Our Relationship with Business Partners

Major Initiatives

Supplier Conference

As a general rule, TS TECH holds conferences with its main business partners once a year. The goals are to explain its purchasing policy for the period and exchange information.

Supply Chain Surveys

To address procurement risks, the TS TECH Group works to prevent all “events that impact production,” including natural disasters, fires, and financial challenges affecting its business partners. For example, the company considers procured components, etc., for which production is concentrated at a single supplier to be “high risk components” and is working with business partners to prepare for emergencies and secure alternate suppliers.

Conflict Mineral Surveys

Based on its own Policy on Conflict Minerals, TS TECH conducts surveys that trace the supply chain in an effort to prevent the flow of funds to armed forces committing human rights violations in conflict zones. The TS TECH Group is working with our business partners to prevent the use of questionable minerals.

Promotion of Environmental Initiatives

TS TECH presents its business partners with targets for lowering CO2 emissions to reduce environmental impact and works with these partners to achieve them.

We are also working with business partners to comply with all laws and regulations concerning all materials and components that comprise products, and to manage chemical substances to reduce impact on the global environment and ecosystems.

Important Business Partners

We select particularly important business partners from a production reliability standpoint, check the status of their compliance with the TS TECH Supplier Sustainability Guidelines and risk management, and work with them to conduct joint initiatives to further improve corporate value.

Business Partner Assessments

In order to continuously supply high quality products to our customers, we evaluate business partners once a year. We assess them in terms of Quality, Cost, Delivery, Development, and Management (QCDDM) to arrive at an evaluation of the total strength of each business partner. For business partners that need improvement, we work to improve their overall capabilities with the cooperation of each department.

TS TECH Supplier Sustainability Guidelines

Based on the TS TECH Philosophy, the TS TECH Group is working to fulfill its social responsibility in various fields, including the environment and safety.

In order to strengthen our initiatives and deploy them throughout the entire supply chain, in May 2019 we established the TS TECH Supplier Sustainability Guidelines to facilitate a shared awareness of sustainability with our business partners and actively promote sustainability initiatives. Using these guidelines, we will share TS TECH’s values with our business partners, prevent noncompliance and other problematic events, and continue to grow and become a company whose presence is appreciated by stakeholders.

At present, the TS TECH Supplier Sustainability Guidelines have been provided to our primary business partners, and we will work to spread awareness of them throughout the entire supply chain to enhance our initiatives.

Category Content
1. Safety and Quality
  • Supply of products and services that satisfy consumer and customer needs
  • Provision of appropriate information concerning products and services
  • Guarantee of safe products and services
  • Guarantee of quality products and services
2. Human Rights and Labor
  • Elimination of discrimination
  • Respect for human rights
  • Prohibition of child labor
  • Prohibition of forced labor
  • Wages
  • Labor hours
  • Communication and negotiation with employees
  • Safe, healthy work environments
  • Handling of conflict minerals
3. The Environment
  • Environmental management
  • Reduction of greenhouse gas emissions
  • Prevention of air, water, soil, and other forms of environmental pollution
  • Resource conservation and waste reduction
  • Management of chemical substances
  • Protection of ecosystems
4. Compliance
  • Compliance with laws and regulations
  • Compliance with competition laws
  • Prevention of corruption
  • Management and protection of confidential information
  • Management of export transactions
  • Protection of intellectual property
  • Rejection of antisocial forces
5. Information
  • Disclosure of information to stakeholders

TS TECH Partners

The TS TECH Group’s products are made from a wide variety of materials and components provided by its suppliers. In order to reliably offer quality products at competitive prices to our customers, solid partnerships with our suppliers are indispensable.

The Group has established the Four Principles of TS Procurement, explained below, to ensure fair, just transactions as well as to construct and maintain win–win relationships with suppliers globally. By following these principles, we aim to construct a procurement and purchasing system that can be relied upon by all stakeholders.

Four Principles of TS Procurement

  • (1) Fair Trade
    When selecting a supplier, we offer our business to several candidates irrespective of their nationality, size, or past transactions and finalize our choice in a fair manner by comprehensively evaluating their ability to offer superior quality, expertise, price, delivery, and other elements, as well as competitiveness, rationality, efforts for business security and other relevant matters.
  • (2) Mutually Beneficial Transactions
    We share with our trade partners business challenges such as development and competitive pricing, set goals from a common perspective, and conduct joint efforts to achieve targets. We afford the highest priority to mutually beneficial transactions in terms of results thus obtained and make continuous efforts to strengthen trust as the basis of mutually beneficial relationships.
  • (3) Environmental Responsibility
    In our corporate activities, we attach the greatest importance to global environmental preservation under all circumstances. Accordingly, we practice “green purchasing,” granting preference to environmentally responsible products, services, companies, etc.
  • (4) Legal Compliance and Confidentiality
    We respect the principle of legal compliance and thoroughly observe relevant laws and regulations and generally accepted norms. We handle with the greatest care all kinds of information obtained from our customers and trade partners and make the utmost effort to prevent the loss or misuse of such information.

Handling the Supply Chain

The TS TECH Group promotes communication with business partners by providing opportunities to share information regarding purchasing strategies and policies. We hold an annual conference with major business partners to explain the purchasing policies for the period and to exchange information.

We established the TS TECH Supplier Sustainability Guidelines in May 2019 to share and promote our views on sustainability with our business partners. We ask all business partners to comply with these Guidelines in the following five categories: (1) Safety and Quality, (2) Human Rights and Labor, (3) The Environment, (4) Compliance, and (5) Information Disclosure.

In addition, we select particularly important business partners using factors such as production reliability. We check the status of these partners’ initiatives and risk countermeasures against the TS TECH Supplier Sustainability Guidelines and work to implement joint initiatives that further enhance corporate value.

Supplier conference

Workflow for handling major business partners

Policy on Conflict Minerals

The Group checks whether conflict minerals* originating in or near the Democratic Republic of the Congo, as designated by the Dodd–Frank Wall Street Reform and Consumer Protection Act of the United States, are used in our products. We prevent the flow of money used to fund armed forces and/or illegal conduct such as human rights violations in conflict zones. We also refuse the use of conflict minerals for the purpose of undermining armed forces.

In addition, we have investigated the sources of conflict minerals annually since 2013 to fulfill our social responsibility in our procurement.

Regardless of its origin, we will implement the appropriate measures with a supplier if a questionable mineral is found during an investigation.

To ensure compliance with this policy, we share with our suppliers the TS TECH Supplier Sustainability Guidelines, which outline our handling of conflict minerals and other CSR initiatives. We also engage in procurement based on these guidelines.

* Conflict minerals: Tin, tantalum, tungsten, and gold are defined as conflict minerals, and they are collectively abbreviated as “3TG.”

Compliance with the Antimonopoly Act and Prohibition of Corruption

TS TECH has prepared and put into use its own Antimonopoly Act and Subcontract Act Compliance Manual, which sets forth the approach and considerations related to Japan’s Act on Prohibition of Private Monopolization and Maintenance of Fair Trade (“Antimonopoly Act”) and the Act against Delay in Payment of Subcontract Proceeds, etc., to Subcontractors (“Subcontract Act”). The relevant departments utilize the manual in day-to-day operations in conjunction with an accurate understanding of the two laws and a thorough, close examination into the legality of individual events.

TS TECH has created mechanisms that allow relevant departments to liaise with the department responsible for legal affairs and consult as needed with attorneys on events that cannot be definitively decided based solely on the manual. Moreover, TS TECH provides proper, appropriate training on the Antimonopoly Act and the Subcontract Act in accordance with its stratified training programs to foster awareness of compliance among employees.

In March 2016, the Group issued new anti-corruption guidelines and anti-cartel guidelines as part of its continuing effort to build a solid framework for ensuring fair, honest business operations across all Group operations.

Rank-specific training

Policy and Action against Antisocial Forces

The TS TECH Group’s basic policy for internal control requires individual officers and employees to diligently avoid any type of relationship with antisocial groups that can threaten a safe, orderly civil society, and to work together as an entire group to demonstrate uncompromising attitudes against such forces. Specific measures include making assessments in advance of the start of new transactions and incorporating provisions for excluding the influence of antisocial forces in preparing agreements.

Intellectual Property Management

The TS TECH Group respects intellectual property rights. In developing products and technologies, we take the utmost care to ensure that the Group does not infringe on the intellectual property rights of others. At the same time, the Group asks others to respect its intellectual property rights. In cases where an infringement is identified, the Group takes all necessary measures, including demanding that infringing parties immediately discontinue any offending activities and offering such parties an opportunity to negotiate in the signing of license agreements. In general, the Group works to maximize intellectual property value and minimize loss.

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