Beginning of this page.
Jump to main content.

Please note that JavaScript and style sheet are used in this website,
Due to unadaptability of the style sheet with the browser used in your computer, pages may not look as original.
Even in such a case, however, the contents can be used safely.

Displaying present location in the site.
Home > About NEC > Corporate Social Responsibility > Annual CSR Report 2011 > Partnering With Suppliers : Policy and Guidelines, Framework, Main Activities and Results(Fiscal 2011)
End of menu.

Partnering With Suppliers

Policy and Guidelines

NEC Group Procurement Policy

NEC has established the NEC Group Procurement Policy and is using this policy to develop internal controls for CSR and expand them to suppliers.
Regarding purchasing ethics and other forms of internal control, NEC has established the Basic Rules for Procurement and ensures that all employees remain in compliance with the regulations. To strengthen procurement-related internal controls, we have established specific business regulations in the purchasing process, and are striving to make all staff members involved in purchasing activities fully aware of them by holding regular training sessions.
Since fiscal 2010, this policy has been applied to NEC Corporation and all NEC Group consolidated subsidiaries in Japan engaged in materials procurement, and management is rigorously enforced.

Supply-Chain CSR Guidelines

NEC has formulated Supply-Chain CSR Guidelines to promote CSR-related activities together with its suppliers. Using these guidelines and the Supply-Chain CSR Check Sheet, we are continuing to make efforts to nurture partnerships from a long-term perspective so that steady progress is made while deepening mutual understanding.

Framework

NEC's CSR activities in the area of procurement are carried out by staff members responsible for purchasing. The Supply-Chain CSR Subcommittee and the Consolidated Procurement Management Meeting are convened every six months to propose and promote specific measures in this area. In fiscal 2011, the committees examined issues including the selection of suppliers subject to CSR questionnaire surveys, management of survey progress, and measures to support independent CSR activities by suppliers.

Main Activities and Results (Fiscal 2011)

Communication With Suppliers

CSR-related activity status surveys of suppliers

NEC has surveyed the status of CSR-related activities at suppliers since fiscal 2007. The survey uses the Supply-Chain CSR Check Sheet based on the Supply-Chain CSR Deployment Guidebook published by the Japan Electronics and Information Technology Industries Association (JEITA). The survey mainly covers suppliers with whom NEC has large transaction amounts in the outsourcing field, in such areas as mechanical and engineering components and product assembly. In fiscal 2011, we requested 46 suppliers to complete the survey and received completed surveys from all of them. NEC issued feedback reports showing strengths, weaknesses and points for improvement to every respondent. We analyzed survey data from 211 suppliers, including the 46 suppliers surveyed in fiscal 2011 and 165 suppliers who previously filled out self-check sheets. The results of the analyses are outlined below. NEC is using these results to plan future communications with suppliers.

Compliance-related status

All of the 46 suppliers reported zero compliance breaches with respect to the six priority risk categories (product quality/safety, the environment, information security, fair trading, occupational health and safety, and human rights).

Analysis by priority risk category

The greatest advances in CSR-related activities among suppliers were in the areas of product quality/safety and the environment. The results of this analysis showed a similar trend compared with the previous year.

Analysis by CSR management item

We found that awareness of CSR norms and the CSR promotion structure were almost satisfactory at all of the 46 suppliers. However, they could improve their ability to monitor the actual compliance status and to ensure rigorous internal enforcement. The results of this analysis showed a similar trend compared with the previous year.

Support for suppliers' CSR enhancement measures

Together with feedback reports, we distributed our human-rights training materials titled “Corporations and Human Rights (updated with the latest information)”, which were prepared in fiscal 2009, to suppliers who responded to the CSR-related activity status survey for the first time, as a means of supporting their human-rights awareness-building activities, an area where greater efforts would be desirable going forward.
We also prepared new materials on environmental measures titled "Environmental Trends and Suggested Environmental Activities," and distributed the materials to every supplier surveyed. These materials are a compilation of the information that we want our suppliers to be aware of in fields where there is greater scope for future social contribution, and are also intended to remind suppliers of legal and regulatory issues.
Meanwhile, stronger information security, environmental measures to promote a healthier natural ecology, and quality assurance for safety and reliability are becoming increasingly important. In light of these market conditions, NEC supports information security and quality management activities of software suppliers by holding seminars and assisting with the activities of suppliers’ subcommittees. For hardware suppliers, NEC supports quality and environmental activities mainly through on-site patrols. In addition, by incorporating these activities into the evaluation criteria of our supplier award system, we are encouraging suppliers to conduct CSR activities more independently.

Education and Training

Corporate ethics training for purchasing staff

NEC strives to maintain proper business execution by holding regular training sessions on procurement transactions for purchasing staff. In fiscal 2011, we held corporate ethics training in June and November 2010.

Web-based training for onsite contracting and dispatch staffing

NEC conducts web-based training when it accepts employees from partner companies through onsite contracting or dispatch staffing. The training is designed to ensure that managers at each workplace understand the relevant requirements. By the end of fiscal 2007, NEC had completed training of all management personnel. Since fiscal 2008, all newly appointed management personnel have taken part in web-based training every year. In fiscal 2011, NEC provided web-based training from November to March to all management personnel.

Others

Promoting green procurement

Since fiscal 1998, NEC has operated a green certification system based on the Green Procurement Guidelines that covers the procurement of not only hardware, but also software and services.

We have maintained a green procurement rate of 100% (procurement value basis) for product-related materials, excluding some supplies for internal use.

To comply with chemical substances regulations around the world, notably the European RoHS (Restriction on Hazardous Substances) Directive, China RoHS and European REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) Regulation, we continuously conduct chemical substance content surveys covering purchased items. For details, please follow this link.

Strengthening information security

To strengthen information security, NEC has implemented measures including holding seminars on confidential information management, conducting rigorous management of subcontracting, carrying out assessments of implementation status, and organizing seminars for information security instructors. Going forward, NEC will continue to support the enhancement of the systematic capabilities (capacity building) of suppliers. For further details, please follow this link .


Top of this page

Copyright NEC Corporation. All rights reserved.