Supply Chain Management

• Policy and Basic Concept
• Ricoh Group supply chain
• Building relationship with suppliers based on trust
• Addressing CSR procurement
• Addressing the conflict minerals issues
• Supply chain BCM (business continuity management)
• Supplier Hotline

Policy and Basic Concept

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. We are a member of the RBA^*1 (Responsible Business Alliance), a global industry coalition dedicated to progressing social responsibility in global supply chains and 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.

*1 RBA: Responsible Business Alliance, organizations promoting CSR in supply chain

Ricoh Group basic policy in procurement activities

The Ricoh Group’s businesses are supported by many suppliers. Recognizing these suppliers as our essential business partners, we build a relationship of trust with them, aiming at mutually beneficial development.

Today’s society faces various issues to address, such as those associated with the environment and human rights. To help solve these issues and achieve a sustainable society, the Ricoh Group promotes business activities so as to achieve SDGs, upholding the slogan of “Driving Sustainability for Our Future.” In order to effectively pursue this goal to meet social expectations, we need to cooperate with the entire supply chain, sharing our group policies and visions with individual suppliers. To this end, we have established the Ricoh Group purchasing regulation to appropriately deal with relevant CSR issues involving legal compliance, fairness and environmental and societal impacts. Using this as a tool, we are working to enhance our efforts on a global scale.

Ricoh Group Purchasing Regulation

To operate the purchase activities in impartial and fair manner which is open to all over the world, based on the economic rationality.

To operate, as a member of the global citizen, the purchase activities in such a manner as to contribute to the conservancy and the improvement of the global environment.

To operate the purchase activities bearing in mind CSR and based on the compliance with law and esteem of the social ethics.

To aim at coexistence and co-prosperity with excellent Suppliers on the basis of mutual responsibility.

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Ricoh Group supply chain

On a global basis, the Ricoh Group’s business has a total of approximately 1,500 supplier companies, posting a purchasing amount of 220 billion yen (as of March 2022). We work to achieve group-wide procurement optimization in cooperation with our global suppliers.

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Building relationship with suppliers based on trust

We specify critical suppliers primarily based on purchasing amount and volume, and the criticality and substitutability of materials/components, following the two steps below. As of March 2022, a global total of approximately 170 companies have been specified as critical suppliers.

【First Step】

When starting a new transaction, we select suppliers in accordance with the basic policy in purchasing activities, and include provisions related to ESG (Environment, Social and Governance) in the basic business agreement.

【Second Step】

From among the suppliers selected as satisfying the first step requirements, those involving large purchasing amounts, components for key products and strategic models, and non-substitutable parts are specified as “critical suppliers.”

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Building relationship with suppliers based on trust

We work to forge relationships of strong trust and long-term cooperation with our suppliers, aiming at mutually beneficial development. We do this by providing:

• The Ricoh Group Supplier Code of Conduct
• Production trend briefings
• ESG guidance
  We share our ESG policy and activities, the Ricoh Group Supplier Code of Conduct and decarbonization. Since 2020, for the purpose of preventing the spread of Covid-19, we have held online- briefings for the first time with our main global suppliers.
• Supplier Satisfaction Survey
  We conduct questionnaires for suppliers about Ricoh's procurement activities anonymously, and we improve Ricoh's own procurement activities based on the answers of questionnaires.

To join the Responsible Business Alliance (RBA)

In November 2019, Ricoh joined the Responsible Business Alliance (RBA), the world’s largest industry coalition dedicated to promoting corporate social responsibility in global supply chains. Ricoh shares the principals and goals of the RBA and has committed to adopting and implementing the measures initiated by the RBA, and also sharing them with our suppliers.

Ricoh Joins the Responsible Business Alliance, the World's Largest Industry Coalition Dedicated to CSR in Global Supply Chains
Responsible Business Alliance (RBA)

Ricoh Group Supplier and Partner Code of Conduct

In January 2006, the Ricoh Group established the Ricoh Group Supplier Code of Conduct for our suppliers to help them understand and support the Ricoh Group’s basic CSR policy and promote efforts aimed at improving society and the global environment as well as the sustainable development of businesses. The code of conduct is distributed to all our suppliers, who are required to comply with it. In August 2020, the Ricoh Group revised the "Supplier Code of Conduct" complying with the RBA Code of Conduct, which is based on major international human rights standards, including the ILO Declaration on Fundamental Principles and Rights at Work and the Universal Declaration of Human Rights in line with the UN Guiding Principles on Business and Human Rights. In April 2023, we revised the code to the "Ricoh Group Supplier and Partner Code of Conduct" as a code of conduct to be applicable to business partners in addition to suppliers of the Ricoh Group.
　For suppliers and partners implementing the Supplier and Partner Code of Conduct, the working environment is safe, and the workers are treated with respect and dignity. We would also like our suppliers and partners to ethically work on this revised Code of Conduct for conducting business and, at the same time, to be environmentally responsible. We request our suppliers and partners to sign the agreement form for the Ricoh Group Supplier and Partner Code of Conduct and ensure that Ricoh and our suppliers work in tandem.

Ricoh Group Supplier and Partner Code of Conduct
Ricoh Group Supplier and Partner Code of Conduct (English) (234KB)
Ricoh Group Supplier and Partner Code of Conduct (Japanese) (439KB)
Ricoh Group Supplier and Partner Code of Conduct (Chinese) (383KB)

Ricoh Group Supplier and Partner Code of Conduct Agreement form
Ricoh Group Supplier and Partner Code of Conduct Agreement form (English)（24KB）
Ricoh Group Supplier and Partner Code of Conduct Agreement form (Japanese)（98KB）
Ricoh Group Supplier and Partner Code of Conduct Agreement form (Chinese)（92KB）

The RBA Code of Conduct
The RBA Code of Conduct

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Ricoh Group Supplier and Partner Code of Conduct (Index)

Ricoh Group Supplier and Partner Code of Conduct is based on the RBA Code of Conduct and consists of five sections: labor, health & safety, environment, ethics and management systems.

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CSR procurement briefing sessions

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Supplier Satisfaction Survey

We aim for coexistence and co-prosperity and sustainable development through fair corporate activities with suppliers. A pilot survey was launched in fiscal 2020 and a full-scale supplier satisfaction survey in fiscal 2021. We will conduct a questionnaire for our suppliers covering the following points: listening to the frank opinions of anonymous respondents and improving Ricoh's procurement activities. The survey consisted of eight questions in four categories, each asking for a numerical evaluation of Ricoh's purchasing activities and specific opinions. In fiscal 2021, the survey was conducted in Japan, China, Thailand, and Vietnam, targeting suppliers with large transactions with the Ricoh Group. According to the survey results, 78.7% of suppliers were satisfied with Ricoh's purchasing activities, indicating that there is still much room for improvement. In terms of specific feedback, in the 2020 pilot survey, we received several comments that "communication has decreased due to Covid-19". But in 2021 we received comments that "we were able to exchange information more closely through online meetings.” In addition, we received some comments that need to be improved, such as "There are some staff members who use bad language on rare occasions", "I sometimes feel a lack of communication between sites", "There are fluctuations in the production plan. We also received feedback on areas that need improvement, such as "Very rare cases of staff with bad language", "Sometimes I feel a lack of communication between sites", "Production plans fluctuate". The results of the survey were fed back to the suppliers who cooperated in the supplier satisfaction survey.

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Addressing CSR procurement

While operating the business globally, the Ricoh Group considers the ESG in the supply chain and responds to the challenges of each field, we believe that working together with suppliers to address and solve the various problems of the global environment and society will be the driving force for the development of a healthy company and, ultimately will realize a sustainable society. For that we will promote this initiative from the perspective of long-term corporate value improvement.

Rollout of supply chain CSR

Education and training in the procurement division

To promote CSR procurement throughout the supply chain, it is essential for employees in procurement divisions to be aware of social and environmental issues in the supply chain. As well as offering CSR procurement training for employees new to purchasing operations, Ricoh's Procurement Division holds monthly meetings with the ESG Division to confirm and understand global sustainability trends and CSR procurement requirements from society and customers. In addition, in order to respond to various social and environmental issues, including the reduction of GHG emissions and the environmental impact throughout the supply chain, which have recently become issues that must be addressed, we have established a working group within the Procurement Division to collect data on ESG requirements and enhance our current CSR procurement activities. We are working to enrich the level of our CSR procurement activities by expanding our understanding of ESG requirements and expectations.

Green procurement

To reduce the environmental impact of its entire supply chain, the Ricoh Group works to enhance environmental protection efforts in cooperation with suppliers. As a measure to facilitate relevant efforts at suppliers to establish the Ricoh Group’s environmental management system (EMS), we have created the EMS Guidelines and Green Procurement Standard, to which we refer for purchasing raw materials and components from suppliers. Similarly, to help suppliers establish a chemical substance management system (CMS), we have developed the CMS Guidelines, and use it as a tool for providing training and operational support.

Green Procurement Standard

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Supply chain chemical substance management system

Targets and achievements of the CMS Training

The achievements of the CMS Training

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Supporting suppliers’ decarbonization efforts

In pursuit of a zero-carbon society, the Ricoh Group is expanding its CO₂ emissions reduction activities that allow suppliers to join in with the Group’s efforts. One such activity involves supporting suppliers in switching to clean electricity. We have shared the global warming countermeasures and information of trend on the environment that became a common global issue after the Paris Agreement with the management of suppliers in order to aim to raise awareness about CO₂. In 2021, we held an ESG briefing session to explain the Ricoh Group's policy on decarbonisation and future initiatives to suppliers and asked for their cooperation. Besides, based on practical cases and know-how in the Ricoh Group, we have supported suppliers on CO₂ emissions reduction activities. In the future, together with our suppliers, we will continue to practice environmental management that realizes environmental conservation activities and creation of profits.

Case report: Supporting suppliers in switching to “new power” to reduce CO₂ emissions

Miyazawa Machinery Industrial Co., Ltd. (Head office/plant in Omori-honcho, Ota-ku; plant in Jonanjima, Ota-ku; Website: http://www.m-mic.co.jp/)

Interview with Taizo Miyazawa, Representative Director

How did your company begin working to reduce CO₂?

We have been promoting energy conservation over several years in our major business sites at the head office and at plants. We installed LED lighting, energy saving air conditioners and other systems. In the summer of 2018, we received a request from Ricoh to switch to “new power,” which is provided by a power producer and supplier (PPS). Ricoh explained in earnest about the objective of promoting the initiative and its effect on society, which made us consider accepting their request. However, the switch was difficult to do immediately at the time, given the need to fulfill our ongoing contract for multi-year services. We decided to bring forward the issue for reconsideration when that contract expires.

What made your company adopt the CO₂-free option?

Ricoh offered to provide their accumulated know-how and operational support for switching to new power. We began to consider the possibility of the switch as an approach to cutting costs and CO₂ emissions at once. The company invited us to CSR briefing sessions and SDGs seminars, where we were impressed by their eagerness for environmental initiatives. As a parts supplier, we thought we should support Ricoh in pursuing the initiatives and decided to introduce new power. Our decision was driven particularly by a plan that could allow us to select a CO₂-free option and lower costs compared with the service by the previous power company. We became the first supplier to respond to Ricoh’s request, which also boosted our motivation.

What are your future plans?

Following the power company change, we plan to reduce power usage in order to further facilitate CO₂ emissions reduction. The Ricoh Group will also help us for this purpose, such as by sending specialists to provide know-how for power usage data analysis. Working with Ricoh, we will make continued efforts to reduce CO₂ emissions and contribute to achieving SDGs to create a sustainable society.

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Support to suppliers’ process improvement

We promote cost reduction programs jointly with suppliers to build long-term relationships of trust based on mutually beneficial cooperation. The programs aim to improve profits (financial statements) at our partners, and involve a range of processes, starting from consensus formation at the top management level among relevant companies, followed by sharing and analyzing information, checking facts and inspecting factories to select issues, executing improvement plans and verifying results.

Identifying risks associated with suppliers

We assess risks associated with each supplier in consideration of its location of operation and the possibility of involving environmentally hazardous substances. Based on the assessment, we identify high-risk suppliers and carry out measures to reduce the risk through periodically monitoring the financial situation, introducing the CSR Self-Assessment program and providing for third-party audits.
In fiscal 2018, we conducted two unannounced audits of suppliers with coating processes that may contain or contaminate prohibited substances. Thorough the inspection of their production sites, we confirmed that all products were lead-free electroless nickel-coated, and determined that there was no possibility of inclusion of prohibited substances.

CSR Self-Assessment System

We have introduced a CSR Self-Assessment System based on the RBA Code of Conduct that helps suppliers monitor their compliance with the Ricoh Group Supplier Code of Conduct. The system has been rolled out in Japan, China and Thailand. Company activities are assessed in labor, safety and health, environment, ethics, management systems, and living wages to identify issues to address. The results are fed back to the suppliers, who receive requests for improvement if applicable, together with corrective action plan, advice and support on ways to meet society's needs and expectations. If a supplier's improvement activities are not sufficient, we would discuss the future business relationship with the supplier.
With the CSR Self-Assessment System, the Ricoh Group provides our suppliers with support in implementing a "plan, do, check, act" (PDCA) cycle by themselves to meet society’s needs and expectations.

CSR Self-Assessment Targets and Achievements

Ricoh conducts CSR self-assessments for its suppliers, and then formulates and implements improvement measures together with the supplier's management and employees up to follow-up audits to check the status afterwards.　In fiscal 2018, we launched a new CSR Self-Assessment program based on the RBA Code of Conduct for suppliers in China and Thailand. From the analyzed responses (rate: 100%), we identified a number of issues. To address them, Ricoh provided related companies with advice for improvement measures and periodically monitors implementation progress in order to support their continued efforts.

Major targets and achievements regarding social responsibility

*Indicator 5 in Governance category: Response rate for CSR self-assessments by suppliers (%)

Implementation of CSR Audits

In fiscal 2018, we conducted internal audits of suppliers in Thailand and third-party audits of suppliers in China, both based on the RBA Code of Conduct, and identified issues to be addressed. We provided feedback about the audit results for each supplier and requested for corrective actions for areas needing improvements.
In fiscal 2019, we continuously conducted audits based on the RBA Code of Conduct both in Thailand and China. For Thai suppliers in particular, we implemented third-party audits by RBA (VAP audits^*2) and urged them to proceed with improvement activities based on the results. In addition, we conducted follow-up audits for Thai suppliers in order to confirm the improvement status of items pointed out in the audit in fiscal 2018.
From 2020 onwards, CSR assessments are carried out on global suppliers, mainly in China, Thailand and Japan, in accordance with RBA standards to determine supplier risks, and improvement plans are formulated, and improvement activities are carried out for those suppliers where improvement issues are identified.

*2 VAP audits: Validated Assessment Program. Third-party audits of supplier's compliance with the five elements of the RBA Code of Conduct to identify risks and opportunities for improvement.

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Supplier Awards

Every year, we select suppliers that have demonstrated excellent performance related to product quality, delivery time, environmental protection, environmental practices etc. and made significant contributions to the Ricoh Group’s business development. We set Ricoh Group’s criteria and select suppliers with the result of the latest one year. Manager of Global Procurement Division awards the selected suppliers directly and has built up strong relationships with the suppliers and aimed to goal for achievement of SDGs.

Addressing human rights issues

Risks associated with human rights are an emerging supply chain management issue. To deal with this concern, the Ricoh Group asks its suppliers to comply with the Supplier Code of Conduct, which includes prohibitions of human rights abuses, such as child labor and forced labor, while monitoring their compliance through the periodical CSR Self-Assessment program and requesting improvement efforts as necessary.
In response to the UK’s Modern Slavery Act, which came into force in October 2015, we have posted a relevant statement on the website of Ricoh Europe Holdings PLC, our sales arm in Europe. We also address conflict minerals issues* that are receiving growing public attention, carrying out continued activities, including information disclosure.

Ricoh Europe Holdings PLC 「Modern Slavery Act Transparency Statement」

Human Rights

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. In fiscal 2018, the survey results confirmed that there have been no violations. The self-assessment results from supplier companies also confirmed that there have been no reports of child labor violations. We will continue to monitor child labor.

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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.

Ricoh Group’s Responsible Minerals Procurement Policy

The Ricoh Group established “Ricoh Group’s Responsible Minerals Procurement Policy” and 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 social issue, and continues to secure transparency in the supply chain together with its business partners, also ensures responsible mineral sourcing practices.

Ricoh Group’s Responsible Minerals Procurement Policy（149KB）

Conducting Conflict Minerals Survey

The Ricoh Group addresses conflict minerals issues referring to the “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas". We have identified that our toner products are conflict-free.

Step1: Establish strong company management systems
In 2012 the Ricoh Group started an in-house study system to approach conflict minerals issues, and we established a cross functional task force in charge of dealing with conflict minerals issues. The task force, which consists of representatives from relevant departments within Ricoh Group companies, began considering what actions to be taken for the issues. We are continuing these activities, led by the Procurement Division and the ESG Division. The “Ricoh Group Supplier Code of Conduct” refers to 3TG (Tantalum, Tin, Tungsten and Gold) in asking suppliers to understand and cooperate with our policy of "Responsible sourcing of minerals". Since fiscal 2020, we have been requesting suppliers to include our policy of "Responsible sourcing of minerals" for cobalt as well.

Step2: Identify and assess risks in the supply chain
From 2013, we have been conducting a yearly conflict minerals survey targeting suppliers of raw materials and components to be used for the Ricoh Group’s products. Until fiscal 2020, we surveyed suppliers of major products such as imaging products. From fiscal 2021, we expanded the scope of our survey to include all products that Ricoh is responsible for producing and selling and asked our suppliers to limit the scope of the survey to those parts and products that Ricoh Group delivers. In addition, considering the growing concerns about unsafe working environments and child labor in recent years in the mining of cobalt, we have been conducting surveys of the supply chain of cobalt since fiscal 2020. We ask suppliers to use the Conflict Minerals Reporting Template (CMRT) and the Cobalt Reporting Template (CRT), which provides conflict minerals reporting formats provided by RMI*³.

Step3: Design and implement a strategy to respond to identified risks
From fiscal 2020, we provide information on high-risk smelters to our tier 1 suppliers and request them to switch to RMAP conformant smelters. We also ask tier 2 and subsequent suppliers to encourage upstream companies and smelters to switch to RMAP conformant smelters and obtain certification through tier 1. As a result of the analysis of response information, we directly request the switchover of smelters to suppliers who procure from high-risk smelters.

Step4: Carry out independent third-party audit of smelter/refiner’s due diligence practices
Ricoh, as a member company of the "Responsible Minerals Trade Working Group", launched in May 2012 by JEITA*⁴, is participating in a Working Group for the entire global supply chain, and studying activities unified in the electronics industry. In 2019, the Ricoh Group participated in the RBA (Responsible Business Alliance) and member companies of RMI, to ask the conflict minerals smelters related organizations in Japan to make inquiries about smelters and promote to be the Responsible Minerals Assurance Process (RMAP) conformant continuously.

Step5: Report annually on supply chain due diligence
Ricoh's activities related to conflict minerals are published annually on its website and in the Integrated Report. We have identified that our toner products are conflict-free.

*3 RMI: Responsible Minerals Initiative; former Conflict-Free Sourcing Initiative (CFSI)

*4 JEITA: Japan Electronics and Information Technology Industries Association

Survey conducted in fiscal 2021 and future efforts

In fiscal 2021, based on the results of a survey conducted for worldwide first-tier suppliers of the Ricoh Group , we identified as accurately as possible each of the parts and raw materials used in the products manufactured or consigned during the year, and conducted a common survey on the use of conflict minerals and received responses from 95% of suppliers. In the survey of 2021, the Ricoh Group identified 229 smelter companies that have acquired the certification of RMAP conformant and are conflict-free. The rate of RMAP Conformant smelters to the total number of smelters and refineries identified in the Ricoh Group supply chain was 69% in fiscal 2021. Starting with the fiscal 2021 survey, we requested suppliers to report the scope of their CMRT/CRT responses not on a company basis (A: Company) but on a part-by-product basis (B: Product) delivered to Ricoh Group. As a result, about 70% of suppliers responded to the questionnaire on a part-by-product basis.

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 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. We will discuss our future business with the suppliers who have not responded to this survey and are judged to require improvement based on the results of the ESG Self-Assessment.

In addition, in fiscal 2020, we began a survey of the cobalt supply chain by identifying major suppliers that had supplied the Ricoh Group with products and parts containing cobalt in the past. The response rate from surveyed suppliers was 95% of the 63 cobalt smelters and refineries and 30RMAP conformant refineries identified. We also continue to cooperate with industry organizations, such as JEITA and RMI, and we continue to conduct due diligence.

Supply chain BCM (business continuity management)

The Ricoh Group’s extensive supply chain faces a broad range of external risk factors, such as natural disasters, changes in the international situation, and development of infection. Our customers are particularly aware of this in the wake of the Great East Japan Earthquake. They are demanding, as part of their business requirements, strong risk management capabilities to ensure that their business operations would not be affected even in the event of an emergency. The Ricoh Group's policy is to ensure that customers never have to suspend their work, and we have made our support of social infrastructure operations a high priority. We, therefore, require our suppliers to strengthen their BCM by maintaining redundant production bases and parts procurement channels, and to increase their stocks of materials and components in case of widespread disasters such as those caused by earthquakes, tsunami, floods, fire, accidents or infection including new strains of influenza and COVID-19.

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Supplier Hotline

Ricoh has set “Supplier Hotline” which accepts violations to the applicable laws and regulations, Ricoh Group Code of Conduct, and violations of contract with suppliers caused by Ricoh and Ricoh Group’s officers and employees.

The conduct of officers and employees of each Ricoh Group company is governed by laws and regulations, Ricoh Group Code of Conduct.
If you find that officers and employees of the Ricoh Group has (or may have) breached any of the above rules, laws or regulations, or any contract with you as a supplier, please contact Supplier Hotline with the details.
In addition, please refrain from reporting with improper purposes, such as reporting contents that are different from the facts, reporting contents for purposes of slander, intimidation or business.
In 2020, we had no reports to Supplier Hotline.

Reports to Supplier Hotline are accepted through the report form on this site.(See below)As a general rule, please report under your real name. Anonymous reports are also accepted, but in that case, there is a limit to the confirmation of the facts, etc., and there is a possibility that sufficient investigation may not be conducted.
In addition, please note that we cannot contact you about the results of the response, etc.

Reports to Supplier Hotline are received and the relevant facts are confirmed by the department not in charge of Ricoh’s normal procurement. We conduct corrective actions promptly when necessary. The whistleblower shall not receive disadvantageous treatment by Ricoh Group merely by submitting the report itself.

The personal information collected in this form will not be disclosed to anyone other than to those that have the need to know, to confirm the facts and conduct the investigation, etc. We will only use the information in responding to your requests and for the necessary procedures.
The personal information sent by you will be managed under appropriate security measures and will be managed in strict confidence so that there will be no disadvantage caused to you through the investigations. We will not disclose or provide the information to third parties without your prior consent.
The personal information and requests collected in this form will be used to the extent necessary for confirming the facts and conducting investigation, and will be shared amongst the Ricoh Group related departments for the purpose of responding to your request, confirming facts and conducting investigation, and for improving the quality. Please refer to the “Handling of personal information” about how we handle your personal information.

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