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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

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 its Mission: "We cultivate relationships with people; we appreciate genuine, meaningful values; we inspire a life of beauty and culture" - and works on research, development, manufacturing, and sales of high quality, secure, and safe products and services. We consider every supplier a partner who will create new value with Shiseido and aim to realize sustainable development and highly ethical standards together.

Triggered by the participation in the United Nations Global Compact, we established the "Shiseido Group Supplier Code of Conduct" in 2006 that stipulates standards 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 in December 2011 by incorporating the New Shiseido Group Corporate Philosophy "Our Mission, Values and Way" and the ISO26000 international standard on social responsibilities. Domestic and overseas business partners that fall within the scope of the Shiseido Group Supplier Code of Conduct are required to sign the Code annually. Business partners are closely monitored through questionnaires and regular audits. In the unlikely event that a violation of the Shiseido Group Supplier Code of Conduct is identified, Shiseido will strictly request remedial action and provide corrective guidance and support.

In addition, we have established a "Business Partner Hotline" in Japan to receive feedback from business partners. (No report was made in fiscal 2016.)

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.

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