The basic concept of our purchasing activities is summed up in the Kyocera Document Solutions Purchasing Policy. Compliance with laws and regulations and implementation of environmental preservation activities are some of the requirements written in this document. When we select suppliers, it is the basic requisite that suppliers understand Kyocera's fundamental policy and comply with it.
We think of suppliers as indispensable partners who have special knowledge and expertise. Aiming to be a good partner to our suppliers, we try our best to ensure a prosperous coexistence with them based on the "fairness and justice" and "spirit of self-satisfaction and altruistic satisfaction" espoused in the Kyocera Philosophy. We basically recognize businesses who understand our fundamental policy as qualified suppliers. Then, we make comprehensive judgment based on evaluation criteria that include legal compliance, technical development performance, environmental preservation, stability of management foundations, quality of products and services, reliability, prices, assuredness of delivery and after-sale service.
We invite our suppliers to our Shilong Plant and provide a briefing session to them on the concepts of CSR procurement. Despite the severe market competition, we believe it important to conduct corporate activities fairly and justly, in order for our plant and its suppliers to grow together.
When we newly begin business with a supplier, we deliver the Kyocera Group CSR Policy and the Kyocera Document Solutions Supply-Chain CSR Deployment Check Sheet to the supplier so as to help them understand the CSR concepts of Kyocera Document Solutions. It is also the intention that the supplier checks the status of its own CSR activities and improves any shortcomings.
The Dodd–Frank Wall Street Reform and Consumer Protection Act established in the USA in July 2010 defines as "conflict minerals" certain minerals and their derivatives originated in or near the Democratic Republic of the Congo that are benefiting armed groups in the area, and obligates companies registered on the US stock exchanges to disclose the status of use of those minerals in products. Also recently we have been asked to disclose the information by the companies in EU.
We have a policy of not purchasing materials or products that use those conflict minerals or any metals derived from them, and have been handling the conflict minerals issues according to this policy since 2013. We held a briefing session on the Kyocera Group's policy on conflict minerals in the Dongguan area, explained the Group's policy to suppliers and requested their cooperation with this issue. A survey has been sequentially conducted since April 2013 and revealed no involvement in the said conflicts.
Since the September 2001 terrorist attack on the USA, the safety management of cargo has been reinforced. Under these circumstances, the World Customs Organization (WCO) established the AEO* program, in which customs recognize businesses that excel at cargo security management and compliance and award them privileges such as a simplified customs clearance process. As a result of an audit by the AEO program in China, we were certified a "high-class certified company".
*AEO:Authorized Economic Operator
In September 2012, we opened the Kyocera Class, the role of which is to provide guidance on the company's skills and practical knowledge to students of vocational schools in various areas of China. The new Kyocera Class was opened in 2016 Hunan Chenzhou Guidong County Vocational Education Center as well. This educational initiative is provided in the hopes of helping students grow as mature members of society.
In December 2009, we set up a volunteer environmental preservation team. Since then, the team has actively participated in social and public-interest activities. Examples of the team's varied environmental activities include cleaning of the town, removal of flyers, publicity activities to call for low-carbon actions such as riding bicycles or walking, afforestation, and the release of young fishes into the river. The team is currently composed of approximately 20 volunteer members.
We held its 8th cultural festival on August 27, 2016. Visitors were able to enjoy the 80 booths and a game section operated by the plant's employees. On the main stage, the usual songs and dances were performed, as well as a band performance by employees. Even with a few rain showers, the festival bustled, with approximately 6,000 visitors.