Supply-Chain CSR Deployment Guidebook
Version 2.0

October,2015

Introduction
As part of our global business development, SDP observes all laws and social norms
and works to establish relationships of trust and mutual cooperation with our suppliers.
We also actively pursue initiatives for implementing our corporate social responsibility(CSR).

We are required to implement our CSR initiatives throughout our supply chain, which
includes all suppliers who participate in our business processes. We therefore developed
the Supply-Chain CSR Deployment Guidebook and released it in April 2014. As
outlined in this guidebook, we have been promoting collaborative CSR initiatives toensure we maintain common purpose with our suppliers.
Recently, however, our stakeholders—including shareholders, consumers, corporate
customers, and local communities—have expressed the expectation and request that our
CSR initiatives become more diverse and sophisticated on a global basis. To meet suchexpectations, we believe it is important to promote supply-chain CSR that includes our
suppliers, while becoming increasingly harmonized with international CSR standards.
We have therefore revised the content of our guidebook to conform with the EICC*
Code of Conduct produced by the Electronic Industry Citizenship Coalition (EICC), a
CSR alliance of the international electronics industry.
In the future, we intend to provide the necessary support by confirming and evaluating
our suppliers’ status of implementation of our CSR initiatives through CSR
procurement surveys and audits as outlined in the guidebook.
We request that our suppliers gain a renewed understanding of the details of each field
and item listed in the guidebook and support its intent. Moreover, we trust that our
suppliers will further promote CSR initiatives in their companies and continue tosupport and participate in promoting SDP’s supply-chain CSR.

* Please refer to the EICC website for a summary of the EICC and the EICC Code of
Conduct: www.eiccoalition.com

September 2015
Sakai Display Products Corporation

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1About This Guidebook
Our guidebook conforms with the EICC Code of Conduct (Version 5.0 of the Electronic
Industry Code of Conduct) formulated and released by the EICC (Electronic Industry
Citizenship Coalition), a CSR alliance for the electronics industry.
Each standard listed in the guidebook is based on the terms and interpretations of the
EICC Code of Conduct; however, we do not require our suppliers to follow thecompliance obligations that EICC imposes on its member companies.
To our suppliers, we ask that supply-chain partners and subcontractors (including labor
agents/contractors) support and implement the guidelines indicated for each item listed
in the guidebook, in addition to conducting voluntary CSR initiatives.
Our guidebook is made up of five sections: Sections A, B, and C outline standards forLabor, for Health and Safety, and for the Environment, respectively. Section D outlines
standards relating to business ethics, while Section E outlines the mechanisms for asystem to manage conformity to this guidebook.

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2A. LABOR
Participants are committed to uphold the human rights of workers, and to treat themwith dignity and respect as understood by the international community. This applies toall workers including temporary, migrant, student, contract, direct employees, and anyother type of worker. The recognized standards, as set out in the annex, were used as
references in preparing the Guidebook and may be a useful source of additional
information.
The labor standards are:1) Freely Chosen Employment
Forced, bonded (including debt bondage) or indentured labor, involuntary prison
labor, slavery or trafficking of persons shall not be used. This includes transporting,harboring, recruiting, transferring or receiving persons by means of threat, force,
coercion, abduction or fraud for labor or services. There shall be no unreasonable
restrictions on workers’ freedom of movement in the facility in addition to
unreasonable restrictions on entering or exiting company-provided facilities. As partof the hiring process, workers must be provided with a written employment
agreement in their native language that contains a description of terms and conditionsof employment prior to the worker departing from his or her country of origin. All
work must be voluntary and workers shall be free to leave work at any time or
terminate their employment. Employers and agents may not hold or otherwise destroy,
conceal, confiscate or deny access by employees to their identity or immigration
documents, such as government-issued identification, passports or work permits,
unless such holdings are required by law. Workers shall not be required to pay
employers’ or agents’ recruitment fees or other related fees for their employment. If
any such fees are found to have been paid by workers, such fees shall be repaid to theworker.
2) Young Workers
Child labor is not to be used in any stage of manufacturing. The term “child” refers toany person under the age of 15, or under the age for completing compulsory
education, or under the minimum age for employment in the country, whichever isgreatest. The use of legitimate workplace learning programs, which comply with alllaws and regulations, is supported. Workers under the age of 18 (Young Workers)
shall not perform work that is likely to jeopardize their health or safety, includingnight shifts and overtime. Participant shall ensure proper management of student
workers through proper maintenance of student records, rigorous due diligence of
educational partners, and protection of students’ rights in accordance with applicablelaw and regulations. Participant shall provide appropriate support and training to allstudent workers. In the absence of local law, the wage rate for student workers,
interns and apprentices shall be at least the same wage rate as other entry-level
workers performing equal or similar tasks.

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3A. LABOR (con’t.)3) Working Hours
Studies of business practices clearly link worker strain to reduced productivity,
increased turnover and increased injury and illness. Workweeks are not to exceed the
maximum set by local law. Further, a workweek should not be more than 60 hours
per week, including overtime, except in emergency or unusual situations.
Workers shall be allowed at least one day off every seven days.
4) Wages and Benefits
Compensation paid to workers shall comply with all applicable wage laws, including
those relating to minimum wages, overtime hours and legally mandated benefits. In
compliance with local laws, workers shall be compensated for overtime at pay rates
greater than regular hourly rates. Deductions from wages as a disciplinary measure
shall not be permitted. For each pay period, workers shall be provided with a timely
and understandable wage statement that includes sufficient information to verify
accurate compensation for work performed. All use of temporary, dispatch andoutsourced labor will be within the limits of the local law.
5) Humane Treatment
There is to be no harsh and inhumane treatment including any sexual harassment,
sexual abuse, corporal punishment, mental or physical coercion or verbal abuse ofworkers; nor is there to be the threat of any such treatment. Disciplinary policies andprocedures in support of these requirements shall be clearly defined andcommunicated to workers.
6) Non-Discrimination
Participants should be committed to a workforce free of harassment and unlawful
discrimination. Companies shall not engage in discrimination based on race, color,age, gender, sexual orientation, gender identity and expression, ethnicity or national
origin, disability, pregnancy, religion, political affiliation, union membership,covered veteran status, protected genetic information or marital status in hiring andemployment practices such as wages, promotions, rewards, and access to training.
Workers shall be provided with reasonable accommodation for religious practices. In
addition, workers or potential workers should not be subjected to medical tests orphysical exams that could be used in a discriminatory way.
7) Freedom of Association
In conformance with local law, participants shall respect the right of all workers toform and join trade unions of their own choosing, to bargain collectively and toengage in peaceful assembly as well as respect the right of workers to refrain fromsuch activities.
Workers and/or their representatives shall be able to openly communicate and shareideas and concerns with management regarding working conditions and management
practices without fear of discrimination, reprisal, intimidation or harassment.

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4B. HEALTH and SAFETY
Participants recognize that in addition to minimizing the incidence of work-related
injury and illness, a safe and healthy work environment enhances the quality of products
and services, consistency of production and worker retention and morale. Participantsalso recognize that ongoing worker input and education is essential to identifying andsolving health and safety issues in the workplace.
Recognized management systems such as OHSAS 18001 and ILO Guidelines on
Occupational Safety and Health were used as references in preparing the Guidebook
and may be a useful source of additional information.
The health and safety standards are:1) Occupational Safety
Worker exposure to potential safety hazards (e.g., electrical and other energy sources,
fire, vehicles, and fall hazards) are to be controlled through proper design,
engineering and administrative controls, preventative maintenance and safe work
procedures (including lockout/tagout), and ongoing safety training. Where hazards
cannot be adequately controlled by these means, workers are to be provided withappropriate, well-maintained, personal protective equipment and educational
materials about risks to them associated with these hazards. Workers shall be
encouraged to raise safety concerns.
2) Emergency Preparedness
Potential emergency situations and events are to be identified and assessed, and theirimpact minimized by implementing emergency plans and response procedures
including: emergency reporting, employee notification and evacuation procedures,
worker training and drills, appropriate fire detection and suppression equipment,
adequate exit facilities and recovery plans. Such plans and procedures shall focus on
minimizing harm to life, the environment and property.
3) Occupational Injury and Illness
Procedures and systems are to be in place to prevent, manage, track and report
occupational injury and illness including provisions to: encourage worker reporting;classify and record injury and illness cases; provide necessary medical treatment;
investigate cases and implement corrective actions to eliminate their causes; andfacilitate return of workers to work.
4) Industrial Hygiene
Worker exposure to chemical, biological and physical agents is to be identified,evaluated, and controlled. Engineering or administrative controls must be used tocontrol overexposures. When hazards cannot be adequately controlled by such means,
worker health is to be protected by appropriate personal protective equipment
programs.

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5B. HEALTH and SAFETY (con’t.)5) Physically Demanding Work
Worker exposure to the hazards of physically demanding tasks, including manualmaterial handling and heavy or repetitive lifting, prolonged standing and highly
repetitive or forceful assembly tasks is to be identified, evaluated and controlled.
6) Machine Safeguarding
Production and other machinery shall be evaluated for safety hazards. Physicalguards, interlocks and barriers are to be provided and properly maintained wheremachinery presents an injury hazard to workers.
7) Sanitation, Food, and Housing
Workers are to be provided with ready access to clean toilet facilities, potable waterand sanitary food preparation, storage, and eating facilities. Worker dormitories
provided by the Participant or a labor agent are to be maintained to be clean and safe,and provided with appropriate emergency egress, hot water for bathing andshowering, adequate heat and ventilation, and reasonable personal space along withreasonable entry and exit privileges.
8) Health and Safety Communication
Participant shall provide workers with appropriate workplace health and safety
training in their primary language. Health and safety related information shall beclearly posted in the facility.

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C. ENVIRONMENTAL
Participants recognize that environmental responsibility is integral to producing worldclass products. In manufacturing operations, adverse effects on the community,
environment and natural resources are to be minimized while safeguarding the healthand safety of the public. Recognized management systems such as ISO 14001 and theEco Management and Audit System (EMAS) were used as references in preparing the
Guidebook and may be a useful source of additional information.
The environmental standards are:1) Environmental Permits and Reporting
All required environmental permits (e.g. discharge monitoring), approvals andregistrations are to be obtained, maintained and kept current and their operational andreporting requirements are to be followed.
2) Pollution Prevention and Resource Reduction
The use of resources and generation of waste of all types, including water and energy,
are to be reduced or eliminated at the source or by practices such as modifying
production, maintenance and facility processes, materials substitution, conservation,
recycling and re-using materials.
3) Hazardous Substances
Chemicals and other materials posing a hazard if released to the environment are tobe identified and managed to ensure their safe handling, movement, storage, use,
recycling or reuse and disposal.
4) Wastewater and Solid Waste
Participant shall implement a systematic approach to identify, manage, reduce, andresponsibly dispose of or recycle solid waste (non-hazardous).
Wastewater generated from operations, industrial processes and sanitation facilities
are to be characterized, monitored, controlled and treated as required prior todischarge or disposal. In addition, measures should be implemented to reduce
generation of wastewater. Participant shall conduct routine monitoring of theperformance of its wastewater treatment systems.
5) Air Emissions
Air emissions of volatile organic chemicals, aerosols, corrosives, particulates, ozone
depleting chemicals and combustion by-products generated from operations are to be
characterized, routinely monitored, controlled and treated as required prior todischarge. Participant shall conduct routine monitoring of the performance of its air
emission control systems.

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C. ENVIRONMENTAL (con’t.)6)Materials Restrictions
Participants are to adhere to all applicable laws, regulations and customer
requirements regarding prohibition or restriction of specific substances in products
and manufacturing, including labeling for recycling and disposal.
7) Storm Water Management
Participant shall implement a systematic approach to prevent contamination of storm
water runoff. Participant shall prevent illegal discharges and spills from enteringstorm drains.
8) Energy Consumption and Greenhouse Gas Emissions
Energy consumption and greenhouse gas emissions are to be tracked and documented,
at the facility and/or corporate level. Participants are to look for costeffective
methods to improve energy efficiency and to minimize their energy consumption andgreenhouse gas emissions.
＊Note: Regarding evaluation items related to “Chemical Substance Management” and “Conservationof biodiversity,” please see the Sharp Green Procurement Guidelines.

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D. ETHICS
To meet social responsibilities and to achieve success in the marketplace, Participants
and their agents are to uphold the highest standards of ethics including:1) Business Integrity
The highest standards of integrity are to be upheld in all business interactions.
Participants shall have a zero tolerance policy to prohibit any and all forms of bribery,corruption, extortion and embezzlement. All business dealings should betransparently performed and accurately reflected on Participant’s business books andrecords. Monitoring and enforcement procedures shall be implemented to ensurecompliance with anti-corruption laws.
2) No Improper Advantage
Bribes or other means of obtaining undue or improper advantage are not to bepromised, offered, authorized, given or accepted. This prohibition covers promising,offering, authorizing, giving or accepting anything of value, either directly or
indirectly through a third party, in order to obtain or retain business, direct businessto any person, or otherwise gain an improper advantage.
3) Disclosure of Information
Information regarding participant labor, health and safety, environmental practices,business activities, structure, financial situation and performance is to be disclosed inaccordance with applicable regulations and prevailing industry practices. Falsificationof records or misrepresentation of conditions or practices in the supply chain areunacceptable.
4) Intellectual Property
Intellectual property rights are to be respected; transfer of technology and knowhow
is to be done in a manner that protects intellectual property rights; and, customer
information is to be safeguarded.
5) Fair Business, Advertising and Competition
Standards of fair business, advertising and competition are to be upheld. Appropriate
means to safeguard customer information must be available.
6) Protection of Identity and Non-Retaliation
Programs that ensure the confidentiality, anonymity and protection of supplier andemployee whistleblowers1 are to be maintained, unless prohibited by law.
Participants should have a communicated process for their personnel to be able toraise any concerns without fear of retaliation.
1 Whistleblower definition: Any person who makes a disclosure about improper conduct by an
employee or officer of a company, or by a public official or official body.

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9D. ETHICS (con’t.)7) Responsible Sourcing of Minerals
Participants shall have a policy to reasonably assure that the tantalum, tin, tungsten
and gold in the products they manufacture does not directly or indirectly finance or
benefit armed groups that are perpetrators of serious human rights abuses in the
Democratic Republic of the Congo or an adjoining country. Participants shall
exercise due diligence on the source and chain of custody of these minerals and maketheir due diligence measures available to customers upon customer request.
8) Privacy
Participants are to commit to protecting the reasonable privacy expectations of
personal information of everyone they do business with, including suppliers,
customers, consumers and employees. Participants are to comply with privacy andinformation security laws and regulatory requirements when personal information iscollected, stored, processed, transmitted, and shared.

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10E. MANAGEMENT SYSTEM
Participants shall adopt or establish a management system whose scope is related to thecontent of this Guidebook. The management system shall be designed to ensure: (a)compliance with applicable laws, regulations and customer requirements related to theparticipant’s operations and products; (b) conformance with this Guidebook; and (c)identification and mitigation of operational risks related to this Guidebook. It should
also facilitate continual improvement.
The management system should contain the following elements:
1) Company Commitment
A corporate social and environmental responsibility policy statements affirming
Participant’s commitment to compliance and continual improvement, endorsed byexecutive management and posted in the facility in the local language.
2) Management Accountability and Responsibility
The Participant clearly identifies senior executive and company representative[s]responsible for ensuring implementation of the management systems and associatedprograms. Senior management reviews the status of the management system on aregular basis.
3) Legal and Customer Requirements
A process to identify, monitor and understand applicable laws, regulations andcustomer requirements, including the requirements of this Guidebook.
4) Risk Assessment and Risk Management
A process to identify the legal compliance, environmental, health and safety2 andlabor practice and ethics risks associated with Participant’s operations. Determinationof the relative significance for each risk and implementation of appropriate
procedural and physical controls to control the identified risks and ensure regulatorycompliance.
5) Improvement Objectives
Written performance objectives, targets and implementation plans to improve theParticipant’s social and environmental performance, including a periodic assessmentof Participant’s performance in achieving those objectives.
6) Training
Programs for training managers and workers to implement Participant’s policies,
procedures and improvement objectives and to meet applicable legal and regulatory
requirements.
2 Areas to be included in a risk assessment for environmental health and safety are production areas,
warehouse and storage facilities, plant/facilities support equipment, laboratories and test areas,
sanitation facilities (bathrooms), kitchen/cafeteria and worker housing/dormitories.

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11E. MANAGEMENT SYSTEM (con’t.)7) Communication
A process for communicating clear and accurate information about Participant’s
policies, practices, expectations and performance to workers, suppliers andcustomers.
8) Worker Feedback and Participation
Ongoing processes to assess employees’ understanding of and obtain feedback onpractices and conditions covered by this Guidebook and to foster continuous
improvement.
9) Audits and Assessments
Periodic self-evaluations to ensure conformity to legal and regulatory requirements,
the content of the Guidebook and customer contractual requirements related to socialand environmental responsibility.
10) Corrective Action Process
A process for timely correction of deficiencies identified by internal or external
assessments, inspections, investigations and reviews.
11) Documentation and Records
Creation and maintenance of documents and records to ensure regulatory complianceand conformity to company requirements along with appropriate confidentiality toprotect privacy.
12) Supplier Responsibility
A process to communicate Guidebook requirements to suppliers and to monitor
supplier compliance to the Guidebook.

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REFERENCES
The following standards were used in preparing this Guidebook and may be a usefulsource of additional information. The following standards may or may not be endorsedby each Participant.
Dodd-Frank Wall Street Reform and Consumer Protection Act
www.sec.gov/about/laws/wallstreetreform-cpa.pdf
Eco Management & Audit System www.quality.co.uk/emas.htm
Ethical Trading Initiative www.ethicaltrade.org/
ILO Code of Practice in Safety and Healthwww.ilo.org/public/english/protection/safework/cops/english/download/e000013.pdf
ILO International Labor Standards
www.ilo.org/public/english/standards/norm/whatare/fundam/index.htm
ISO 14001 www.iso.org
National Fire Protection Agency www.nfpa.org/catalog/home/AboutNFPA/index.asp
OECD Due Diligence Guidance
www.oecd.org/document/36/0,3746,en_2649_34889_44307940_1_1_1_1,00.html
OECD Guidelines for Multinational Enterprises www.oecd.org
OHSAS 18001 www.bsi-global.com/index.xalter
Universal Declaration of Human Rights www.un.org/Overview/rights.html
United Nations Convention Against Corruption
www.unodc.org/unodc/en/crime_convention_corruption.html
United Nations Global Compact www.unglobalcompact.org
United States Federal Acquisition Regulation www.acquisition.gov/far/
SA 8000 www.cepaa.org/
SAI www.sa-intl.org

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