In the spirit of “the UN Global Compact” and “the Citizen Group Code of Conduct,” 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.
Promotion of CSR Procurement
The CITIZEN Group promote CSR procurement to fulfill its social responsibility throughout the supply chain. Specifically, we ask suppliers to comply with the “CSR Procurement Guidelines,” a statement of requirements concerning observance of human rights, environmental conservation, occupational safety and health, fair trade, and other issues in accordance with “the United Nations Global Compact” and the “CITIZEN Group Code of Conduct.” We will continue to strengthen relationships with our business partners to ensure social responsibility is acted up to throughout the supply chain and, thereby, our products are loved and trusted by citizens.
CITIZEN Group Procurement Policy
The CITIZEN Group provides various kinds of products/services under its corporate philosophy "Loved by citizens, working for citizens." For the procurement of articles and services necessary for this operation, we have set the following procurement policy in order to carry out fair, transparent, and free trading based on the “Citizen Group Code of Conduct.”
1. Fair and transparent trading
For the procurement of articles and services, we select our partners based on ethical standard measuring their compliance with laws and regulations, and social norms besides quality, price, and delivery date.
2. Compliance with laws and regulations, and social norms
We will comply with laws and regulations, and social norms of each country.
3. Respect for human rights and considerations for work environments
We respect internationally declared human rights standards and promote procurement activities with considerations for work environments.
4. Promotion of Green Procurements with considerations for the environment
To promote environmentally-friendly manufacturing, we adopt components with less environmental loads in a preferential manner, to contribute to the reduction of loads on the global environment.
5.existence and co-prosperity with partners
We will build a better partnership with all the partners with whom we can share the goal, either in domestic or overseas.
Appropriateness of Subcontracting
The CITIZEN Group holds the in-house seminar on the “Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors” as a part of employee education to thoroughly spread information on legal compliance. The seminar introduces the scope of the law’s application, and matters that are prohibited and obligatory for the main subcontracting entrepreneur, by using “Explanations on Key Points Regarding the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors” (a guidebook on the law from the Japan Fair Trade Commission and The Small and Medium Enterprise Agency). Specific violations are also introduced to deepen understanding of the kind of non-compliance actions.
The law’s application standards were revised for the first time in 13 years on December 14, 2016 with the aim of improving the transaction terms for small-and-medium sized companies and small-scale enterprises. There is a significant increase in specific case examples of violations. For instance, there are more cases concerning matters such as unfair demands for price cuts (unreasonable price reduction, deferring unit price when raw materials price is soaring), unfair financial demand for profit provision (reposition of molds without compensation), and unreasonable changes/rewriting of benefits. Understanding the move to strengthen application of the law based on this revision is crucial to prevent legal violations.
The CITIZEN Group’s business is supported by many business partners at all stages in the value chain. We are moving ahead with improvements for desirable trade methods to build a win-win relationship in the true sense for both the contractors and contractees. We are making efforts to ensure that this leads to improved productivity and technical strength in entities such as small-and-medium sized companies, as well as boost the competitiveness of the CITIZEN Group.
Appropriateness of Subcontracting
Partnership with a welfare center
For a long period of over 40 years, CITIZEN WATCH has subcontracted work to Murayamaen (social welfare corporation), including counting after-sales service components and wristwatch components, packaging, and dismantling watches. We have a strong trustworthy relationship with Murayamaen as an outsourcing contractor, and in February 2013 we received a letter of appreciation from the Japan National Council of Social Welfare recognizing CITIZEN WATCH as a cooperative company. We will continue to fulfill our social responsibility in the supply chain.
the task of counting components at Murayamaen