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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.
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.
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.
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.
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).
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.
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.
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.
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.
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.
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.
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 .