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.

Promotion of CSR Procurement

Citizen Group and the Citizen Electronics 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 protection, 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 practiced throughout the supply chain and, thereby, our craftsmanship is chosen and appreciated by customers.

Citizen Group Procurement Basic Policy

Citizen Group provides various kinds of products/services under its corporate policy "Loved by citizens, working for citizens." For the procurement of articles and services necessary for this, we have decided the following procurement basic policy in order to carry out fair, transparent, and free trading.

  • 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. Co-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 Japan or overseas.

Citizen Group CSR Procurement Guideline PDF

Responding to Conflict Minerals and Human Rights

The Citizen Group recognizes that tantalum, tin, gold, and tungsten ("conflict minerals") produced in DRC countries※ represents an important source of funding for armed insurgents in these countries. The Citizen Watch Group and the Citizen Electronics Group are working with their business partners to conduct responsible procurement, ensuring against complicity in human rights abuses. Please refer to these companies’ websites for details.

Realizing a Society without War—Initiatives to Protect Human Rights

The concept of "conflict minerals" ballooned into a major international issue due to the role these minerals have played in providing funds to support protracted conflict by armed insurgents in the Congo. Extended conflict prompts declines in public safety, and attracts a host of human-rights abuses, such as the use of child soldiers and the abuse of women. Stamping out the use of conflict minerals is akin to helping protect the human rights of children and women.
In the past, global companies have been keen to reduce their environmental impact and eliminate practices such as child labor, and have taken an early stance in these areas. Awareness of conflict minerals remains low, however, and the link between using such minerals and contributing to human-rights abuses in conflict-plagued areas is not well recognized. The fact that the term "conflict minerals" has even emerged suggests an increase in awareness and a small step forward to resolving this international problem.
I believe that if global companies address the issue of conflict minerals head on, consumer awareness will change. Consumers will then become willing to pay slightly more for "conflict-free" products that do not employ conflict minerals. Once society accepts "human rights expense" as a cost incurred in the same manner as raw materials, labor, and advertising expenses, the issue of conflict minerals will surely fade away. Being involved in this process is also certain to generate corporate trust.
As a global company, I hope that Citizen will continue to eschew the use of minerals throughout the Group. (Ms. Reiko Taniguchi, Amnesty International Japan)

Children working in tin mines

Children working in tin mines

DRC countries: The 10 countries identified in the Dodd-Frank Wall Street Reform and Consumer Protection Act as being producers of conflict minerals

DRC countries: The 10 countries identified in the Dodd-Frank Wall Street Reform and Consumer Protection Act as being producers of conflict minerals

Appropriateness of Subcontracting

The Citizen Group is supported by many business partners throughout all stages of the value chain, and working with each and every one of them is essential if the Group is to achieve business sustainability.

We have created the Appropriate Transaction Guidelines, which focus on building mutually beneficial relationships with both buyers and sellers. These guidelines specifically introduce recommended trading methods (best practices), and, by referring to these examples, we can ensure better business dealings. Additionally, Japan’s Annotated Subcontracting Law provides awareness of what types of dealings are in violation of this law.

It is also important to review trading practices from not only the perspective of company profits but also from that of ensuring good dealings with subcontractors. The Appropriate Transaction Guidelines introduce examples of the price shifting (sliding price) method for handling price increases and decreases. The method is agreed on in advance after consultations with traders who may be significantly impacted by increases in prices of purchases that may include soaring costs for raw materials. The guidelines also introduce mold storage rules and comparisons of fair estimates.

Further, some transactions may have been in place for a long time, but these transactions may not actually use recommended methods. We need to check if optimal transaction methods are in place by comparing them against the Appropriate Transaction Guidelines.

To ensure fair transactions are being carried out in accordance with laws and social norms, including preventing abuse of dominant bargaining positions with suppliers, we conduct classes on Japan’s Subcontract Act using these guidelines. By providing training to employees, we are striving to heighten awareness of these issues throughout Group companies.

Subcontracting Law Training

Subcontracting Law Training