Materials procurement

Policies and Guidelines for Procurement

Officers and employees of the Toyo Denki Group will comply with the following policies and guidelines for the procurement of purchased parts and outsourced parts as required for the manufacturing of products ordered by customers (“procurement transactions”).

Procurement Policies

  1. Secure compliance with laws, regulations, and social standards.
  2. Always place quality first.
  3. Take into account environmental impact reduction when selecting suppliers, materials, and services.
  4. Place emphasis on building mutual understanding and trust with suppliers.
  5. Provide fair and equitable opportunities for doing business with suppliers.

Supplier Selection Policies

  1. Select suppliers which secure compliance with laws, regulations, and social standards, and select suppliers which have no involvement with anti-social forces.
  2. Select suppliers which demonstrate due consideration for human rights and the environment.
  3. Select suppliers which satisfy quality requirements.
  4. Select suppliers which set appropriate pricing and deadlines for materials and services.
  5. Select suppliers with technologies that can contribute to the Toyo Denki Group.
  6. Select suppliers whose businesses are fundamentally sound.
  7. Select suppliers which take sufficient precautions about information security.

Procurement Action Guidelines

These guidelines indicate the codes of conduct that the Company’s executives and employees should comply with in the procurement of purchased parts and outsourced parts as required for the manufacturing of products ordered by customers (“procurement transactions”).

  1. Procurement transactions shall be conducted in compliance with the laws of the relevant countries.
  2. Information concerning suppliers in procurement transactions shall only be obtained within the scope necessary for conducting procurement activities in accordance with contracts. Furthermore, efforts shall be made to carefully manage and observe the confidentiality of information gained during business operations.
  3. Personal interests with suppliers shall be prohibited in procurement transactions, including the lending and borrowing of money.
  4. Receiving entertainment from suppliers beyond what is considered socially normal, accepting remuneration for personal benefit, or receiving inappropriate gifts is prohibited. Demanding that suppliers provide such things is also prohibited.

Established: February 1, 2016


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