We have set forth matters such as legal compliance and environmental preservation activities by expressing our basic approach to purchasing activities as the Kyocera Document Solutions Basic Purchasing Policy. When selecting suppliers, a precondition is that they understand and abide by our basic approach.
We regard suppliers as necessary and indispensable partners with specialized knowledge and technology.
In addition, we aim to be a good partner to our suppliers. We pursue co-existence and mutual prosperity with our suppliers based on fairness and commitment to mutual benefit deriving from the Kyocera Philosophy.
In selecting suppliers, we demand understanding of our basic approach as a precondition, and request suppliers to abide by the following principles.
Inside Japan, we provide education — for persons in charge of purchasing, outsourcing, and other related management at each business establishment or base — on the Act against Delay in Payment of Subcontract Proceeds, Etc., to Subcontractors and other commercial transactions. In this way, we ensure company-wide compliance with laws and regulations. Furthermore, for the purpose of constantly acquiring new information such as about law revision, we consistently take part in workshops organized by Fair Trade Commission and National Association of Trade Promotion for Small and Medium Enterprises. In daily work, autonomous checks are carried out in each department for legal violations. With regard to the operations situation in each department, our in-house Auditing Department conducts an internal audit once a year, and thus we have in place a system for double-checking the state of compliance. We also incorporate provisions for excluding anti-social forces and strengthening regulations, into basic business contracts and exchange memoranda relating to exclusion of anti-social forces with all of our suppliers. At our overseas bases, too, we are working to understand the laws and regulations of each country, build relationships of trust with local suppliers, and engage in legitimate commercial transactions.
Inside Japan, we are continually assessing the improvement situation regarding the surveys of the state of CSR procurement promotion at our suppliers based on Kyocera Group CSR Guidelines established in Kyocera Group (These surveys were started in FY2009). These activities are carried out once a year for suppliers whose efforts are evaluated as inadequate, and we will continue these efforts going forward. When starting a new business relationship, we provide the new supplier with the Kyocera Document Solutions Supply-Chain CSR Promotion Guidebook and the Kyocera Document Solutions Supply-Chain CSR Promotion Check List. We ensure that new suppliers understand the Kyocera Document Solutions approach to CSR and have them check the status of their own CSR promotion. In any areas where their efforts are inadequate, we request self-directed improvement. The same efforts are also being made at our overseas bases — our Shilong Plant (China) and Vietnam Plant. We ask suppliers to evaluate their own CSR promotion situation, and improve any areas where efforts are inadequate. In addition, we have advanced revision of our Guidebook and Check List to clarify to our suppliers our new efforts for such as biodiversity conservation and compliance with conflict mineral regulations.
Kyocera has a policy of not purchasing materials or products that use conflict minerals or any metals derived from them and has been managing the conflict minerals issue according to this policy since 2013. Since this issue is common to the entire industry, we started surveys in 2013 using the framework of the industry's common conflict-free refinery program spearheaded by the Electronic Industry CSR Alliance (EICC)/Global e-Sustainability Initiative (GeSI) to efficiently gather information from suppliers.
In FY2017 too, the Kyocera Group's conflict mineral survey briefing sessions were held in Tokyo and Osaka. In these sessions, in which many business partners participated, we explained our policy on conflict minerals and requested their cooperation with the survey. We confirmed the importance of continuing the survey using the conflict-free refinery program and identifying and scrutinizing refineries. In this respect, we plan to make a written pledge with business partners, requesting them to immediately notify Kyocera the moment they find any relation with existing conflicts. In this way, we intend to continue the establishment of a firm and conflict-free supply chain. We conducted due diligence on suppliers who answered that they purchase conflict minerals from DRC (Democratic Republic of the Congo) or its neighboring countries. Nonetheless, at this present date, no high-risk information relating to armed forces has been found with relating to minerals originated in or near the Congo.