Supply Chain Management

Basic Procurement Concept in our Purchase Activities

In response to Kyocera Group's "Policy on Purchasing Activities," our company, as a group company, strives to achieve fair business practices in the supply chain, aiming to fulfill the group's management philosophy of "pursuing the material and spiritual well-being of all employees while contributing to the progress and development of humanity and society." We believe that by all companies involved in the entire business process, including development, production, sales, and services, cooperating to meet the demands of society, mutual prosperity of the entire supply chain can be achieved. We are committed to building partnerships based on mutual trust by actively communicating with our business partners.
We have announced the "Partnership Building Declaration" in May 2023 with the aim of establishing new partnerships through collaboration and coexistence with our business partners in the supply chain and value-creating entities.

Basic Purchasing Policy

Our general purchasing policies are stipulated in the Kyocera Document Solutions Basic Purchasing Policy that provides requirements for legal compliance and environmental conservation. Suppliers must understand and comply with these general policies as a prerequisite for doing business with us.

1. 1. We will place emphasis on fairness and work on building and developing partnerships with suppliers, based on the spirit of the "benefit to improve oneself for the benefit of others" and a relationship of trust
2. 2. In purchasing activities, we will abide by the laws of each country and fulfill our social responsibilities, such as preserving the global environment and protecting resources.
3. 3. We will provide fair opportunities to all companies, both inside and outside Japan, and carry out purchasing activities, based on fair evaluation criteria.
4. 4. To supply the products with which customers are satisfied, we will continue to work hard with our suppliers to pursue the quality and price and ensure stable supply.

Fair Transactions

Being a Good Partner to Suppliers

Suppliers are our important partners possessing specialized knowledge and expertise. Taking the Kyocera Philosophy to heart, we work together with suppliers for our mutual prosperity based on a doctrine of fairness and in the spirit of "improving oneself for the benefit of others" in order to be a good partner. When selecting suppliers, we request they have an understanding of our general purchasing policies and comply with the following requirements.

1. 1. Compliance with laws and social norms

Suppliers are requested to comply with the relevant laws, regulations, and social norms in the countries and regions where customers conduct business activities. Also, suppliers are requested to never offer money or gifts to us or to provide entertainment, which is against social common sense.

2. 2. Providing and improving technological capabilities

Suppliers are requested to make a proposal for the materials with leading technologies, such as unique and innovative ones.

3. 3. Efforts to preserve the environment

Suppliers are requested to actively conduct environmental conservation and environmental management, and work on business activities and product development which are environmentally conscious.

4. 4. Sound business management

For ongoing business relationships, suppliers are requested to promote fair and sound business operations and to disclose information about business conditions, including financial conditions, in an appropriate manner.

5. 5. Ensuring quality that meets the needs of customers

To supply the products with which customers are satisfied, suppliers are requested to comply with the necessary security standards in each country and region and to provide materials and services which meet our Standards in the Management of Certain Chemical Substances and have optimum specifications and quality.

6. 6. Offering price reductions

Suppliers are required to provide materials and services at a competitive price and to promote continuous price reductions.

7. 7. Ensure stable supplies

Suppliers are required to ensure reliable delivery and to stably and flexibly provide materials and services in order to meet the demand for delivering products to customers and to respond to the rapid supply/demand fluctuation in the market.

Working with Suppliers

Monitoring and Maintaining a Socially Responsible Procurement System

In December 2021, our company joined the Responsible Business Alliance (RBA) with the aim of improving sustainability in the areas of environment, safety, ethics, human resources, and management systems through our global supply chain.
Furthermore, in order to appropriately address CSR issues that must be addressed throughout the supply chain, such as the respect for human rights, responsible mineral sourcing, and the prompt business recovery and continuity in the event of a disaster, our company has established the "Kyocera Document Solutions Supply Chain CSR Procurement Guidelines" (hereinafter referred to as the "Guidelines"), and we have obtained the consent and agreement of our business partners regarding the initiatives outlined in the Guidelines. Additionally, based on these Guidelines, we conduct annual surveys on the progress of our business partners' CSR activities, including human rights and labor, safety and health, environment, ethics, and management systems, including those with our overseas business partners.
We have identified important suppliers as key suppliers, focusing on business partners who supply us with critical raw materials or account for a significant portion of our purchasing volume, aiming for approximately 80% of the total purchase amount. We request their cooperation in responding to the "Kyocera Document Solutions Supply Chain CSR Survey Form" (hereinafter referred to as the "Survey Form") to conduct surveys on their CSR activities. In 2022, we requested surveys from approximately 380 business partners, including overseas locations. For business partners where there are areas of inadequate efforts identified, we provide feedback on the survey results and request improvements, including explaining the requirements using the guidelines.

Supply Chain CSR Procurement Guidelines (Issue date: May 2024) (Ver.5) PDF

サプライチェーンCSR調達ガイドライン (発行2024年5月) (Ver.5) PDF

供应链企业社会责任(CSR)采购指南 (发行2024年5月) (Ver.5) PDF

Supply Chain Business Continuity Plan (BCP) Survey

The Kyocera Group's policy is to achieve prompt restoration and resumption of operations even if the supply of products and services is interrupted due to a disaster, etc. We survey our suppliers on the status of their BCP and request them to promote BCP activities.
We explain the importance of BCP to new suppliers of important raw materials and parts, and ask them to strengthen their BCP measures. We also confirm the improvement status of suppliers whose efforts were insufficient in the previous year's survey.
We will continue our efforts to promote and disseminate the BCP so that our suppliers can promote their initiatives.

Responsible Mineral Sourcing

As a Kyocera Group company, we comply with regulations such as the U.S. Dodd-Frank Act and the EU Conflict Minerals Regulation, which were enacted due to the fact that mineral resources mined in the Democratic Republic of Congo and its neighboring countries have become a source of funding for armed groups that commit human rights violations.
The OECD requires all companies to implement "responsible mineral sourcing" based on the "Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas". In accordance with the Kyocera Group's "Responsible Mineral Sourcing Policy" established based on this guidance, we investigate our supply chain to assess the presence of risks such as conflicts and human rights violations associated with minerals, including gold, tin, tantalum, tungsten, cobalt, and natural mica. We work on risk mitigation, corrective actions, and enhancing supply chain transparency.
For the surveys conducted with our business partners, we use the "Conflict Minerals Reporting Template" developed by the Responsible Minerals Initiative (RMI*), an international organization dedicated to addressing responsible mineral sourcing issues. Starting from the fiscal year 2022, we have expanded our scope by utilizing the newly issued "Extended Material Reporting Template" by RMI, enabling us to cover a wider range of minerals and business partners.

* Responsible minerals and third-party certified programs. We joined RMI in August 2021.