Supply Chain Overview
The OMRON Group conducts global procurement activities, working with suppliers to improve sustainability across the supply chain.
Promoting sustainability efforts in the supply chain
Living up to the OMRON Principles, the OMRON Group is committed to solving social issues through business, while also contributing to the sustainable development of society by promoting ESG (Environmental, Social, and Governance) activities. In response to growing social demand, OMRON is also working to enhance sustainable procurement through its supply chain in order to fulfill even wider social responsibilities.
Setting goals and reinforcing the PDCA process
OMRON will promote sustainable procurement with the goal of satisfying the RBA* standards. By implementing a PDCA improvement management cycle for each sustainable procurement program, OMRON will strive to steadily improve sustainability performance in its supply chain.
- *RBA: The Responsible Business Alliance
Sustainable Procurement Codes
To ensure supply chain sustainability, OMRON has introduced specific action guidelines to be followed by in-house and suppliers, and promotes the observance of these guidelines.
Sustainable Procurement Guidelines
OMRON has created the guidelines that stipulate specific actions and behaviors that should be implemented and maintained by its suppliers, and has requested all of its suppliers, including new suppliers, to strictly comply with these guidelines. The Supplier Code of Conduct set in the Sustainable Procurement Guidelines conforms to RBA standards, and also specifies the policy and procedure for dealing with violations of the guidelines. In fiscal 2019, all of the new suppliers agreed to comply with the guidelines. In November 2019, OMRON revised the guidelines in response to changes in social trends and the latest RBA Code of Conduct.
Sustainable Procurement Guidelines
Supplier Code of Conduct
- A) LABOR
- 1) Freely Chosen Employment 2)Young Workers 3)Working Hours 4) Wages and Benefits 5) Humane Treatment 6) Non-Discrimination 7) Freedom of Association
- B) HEALTH and SAFETY
- 1) Occupational Safety 2) Emergency Preparedness 3) Occupational Injury and Illness 4) Industrial Hygiene 5) Physically Demanding Work 6) Machine Safeguarding 7) Sanitation, Food, and Housing 8) Health and Safety Communication
- C) ENVIRONMENTAL
- 1) Environmental Permits and Reporting 2) Pollution Prevention and Resource Reduction 3) Hazardous Substances 4) Solid Waste 5) Air Emissions 6) Materials Restrictions 7) Water Management 8) Energy Consumption and Greenhouse Gas Emissions
- D) ETHICS
- 1) Business Integrity 2) No Improper Advantage 3) Disclosure of Information 4) Intellectual Property 5) Fair Business, Advertising and Competition 6) Protection of Identity and Non-Retaliation 7) Responsible Sourcing of Minerals 8) Privacy
- E) MANAGEMENT SYSTEMS
- 1) Company Commitment 2) Management Accountability and Responsibility 3) Legal and Customer Requirements 4) Risk Assessment and Risk Management 5) Improvement Objectives 6) Training 7) Communication 8) Worker Feedback, Participation and Grievance 9) Audits and Assessments 10) Corrective Action Process 11) Documentation and Records 12) Supplier Responsibility
- F) OTHERS
- 1) Securing product safety 2) Business Continuity Plan 3) Protection against information leaks 4) Prevention of network security threats 5) Export control management 6) Prohibition of providing improper benefits to antisocial forces (organized crime groups) 7) Employee health management system (EHMS)
Identifying Critical Suppliers
The OMRON Group employs the following approach to identify critical suppliers.