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To provide attractive products to customers, it is necessary to cooperate with our business partners who supply parts & raw materials to us.
Fuji Xerox regards its suppliers as business partners that understand and share Fuji Xerox's management policy and stance toward the environment and society as a whole. We strive to establish favorable collaborative relations with partners and we are also working with them to address such issues as globalization of production bases, improvement of product quality, cost reductions, and environmental conservation.
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Fuji Xerox have been conducting QCD (Quality/Cost/Delivery) appraisal for main business partners to improve QCD. First are business partners' self-evaluation and evaluation from Fuji Xerox, after that, with the mutual confirmation for the appraisal results, we communicate and come to consensus for the items with gap.
The introduction of this mutual consensus appraisal can help our business partners to enhance their understanding of the subjects and their motivation for improvement through the process of mutual communication and understanding.
For those obvious subjects, we are promoting improvement activities by feeding back to each business partner and cooperating on making improvement plans as well. For the important business partners or those with high risks, as a part of supplier engagement activities, we are promoting QCD improvement activities by detailed communications, such as assign Fuji Xerox's PIC for each business partner, conduct QCD improvement activities once per month and review meeting(PIC of two companies attend) once every half year.
To reward their efforts on improving general power, we set Fuji Xerox Awards (Gold, Silver & Bronze) for the top three partners of general appraisal results; We also selects each top one for Q,C & D, and sets Special Improvement Prize for the partners that achieved special improvement. Those winners are awarded in the regular general assembly of the Co-Prosperity society in April of every year.
As the results of those improvement activities, the appraisal core was improved 18% during the two years from FY2006 to FY2007.
We are planning to conduct further improvement focusing on quality & price in FY2008.
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Fuji Xerox has adopted “Green Procurement Standards” and encourages business partners to engage in environmental conservation activities.
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To comply with the EU RoHS Directive*1, which came into effect in July 2006, Fuji Xerox is working with business partners to audit products that contain hazardous chemical substances and eliminate those substances from products.
- We asked business partner companies to survey the use of hazardous chemical substances and we recorded the data in a database that is accessible at any time via the intranet.
- We constructed a business partner audit system that includes the training of audit personnel, creation of audit forms and improvement plans, development of audit result evaluation methods, and creation of certification committees.
- We promoted non-use of substances covered by the RoHS Directive in the design stage.
- We obtained certification for all parts received from business partners verifying that they are free of hazardous chemical substances. (7400 certifications obtained for 89 types of machines in FY2007)
- Using fluorescent X-rays to inspect products received.
- Processing audits for business partners that produce high-risk products.
As a result of the initiatives listed above, we established systems that comply with the RoHS Directive. In FY2006, we also completed our response to the Chinese version*2 (which came into effect on March 1, 2007) of the RoHS Directive.
We are planning to establish internal systems and response to REACH*3 in a step-by-step basis in FY2008.
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*1
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The Directive on the Restriction of the use of certain hazardous substances in electrical and electronic equipment adopted by the European Parliament and the European Council.
The directive generally prohibits the use of the following six substances in electrical and electronic equipment (effective July 2006): lead, mercury, hexavalent chromium, cadmium, polybrominated biphenyls (PBBs) and polybrominated diphenyl ethers (PBDEs).
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*2
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Officially called the Law for Prevention and Management of Pollution in the Production of Electronic and Information Products, this is the Chinese version of the RoHS Directive that requires manufacturers to indicate the use of chemicals that are designated by EU's RoHS Directive if their electronic and information products contain such chemicals.
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*3
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The abbreviation REACH stands for “registration, evaluation and authorization of chemicals.” Under these regulations, if they annually produce or import one ton or more of chemicals, producers and importers are required to investigate the impact on human beings and the global environment, and must apply for and register their use with the European Chemicals Agency.
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Fuji Xerox requests that its business partners obtain third-party certification (ISO 14001 or Eco Stage) for their environmental management systems (EMS) in order to encourage improvements in their environmental conservation activities. Approximately 76 percent of the headquarters and production sites of major business partners acquired such certification in FY2007.
In addition, we visit the domestic and overseas production sites of business partners once every two years to conduct chemical substances prohibition & restriction management audits. In FY2005, to recognize the efforts of our business partners, we began issuing Environmental Partner Certificates to companies which have established satisfactory environmental management systems. In FY2007, 296 companies had been newly certified and 183 companies renewed the certification.
EMS certification acquirement is one of the items in the self-check list of CSR procurement. We will continue to grasp the EMS certification acquirement situation in our business partners, including their overseas production sites and contractors as well.
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Fuji Xerox Procurement Group is taking the main responsibility for the CSR procurement for its parts suppliers.
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In FY2007, Fuji Xerox started ethical procurement for its suppliers in earnest. Detailed actions, such as making CSR self-check list, holding explanation meetings for business partners, collecting answers, analyzing results, returning feedback sheet, and educating inspection persons, have been planned and fulfilled as planned.
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Contents of Self-Check List
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| The self-check list is composed of 263 items in 3 categories (73 items of Environment, 148 items of Human rights & labor, 42 items of business ethics) based on EICC*1.The questions are classified into three levels according to the importance: “ordinances items that will cause significant damage or impact to business if not obey”, “Other ordinances items” and “Non-ordinances items but required by society”. |
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*1
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EICC: Electronic Industry Code of Conduct issued by DELL, Hewlett-Packard & IBM in 2004 to pursue appropriate management in items of labor, health & safety, environment, management system, ethics.
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Deployment in Business Partners
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Fuji Xerox held “Supplier engagement activities explanation meetings” in Japan and three overseas sites, in aiming for the improvement of Q・C・D・Green procurement・ethical procurement in entire supply chain by strengthen business partners' partnership with Fuji Xerox.
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Explanation Meetings for Supplier Engagement Activities
| Date |
Sites |
Venues |
| 2007/8/21 |
Fuji Xerox/Suzuka Fuji Xerox/Niigata Fuji Xerox Manufacturing |
Tokyo city |
| 2007/8/27 |
Fuji Xerox/Suzuka Fuji Xerox/Niigata Fuji Xerox Manufacturing |
Tokyo city |
| 2007/9/3 |
Fuji Xerox Korea |
Seoul/Korea |
| 2007/9/5 |
Fuji Xerox of Shanghai |
Shanghai/China |
| 2007/9/7 |
Fuji Xerox of Shenzhen |
Shenzhen/China |
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After those meetings, we asked our business partners to answer the self-check list. We collected the answers and analyzed the results then sent feedbacks to each company that responded by the March of 2008.
In addition, we held workshop in Shenzhen in the March of 2008, to educate CSR inspection persons in each sites to implement visit and inspection at suppliers. Approximately 20 persons attended the workshop.
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According to the results of the inspection, Fuji Xerox's improvement target is:
improve accommodation rate of “ordinances items that will cause significant damage or impact to business if not obey” above 90% in entire business partners by FY2009.
With this aim, Fuji Xerox will base upon the supports on making improvement plans and improvement activities for those business partners that agree with its ethical procurement, and will particularly carry through improvement activities for those high risk suppliers by visiting inspection. We are striving for the establishment of CSR improvement cycle for all business partners.
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Fuji Xerox commenced the introduction of ethical procurement on material procurement in FY2007. We are thinking of the same ethical procurement for business partners in other fields such as logistics or indirect purchase.
For this reason, we are planning to revise “the Purchasing Transaction Guidelines” (issued in 1990) to determine CSR procurement policy for the whole purchase activities in FY2008.In addition, we have commenced CSR activities for “products logistic” in logistic field.
“Self Evaluation of CSR Promotion”
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Fuji Xerox has organized the Fuji Xerox Global Co-Prosperity Society, a forum of 74 elite companies selected from its major business partners. Fuji Xerox and the society members are aiming for development together through the accomplishment of Xerox business. We hold regular events to sharing Fuji Xerox's business policy and communicating with each other.(74 companies of business partners participated in FY2007.)
The company is strengthening communication with Co-Prosperity Society's member companies through the society's regular general assembly and a meeting to explain Fuji Xerox's policy in April, a meeting in October to explain Fuji Xerox's interim financial results, and the New Year's party in January. These initiatives help create an awareness of the partnership between Fuji Xerox and its business partners.
In FY2007, with the commencement of CSR procurement, Fuji Xerox requested the cooperation of the Global Co-Prosperity Society, and the eight managing companies of the society conducted the conformation of deploy methods as CSR procurement promotion committee.
As one committee activity, we have been holding quality engineering promotion activities since FY2003. In FY2007, the quality engineering research meeting was held regularly with 14 companies of the Co-Prosperity attended. Each company can register their detailed themes as subjects, and receive advices from lecturers or other members on these themes in research meetings every month. They can also learn offline QC and online QC in the research meetings. In addition, they can touch different industries' projects and new successful cases through factory visit once every year. These activities can help to improve the efficiency of design/develop, the quality and the productivity.
In FY2008, Fuji Xerox plans to consecutively deepen Co-Prosperity Society's understanding of CSR procurement & quality engineering and assist Co-Prosperity in carrying out CSR initiatives.
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Fuji Xerox established “the Purchasing Transaction Guidelines” (planning to revise in FY2008) in 1990 to ensure its harmonious development as a member of the international community. These guidelines state that the company should conduct its purchasing transactions in accordance with fair and transparent rules.
In addition, Fuji Xerox's employees comply with related laws and regulations, in particular the Subcontract Law, and aim to establish sound relationships with business partners in accordance with the company's Employee Code of Conduct.
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