Purchasing Policy
Unitika’s purchasing departments will engage in transparent and fair procurement practices that meet personal and community standards.
They will uphold our duty as a company to engage in responsible procurement practices, placing emphasis on CSR activities. Under our purchasing policy, we will carry out supply chain management initiatives with our business partners and clients.
Purchasing Policy
1. Legal Compliance
When executing purchasing activities, the Company will comply with laws and community standards, engaging in transparent, fair procurement practices and aiming to be a good corporate citizen.
2. Harmony with Environment
When procuring products or services, the Company will value environmental awareness and the preservation of safety, endeavoring to purchase products and raw materials of low environmental impact.
3. Respect for Human Rights; Improving Working Environments
When engaging in purchasing activities, the Company will respect human rights and ensure that all forms of prejudice are eliminated when work is executed. The Company will make efforts to ensure health and safety, and to improve work environments.
4. Partners (CSR Aspects)
The Company will aim to create better partnerships, and ask partners to:
- ① Comply with legal and community standards
- ② Work on activities to preserve the environment and to ensure safety
- ③ Respect human rights; value efforts to improve working environments
- ④ Endeavor to ensure appropriate quality/prices and reliably on-time delivery, and to maintain and improve products and services
- ⑤ Abide by our chemicals management guidelines
Additionally, cooperate in surveys and reports related to them
Strengthening Supply Chain Management
The Unitika Group has set strengthening supply chain management as a priority issue. We are familiarizing business partners and clients with our purchasing policy, while also periodically conducting CSR procurement surveys to check the situation of our business partners and clients, and working with them to improve issues in the supply chain.
In FY 2022. we conducted a CSR procurement survey on the main business partners and clients* of Unitika Ltd. and Unitika Trading Co., Ltd.
In FY 2023, we reviewed the responses to the CSR procurement survey, identified issues in the supply chain, and conducted improvement activities. Specifically, we first analyzed our suppliers’ responses to the survey and evaluated the status of each company’s CSR efforts.
1. CSR Procurement Survey
PDCA cycle of Supply Chain Management
Fiscal year of implementation
FY 2022
Survey targets
199 companies*
Number of respondents
174 companies (87.4% response rate)
Survey contents
- ① Legal compliance
- ② Harmony with the environment
- ③ Improving working environments and human rights
- ④ Product safety and quality assurance
- ⑤ Management of chemicals Setting relevant questions from these categories
* Total of the business partners and clients with an 80% transaction amount in the purchasing department of Unitika Ltd., and the business partners and clients with a 72% transaction amount in the purchasing department of Unitika Trading Co., Ltd.
KPIs of Priority Issues (Materiality)
Response rate of the CSR procurement survey(Main business partners and clients)
FY 2030 target: 80%
FY 2023 actual results: -
2. Identify Issues
PDCA cycle of Supply Chain Management
Analysis of survey results
Of the 174 companies that responded to the survey, 102 companies were given an A grade, and 59 companies were given a B grade, as we had confirmed that they understood the Unitika Purchasing Policy and are firmly committed to CSR initiatives.
Further, for the 13 companies that were given a C grade due to meeting the criteria for needing improvement, we provided an opportunity for communication through means such as interviews to further confirm the details of their survey responses.
| Evaluation | Number of companies |
Ratio | Details and action | |
|---|---|---|---|---|
| A | 102 | 51.3% | Sufficient understanding of the Unitika Purchasing Policy, and excellent CSR initiatives | |
| B | 59 | 29.6% | Understanding of the Unitika Purchasing Policy, and good CSR initiatives. | |
| C | 13 | 6.5% | Need to talk with these business partners and clients about their responses. | |
| No response / Withdrawal of response |
25 | 12.6% | Continue to check their understanding of the Unitika Purchasing Policy and CSR initiatives status. (Requesting a response, etc.) | |
| Total | Total number of companies | 199 |
3. Make Improvements
PDCA cycle of Supply Chain Management
Dialogue with Business Partners
Through this communication, we confirmed the background that led to the responses that needed improvement, and found that the intent of the questions was not communicated correctly and that there were many incorrect answers.
Ultimately, all suppliers were taking the CSR initiatives we required, and we reached a conclusion that improvements were not necessary.
For those suppliers who did not respond to the survey, we are encouraging them to support our future survey activities and CSR initiatives.
Plans going forward
In FY 2024, we are planning to conduct the second CSR procurement survey that will target new suppliers.