Survey on Supply Chain CSR (Year ended March 31, 2012)

Survey on Supply Chain CSR

Based on the Basic Supply Chain CSR Policy, the person in charge from Marubeni visits the manufacturing sites of the suppliers (suppliers, contractors, etc.) and existing businesses (subsidiaries, including joint ventures), and conduct interviews with responsible managers and on-site inspections.
Each company’s compliance status on social issues such as human rights, labor issues, health/safety, environmental impact, corruption (bribery etc.), and environmental issues are evaluated.
In December 2011, Marubeni representatives conducted surveys and evaluations on the existing Marubeni subsidiary WONDERFUL SAIGON GARMENT CO., LTD., and the existing supplier Thai Textile Development and Finishing Co., Ltd.

(1) Wonderful Saigon Garment Co., Ltd (Ho Chi Minh City, Vietnam)

  • An on-site inspection was conducted for Wonderful Saigon Garment Co., Ltd., a Vietnam-based manufacturer of a range of working uniforms. Interviews with the president and factory managers as well as a factory inspection were performed.

  • Our survey confirmed that the company has an appropriate system in place to check on legal compliance with local laws and regulations, including those related to labor standards. For instance, they use official identification documents to identify the age of new employees to ensure no cases of underage labor (below the age of 18). Regarding working conditions such as wage and work environment, we confirmed that appropriate consultations and negotiations are held between labor and management.

  • As measures for securing safety and health in the workplace, written safety principles and precautions are posted at proper locations within the factory to raise employee awareness, and workers are instructed to wear masks and gloves while engaged in line operations. In addition, factory facilities are equipped to protect the health of employees (e.g., air conditioners and electric fans are installed to control workplace in areas that are subject to higher temperatures).

  • In an effort to address the issue of environmental conservation, the company conducts a semiannual survey on discharged water, waste disposal, and other issues, and reports the results to the local authorities.

(2) Thai Textile Development and Finishing Co., Ltd. (Samutprakarn Province, Thailand)

  • An on-site inspection was conducted for Thai Textile Development and Finishing Co., Ltd., a Thailand-based textile dyeing company specializing primarily in thick fabrics. Interviews with the president, the vice president, and factory managers as well as a factory inspection were performed.

  • Prior to Marubeni's inspection, the company underwent similar inspections by other companies on CSR-related issues, particularly environmental issues, product quality, and the work environment. Our survey confirmed that the company has an appropriate system in place to check on legal compliance with local laws and regulations, including those related to labor standards.

  • For example, official identification documents are used to identify the age of new employees to ensure that no one below 18 is employed.

  • To ensure a comfortable work environment, opinions and requests are regularly collected from employees and efforts to improve the workplace are made. In addition, a worker training program has been developed. For instance, the personnel section provides orientation training for every new employee prior to their assignment to specific sections.

  • In order to confirm and improve workplace safety and health, the company holds an occupational safety and health meetings on a regular basis.

  • Efforts towards environmental preservation are made throughout the company. Specifically, an individual is assigned to every site to manage environmental issues, and measures are taken to recycle or reuse material that is discharged during the textile dyeing process with the goal of reducing waste.

(3) Conclusion

In the two surveys above, no violation or inappropriate practice was detected. We will continue to conduct regular on-site inspections.

Response from a Local Supplier

  • Shinji Sakai, President

The on-site inspection provided us with a good opportunity to examine our own management systems and practices from a different perspective. We will use the findings of the inspection to further strengthen our management, prevent non-compliance, and, ultimately, to continue to maintain sound business practices.

December, 2011

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