Our Basic Policy
In order to enable high-quality, reliable and stable manufacturing, it is essential not only to ensure the quality of parts in procurement and to ensure stable supply, but also to CSR procurement in consideration of labor ethics and the environment. The ROHM Group aims for procurement activities in which both parties can grow on a sustainable basis, while cherishing continuous trusting relationships and cooperative relationships with business partners.
ROHM shall conduct procurement activities based on the following five policies in order to acquire customers' satisfaction for ROHM products.
- 1. Mutual Reliability and Prosperity
- ROHM will recognize suppliers as important business partners of the enterprise activities, and importantly have a reliable and cooperative relationship, so that ROHM is able to mutually aim at building up win-win relationship.
- 2. Fair and Equal Footing Trade
- ROHM shall conduct procurement activities for business partners with fairness, equal footing and modesty during purchasing material, semi-products and equipment etc. and getting any type of service.
ROHM shall never enforce to do unfair trading with a superior position.
- 3. Fair Selection
- ROHM shall globally & broadly open a trade chance so that equally realize a business opportunity.
During processing of business partners' selection, ROHM shall consider a lot of aspects which are quality, technology, delivery and price. Additionally, there are also enthusiasm, management, ethics, human rights, risk management, environment protect, health and safety, removal of anti-social forces etc.
- 4. Proper Evaluation and Distribution for Added Value of Product and Service
- ROHM shall conduct new products' development and cost reduction activities on the basis of strong partnership with business partner. Also, ROHM shall promote proper evaluation and price for provided product and service through these activities.
- 5. CSR Procurement
- ROHM shall make an effort to penetrate CSR procurement with deeply mutual understanding between business partner and ROHM in order to promote CSR procurement based on CSR procurement guideline with ROHM group. ROHM also promote environment-friendly procurement based on Green Procurement Guideline.
Basic Stance Requested of Our Business Partners and Selection Criteria
The ROHM Group aggressively promotes CSR procurement activities based on the RBA Code of Conduct.
Promotion of activities, however, shall not be confined to only our activities, but instead must be addressed by the entire supply chain involved in the business process, making cooperation with our business partners essential.
Basic Stance Requested of Our Business Partners
- 1. Complying with Laws and Social Norms
- We request compliance with social norms prescribed in RBA Code of Conduct and various laws in accordance with the 'Basic Transaction Agreement' and 'Basic Purchase and Other Transaction Agreement' with each ROHM Group Company.
- 2. Achieving Quality, Delivery and Stable Supply
- We request the achievement stable product supply that meets the standards for quality and delivery, as stipulated in the Basic Transaction Agreement', 'Basic Purchase and Other Transaction Agreement', and 'Quality Assurance Agreement' with each ROHM Group Company.
- 3. Strengthening Response Capabilities Against Demand Fluctuations
- In the semiconductor component industry where demand fluctuations rapidly occur, the ROHM Group is required to quickly respond to the needs of our Customers at all times. We also request our business partners to establish systems that can always flexibly respond to these demand fluctuations.
- 4. Establishing a Supply Chain BCP
- We request cooperation in establishing a system that can ensure continuous supply through the sharing of information across the entire supply chain, which includes our business partners, during unforeseen events such as natural disasters.
- 5. Strengthening Technical Capabilities That Can Contribute to Product Development
- Possessing leading-edge technology is the source of corporate competitiveness in the semiconductor component industry, where technical innovation happens at a very fast pace. Similarly, we request that our business partners continually work on technological advancement to promote technical innovation.
- 6. Maintaining Sound Business Management
- We urge our business partners to promote sound business management to strengthen partnerships with the ROHM Group through continuous transactions. We also request proper disclosure by our business partners of their management policies and business conditions (financial) with respect to the ROHM Group.
- 7. Eco-Friendly Activities
- The ROHM Group is focused on procurement activities such as 'Green Procurement' by actively promoting environmental management and conservation of the global environment based on our established 'Environmental Policy'. Likewise, we request that our business partners also supply eco-friendly products, in conformance with environmental laws and regulations.
- 8. Information Security Compliance
- Because the ROHM Group discloses to our business partners information vital for transactions, we request that control and protection be ensured for confidential information obtained through the course of such processes.
- 9. Business Partner Responsibility
- We request cooperation in communicating the above-mentioned 'Basic Stance Requested of Our Business Partners' by our business partners to their suppliers as well, to enable promotion of CSR Procurement Activities throughout the entire supply chain.
Business Partner Selection Criteria
ROHM Group selects business partners from the perspective of ‘Implementing Fair and Equitable Transactions. Selection is made based on reasonable criteria for quality, price, delivery, stable supply, environmental consciousness, finance, human rights and ethics, among others.
- Observance of related laws and social norms and placing importance on human rights, health & safety, and environment -in particular the ability to understand and promote compliance with the RBA Code of Conduct on labor, health & safety, environmental conservation, ethics, and management system.
- Appropriate quality, price and delivery of materials and services to be supplied
- Stable supply capability and the flexibility to quickly respond to demand fluctuations
- Supply continuation plan in place against unforeseen events such as natural disasters
- Technological capability that can contribute to product development and advancement
- Sound financial health
- The ability to respond to our requirements regarding conflict minerals and green procurement
- Proper control and protection of confidential information obtained through transactions with ROHM Group
Approach to CSR Procurement Promotion
In its CSR procurement activities, the ROHM Group strives to promote and distribute the ROHM Group CSR Procurement Guidelines with an attitude of humility and flexibility while fully understanding the position of each business partner to obtain approval. At ROHM, we inform our business partners our policies and goals in a timely manner, to share a common understanding and can promote CSR procurement in cooperation. We value the relationship of trust and cooperation with our business partners and aim for mutual prosperity.
- ・Conclusion of "Basic Transaction Agreement" in Accordance with RBA
- The ROHM Group respects the international RBA Code of Conduct.
We clearly states that it is necessary to comply with the "RBA Code of Conduct" in its basic transaction agreement, in order to have its business partners understand it, and encourage them to promote CSR procurement.
- ・Consideration of Human rights
- The ROHM Group complies with the United Nations' Universal Declaration of Human Rights and the Guiding Principles on Business and Human Rights (Ruggie Framework). ROHM therefore includes provisions for human rights, such as the prohibition of inhumane and discriminatory treatment as well as forced or child labor, in its basic transaction agreement and requests that business partners respect human rights by concluding this agreement. ROHM also implements a variety of educational activities to raise awareness for human rights throughout the entire supply chain, such as holding a briefing to promote CSR procurement, distributing the ROHM Group CSR Procurement Guidelines, and undergoing CSR procurement audits. And going forward ROHM will continue to collaborate with business partners to carry out activities worldwide.
- ・ROHM Group CSR Procurement Guidelines
- In accordance with the RBA Code of Conduct, the ROHM Group's approach to CSR procurement is shown, and specific items to be disseminated and disseminated are summarized and distributed to all business partners.