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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.

  • Promoting Sustainable and Responsible Procurement
    NEC aims to accomplish its social responsibility 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 the NEC Code of Conduct.

Furthermore, NEC is a signatory of the United Nations Global Compact, which promotes Management for Sustainability based on the ISO26000 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 ISO20400 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, responsible business conduct, business continuity, social value offering and company sustainability.

Rejecting modern slavery and 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 (partner engagement).

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.

Procurement Behavior

NEC is committed to conducting procurement activities that are based on the NEC Code of Conduct.

Fair Trading and Equal Relationship

NEC shall trade honestly, observe relevant laws, regulations and ethics, under an equal and fair relationship with every supply-chain partner.

Prohibiting Abuse of a Superior Position

NEC shall not abuse its superior position in its business relationships.

Sincere Trading Manner

NEC shall not offer or receive bribes, nor introduce pressure or squeezes such as unfair profit and/or benefit, in relation with all private sector and public sector procurement activities.

Compliance Hotline

NEC shall operate and make available a grievance mechanism including a complaint handling system ("Compliance Hotline") via third party to its supply-chain partners. NEC shall ensure that in case of concerns reporting in good faith, the whistleblower will never receive a disadvantageous treatment as a result of the consultation.

Request to Supply-Chain Partners

NEC is promoting Management for Sustainability in accordance with the following basic principles: "contribute to solving social issues through our business activities," "strengthen risk management and enforce compliance," and "promote communication with stakeholders”.

The promotion of responsible business conduct in our supply chains is essential for the NEC Group("NEC") to advance Management for Sustainability. Our supply-chain partners are requested to ensure that they fully understand all these points and adhere to them. Our supply-chain partners are not only requested to adhere to these points within their own organizations, but also to manage, monitor and disseminate these points amongst their own supply chains to ensure their adherence as well.

General Requirement of Responsible Business Conduct

  • Proactive promotion of responsible business conduct
  • Contribution to society and community

Adherence to Laws and Respect for International Codes of Conduct

Human Rights and Labour Practices

  • Prohibition of forced labour
  • Prohibition of child labour; considerations when employing young workers
  • Considerations regarding working hours
  • Appropriate pay and allowances
  • Prohibition of inhumane treatment
  • Prohibition of discrimination
  • Freedom of association and right of collective bargaining
  • Considerations regarding minorities
  • Considerations regarding foreign workers

Health and Safety

  • Work safety
  • Emergency planning
  • Occupational injury and illness
  • Industrial hygiene
  • Consideration of physically demanding work
  • Machine safeguarding
  • Health and safety of facilities
  • Health and safety communication
  • Health management for workers
  • Occupational health and safety management in construction and installation work

Environmental Requirements

  • Creation of an environmental management system
  • Appropriate management of chemical substances used in manufacturing process
  • Appropriate management of chemical substances contained in products (excluding software and services)
  • Responding to survey of chemical substances incorporated into the products supplied to the NEC Group
  • Implementation of the product environmental assessment
  • Implementation of climate change measures
  • Efforts and contributions to global environmental conservation
  • Public disclosure of environmental information
  • Product design to minimize resource and energy conservation
  • Long lifetime design
  • Use of recycled parts and materials
  • Use of materials that are easy to recycle
  • Labeling plastic type
  • Green procurement

Fair Trading and Ethics

  • Anti-corruption
  • Prohibition of offering and accepting improper profit and advantage
  • Appropriate disclosure of information
  • Respect for intellectual property
  • Fair business
  • Prohibition of abuse of a superior position
  • Protection of whistleblowers
  • Responsible sourcing of minerals

Product Quality and Safety

  • Ensuring product safety
  • Quality management
  • Providing accurate information on products and services

Information Security

  • Protection against cyber attacks
  • Protecting personal information
  • Preventing the leakage of confidential information

Establishing Management Systems

  • Establishing management systems
  • Management of Supplier
  • Appropriate import/export controls
  • Maintaining grievance mechanisms
  • Disclosure on the status of initiatives