Fuji Electric Global

Global

ESGFair Procurement

The Fuji Electric Code of Conduct stipulates that we “Respect and value our business partners,” and clarifies our commitment to fair and impartial transactions. We therefore endeavor to practice fair and impartial transactions in compliance with domestic and overseas laws and regulations in order to bolster trusting relationships and achieve mutual prosperity with our business partners.

Procurement Policy

Fuji Electric’s procurement activities adhere to our managerial principle of fair and impartial transactions. We are seeking domestic and international suppliers that are competitive in key areas, such as quality, price, delivery, service, and that emphasize sustainable procurement. Our goal is to extend relations with suppliers through open and fair and impartial trade, and maintain a high level of mutual trust, thus allowing for such a partnership to endure for an undefined period of time.

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Strict Compliance with Procurement Laws and Regulations

Fuji Electric strictly adheres to principles of fair and equitable procurement in compliance with procurement-related laws.

The divisions responsible for procurement at the head office and other domestic operating sites work to ensure rigorous legal compliance by conducting regular audits of their own procurement operations and providing legal compliance training. In fiscal 2020, the procurement division of the head office conducted site visits and legal compliance inspections (9 sites). Meanwhile, procurement divisions at overseas affiliated companies are developing procurement-related rules and standards based on the regulations of their respective countries.

Thorough Compliance with the Subcontract Act

Japan’s Subcontract Act* is an important procurement-related ordinance. Headquarter divisions responsible for procurement thoroughly manage compliance on a monthly basis. Specifically, the status of compliance with regard to transactions is confirmed on a monthly basis based on inspection data from Fuji Electric and domestic consolidated subsidiaries, and guidance is provided to related parties as necessary.

  • Subcontract Act: “The Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors.” The act identifies four obligations of the main subcontracting enterprise and 11 activities that are strictly prohibited in order to protect subcontractors’ profits from abuses by main subcontracting enterprises.

Employee Education

Procurement-Related Compliance Training

In fiscal 2020, we conducted training for 500 employees at nine sites in Japan covering the Act against Delay in Payment of Subcontract Proceeds etc. to Subcontractors (Subcontracting Law), internal controls, and procurement CSR. Following the previous fiscal year, we also expanded the e-learning program on the Subcontracting Law, which is intended to instill an awareness of legal compliance, to affiliated companies (about 4,000 attendees). As for “Legal Compliance Working Group” established for the purpose of training law-abiding experts, we provided not only classroom learning but also practical training that included exercises.

Overseas, our China/Asia IPO* provided training on "internal control" to nine bases in China and three elsewhere in Asia through business inspections.

  • IPO: International Procurement Office
    Procurement office that identifies excellent new suppliers in each country and provides procurement services to our overseas operations.

Whistle-Blowing Systems for Suppliers

Establishing a Partner Hotline

We have established the Partner Hotline as a channel for suppliers to report on our business practices in materials procurement and other activities. This whistle-blower system allows suppliers to report either to an external lawyer, or directly to Fuji Electric. It is designed to prevent illegal actions, or to enable their early discovery. It also enables us to receive feedback from our suppliers, and helps us to build relationships of trust with them.

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