Sustainability
Fair Procurement
- Contribution to SDGs
- ESG Material Issues
- Environmental Vision
- Environment
- Society
- Governance
- ESG Index
- Comparison with ISO26000
- External Evaluation
- Activity Archives
- Participation in initiatives
- Fuji Electric Report/Annual Reports
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.
Strict Compliance with Procurement Laws and Regulations
Fuji Electric strictly adheres to principles of fair and equitable procurement in compliance with procurement-related laws.
In fiscal 2023, the Procurement Division of the Head Office inspected 23 sites and conducted compliance inspections. Meanwhile, the Procurement Divisions at overseas affiliates also worked to develop procurement-related regulations and standards that comply with the laws and regulations of each country, and conducted operational inspections at 9 sites in China and 13 sites in Asia.
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.
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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
In fiscal 2023, we provided training on the Subcontract Act, internal controls, and procurement CSR to 836 people at 23 sites across Japan. In addition, following on from last year, we implemented e-learning on the Subcontract Act (attended by approximately 16,800 people) to instill awareness of compliance. In addition, the Legal Compliance Working Group, which aims to develop legal compliance experts, not only conducted classroom learning but also engaged in practical education that included exercises.
Overseas, our China/Asia IPO* provided training on "internal control" to 9 sites in China and 13 elsewhere in Asia through business inspections.
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IPO: International Procurement Office
Procurement office that identifies excellent new suppliers in each country and provides procurement services to our overseas operations.
In order to raise awareness among procurement department staff in charge of CSR procurement practices, we conduct CSR education for procurement department staff in Japan to ensure thorough awareness.
In fiscal 2023, we conducted education in 16 departments, including 11 factories, and 299 employees took the course.
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.