To fulfill our corporate social responsibilities throughout the entire supply chain, including our suppliers, we undertake various initiatives in accordance with the following principles of conduct for the procurement department.

Action Principles

Employees involved in procurement operations are working to implement CSR procurement in accordance with various rules and internal regulations, including the Procurement Policy (Groupwide in scope) and the Procurement Compliance Code of Conduct (for all domestic affiliates), which have been established by the Group as fundamental guidelines to promote fair and impartial procurement activities.

Procurement Policy

  1. Fair and equitable selection of suppliers
  2. Open opportunity for transactions
  3. Establishment of relationships of trust
  4. Compliance with laws and regulations, as well as social norms
  5. Prudent conduct

Selecting and Reevaluating Suppliers

In selecting and reevaluating suppliers, we confirm that they do not have any relationship with anti-social forces. In addition, suppliers involved in the manufacturing of pharmaceuticals are evaluated focusing on the following five criteria based on our selection standards.


We are also responsible for the procurement functions of our domestic Group companies and select and reevaluate suppliers based on the same standards for raw materials procured by subsidiaries. We cooperate with suppliers based on the results of this re-evaluation, working to reduce risk and ensure stable supply.


Furthermore, to ensure business continuity even in an emergency, we require that our major suppliers (determined based on annual transaction value, difficulty in finding alternative suppliers, and other factors) keep a predetermined quantity of pharmaceutical raw materials on hand for continuous supply.

Evaluation Points

  • Quality assurance level
  • Technical capabilities
  • Continuity and stability of supply
  • Price and business conditions
  • Corporate attitude (CSR initiatives include compliance with laws and regulations, environmental protection, working environment, and respect for human rights)

Conducting a Survey of Business Partners

To build and strengthen a sustainable supply chain, we have conducted a survey to check the status of CSR initiatives such as ensuring environmental conservation, respect for human rights, and occupational safety and health.


Approximately 80 companies responded to the fiscal 2024 survey (a response rate of approximately 90%). We are encouraging improvement by feeding back the aggregate results of responses to each question to our business partners so that they can assess their relative CSR levels.


Going forward, we will continue to conduct this survey in order to encourage our business partners to confirm the items they should prioritize and effectively promote their CSR activities.

Survey Flow

  1. Each supplier responds to the survey
    (Self-assessed at three grades (1 to 3 points) for each item)
  2. We calculate the average score for each item
  3. We provide feedback on the scores to each company

Announcement of the Declaration of Partnership Building

In October 2021, we endorsed the goals of the Council on Promoting Partnership Building for Cultivating the Future that are promoted by the Cabinet Office and the Small and Medium Enterprise Agency, and published our Declaration of Partnership Building.


The Declaration of Partnership Building, signed in the name of a company representative, states that a company will promote cooperation and coexistence with supply chain partners and value-creating businesses, thus building new partnerships.

Partnership Building

Training on Laws and Regulations

Our procurement departments regularly conduct training on the laws and regulations related to procurement. In this way, we have worked to ensure rigorous compliance awareness.

Applicable Main Laws and Regulations

  • Act on Securing Quality, Efficacy and Safety of Products Including Pharmaceuticals and Medical Devices (Pharmaceuticals and Medical Devices Act)

  • Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc. (Chemical Substance Control Law)

  • Industrial Safety and Health Act

  • Act on Preventing Delay in Payment to Small and Medium-Sized Entrusted Business Operators in Relation to Manufacturing Consignment (SME Transactions Act)

  • Foreign Exchange and Foreign Trade Act (Foreign Exchange Act)

  • Other laws and regulations concerning import and export

Consideration for Human Rights

We have established procurement rules in line with the Procurement Policy that stipulate that we conduct our procurement activities by giving full consideration to human rights. We conduct a survey of our business partners to check the status of their efforts to respect human rights.