Fair Competition and Comprehensive Transactions
Policy for Fair Transactions
Based on "With Business Partners" in Our Way, which is denoted in "Our Mission, Values and Way," Shiseido also aims to realize a good partnership in terms of CSR activity with all business partners, including retailers and suppliers.
Shiseido shares the information of business partners throughout the world and promotes the optimal procurement from a global perspective when purchasing ingredients and fragrances used in the manufacture of cosmetics, packaging, promotional sales materials, and other products. We have also established two “Eco Standards” in production and sales promotional materials by prioritizing the considerations toward safety and global environment, and we also proactively promote these standards in our procurement.
Manufacturing bases of the Shiseido Group
Aiming to Strengthen Partnerships with Our Business Partners
-Briefing Session on Purchasing Activity Policy
In order to address changes of the times and social requirements, with regard to our concept of procurement, Shiseido considers it important to share information with business partners in a timely and accurate manner. Therefore, with the aim of widely spreading the procurement policy, the procurement departments in Japan and China are holding annual briefing sessions of the purchasing activity policy with business partners. Furthermore, the domestic procurement departments are also holding section meetings of purchasing activity policy sessions, which are held by respective fields such as raw materials, fragrances, materials, and indirect materials, to directly communicate the procurement policy, various tasks, and requests in each field as well as to utilize the sessions to respond to questions and requests from business partners.
In 2015, 137 business partners participated in these sessions held by the domestic procurement departments. 134 business partners began participating in these sessions in China, suggesting further development in the future.
Awarding business partners who have contributed to
the development of the business
Shiseido awards business partners who have contributed to the development of the business and presents them with the First Prize and Prize. This awarding system selects the awardees from the 3 aspects of quality, cost reduction, and technical development. 6 companies received the awards in fiscal 2015.
Shiseido Group Supplier Code of Conduct
Shiseido aims to realize "We cultivate relationships with people, we appreciate genuine, meaningful values, we create beauty, we create wellness" and works on researching, developing, manufacturing, and sales of "high quality, secure, and safe" superior products and services that gain customer satisfaction. We consider every business partner a "partner who will create new value with Shiseido" with the aim of sustainable development with mutual understanding of highly ethical standards.
Triggered by the participation in the United Nations Global Compact, we have established the "Shiseido Group Supplier Code of Conduct" in 2006 that clearly stipulates the standards that are relevant to "Human Rights," "Legal Compliance," "Labor Practices," "Protection of Intellectual Property and Maintenance Confidentiality," "Protection of the Environment," and "Fair Operating Practices." We revised this Code of Conduct in December, 2011, by incorporating the New Shiseido Group Corporate Philosophy "Our Mission, Values and Way" and the concept of "ISO26000," which is the world's first international standard on social responsibilities. Among the business partners, who are the targets of the Shiseido Group Supplier Code of Conduct, domestic and overseas companies have signed the agreement for the said Code of Conduct.
Furthermore, with the aim of comprehending the compliance situation of the Supplier Code of Conduct, we conduct periodical monitoring, such as questionnaires and audits, etc., with business partners.
In the unlikely event that a violation of the "Shiseido Group Supplier Code of Conduct" is identified, Shiseido will strictly request remedial action and implement corrective guidance and support.
In addition, we have established the “Business Partner Hotline” in Japan with the aim of establishing the system to receive opinions and consultation from business partners. (No report was made in fiscal 2015)
Transactions Subject to the Shiseido Group Supplier Code of Conduct
|Transactions||Purchased Items or Services|
|Items such as raw materials that are directly used for products||Fragrances, raw materials, etc.|
|Outsourced products||Cosmetics, beauty equipment, etc.|
|Sales support products||Small size samples, actual samples, etc.|
|Packaging||Containers, wrapping materials, package inserts, labels, outer cases, etc.|
|Outsourced sets||Outsourced set production, etc.|
|Promotional products||Printed matter (leaflets, catalogs, etc.), premiums, counter furnishings and accessories, sales activity tools, promotional event tools|
Environmentally-friendly Raw Material Procurement
In addition to developing environmental technologies to reduce CO2 emissions, Shiseido strives to create new value through its research and development operations by conducting research into new technologies for implementing value for consumers in an environmentally friendly manner and pursuing software development. In procurement, we strive to use raw materials that do not increase atmospheric concentrations of CO2 at the time of disposal or incineration, for example through joint research into sugarcane-derived polyethylene. We work closely with our business partners to develop environmentally friendly technologies through initiatives such as procurement with considerations for biodiversity, etc. in order to contribute to the realization of a sustainable society. Some of the specific initiatives include the utilization of bagasse paper, use of plant-based fermented alcohol, sustainable utilization of palm oil, etc.