

1. Ensure companies in your supply chain and/or subcontracting

companies, related to business with the Mandom Group, complywith the Guidelines.
If your company already has guidelines in place with at least thesame requirements and requests supplier compliance, no furtheraction is required.

Coexistence with Local Communities

1. Build good relationships with local communities throughcollaboration.

2. Respond promptly and sincerely to complaints from surroundingareas.

3. Support communities through business activities.
Revisions to theGuidelines

We will make revisions to the Guidelines to respond to changes both within and outside the Mandom Group as
circumstances demand. Revisions will be posted on our website. Please note that further consent and/or conﬁrmationof compliance status will be required.

Conﬁrmation ofcompliance status

The Suppliers' CSR Self-Assessment Survey has been compiled based on the CSR/Sustainable Procurement
Self-Assessment Tool Set published by UN Global Compact Network Japan as the ninth instalment in their series of
Building the Sustainable World. See below for more details.
External Site
Global Compact Network Japan●CSR/Sustainable Procurement Self-Assessment Tool Set (English version)

Mandom KohDoh Report 201843