Maintaining an equitable relationship with suppliers and cooperating with them to meet social responsibilities

Philosophy toward Suppliers

NSG Group glass products are made from raw and processed materials and services procured from suppliers throughout the world. The Group obtains a wide range of materials and services from outside suppliers, including silica sand, the raw materials of glass; silver paste, interlayer film, distribution services from transport companies and work tools and packaging materials.

To make and supply superior quality glass products for delivery to customers, the Group aims to build strong relationships of trust and cooperative frameworks with its suppliers. The procurement policy of the NSG Group’s purchasing department is to acquire materials at suitable quality, cost and delivery from the global market based on this approach. The NSG Group procurement process is guided by the Group’s compliance policy of “openness and fairness” and conforms to relevant laws and regulations.

The Group’s business is working to strengthen its relationships of trust with suppliers based on a Code of Conduct under a policy of “Buy more from the fewest, best suppliers who fully meet the Group’s needs today and in the future.” While taking into account not only the elements of product design and cost, but the safety of supplier company workers and environment-friendliness, NSG Group shares a CSR consciousness with its suppliers and promotes cooperative frameworks.

Supplier-Related Activities

The basic material procurement philosophy of the NSG Group is “to contribute to the resolution of environmental issues and realization of a recycling-oriented society.” All the Group’s plants in Japan have already achieved a recycling ratio of more than 99 percent, however, a cooperative relationship is essential in order to maintain and improve the recycle rate. Therefore, we are working together with suppliers and material distributors to promote a range of initiatives that include recycling and eliminating the idling of truck engines within plant premises.

In addition, to further reduce the volume generated of substances that negatively impact the environment, we are implementing “green procurement” throughout the Group. To meet the needs of our customers in each business field, we are actively promoting green procurement by reporting on hazardous materials, increasing the number of companies participating in these efforts and taking other steps.

As part of our activities to promote environment-friendly policies at the NSG Group, we ask suppliers to cooperate with us in a variety of ways, such as by entering into Basic Material Contracts and agreeing to Terms and Conditions for Contractors, which bind the supplier to “practicing concern for environmental protection in business activities in accordance with the company's environmental policies.”

Treating Subcontractors Fairly

In Japan, NSG Group abides by the “Act against Delay in Payment of Subcontract Proceeds, etc., to Subcontractors” (the Subcontractor Act) to protect the interests of domestic subcontractors, to this end holding workshops that include Group companies and verifies the status of compliance.

As a form of in-house training, we have held regularly scheduled in-house workshops every year since 2003, which, as of fiscal 2007, a cumulative total of 680 people have attended. Moreover, through participation in workshops held for subcontractors at the Japan Fair Trade Commission and at the Small and Medium Enterprise Agency, we are strengthening our efforts in these areas by publicizing details of the Subcontractor Act, implementing self checks and other actions. In addition, the Compliance Committee is taking steps to thoroughly comply with the Subcontractor Act through the verification of business practices by corroborating the status of subcontractor dealings at each business office.

 

CSR Report 2007