ROHM Group Procurement Policy
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 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 Suppliers 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 suppliers' 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 Supplier. 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 Supplier 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.
The ROHM Group's 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 supplier to obtain approval. We value the relationship of trust and cooperation with our business partners and aim for mutual prosperity (win-win).
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.
Compliance Hotline for Our Business Partners (Suppliers)
The ROHM Group has set up a 'Compliance Hotline for Suppliers', which allows our Business Partners to consult or report on compliance issues related to business transactions. Please notify us in the event of any behavior or action that may violate laws or potentially pose ethical problems when dealing with ROHM or ROHM Group companies.
In the case of legitimate reporting, disadvantageous treatment shall not be given to reporting persons on the basis of reporting.
The compliance hotline service for suppliers was implemented within the ROHM Group, Sites in China, South Korea, and Malaysia since 2011. and for Sites in Thailand and Philippine, it was available since 2012.
Briefing for Promoting CSR Procurement
The briefing provides an opportunity for ROHM to explain directly to our suppliers on our expectations for CSR procurement, contents and plans of procurement activities.
ROHM Group CSR Procurement Guidelines
In compliance with the EICC Code of Conduct, we describe the ROHM Group's approach to CSR procurement and compiled specific items that should be promoted and distributed.
CSR Procurement Self Assessment
We request self-assessments every year to verify the progress of CSR activities at our business partners. These requests are targeted for business partners of ROHM Group manufacturing companies, including those overseas. In 2017, 1,390 of our suppliers both domestic and globally have completed self assessments and submitted the results to ROHM.
Implemention Status of CSR Procurement Self-Assessment
|No.of Companies Surveyed||Percentage of Rating A, B (5 Steps)|
CSR Procurement Audit
In the ROHM Group, we identify our main suppliers, and conduct direct visits and dialog with business partners. We verified the self assessments along with factory conditions and implemented improvements as necessary to communicate the ROHM Group's CSR Procurement Policy, approach, and activities - with the goal of obtaining greater understanding and approval. In addition, we also conduct CSR procurement audit to 25-30 suppliers across the ROHM Group each year to implement corrective actions if needed.
We visited 15 suppliers in 2014, 28 suppliers in 2015, 27 suppliers in 2016, and 24 companied in 2017 to raised awareness of the ROHM Group's CSR Procurement.
Every year after completing all the procurement audit process, ROHM then works on planning improvement actions for all suppliers.
Promoting ROHM Group's Green Procurement
The ROHM Group has always shown consideration for the global environment and promoted efforts for the healthy continuation of humankind as the most important issue declared in its environmental policy.
In order to achieve sustainable economic development without destroying the global environment, we need to manufacture recyclable products of lower environmental load. So, the ROHM Group has promoted the manufacture of environmental-friendly products by enforcing compliance efforts throughout the entire supply chain.
Laws and regulations regarding chemical substances are becoming more stringent lately, therefore, ROHM has been working to promote green procurement by improving the accuracy of investigation on the use of chemical substances in the supplied parts and materials. The Green Procurement Guidelines are also published in order to monitor the procurement situations and its conformance, as well as establishing a comprehensive management system to ensure that prohibited substances are not allowed to be used in our products.
The ROHM Group will continue to manufacture environmental-friendly products by further strengthening our management system and deepening mutual understanding between us and our suppliers.