Building fair, transparent relationships as equals, and strengthening cooperation
Initiatives for Building Fair, Transparent Relationships
Chugai considers its business partners to be an essential part of its cooperative framework, and works on a daily basis to promote various initiatives designed to ensure fair and transparent relationships.
In 2005, we introduced an electronic purchasing system as an optimal mechanism for building fair and transparent business relationships. To ensure healthier competition, we have worked to standardize and optimize our process for purchasing indirect materials, and to promote continuous improvements.
The Chugai Group Purchasing Policy is intended to optimize purchasing activity while building fair and transparent relationships with business partners and strengthen cooperation with them.
Chugai Group Purchasing Policy
- Comply with social norms and the others as well as laws and regulations of each country to engage in fair purchasing activities.
- Build fair and equitable business relationships with domestic and overseas business partners.
- Consider the global environment by advancing a green procurement with the cooperation of business partners.
- Seek high-quality products and services with the cooperation of business partners.
- Advance lower costs by procurement at a fair price.
- Fulfill faithfully obligations under the contracts with business partners, establish equally cooperative relationships and aim for mutual growth.
- Protect confidential information learned through business transactions and establish relationships of mutual trust with business partners.
- Assess and determine objectively and comprehensively from the perspective of their quality, price, delivery timing, associated information, stable supply and consideration towards social responsibility and the others in selecting suppliers.
Chugai Ethical Purchasing Standards
The Chugai Ethical Purchasing Standards outline the principles for ethical conduct for all companies and individuals participating in its purchasing process in order to build and maintain sound transaction relationships with business partners. For example, standards specify actions that should be taken with regard to receipt of gifts, and invitations to meals and entertainment.
Any gifts that are offered must be declined, and the incident must be reported to the head of the Chugai organization concerned. Any gifts received by delivery must be returned with a polite letter of decline.
However, generally distributed promotional articles, such as hand towels, calendars and datebooks, may be accepted within commonly accepted limits.
Any offers of entertainment, including dining together, must be declined, and the incident must be reported to the head of the organization concerned.
Chugai balances compliance, business efficiency and cost reduction in its purchasing activities by building purchasing processes that correspond to the characteristics of each particular commodity group and transaction type.
We also actively communicated with everyone involved in purchasing activities, both inside and outside the Company, to discover problems and to improve business processes, and have set procurement strategies for key materials.
We will continue our efforts to conduct purchasing activities that maintain a good balance of compliance, operational efficiency and cost reduction.