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Procurement Policy

The NEC Group (“NEC”) aims to create value solutions in collaboration with its supply-chain partners, in order to make its commitment to realize a sustainable society come true.

  • •  Responsible Procurement through High Ethics NEC aims to accomplish its CSR commitment by adopting high ethical standards in all its procurement activities.
  • •  Creating Social Value through Collaboration with Partners NEC aims to strengthen a habit of customer-centric collaboration and to create social value by harnessing the assets of its global supply-chain partners to NEC’s own product portfolio and core competencies.
  • •  Pursuing Sustainable Growth by Relationship of Trust NEC aims to sustain and grow together with its supply-chain partners in a mutually beneficial way to reinforce a relationship based on trust and good working practices.

Procurement Policy

In order to continually provide better customer-centric products and services, the NEC Group ("NEC") is committed to procuring all goods and services from the global supply market at competitive quality, price and delivery conditions.

In any of its procurement negotiations, NEC shall always respect fair business terms, while complying with all applicable laws and regulations. NEC's procurement activities are based on both the NEC Charter of Corporate Behavior and the NEC Code of Conduct.

Furthermore, NEC is a signatory of the United Nations Global Compact, which promotes CSR-driven management based on the ISO 26000 standard. 

Through its procurement activities, NEC will contribute to progress human rights and promote compliance with labor, environment and anti-corruption requirements, as well as with other social responsibility related expectations. NEC's procurement activities shall respect the principles of the ISO 20400 standard and rely on the cooperation of supply-chain partners, in pursuit of sustainable and ethical procurement.

 

Concept of NEC Procurement

NEC shall seek to increase its corporate value, while simultaneously contributing to the growth of its supply-chain partners and creating social values through its procurement activities.

Competing fairly

NEC shall disclose applicable procurement information in a timely and appropriate manner, to ensure fair business competition with all its current and potential domestic and overseas supply-chain partners.

Evaluating and selecting supply-chain partners transparently

NEC shall evaluate and select its supply-chain partners after transparent, comprehensive and objective reviews. Criteria for evaluation and selection shall include but not be limited to, management reliability, price, quality, delivery, technological capability, corporate social responsibility, business continuity, social value offering and company sustainability.

Rejecting human trafficking

NEC shall not purchase items which may be associated with modern slavery and human trafficking concerns, involving potential or existing first tier supply-chain partners and/or second and upper-stream suppliers.

Cultivating Mutual Growth

NEC shall highly value the collaboration of its supply-chain partners, as well as the co-creation of social values. NEC shall engage in business arrangements that are based on trust, as a necessary requirement to cultivate lasting mutual growth.

Protecting Confidential Information

NEC is fully aware of the value of the information obtained from its supply-chain partners through its business deals and will protect it carefully.

 

Request to Supply-Chain Partners

The objective of NEC's CSR activities is to contribute to the sustainable development of society, by integrating our business activities and our responsibilities. NEC deeply believes in the importance of cooperation and collaboration with its supply-chain partners. All supply-chain partners are required to adhere to the following principles, as well as encouraging and supervising upstream companies to promote the same activities.

General CSR Requirements

• Promote positive CSR activities.
• Establish effective whistle-blowing system.
• Contribute to society and communities.

Human Rights

• Prohibit forced labor and any enabler of coercive labor.
• Prohibit inhumane treatment and infringements of human rights.
• Prohibit child labor.
• Prohibit discrimination.
• Pay appropriate wages.
• Control working hours.
• Respect the right of freedom of association.
• Consider minorities.
• Protect foreign employees.

Occupational Health and Safety

• Apply safety measures for equipment and instruments.
• Promote safe activities in the work place.
• Promote hygiene in the work place.
• Apply appropriate measures for occupational injuries and illnesses.
• Properly manage disasters and accidents.
• Be careful about physically demanding work.
• Promote safety and hygiene in all company facilities.
• Promote health maintenance programs for employees.

Product Quality and Safety

• Ensure product safety.
• Establish and apply a quality management system.

Information Security

• Secure computer networks against threats.
• Prevent the leakage of personal information.
• Prevent the leakage of confidential information of the customer and third-party.

The Environment and Bio-diversity

• Create the environmental management system.
• Control environmental pollutants used in manufacturing process appropriately.
• Implement the product environmental assessment.
• Take actions for climate change.
• Commit to global environmental conservation.
• Implement green purchasing.
• Disclose the environmental information publicly.
• Consider bio-diversity conservation.
• Control environmental pollutants contained in products appropriately.
• Promote designing for resource and energy conservation.
• Promote designing for long lifetime.
• Promote designing to use recycled parts and materials as much as possible.
• Promote designing to use recyclable materials as much as possible.
• Promote appropriate labeling plastic type.

Fair Trading

• Prohibit corruption and bribery.
• Prohibit abuse of a superior position.
• Prohibit the offering and receiving of inappropriate profit and advantage.
• Prohibit impediment to free competition.
• Provide accurate information of products and services (Responsible Marketing).
• Respect intellectual property.
• Use appropriate export procedures.
• Disclose appropriate company information.