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Fair Business Practices (CSR Procurement)

Our Policy

Basic Group Purchasing Policies

The POLA ORBIS Group has set Basic Group Purchasing Policies in a bid to translate sound, fair business practices with suppliers into action.

Basic Group Purchasing Policies

Execution of fair and impartial transactions in Japan and overseas

  1. We decide on our suppliers based on the comparative assessment of points including quality, cost, deadlines, technological capabilities and corporate stance.
  2. We take our actions in compliance with the relevant laws and regulations.
  3. We continue efforts to fulfill our social responsibilities, such as the protection of resources and the environment.

CSR Procurement Guidelines

The POLA ORBIS Group has established the POLA ORBIS Group CSR Procurement Guidelines, compiling what the POLA ORBIS Group should practice for sustaining its growth permanently while continuing fair and free transactions with suppliers in compliance with Basic Group Purchasing Policies. Based on the Guidelines, the Group will conduct monitoring step by step to ascertain the status of its CSR procurement initiatives.

Our Organization

The POLA ORBIS Group builds relationships in compliance with laws and regulations under the responsibility of each company. Even among our relationships with business partners, the procurement of materials has in recent years become a global issue, and in 2019, we established the Procurement Subcommittee as a subcommittee of the CSR Committee. The Procurement Subcommittee investigates procurement issues that may influence the entire Group, looking at responses to these issues together with the employees supervising purchasing at each company. The results of these investigations are reported to the Board of Directors as required.

POLA CHEMICAL INDUSTRIES: Purchasing Activities

A scene from a briefing on Basic Group Purchasing Policies

A scene from a briefing on Basic Group Purchasing Policies

The POLA ORBIS Group has established original environmental standards for cosmetics raw materials and container packing materials in order to promote eco-friendly procurement and purchasing activities with POLA CHEMICAL INDUSTRIES in the center. The POLA ORBIS Group is making efforts to procure and purchase raw materials in conformity with the established standards for matters, such as endocrine-disrupting chemicals and pollutant release and transfer registers (PRTRs), bearing the protection of resources and environmental preservation in mind.
The Group is choosing appropriate container packing materials, such as those in which recycled materials are used, and is undertaking eco-friendly design and purchasing activities to promote the conservation of raw materials and resources.
Furthermore, the Group is communicating closely with its suppliers to strengthen cooperation with them. The Group is communicating its philosophy and management policies to them by organizing briefings on Basic Group Purchasing Policies on demand. A total of 142 individuals from 83 suppliers that were raw materials and packing materials outsourcees took part in the briefing held in April 2018.
Furthermore, the Group is organizing events such as study meetings on external investigations by the relevant organizations, voluntary audits, laws and regulations associated with purchasing activities and social ethics, in order to observe the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors, other laws and regulations.

CSR Procurement

We created a survey on CSR procurement based on the CSR Procurement Guidelines. The survey asks about compliance with laws and regulations (compliance, fair transactions, corruption prevention, and information security), human rights (the banning of forced labor and child labor, etc.), the work environment, the global environment, supply chains, and quality maintenance. In 2018, we offered the survey to cosmetics material manufacturers (including factories, trading companies, and overseas manufacturers) and received 224 responses back.

Fair Competition

POLA ORBIS Group employees act with a strong sense of ethics in accordance with the prohibition of anticompetitive practices prescribed in the POLA ORBIS Group Code of Conduct. The POLA ORBIS Group engages in fair and free competition among companies without performing acts that violate the Antimonopoly Act, such as the maintenance of cartels, bid-rigging and resale prices and the abuse of dominant bargaining positions.

Prevention of Corruption

The POLA ORBIS Group has set the POLA ORBIS Group Code of Conductpdf and Guidelines Concerning Gifts and Entertainment (established in 2008), both of which prescribe rules of conduct for realizing the Group philosophy and controlling self in a global society. The Code of Conduct and Guidelines prescribe the observance of laws, regulations, in-house guidelines, standards and the like in relationships with customers, suppliers, operational, manufacturing and other contractors, and public servants in the relevant government ministries and agencies, and prohibit the offering of gifts, entertainment and the like to such parties and receiving them from the same parties, in principle.
Detailed rules established by the respective Group companies set upper limits for exceptions to the rules stated above, including inexpensive items, such as promotional supplies, and items socially accepted as necessary for operations, such as parting gifts and gratuities. However, they also stipulate advance approval and ex post facto reports as mandatory requirements.
In addition, the respective POLA ORBIS Group companies have established management systems and measures to ensure that their employees observe the substance of these rules properly. They are conducting self-audits and offering instructions related to gifts, entertainment and the like on a periodic basis. The respective POLA ORBIS Group companies are periodically offering e-learning programs to all their employees and trying to give the widest possible publicity to those programs.
Regarding supply chains, the POLA ORBIS Group has established the CSR Procurement Guidelinespdf, which summarize the matters the Group needs to sustain its development permanently while continuing fair and free transactions with suppliers based on Basic Group Purchasing Policies. Based on these Guidelines, the POLA ORBIS Group is asking suppliers to undertake their business activities in compliance with laws, regulations and ordinances in the respective countries and regions and refrain from involving themselves in transactions whose fairness is questionable, bribery and corruption. Moreover, the POLA ORBIS Group supported the United Nations Global Compact, which set 10 principles in the four areas of human rights, labor, the environment and anti-corruption, and signed the Compact in February 2017.

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