To fulfill our corporate social responsibilities throughout the entire supply chain, including our suppliers, we are conducting a range of initiatives while formulating action principles for procurement departments, as described below.
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.
- Fair and equitable selection of suppliers
- Open opportunity for transactions
- Establishment of relationships of trust
- Compliance with laws and regulations, as well as social norms
- Moderate action
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 supplier selection standards. The Company is also responsible for the procurement functions of its domestic Group companies and selects and reevaluates suppliers based on the same standards for raw materials procured by subsidiaries.
To ensure and maintain business continuity, even in an emergency, we request in advance that our major suppliers (determined based on annual transaction value, inability to find alternative suppliers, and other factors) keep a certain quantity of pharmaceutical raw materials on hand for continuous supply.
- 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)
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 and confirming 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.
- Each supplier responds to the survey
(Self-assessed at three grades (1 to 3 points) for each item) - We calculate the average score for each item
- We feedback the score to each company
In October 2021, the Company 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.
Publication of Declaration of Partnership Building (December 1, 2025) (Japanese language only)
The Company's procurement departments regularly conduct training on the laws and regulations related to procurement. In this way, we have worked to ensure rigorous compliance awareness.
- 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 against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors (Subcontracting Act)
- Foreign Exchange and Foreign Trade Act (Foreign Exchange Act)
- Other laws and regulations concerning import and export
We have established procurement rules in line with the Procurement Policy that stipulate that we conduct our procurement activities by giving full consideration for human rights. We conduct a survey of our business partners to check the status of their efforts to respect human rights.
Note: Information on this page pertains to activities and results for fiscal 2024.