Social Report
Relationship withCustomers and Suppliers

In order to enhance customer satisfaction and realize mutual prosperity
with suppliers, the Tokyo Electron Group ensures that its policies on
product quality and procurement are and remain fair and honest.

• Our approach to product quality• Our approach to procurement

The objective of the Tokyo Electron Group’s product quality policy is to

The Tokyo Electron Group considers it important to build partnerships

generate customer trust in the Group through continuous provision ofwith suppliers based on its corporate philosophy and code of conduct,

products and services that consistently satisfy its customers. In order toto develop mutual trust with them, and to seek mutual growth.

establish and maintain a manufacturing system that does not produce
defective products, we have acquired ISO 9001 certification and work toensure that our product quality management system operates effectively.
The Tokyo Electron Group’s Commitment to Quality
1. Quality is our top priority

TEL’s goal is to achieve the highest quality in the world.

2. Product quality awarenessAll employees must understand the importance of product quality
to the TEL’s business. Quality must always be given priority, even
if profits are temporarily affected. That is how we build long-term
trust, and contribute to society.

3. Observing company rules

Employees must observe the rules stipulated by each TEL
organization to ensure that quality remains our top priority andcontinues to improve. These rules and regulations are reviewed
regularly to ensure that they are appropriate and effective in oureffort to improve quality.

4. Employee responsibility

Employees are responsible for making product quality their top priority.
They must remain aware of potential problems, actively identify andanalyze them, and take necessary action for improvement.

5. Managers’ responsibility

Managers must monitor on-site conditions at all times, spot
problem areas, and give instructions for improvement. Managers
must ensure that their subordinates have a good understandingof the overall TEL business environment, including customers’
requirements, and must make employees aware of the importanceof enhancing the quality of all TEL products and services.

• Quality assurance system

Procurement Policy of the Tokyo Electron Group
1. Partnerships

Our business partners are focused on creating products that
achieve genuine customer satisfaction.
We evaluate fairly and select our suppliers based on our selection
criteria, and on the premise of continuous pursuit of high-value
technologies and open competition.
We are forging links with our suppliers that enable us to rely oneach other and to grow.

2. Compliance with applicable laws and social norms
We comply with laws and social norms aimed at ensuring fairness
in transactions and respect for individuals, and we engage inprocurement activities with integrity based on corporate ethics, sothat we will be highly valued as an excellent global company.

3. Ensuring quality and safety

Under our management policies of ‘Safety first’ and ‘Quality is ourtop priority’ we pursue safety and quality in our parts and products,
on a global level.

4. Coexistence with the global environment

By actively employing environmentally-friendly parts andtechnologies (promotion of green procurement), we create productswith a low environmental impact.

5. Promoting lead-time reduction

To enable us to respond flexibly to market needs, we ensure leadtime reduction and stable supply to our customers.

6. Promoting cost reduction

We are reducing overall costs to enable us to offer products thatmeet market needs at prices that satisfy our customers.

7. Global procurement activity

In order to offer our customers parts and products that arecompatible with market needs, we have an open-door policy andpromote flexible and prompt procurement.

8. Information management

We keep strict control of the confidential information of our customers
and suppliers obtained by us in the course of our business.

The Tokyo Electron Group has established a quality committee• Communication with suppliers

comprising heads of the quality assurance departments of each

The Tokyo Electron Group not only uses electronic data interchange

business unit. The committee meets regularly to oversee efforts to(EDI)* for procuring parts and materials online, it also operates its

enhance product quality and address priority issues, thus promoting

own website as a supplementary tool to promote efficient two-way

the improvement of product quality for the entire Group.

communication with suppliers.
We promote suppliers’ understanding of the general circumstances ofFramework for the Tokyo Electron Group’s productquality systemPresident of Tokyo Electron
Executive Vice President of Tokyo Electron(General Manager of the Quality Division)

our business as well as our policies and creed through joint projects involving
a variety of issues, general day-to-day opportunities, and various specificplatforms, including the semiannual Production Update Briefing held by theGroup’s manufacturing companies and the annual TEL Partners Day.

* Electronic data interchange (EDI): A framework to facilitate the electronic exchangeof information related to commercial transactions among corporations in a unified
standard format

Quality Promotion
Department
Presidents/GMs of Tokyo Electron Group companies
Heads of the quality assurance departments in
the Tokyo Electron Group
Quality Committee
26

TEL Partners Day
held in fiscal 2012