Supply Chain Initiatives

Basic Views

When putting the corporate philosophies into practice and addressing the five important CSR issues, the NH Foods Group believes that it is more effective to actively promote initiatives not only within the Group, but also in cooperation with partners throughout the supply chain in order to create a sustainable society.

NH Foods Group CSR Procurement Policy

To express more concretely our approach on CSR in the supply chain, we established the NH Foods Group CSR Procurement Policy and the NH Foods Group CSR Procurement Guidelines, a detailed statement of guiding principles, in April 2017.

NH Foods Group CSR Procurement Policy

NH Foods Group is proceeding with initiatives on Corporate Social Responsibility (CSR) procurement activities, collaborating with business partners and creating relationships of trust based on the principles of coexistence and co-prosperity.

  1. Comply with laws and social norms and build a system for compliance
    We comply with laws and regulations and social norms. In addition, we build a system for such compliance.
  2. Securing the quality and safety of products and services
    We work to raise the safety and quality of products following the NH Foods Group Quality Assurance Policy.
  3. Fair and impartial transactions
    We judge quality, service, results, price, reliability, etc. in a comprehensive manner. Also, we establish fair and impartial opportunities for entry into the market.
  4. Respect for human right
    We respect and give serious consideration to international standards and opinions regarding human rights.
  5. Occupational safety and health
    We make a safe environment where employees can work with peace of mind.
  6. Concern for the global environment
    We work to decrease the environmental impact of our supply chain following the NH Foods Group Environmental Policy as we head toward bringing about a sustainable society.

NH Foods Group CSR Procurement Guidelines

Implementation of the Guidelines

Today, companies are expected to fulfill their responsibilities (CSR) to society and stakeholders. We believe that the foundations of this can be found in the day-to-day actions of each individual who makes up the Group. The NH Foods Group global action standards express the ideals of those actions.
The Guidelines were developed on the basis of details relating to procurement in the Action Standards that we put into practice on a daily basis and indicate the approach of the Group when procuring products and services.
The Group takes action intended to support the creation of a sustainable society. We ask for the understanding and cooperation of our business partners regarding the Group’s actions including these guidelines.

1. Comply with laws and social norms and build systems for compliance

We comply with laws, regulations, and social norms. In addition, we build systems for such compliance.

Compliance with laws and regulations and respect for culture and practices

  • We strive to accurately understand international rules and the laws, regulations, histories, cultures, practices, and so on of each country and region and comply with and respect them.

Respect for intellectual property rights

  • We effectively use Group intellectual property while respecting and not infringing on the intellectual property rights of third parties.

Good relations with government and administrative organizations

  • We do not provide entertainment and gifts to public officials and other comparable persons and do not engage in interactions that can give rise to social misunderstanding.

Responses to antisocial forces

  • We make organizational responses to and maintain a resolute stance regarding antisocial forces that may threaten public order and the safety of civil society.

Information management and disclosure

  • We rigorously manage confidential information including personal information and business confidences and use such information appropriately. Also, we use confidential information received from trading partners only under the agreed conditions of use.
  • We comply with restrictions on insider trading and do not engage in conduct that may give rise to suspicions of insider trading when viewed from a third-party perspective.
  • We engage in active communications with and are accountable to stakeholders.

Social contribution activities

  • As a corporate citizen, we listen to the opinions of society and relevant persons and strive to contribute to the sustainable development of international society and local communities.

2. Ensuring the quality and safety of products and services

We strive to enhance product safety and quality in accordance with Group Quality Policies.

Ensuring the safety of raw materials, other materials, and products

  • We check and investigate the safety of raw materials, other materials, and products and confirm proper implementation of quality control by suppliers.

Proper labeling and information disclosure

  • We collect and verify information relating to the safety, quality, and standards of raw materials, accurately record that information, and properly disclose it in labeling.
  • We do not use labeling or language relating to products and services that can give rise to misunderstanding.

Responses to product incidents and the risk of incident occurrence

  • In cases where a product incident occurs or we learn of the risk of such an incident occurring, we take action with the highest priority on customer safety. We promptly investigate the causes and relevant facts and provide accurate reports to relevant parties.

3. Fair and impartial transactions

We judge products, service, results, price, reliability, etc. in a comprehensive manner. Also, we establish fair and impartial opportunities for entry into the market.

Selection of business partners

  • When selecting business partners, we judge quality, service, price, results, reliability, etc. in a comprehensive manner.

Prohibition on the provision of improper benefits

  • We do not give or accept gifts or entertainment that could be seen as improper from a third-party perspective.

Prohibition on abuse of dominant bargaining position with business partners

  • We do not improperly use our dominant position to cause disadvantage to business partners. We always engage in fair transactions with other companies.

Ensuring fair and free competition

  • We create fair opportunities for entry into the market so that business partners can provide their products and services in accordance with their own intentions.

4. Respect for human rights

We respect and give serious consideration to international standards and opinions regarding human rights.

Fair employment and treatment

  • We engage in fair employment and treatment (including wages, education, and personnel evaluations) in accordance with national and local laws and regulations and do not conduct any discrimination or harassment on the basis of race, ethnicity, sex, age, nationality, religion, creed, social status, disability, employment status or arrangement, sexual orientation, or other grounds.

Prohibition of forced labor and child labor

  • We do not engage in forced labor or child labor. When hiring employees, we confirm that employment is in accordance with the employee’s own volition and confirm the ages of prospective employees.

Respect for the right of collective bargaining and freedom of association

  • We respect employees’ right of collective bargaining and freedom of association in accordance with national and local laws and regulations.

5. Occupational safety and health

We make safe environments where employees can work with peace of mind.

Ensuring healthy work environments

  • We comply with national and local labor-related laws and regulations and strive to create safe and healthy work environments.

Employee education and training

  • We conduct workplace safety and health education for employees to prevent the occurrence of occupational accidents. We also strive to create workplaces with good communications so that employees can discuss problems in the workplace.
  • We conduct education to raise the skills of each employee not only to ensure occupational safety and health, but also to create workplaces where employees feel motivated.

Preventing excessive work

  • We comply with national and local labor-related laws and regulations and prevent excessive work by employees.

6. Consideration for the Global Environment

We work to decrease environmental impact with parties in the supply chain in accordance with the NH Foods Group Environmental Policy to bring about a sustainable society.

Promoting development and procurement of environmentally-conscious products and services

  • We strive to develop environmentally-conscious products and services and select environment-conscious products and services in procurement.

Energy conservation, resource conservation, and mitigation of environmental impact

  • We strive to reduce the use of resources, reuse resources, and reduce our impact on the environment.

Environmental preservation in local communities

  • We comply with laws, regulations, and standards established by national and local governments and give due consideration in our business activities to the health and safety of persons who live near our business sites and to the preservation of environments in local communities.

Preserving biodiversity

  • We strive to preserve ecosystems in the regions where we conduct business and where we procure products and raw materials and work to understand, maintain, and improve conditions relating to biodiversity.

Promotion Systems

The Sustainability Department functions as the administrative body and establishes task teams to take action in collaboration with procurement personnel in each business division. The CSR Promotion Committee investigates material issues.

Future Initiatives

We will continue to explain the CSR Procurement Policy and Guidelines to suppliers in the future. We will also conduct self-checks and so on to enhance transparency in the supply chain.