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CSR throughout Our Supply Chain

Our business activities give us a large sphere of influence when it comes to social accountability, so it is crucial for the many companies and individuals along our supply chain to help the Ricoh Group avoid or minimize unintended negative effects. To that end, we make sure not only our employees, but also the employees of our suppliers, always act ethically. We spotlight this concern in our international guidelines on human rights, labor, the environment and more, and are working continuously to raise our initiatives to the next level.

img:Ricoh Group basic policy in procurement activities

Ricoh Group basic policy in procurement activities

The Ricoh Group, along with suppliers, aims to discharge its social responsibility in the supply chain, by conducting purchase activities on the basis of the following policy: 1) Coexistence and co-prosperity with suppliers by establishing long-term reliable relationships and cooperation, 2) Fairness of transactions (comprehensive evaluation of suppliers based on their participation in corporate social responsibility activities on the basis of economic rationality), 3) Establishment of an environmental management system and reduction of environmental impact through purchasing environment-friendly products, 4) Compliance with the law and 5) Respect for social ethics.

■ Rollout of supply chain CSR

Rollout of supply chain CSR

Ricoh Group basic policy in purchasing activities

The Ricoh Group, along with suppliers, to discharge its social responsibility in the supply chain, is conducting purchase activities on the basis of the following policy.

Ricoh Group Supplier Code of Conduct(165KB)

  1. Coexistence and co-prosperity with suppliers
    The Ricoh Group builds long-term relationships with suppliers, and thereby aims at coexistence and co-prosperity to prosper together by mutual cooperation.
  2. Fairness of transactions
    The Ricoh Group evaluates suppliers comprehensively from the standpoint of the commitment and measures to social responsibility, based on the economic rationality, such as quality, price, and delivery, and always promotes impartial and fair transactions, both inside and outside the country.
  3. Environmental conservation
    The Ricoh Group promotes the establishment of an environmental management system and the decrease of environmental impact by buying the merchandise having less environmental impact, and contributes to the conservancy and improvement of the global environment as a global citizen.
    Green Procurement Standards
  4. Compliance with the law
    The Ricoh Group conducts purchase activities with the full understanding of applicable laws and regulations and of the purpose of the legislation in each country.
  5. Respect for social ethics
    The Ricoh Group conducts purchase activities in a manner which does not contradict with social ethics, in the entire activities including suppliers, sub-suppliers etc. whether or not there are applicable laws and regulations in the respective country.

Ricoh Group Supplier Code of Conduct

In January 2006, the Ricoh Group established the Ricoh Group Supplier Code of Conduct for our suppliers to make efforts to aim at a better society and global environment and sustainable development of society. All of our suppliers are required to comply with this code of conduct. The Supplier Code of Conduct includes clauses on human rights such as prevention of child labor and environmental conservation.In the 2016 revision, the code was added with the clause on freedom of association based on the ILO Convention.

Green procurement in partnership with suppliers

The Ricoh Group purchases materials and parts used to manufacture products in line with Green Procurement Standards. As part of our efforts to help suppliers promote environmental protection, we have developed Environmental Management System (EMS) Guidelines and Chemical Substance Management System (CMS) Guidelines to help the suppliers establish their own EMS and CMS Guidelines in line with those of the Ricoh Group. These guidelines are used to provide suppliers with training and education as well as support in operating the management systems.

Establishing CMS at suppliers

Supplier CMS Training in ThailandSupplier CMS Training in Thailand

To help establish a chemical substance management system (CMS) across its entire supply chain, the Ricoh Group commenced a program in fiscal 2005 to train and certify suppliers’ employees as CMS examiners. In addition to internal audits facilitated by their own companies, certified examiners will conduct audits upstream suppliers that deal with important processes involving environmentally sensitive substances and will support them in establishing a CMS.
In 2015 we have conducted a Supplier CMS Training in Thailand to create new CMS examiners and a total of 111 employees from 58 different companies participated this training.
Taking into consideration of our supplier’s work lord to get CMS certificate, we are looking for adopting different CMS certifications issued by other companies.

Green Procurement Standards

Supplier CSR Procurement Self-Assessment System

Our suppliers are expected to comply with the Ricoh Group Supplier Code of Conduct, which contains rules related to environmental conservation and human rights, such as the prohibition of child labor. The Ricoh Group Supplier Code of Conduct Guidebook is distributed to all our suppliers, and in 2009 we invited all major suppliers to a meeting at which they were presented the Ricoh Group's CSR activities. Our aim was to have them share our values by raising their awareness of the importance of CSR and the Code of Conduct.

Also in 2009, we introduced a CSR Self-Assessment System that helps suppliers implement a "plan, do, check, act" (PDCA) cycle by themselves. The system was initially rolled out in Japan and has since been gradually extended to other countries. Company activities that require improvement are identified by these assessments, with the results fed back to the suppliers together with advice and support on ways to meet society's needs and expectations. The CSR Self-Assessment System has been used by local suppliers in China since 2010, and was introduced to Thailand in 2013.

Activities in Fiscal 2015

For further effective communication with our suppliers, we reviewed our CSR Self-Assessment System and its feedback system in fiscal 2015. Using opinions from suppliers, we made changes in the following three points.

  1. Coverage

    Responding to the social trend and external requests, we reviewed the self-assessment systems for all items of the Ricoh Group Supplier Code of Conduct.

  2. Format for self-assessment

    In addition to widening the coverage, we changed the format to be used for self-assessment to help suppliers understand the meaning and intentions of each item in the Code of Conduct when they fill out the self-assessment form. Because they can now check the Code of Conduct when completing the form, suppliers can identify their conditions more correctly. In the feedback, good practices are also noted in addition to those that may need some improvement in order to improve two-way communication.

  3. Reducing the burden on suppliers in relation to filling out the form

    While increasing the coverage, we took measures to decrease the burden on the suppliers in filling out the form. Based on the feedback from suppliers, we undertook a close review to determine the items to be included in the self-assessment form.

In fiscal 2016, we will implement the CSR Self-Assessment System for new suppliers upon starting to transact new business within Japan. We will also continue working with suppliers to carry out CSR procurement that meets the demands and expectations of society.

CSR Self-Assessment Targets and Achievements

Fiscal Year 2014
(target/achievement)
2015
(target/achievement)
2016
(target)
Country China Japan New suppliers(Janan)/Thailand
Response rates from suppliers 100%/100% 100%/100% 100%

Tap to see the table

Addressing the conflict minerals issues

With regard to the responsible supply chain management of minerals from conflict-affected areas and high-risk areas, in order that companies respect human rights and avoid contributing to conflict through their mineral sourcing practices, it is expected to cultivate transparent mineral supply chains and companies’ sustainable growth by the righteous decision-making on the mineral resource procurement with a view to enabling countries to benefit from their natural mineral resources and preventing the extraction and trade of minerals from becoming a source of conflict, human rights abuses, and insecurity.

Basic approach

The Ricoh Group views the issues that the minerals mining or trading in conflict-affected and high-risk areas finances armed groups and fosters conflicts, or closely related to human rights abuses, labor issues or environmental destruction, etc. as an important CSR issue, and continues to secure transparency in the supply chain together with its business partners, also ensures responsible mineral sourcing practices.

The Ricoh Group Supplier Code of Conduct has been revised in 2014 for asking suppliers to understand and cooperate with the new provision titled "Responsible sourcing of minerals".

In-house operation and participation in industry organizations

From 2012 the Ricoh Group started to study in-house system approaching conflict minerals issues, and established a cross functional task force in charge of dealing with conflict minerals issues, which consists of representatives from relevant departments within the Ricoh Group companies, and began considering what actions to be taken for the issues. And then, we are continuing the activities that are centered on the departments and sections involved in the procurement.

In addition, Ricoh, as a member company of the "Responsible Minerals Trade Working Group", launched in May 2012 by JEITA*1, is participating in a Working Group for the entire global supply chain, and studying activities unified in the electronics industry. In 2013, the Ricoh Group participated in the Japan Conflict-Free Sourcing Working Group (CFS-WG) established by automakers and member companies of the "Responsible Minerals Trade Working Group", and has asked the conflict minerals smelters related organizations in Japan to make inquiries about smelters and promote participation to the CFS program continuously.

Survey conducted in 2015 and future efforts

The Ricoh Group addresses this conflict minerals issues referring to the “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas". The Group built a management system that the existing in-house database was customized for the efficient survey, and prepared relevant information for risk analysis.

The Ricoh Group identified as many parts and materials as possible which were used in the products manufactured at own factories in 2015 or used in case manufacturing was contracted to the third party in the same year, and requested the first-tier suppliers worldwide from which the Ricoh Group procured them to cooperate with the common survey, and received the responses from 100% of suppliers.

As a result analyzing the response information from the first-tier suppliers, it was confirmed that there was a possibility that a certain number of products contain the parts or materials which originated in the Democratic Republic of the Congo or an adjoining country, accordingly the Ricoh Group conducted due diligence on the relevant first-tier suppliers. The comparison between the smelters and refiners which are certified by the Conflict-Free Smelter program ("CFS program") as CFSI*2 published and the smelters and refiners identified through the 2015 survey was completed.

In the survey of 2015, the Ricoh Group identified 312 companies as smelters that CFSI recognized. 245 companies have acquired the certification of CFS program.

On the other hand, there were a large number of cases that did not lead to the identification of smelters and mines in the upstream of the supply chain, and it was not possible to determine whether or not Ricoh products are conflict-free according to the results of the due diligence.

The Ricoh Group have collected a lot of names of smelters, but some of them could not be identified whether they are really smelters or not in light of publicly accessible Web information. In these circumstances, the Ricoh Group is working to confirm type of the firms in cooperation with other electronic information equipment manufacturers and automobile manufacturers.

In addition, we changed the format for the CSR-Self Assessment which includes the question to promote the responsible sourcing of minerals by our suppliers. The results obtained from such Assessment will lead to our follow-up actions for suppliers.

Continue to cooperate with industry organizations, such as JEITA, contribute to CFSI through JEITA, and do activities of the CFS-WG.

*1 JEITA: Japan Electronics and Information Technology Industries Association http://www.jeita.or.jp/

*2 CFSI: Conflict-Free Sourcing Initiative http://www.conflictfreesourcing.org/

Promotion of efforts to address child labor issues

Child labor is one of the priority issues of the Ricoh Group's TRM (total risk management) efforts, and relevant departments have been engaged in various projects to address child labor issues. The Ricoh Group has already surveyed the compliance with laws that prohibit child labor by manufacturing sites in Japan and abroad. The survey results have confirmed that there have been no violations. The self-assessment results from supplier companies have also confirmed that there have been no reports of child labor violations. We will continue to monitor child labor.

Sharing information with suppliers

In 2001, the Ricoh Group launched RaVenderNET, a network for sharing information on production and environmental impact caused by raw materials and parts. RaVenderNET was expanded in 2005 to include overseas vendors. The network, which is maintained jointly with our suppliers, has streamlined the process of confirming the compliance of purchase orders with Ricoh standards from two or three days to just half a day, substantially shortening production lead times. The system has also been used to share information on socially responsible procurement since 2010.