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Social: Fair Business Practices (CSR Procurement)

Achieving Development with Suppliers

In the POLA ORBIS Group Code of Conduct, the POLA ORBIS Group declares that the Group is facing the global environment and social conditions sincerely with all its stakeholders and is continuing to grow as a group of companies shaping a sustainable society based on the Group philosophy.
The POLA ORBIS Group promises to develop itself and collaborate with suppliers in the Group Code of Conduct as well. In the Group Code of Conduct, the Group adopts the policy of advancing procurement responsibly to propose that people around the world lead beautiful lives.

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. The things that 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 are compiled in these Guidelines. Based on the Guidelines, the Group will conduct monitoring step by step to ascertain the status of its CSR procurement initiatives.

Purchasing Activities by POLA CHEMICAL INDUSTRIES INC.

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 INC. 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 144 individuals from 85 suppliers that were raw materials and packing materials outsourcees took part in the briefing held in April 2017 at which the Group explained important matters, such as the establishment of alliances with suppliers, increasing overseas procurement and production rates toward globalization, the evolution of supply chain management, and the strengthening of approaches to business continuity plans (BCPs).
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.

THREE: Experiencing Work at the Source of a Select Japanese Raw Material

A scene from the work A scene from the work

A scene from the work

The employees of ACRO INC. visited a raw materials manufacturer that has been growing and processing a variety of Japanese plums called Nanko-ume, which their company is blending into its cosmetics sold under the THREE brand as a select raw material. They carried out work involved in drying the plums in the sun at the manufacturer. The aims of the work were to deepen the employees' understanding of a raw material that is the foundation of THREE brand products, to reflect what they learned and noticed during the work in their respective operations and to produce a range of results. On this occasion, the participants experienced the work after listening to a lecture on plums given by the president of the raw materials manufacturer, Azumanouen Co., Ltd., and deepening their exchanges with the producers.
Through the work, the participants realized once again that numerous producers (farmers) were involved in the processes for producing raw materials, in addition to traditional cosmetics manufacturing processes, and the raw materials production processes received the blessings of nature more than anything else. They felt a connection with and a responsibility for the products. ACRO INC. hopes to continue creating better products and services in cooperation with suppliers.

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.

Protection of Intellectual Properties and Their Practical Use

The POLA ORBIS Group uses its intellectual properties as part of efforts to vitalize markets, with a contribution to social development as its objective. The POLA ORBIS Group gains the trust of stakeholders by strictly managing the assets it should protect.
In particular, the POLA ORBIS Group manages top secret information strictly. The Group does not leak secrets that belong to itself and other companies to external parties or use them for purposes other than business objectives or purposes approved by the other companies. The Group makes preparations for preventing their unexpected leakage by taking steps, including the conclusion of a nondisclosure agreement, in cases where it needs to disclose the secrets to external parties, such as suppliers. The Group manages all personal information obtained through its operations appropriately and strictly, and avoids disclosing such information to external third parties without legitimate procedures.

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