Citizen and its Business Partners
In the spirit of the Citizen Group Code of Conduct and the UN Global Compact, we work in close partnership with our suppliers to actively promote CSR in areas such as legal compliance, the environment and respect for human rights.
Basic Approach to Purchasing
Striving to build relationships with suppliers based on mutual trust
We regard building strong relationships with our suppliers to be one of our top priorities here at the Citizen Group and aim to work together so that we can grow hand in hand as business partners. To achieve this, we try to extend the policies developed by individual Group companies to our business partners through day-to-day communication, while listen to them in terms of market trends and suggested improvements in quality, pricing, and delivery of supplies purchased. Our aim is to create an environment in which supplies can be purchased on the basis of shared understanding by both parties.
Committee on Appropriate Subcontracting
The Committee on Appropriate Subcontracting focuses on education and auditing. Its education has two forms: basic education and practical education. It has so far trained cumulative total of 338 personnel. For auditing, the Committee conducted internal audits of ten companies, while seven companies were audited by their internal bodies. In collaboration with Group companies, we will continue our ongoing compliance efforts.
Training for Subcontract Act
Efforts at Group companies
CSR Procurement at CITIZEN ELECTRONICS
To extend its CSR philosophy and the Citizen Group Code of Conduct to the whole supply chain, Citizen Electronics has revised its supplier approval rules, creating the CSR Procurement Guidelines, which contain new provisions for overall compliance added to the conventional green procurement provisions. Business partners are requested to submit written declarations to observe the CSR Procurement Guidelines. This declaration has been added to the supplier approval audit criteria.
Initiatives at CITIZEN SEIMITSU
At Citizen Seimitsu Co. Ltd., our basic approach to purchasing is to always place top priority on our relationship with customers. We aim to build good relationships and become partners able to grow hand in hand. To achieve this, we value daily communication with our suppliers and routinely implement various initiatives in recognition of the importance of developing an even stronger relationship of trust. On the environmental front, we endeavor to promote green procurement, which involves focusing on the purchase of goods with a limited environmental impact from environmentally-friendly purchasing sources. In the area of legal compliance regarding purchasing, our in-house Compliance Committee on Subcontract Act plays a central role in the activities we undertake. In the future we intend to strengthen initiatives aimed at our becoming a good corporate citizen and actively engage in efforts such as procurement from local companies.
Initiatives at CITIZEN WATCH
At Citizen Watch Co., Ltd., we regard the companies from whom we procure raw materials, components and other goods as partners who are essential to our business operations, and strive to build relationships of trust through transparency and fare trade practices. For its part, the Purchasing Division conducts periodic internal audits in order to comply with the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (Subcontract Act) as an ongoing activity. In addition, since other departments have dealings with partners as well as the Purchasing Division, training sessions on the Subcontract Act (organized by Citizen Holdings Co., Ltd.) are conducted with the aim of thoroughly ensuring legal compliance for more employees. A total of 175 personnel participated in the training during fiscal 2010. Through these activities, we have managed to raise awareness and eliminate major areas requiring improvement in internal audits. Moving forward, we will continue to thoroughly promote familiarization with laws and regulations and strive to build relationships of mutual trust with our business partners.
Initiatives at CITIZEN MACHINERY
Explanation of company policy to suppliers
At Citizen Machinery Co., Ltd., we organize regular company policy presentations and share information with our business partners in order to establish stronger partnerships. Many of our business partners took part in presentations during fiscal 2010 and actively expressed their opinions on subjects such as market trends, quality and lead times. We will continue to exchange opinions in this manner to build even deeper relationships of trust in the future.
Voice Growing and Developing Hand in Hand with our Business Partners
Tsukasa Kajiwara
General Manager,
Purchasing Division
Production Headquarters,
Citizen Electronics Co., Ltd.
To fulfill our commitments to both reliable manufacturing and CSR promotion, we regard it as essential to build a healthy relationship between the Purchasing Division and procurement sources. To enable us to manufacture better quality products at Citizen Electronics Co., Ltd., we always try to grow and develop hand in hand as business partners with our suppliers. In addition to ensuring that our material and service procurement activities comply with all applicable legislation, we are also committed to fair and transparent transactions with our business partners in order to build relationships of mutual trust. In carrying out transactions, we give our first priority to companies who understand our CSR procurement guidelines and who are able to work with us in fulfilling our corporate social responsibility.
In recent years, cost, delivery time and quality are not the only factors demanded in parts and materials procurement. The promotion of green procurement, which gives consideration to the environment and complies with legislation the world over, leads to the manufacturing of environmentally-friendly products. We also respond swiftly to revisions to environmental laws and regulations and substance content surveys from our customers. In addition, we give consideration to the viewpoint of "safety, security and stability." Being quick off the mark to detect the occurrence of natural disasters such as earthquakes and typhoons, political and social conflict such as terrorism and protests or corporate incidents such as bankruptcy and scandals, and taking swift and precise action when procurement problems arise from the regions or companies associated with such events, is linked to customer satisfaction and social contribution.
