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, stating, "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 a “Partnership Building Declaration”. "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

Partnership Building Declaration

2. ROHM Group Procurement Strategy Meeting

ROHM Group holds Procurement Strategy Meeting once a year, to discusses the procurement strategies and issues of the fiscal year.

The procurement divisions representatives from all sites meet to make sure that in all procurement operations, ROHM Group procurement policies and rules for CSR procurement are instilled.

Procurement Strategy Meeting (2019)
Procurement Strategy Meeting (2019)

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" as they build and maintain healthy relationships with suppliers. An understanding of the recently discussed Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (Subcontractors Act) 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.

[Percentage of Students]

Educational Contents Subject FY2020 FY2021 FY2022
E-learning on proper trade ROHM 98% 96% 98%

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.

[Percentage of Procurement Department Staff Trained in Compliance Based on Ethics Guidelines]

Training Content Subject FY2019 FY2020 FY2021 FY2022
Compliance based on ethics Guidelines Education ROHM Group in Japan 100% 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.

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 us if there is any behavior or behavior that violates the law or becomes an ethical issue. If the reporting is for a legitimate purpose, we will not treat the reporting person disadvantageously by reason of the reporting.

Compliance Hotline for Supplier



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