Supply Chain Management
As part of the CSR management that we promote together with our stakeholders, the Marubeni Group is aiming for CSR supply chain management with our business partners.
As a general trading company group that operates a wide range of businesses on a global scale, the Marubeni Group has built up supply chains in many different countries, including some developing countries where issues such as forced labor, child labor and degradation of the local environment may arise. To address these situations, the Marubeni Group sees supply chain management as an important CSR issue for continued sound business practice, and works diligently to prevent these problems and to raise awareness of the issues.
Basic Supply Chain CSR Policy
Marubeni established its Basic Supply Chain CSR Policy in October 2008, and published it on our website and in our CSR Report.
We revised the Policy in December 2011, and established a system to ask all our existing and potential long-term business partners to cooperate in the above aims by providing to them explanations on all policy revisions in a number of ways, including briefing sessions, personal communications and mail delivery.
Under this system, beginning in January 2012, we are communicating our revised Basic Supply Chain CSR Policy to all our long-term business partners, including those with whom we are planning to enter into a trading relationship.
Measures against Noncompliance with Supply Chain Labor Standards
Marubeni has formulated measures against noncompliance with supply chain labor standards, at the link below.
Measures against Noncompliance with Supply Chain Labor Standards (12KB)
Supply Chain Management Education/Training
Aiming to ensure appropriate implementation of supply chain management principles, Marubeni provides e-learning programs on this theme, including supply chain labor standards and other important issues, for its executives and employees. The total attendance numbered around 2,500 as of December 2011. The training programs will continue to be annually updated.
Survey on Supply Chain CSR
To confirm the status of compliance with the Basic Supply Chain CSR Policy, particularly regarding human rights and the work environment, Marubeni conducts surveys on its suppliers using 2 methods, questionnaires and on-site inspections, including interviews by Marubeni representatives.
Questionnaires
In February 2011, we conducted a survey that covered 16 suppliers that conduct trade of products for which there were concerns of undesirable labor practice risks at the time of manufacture in countries designated as human rights concerns by the FTSE4Good Global Index, a leading index for socially responsible investment (SRI)*.
In the survey, we provided a questionnaire to collect responses on 7 themes, including human rights of laborers (prevention of child labor, forced labor, and other related issues), environmental conservation and fair trade. If specific issues were raised, we requested further details on each of them .
Based on the questionnaire, we discovered no violation of our Basic Supply Chain CSR Policy.
*Socially Responsible Investment (SRI):
Investment based on companies’ fulfillment of social responsibility as a deciding factor.
On-Site Inspections
Marubeni conducts on-site inspections at suppliers based in countries designated by the FTSE4Good Global Index as carrying high risks associated with supply chain labor standards, and which conduct trade of products involving a high possibility of inappropriate labor practices, primarily in the agricultural and apparel sectors.
Marubeni dispatches representatives to visit applicable suppliers and confirms their compliance status by using a checklist prepared for the Basic Supply Chain CSR Policy, interviewing responsible managers and inspecting manufacturing sites.
In December 2011, we performed an on-site inspection for 2 suppliers, as reported below.
(1) Wonderful Saigon Garment Co., Ltd. (Ho Chi Minh City, Vietnam)
An on-site inspection was conducted for Wonderful Saigon Garment Co., Ltd., a Vietnam-based manufacturer of a range of uniforms and work clothes. Interviews with the president and plant managers as well as a plant inspection were performed.
Our survey confirmed that the company has an appropriate system in place to check on legal compliance with local laws and regulations, including those related to labor standards. For instance, they use official identification documents to identify the age of new employees to ensure no cases of underage labor (below the age of 18). Regarding working conditions such as wage and work environment, we confirmed that appropriate consultations and negotiations are held between labor and management.
As measures for securing safety and health in the workplace, written safety principles and precautions are posted at proper locations within the plant to raise employee awareness, and workers are instructed to wear masks and gloves while engaged in line operations. In addition, plant facilities are equipped to protect the health of employees (e.g., air conditioners and electric fans are installed to control workplace temperature in areas that are subject to higher temperatures).
In an effort to address the issue of environmental conservation, the company conducts a semiannual survey on discharged water, waste disposal and other issues, and reports the results to the local authorities.
(2) Thai Textile Development and Finishing Co., Ltd. (Samutprakarn Province, Thailand)
An on-site inspection was conducted for Thai Textile Development and Finishing Co., Ltd., a Thailand-based textile dyeing company specializing primarily in thick fabrics. Interviews with the president, the vice president and plant managers as well as a plant inspection were performed.
Prior to Marubeni’s inspection, the company underwent similar inspections by other companies on CSR-related issues, particularly environmental issues, product quality and the work environment. Our survey confirmed that the company has an appropriate system in place to check on legal compliance with local laws and regulations, including those related to labor standards. For example, official identification documents are used to identify the age of new employees to ensure that no one below 18 is employed. To ensure a comfortable work environment, opinions and requests are regularly collected from employees and efforts to improve the workplace are made. In addition, a worker training program has been developed. For instance, the personnel section provides orientation training for every new employee prior to their assignment to specific sections.
In order to confirm and improve workplace safety and health, the company holds an occupational safety and health meeting on a regular basis.
Efforts towards environmental preservation are made throughout the company. Specifically, an individual is assigned to every site to manage environmental issues, and measures are taken to recycle or reuse material that is discharged during the textile dyeing process with the goal of reducing waste.
(3) Conclusion
In the 2 surveys above, no violation or inappropriate practice was detected. We will continue to conduct regular on-site inspections.
