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The Japan Steel Works Group Standards of Corporate Conduct
Non-financial data
Approach to Supply Chain Management
JSW Group has established The Japan Steel Works Group Standards of Business Conduct, which states, among other things, that the Group will respect the human rights of all people, conduct business transactions properly as based on fair and free competition, and engage in responsible procurement. In September 2022, The Japan Steel Works Group Human Rights Policy was established to promote respect for human rights in accordance with international norms.
Furthermore, in September 2022, we revised the existing The Japan Steel Works Group Basic Procurement Policy to have our suppliers achieve an understanding of and cooperate with the above standards and policies, and to facilitate product procurement that takes into consideration matters such as human rights, labor, health and safety, the environment, and information management in a manner consistent with the move toward a sustainable society.
We also formulated our Request to Business Partners, a document that outlines the specifics regarding our vision of how we hope suppliers conduct business. The Japan Steel Works Group Policies and Request to Business Partners are published on our website, and we are requesting confirmation of agreement.
Going forward, we will work to comprehensively disseminate these Policies and Request, strive to monitor the sustainability initiatives of our major suppliers, conduct dialogue and other interactions with suppliers as needed, and continue to strengthen our supply chain risk management and its sustainability.
To ensure that all suppliers in our supply chain can continue to play indispensable roles within society, we will share with them the Group’s policies and work together to promote sustainable procurement practices that sustain sound growth together through our business dealings.
The Japan Steel Works Group
Basic Procurement Policy
The Japan Steel Works Group promotes procurement activities as follows based on "The Japan Steel Works Group Standards of Business Conduct" and "The Japan Steel Works Group Human Rights Policy".
Fair and Impartial Procurement
The Japan Steel Works Group complies with laws and international norms, treats all business partners fairly and impartially, and always conducts transactions in good faith.
Relationship with business partners based on trust
The Japan Steel Works Group aims to build partnerships to create corporate value by deepening mutual understanding with all business partners and realizing optimal quality, prices, delivery through stable procurements with the following activities.
- (1) Regular holding of procurement policy briefings
- (2) Quality control diagnosis and guidance for eradicating defects
- (3) Awards for excellent business partners
- (4) Thorough management of business and technical confidentiality
- (5) Management of whistleblowing systems for business partners
Supplier Selection Policy
The Japan Steel Works Group places importance on particular the following conditions in selecting business partners toward building stronger and more sustainable partnerships.
- (1) Legal Compliance and Social Responsibility.
- (2) Respect human rights and prohibit discrimination. Do not be complicit in human rights violations.
- (3) Apply fair working conditions and maintain a safe and healthy working environment.
- (4) Prohibit forced labor, child labor and discrimination in employment.
- (5) Recognize environmental problems and strive to solve and respond to them.
- (6) Conduct fair corporate activities under sound management.
- (7) The quality, price, delivery, etc. are at appropriate levels, and efforts are made to maintain and improve them.
Requests to business partners
The Japan Steel Works Group is working to implement the procurement in our business activities as fulfilling our social responsibilities in collaboration with our business partners, we are considering not only basic conditions such as quality, price and delivery, but also respect for human rights, labor conditions, occupational safety and health and the environment and information management.
We ask for your company's proactive cooperation and understanding the followings and your disclosure of information in necessary.
1. Compliance with laws and social norms
We ask you to comply with relevant laws, international rules, and social norms that apply in the areas where your business activities are conducted.
- (1) Thorough compliance
- (2) Prohibition of Improper Offering and Receipt of Benefits
- (3) Cut off relationships with anti-social forces
- (4) Appropriate import/export management
- (5) Realization of fair and equitable competition
- (6) Prevention of infringement of intellectual property rights, etc.
- (7) Timely and appropriate disclosure of corporate information to stakeholders
2. Consideration for human rights and occupational safety
We ask you to respect basic human rights and ensure a safe and comfortable work environment in your business activities.
- (1) Prohibition of unfair labor such as child labor and forced labor
- (2) Prohibition of any forms of discrimination and harassment
- (3) Compliance with labor laws
- (4) Ensuring appropriate employment and working conditions, such as wages, working hours, holidays and vacations
- (5) Establishment of a safe and comfortable work environment and appropriate health management for employees
3. Consideration for the environment
We ask you to comply with environment-related regulations in your business activities.
We ask that you observe on environmental laws and regulations, properly manage chemical substances contained in products, and take other proactive measures to provide products and services that have lower environmental impact.
4. Ensuring quality, price and delivery
We ask you to meet the quality and safety standards required by the Japan Steel Works Group and strive to stably supply competitive products and services.
- (1) Ensuring the quality and safety of products and services throughout the entire period including after-sales service
- (2) Construction and maintenance, improvement of quality control system
- (3) Stable supply of products and services, and compliance with delivery, construction schedules
- (4) Creation of competitive value-added products and services, and promotion of technological development
- (5) Efforts to cost reduction while ensuring quality and safety
5. Efforts on Conflict Minerals
Some of the minerals (tin, tantalum, tungsten, gold and cobalt) produced in the Democratic Republic of the Congo and its adjoining countries are funded by anti-social forces involved in conflicts causing serious human rights violations and environmental destruction, hereinafter "conflict minerals".
In order to avoid complicity in human rights violations and environmental destruction, the Japan Steel Works Group is to not procure materials, parts, products that use the conflict minerals.
We also ask you to establish a policy to prevent the procurement of conflict minerals, and to disclose information as necessary.
6. Information security
We ask you to prevent any leakage of confidential information and personal information, and to ensure, maintain a high level of information security.
- (Defenses against cyberattacks)
- Set up defense measures against threats such as cyberattacks and construct a management system that does not cause damage to you or others
- (Protection of personal information)
- Compliance with laws and regulations related to all personal information of suppliers, customers, consumers, employees, etc., with appropriate management and protection
- (Prevention of leaks of confidential information)
- Ensure appropriate management and protection of not only your confidential information, but also that from customers and third parties
September 28, 2022
The Japan Steel Works, Ltd.
Supplier Survey
Since fiscal 2023, we have been soliciting participation in a CSR Procurement Survey of our major suppliers, to monitor the status of their sustainability initiatives.
The survey is divided into nine major sections, based on such themes as Request to Business Partners and The Ten Principles of the UN Global Compact. Representative survey topics include child labor and forced labor prevention (Labor), respect for human rights and discrimination prevention (Human Rights), and initiatives to prohibit conflict minerals (Supply Chain).
In addition, in conjunction with soliciting response to the CSR Procurement Survey, we also request that suppliers confirm their agreement with The Japan Steel Works Group Human Rights Policy, The Japan Steel Works Group Basic Procurement Policy, and Request to Business Partners.
Suppliers whose response was requested to the CSR Procurement Survey for fiscal 2023 were selected based on the actual value of procurement made by each of the Group’smajor manufacturing locations.
Beginning with the next fiscal year, we will strive to establish a periodic survey system, updating its content as needed based on our analyses and the latest social trends.
[ CSR Procurement Survey Items ]
- Corporate Governance Relating to CSR
- Human Rights
- Labor
- Environment
- Fair Corporate Activities
- Product Quality and Safety
- Information Security
- Supply Chain
- Co-existence with Local Communities