Thorough Fair Business DealingsSupply Chain Management
Thorough Fair Business Dealings
The business activities of ROHM Group are made possible by the cooperation and support of our suppliers. ROHM Group Business Conduct Guidelines, which serves as the basic code of ethics for conducting business activities, also mentions equal and fair dealings, and stipulates that all officers and employees comply with the law which relates to the purchase transactions and will never abuse our position to force suppliers into unfair circumstances.
ROHM has created mechanisms for preventing corruption such as embezzlement and bribery, and thoroughly educates and informs its employees to ensure dealings with suppliers are fair and ethical.
1．Partnership Building Declaration
Since January 2021, ROHM has set up the Partnership Building Declaration. The Partnership Building Declaration aims to build new and strong partnerships with suppliers and businesses that create their value. This system has been established by the Council on Promoting Partnership Building for Cultivating the Future which consists of the Japan Business Federation Chairman, the Chairman of the Japan Chamber of Commerce and Industry, the President of the Japanese Trade Union Confederation, and related ministers.
ROHM will conduct fair and ethical transactions with suppliers in compliance with "coexistence and co-prosperity of the entire supply chain and new cooperation that transcends scale and affiliates" and "promotion standards (*)".
Promotion standards: Refers to desirable trading practices between the parent company and the subcontractor.
ROHM has set the following five compliance items to optimize transactions.
- 1. Optimization of price determination method
- 2. Optimization of type management
- 3. Thorough implementation of the principle of cash payment
- 4. Protection of intellectual property and know-how
- 5. Do not impose a burden on the supply chain when advancing our work style reform such as long working hours, short delivery time, etc.
Partnership Building Declaration
2. ROHM Group Procurement Strategy Meeting
ROHM Group holds Procurement Strategy Meeting once a year, to discuss the procurement strategies and issues of the fiscal year.
The procurement department representatives from all sites meet to make sure that ROHM Group procurement policies and CSR procurement rules are instilled in all procurement operations.
Since 2019, the meeting has been held online.
3. Education on the Subcontractors Act
In order to conduct fair dealings, each employee of ROHM Group must not forget that they are the "face of ROHM" and must build and maintain healthy relationships with suppliers. In order to promote transactions based on fair prices, an understanding of the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors (Subcontractors Act) and the Act on the Promotion of Small and Medium-sized Enterprises (Promotion Standards) is necessary to achieve this.
ROHM Group conducts e-learning on the Subcontractors Act to provide employees with a deeper understanding of the Act and enable them to conduct dealings in compliance with the law.
[Participation Percentage]
| Educational Contents | Subject | FY2021 | FY2022 | FY2023 |
|---|---|---|---|---|
| E-learning on proper trade | ROHM | 96% | 98% | ー（*） |
The subject of the program to be reviewed and the program will be implemented from FY2023 onwards.
4. "Conduct Guidelines" Training
In order to ensure that members of the ROHM Group Procurement Department do not have a private interest with suppliers, we have formulated “Conduct Guidelines for suppliers” and thoroughly educated the procurement department employees to ensure compliance based on ethics.
[Guidelines for Conduct with Suppliers Department Staff Trained in Compliance Based on Ethics Guidelines]
| Training Content | Subject | FY2020 | FY2021 | FY2022 | FY2023 |
|---|---|---|---|---|---|
| Compliance based on ethics Guidelines Education | ROHM Group in Japan | 100% | 100% | 100% | -- |
5. Promotion of Fair Trade Program
We have established a mechanism to maintain fair and impartial procurement activities by rotating the job responsibilities within up to 60 months so that there is no conflict between procurement staff and our specific suppliers. In addition, we conduct annual training as part of our fair trade program. The content of the training is based on ESG topics, including fair and equal procurement activities, fair selection of business partners, and CSR procurement.
6. Feedback on Compliance Survey Results
ROHM conducts surveys of suppliers through a third-party organization to investigate compliance of ROHM employees in order to establish an environment where misconduct or dishonest behavior do not arise and are not caused by our employees in day-to-day operations. The feedback on the results of the survey is provided to employees, including executives, to further prevent impropriety such as collusion and embezzlement.
7. Compliance Hotline for Suppliers
ROHM Group has established a "Compliance Hotline for Suppliers" as a contact point where suppliers can consult and report compliance issues related to transactions.
ROHM and other ROHM Group companies are advised to contact the Compliance Hotline for Suppliers if there is any behavior that violates the law or that becomes an ethical issue. If the reporting is made for a legitimate purpose, we will not treat the reporting person disadvantageously as a result of the reporting.
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