Survey on Supply Chain CSR

Survey on Supply Chain CSR

To confirm the status of compliance with the Basic Supply Chain CSR Policy, particularly regarding human rights and the work environment, we conduct surveys and also local inspections, where personnel associated with Marubeni actually visit local sites to perform interviews.

Questionnaire-Based Survey

In February 2011, we conducted a survey that covered 16 suppliers of products for which there were concerns over a risk of undesirable labor practices at the time of manufacture.
These suppliers operate in countries designated as human rights concerns by the FTSE4Good Global Index, a leading index for socially responsible investment (SRI)*.
In the survey, we provided a questionnaire to collect responses on seven themes, including human rights of laborers (prevention of child labor, forced labor, and other related issues), environmental conservation, and fair trade. A local representative of the Group checked the surveys. If specific issues were raised, we requested further details on each of them.
Based on the questionnaire, all suppliers were found to meet the standards of our Basic Supply Chain CSR Policy.

*Socially Responsible Investment (SRI):Investment based on companies' fulfillment of social responsibility as a deciding factor.

On-Site Inspection

To confirm the status of compliance with the Basic Supply Chain CSR Policy, Marubeni conducts on-site inspections of suppliers who are based in countries designated by the FTSE4Good Global Index as carrying a high risk associated with supply chain labor standards, and who trade in the apparel, agriculture, and other sectors. The person in charge from Marubeni directly visited the manufacturing sites, or production sites, of the suppliers to conduct such inspections.

Multifaceted surveys suitable for the business situation and regional characteristics are conducted on-site, covering areas such as respect for human rights, observance of law, preservation of environment, fair trade, safety and health, quality control, and disclosure of information. The issues of the survey and the survey methods are constantly being reviewed, including third-party opinions, in an effort to always be relevant to the current situations. Survey results are also reported back to the visited sites, so that the information can be shared and utilized for further improvement.

Survey conducted in December 2016 - 4 suppliers of natural rubber (Vietnam)

In December 2016, Marubeni visited the manufacturing plants of the following 4 Vietnamese companies which are producers of natural rubber and suppliers to Marubeni Techno Rubber Corporation, a Marubeni Group company, to conduct on-site inspections for CSR issues: Dau Tieng Rubber Corporation, Phuoc Hoa Rubber JSC, Phu Rieng Rubber Co. Ltd. and Dong Nai Rubber Corporation.

During the course of these supply chain CSR inspections, which covered legal compliance, human rights, environmental protection, fair trading, health and safety, quality control and information disclosure, no serious violations were discovered at any of the sites visited.

Labor laws and regulations are in place prohibiting child labor and excessive working hours, and regarding leave of absence, minimum wage, wage payment methods, social security, occupational health and safety and so on. Environmental protection laws on preventing contamination by wastewater, control of hazardous chemicals, waste disposal etc. are also applicable, and as part of their compliance with these laws the supplier companies report regularly to the authorities and have received official inspections. During our visits we found that the representatives of each of the supplier companies were highly cognizant of compliance requirements, and we were able to confirm that these laws and regulations were being observed appropriately.

Furthermore, through accreditation to ISO14001 international standards for environmental management (in some cases ongoing) and ISO9001 for quality control management, appropriate management systems are in place.

Dau Tieng Rubber Corporation

  • Wastewater treatment equipment
  • Working environment in the factory

Phuoc Hoa Rubber JSC

  • Working environment in the factory
  • First-aid kit equiped in the factory

Phu Rieng Rubber Co. Ltd

  • Waste storage warehouse properly cotorolled by locking
  • Employee's drinking water server equiped in the factory

Dong Nai Rubber Corporation

  • Wastewater treatment pool
  • Quality control testing

In October 2015 the FSC announced its decision to terminate the certification of the parent company of these suppliers, Vietnam Rubber Group (“VRG”), on the grounds that VRG’s rubber plantations in Cambodia and Laos had significant negative impacts on the environment and the livelihood of local communities.

However, we have confirmed that the 4 suppliers which we inspected do not procure any materials from the countries or regions which were mentioned in the reason for the termination.

In respect of VRG, we have requested them to take steps to ensure that their business does not have a negative impact on the environment or on human rights, and to strengthen management controls across the Group as a whole. We are also requesting VRG to continue discussions with the FSC and to endeavor to regain FSC certification in the future.

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