Promotion of CSR Procurement
In recent years, it has been increasingly required to fulfill social responsibility throughout the entire supply chain. Toyo Tires Group aims to grow and develop together with our business partners, by building and maintaining sincere and sound relationships and by cooperatively addressing human rights, labor, and environmental issues.
Rolling out the CSR Procurement Guidelines
Briefing session on the CSR Procurement Guidelines (In Malaysia)
The Toyo Tires Group established the “Toyo Tires Group CSR Procurement Guidelines (Ver.1)” in 2010, and we were engaged in CSR procurement activities while seeking cooperation from business partners. After that, however, various social issues in the supply chain came to light and it became necessary to respond to a broader range of procurement-related issues. Against the backdrop of these circumstances, we further revised the Guidelines from a global perspective and published the second version (in Japanese, English and Chinese) in November 2014. Specifically, some new sections were added, such as thorough compliance and responsible material procurement.
To share the Guidelines with our business partners in and outside Japan and to promote CSR procurement throughout the supply chain, we held briefing sessions on the Guidelines for our business partners in and outside Japan.
Implementation of the CSR Self-Assessment Checklist
Since fiscal 2015, to check our business partners’ compliance with the Guidelines, we have distributed the “CSR Self-Assessment Checklist” to business partners in Japan and asked them to conduct self-assessment using the checklist. We compile and analyze the responses and provide feedback to these business partners. We also conduct individual interviews on an as-needed basis with business partners to discuss problems associated with procurement activities and exchange ideas for improvement.
We will strengthen CSR procurement efforts across the entire supply chain by having our business partners evaluate their procurement performance using the “CSR Self-Assessment Checklist”, on a regular and continuous basis.
In-House Training Session
To promote CSR procurement, it is also important for the Group’s purchasing personnel to perform purchasing tasks based on a full understanding of the objectives and content of the Guidelines. We provided training on the Subcontract Proceeds Act and the Security Export Control to the buyers in Purchasing Department in FY 2016.
Consideration for Both Quality and the Environment
To ensure that all parts and materials procured from our suppliers meet the required quality and environmental standards, we visit our suppliers to perform quality audits and chemical substance inspections (in which we inspect procured parts and materials to determine whether they contain any regulated substances). For suppliers required to be ISO9001-certified, we investigate whether they have acquired or properly renewed certification.
Response to the Conflict Minerals Issues
Conflict minerals refer to tin, tantalum, tungsten, and gold which are produced in conflict areas such as Central Africa. The US, Europe, and other countries are moving toward regulating these minerals since purchasing them could finance the local armed forces that propagate conflicts and violations of human rights. We conduct thorough investigations by tracing all the way back along the supply chain to refining companies to determine whether the materials or products supplied to us contain conflict minerals from the relevant countries, in cooperation with our customers and suppliers.
Participation in Sustainable Natural Rubber Initiatives (SNR-i)
Stable procurement of natural rubber is a top priority for rubber product manufacturers. The International Rubber Study Group (IRSG), an inter-governmental organization composed of rubber producing and consuming stakeholders, is promoting the Sustainable Natural Rubber Initiatives (SNR-i), which aims to establish a sustainable natural rubber economy in harmony with the three pillars of economy, environment, and society. In June 2016, the Toyo Tires Group voluntarily declared its support of the objectives of the SNR-i and participation in the initiative. We surveyed our approved natural rubber suppliers and evaluated them on their performance with regards to the following criteria of SNR-i: forest sustainability, water management, and respecting human and labor rights. This is one example of how we are working with our business partners and promoting CSR throughout our supply chain. We will continue to work with industry organizations and government agencies of the relevant countries to promote sustainable sourcing of natural rubber.
Five Criteria of SNR-i
- Support Improvement of Productivity
- Enhance Natural Rubber Quality
- Support Forest Sustainability
- Water Management
- Respect Human and Labor Rights