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Robust Management Foundation

Targeted Social Issues
  • Growing social demands toward corporate business processes
  • Addressing the growing risks of data leak, falsification, and loss due to the advancement of information society

Engagement with Suppliers

Our Goal

Fuji Xerox will aim to engage solidly with our suppliers and develop a strong, competitive supply chain in a spirit of seeking mutual benefit.

Our Approach

By concerning ourselves not only with financial and other business-related matters, but with CSR in such areas as environmental and social issues and corporate ethics, we at Fuji Xerox contribute globally to the solution of social issues including those concerning the environment, human rights, labor, and corporate ethics.

At Fuji Xerox, we view our suppliers as partners who share our philosophy and policies. By sharing CSR-related values and discussing the environment, human rights, labor, and corporate ethics with the aim of minimizing related risks, we promote ethical procurement globally with the aim of building mutually beneficial relations with these partners and enhancing both their competitiveness and ours.

History

Yoshikazu Sato
Corporate Vice President
and Executive General
Manager of Procurement
Group, Fuji Xerox

Fuji Xerox has been fostering ethical procurement in effort to achieve prosperity together with its suppliers while also reducing the suspension of its production lines. Ethical procurement has also helped the company make improvements in terms of quality, cost and delivery.

In fiscal 2016 we will continue to request suppliers to deepen their understanding of our procurement policies and enhance their own CSR activities for the establishment of a stronger supply chain.

[High-Priority Management Themes at Fuji Xerox]
Strengthening CSR implementation at Fuji Xerox manufacturing sites / Expanding and enhancing ethical procurement, which will help boost competitiveness
- Promoting CSR throughout the supply chain and developing locally rooted sustainable business operations

Features of Fuji Xerox Activities

In order to make its supply chains more competitive, Fuji Xerox wants to ensure that its suppliers understand the importance of CSR management and continue to make improvements. We therefore communicate frequently with our suppliers at all levels, from top management to those directly carrying out the work, and seek their understanding of the importance of CSR and the need for improvements as we strive to take our CSR engagement to a higher level throughout the supply chain.

To foster ethical procurement, Fuji Xerox supports its suppliers in conducting improvement activities more proactively and effectively by providing them with briefings and executive seminars, introducing the management guidelines and CSR selfchecklists, and carrying out onsite inspections at their sites.

The CSR Assessment System

Fiscal 2015 Performance

In South China where Fuji Xerox has major production facilities, there has been a series of problems at factories, such as strikes by workers. In response, we have been conducting ethical procurement activities with a focus on South China, hoping to understand the management situation of local suppliers and help them make improvements.

Fuji Xerox of Shenzhen had been experiencing the suspension of its production line, which hinders stable operation and product supply, due to CSR risks faced by its suppliers. However, by encouraging suppliers to continuously improve labor management through the ethical procurement activity, Fuji Xerox finally eliminated production line suspensions caused by suppliers' problems in fiscal 2015.

However, the number of conflicts caused by problems related to the environment, human rights and labor has been increasing also in East China and in ASEAN countries where we are trying to find more suppliers. In response we need to enhance ethical procurement in these regions. Furthermore, our customers are increasingly requesting us to improve CSR measures at our production bases.

We have therefore decided to introduce the know-how on CSR activities and ethical procurement accumulated by Fuji Xerox of Shenzhen to our bases in East China and Vietnam. As the first step, CSR facilitators from Fuji Xerox's production and procurement bases, production and procurement headquarters and the head office gathered at Fuji Xerox of Shenzhen to hold a "CSR session for key persons of CSR." In this session participants reconfirmed Fuji Xerox's CSR philosophy and learned how to check and point out CSRrelated problems in a practical manner at their bases and at suppliers' sites through a case study of the production line of Fuji Xerox of Shenzhen. In addition, they agreed that they would enhance mutual cooperation beyond their organizational boundaries.

Suspension of Fuji Xerox of Shenzhen's Production Line Caused by CSR Risks Faced by Suppliers

Agenda for the Session

Fiscal 2016 Initiatives

Fuji Xerox will strengthen CSR-oriented management and ethical procurement measures in both South China and Vietnam.

  1. We will rebuild a CSR management system for production facilities at Fuji Xerox Hai Phong (in Vietnam) and Fuji Xerox of Shanghai.
  2. We will work to build a system for onsite inspections by a team of experts in the environment, personnel affairs and other areas for our suppliers in Vietnam and East China, in order to understand their situations and enhance our support step by step to help them make improvements.

Case Study 1

Environment, Safety and Health and Practical Labor Management Seminars for Suppliers

Among the ethical procurement measures Fuji Xerox launched in 2007, the onsite inspections carried out by a team of experts in the environment, personnel affairs and other areas at the suppliers of Fuji Xerox of Shenzhen were particularly effective. Many of the suppliers made improvements by receiving advice on the points to be improved from the inspectors.

The suppliers requested the expert team to continue giving them advice for improvement in a timely manner. However, it was difficult for the team to give them more advice only by revisiting each of them again.

Accordingly, Fuji Xerox of Shenzhen began to hold environment, safety and health and practical labor management seminars for suppliers in fiscal 2014, in addition to carrying out onsite inspections. Executives and managers at the suppliers' production bases are invited to the seminars to learn from the staff of the company about the know-how to implement measures for the environment, human rights and labor, and corporate ethics and to comply with new laws and regulations. In the first year, we held three seminars on safety and health and invited managers of the suppliers to it. The seminars were highly appreciated by the suppliers as being useful to make improvements.

In fiscal 2015 we held 11 seminars (for a total of 13 times) on labor management, environmental conservation, and the support program held for employees by the company. Over 1,000 managers from the supplier companies participated in the seminars to learn the relevant know-how. Many suppliers voluntarily participated in the seminars and all the seminars were rated by them as "satisfactory" at a very high rate (98% or higher).

In fiscal 2016 we will add new seminars on management systems and others to the existing ones for the continuous enhancement of the seminars.

Date Program
May, 2015 Safety management
Jun, 2015 Labor management - Establishment and management of the corporate rules
Aug, 2015 Occupational health and safety management
Sep, 2015 Basics of environmental conservation
Oct, 2015 Labor management - Non-adult workers, pregnancy and childbirth Management of female employees raising children and of dispatched workers
Nov, 2015 Occupational health and safety management
Dec, 2015 Outline of environmental laws
Dec, 2015 Management of wages and working hours
Jan, 2016 How to calculate and report greenhouse gas emissions
Jan, 2016 Management for fire prevention
Feb, 2016 Treatment and management of waste air, water and solids

Case Study 2

Engaging with the Conflict Minerals Issue

Fuji Xerox recognizes conflict minerals as a major human rights issue, and its Basic Procurement Policy includes a clear call to deal in good faith with the issue of conflict minerals. Further, as a member of the "Responsible Minerals Trade Working Group" of JEITANote 1, we join other companies in studying rational and effective measures to ensure that we are not involved in human rights violations.

Since 2014, the U.S. Securities and Exchange Commission (SEC) has required SEC-registered companies to track and report the source and chain of custody of conflict minerals in accordance with Section 1502 of the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act. Fuji Xerox is not required to do this because it is not a SEC-registered company. However, we have been tracking the source and chain of custody of conflict minerals since 2013 to determine whether there is any involvement of armed groups in our own supply chain and also to cooperate with the inquiries of our customers who are SEC-registered companies. The response rate from first-tier suppliers in the 2015 investigation was 97.3 percent (up from 92.4 percent in 2014), and no information indicating involvement of armed groups in the supply chain was received from the respondents. We were also able to provide customers with our know-how to deal with the issue of conflict minerals.

In our investigations from 2016 onward, we will aim for more precision as well as a higher response rate.

  • Note 1 JEITA: Japan Electronics and Information Technology Industries Association

[High-Priority Management Themes at Fuji Xerox]
Respect for human rights
- Commitment to Human Rights

Respect for human rights and nondiscrimination are deeply embedded in the Fuji Xerox Code of Conduct, and the Fujifilm Group Charter for Corporate Behavior identifies "respect for human rights" as the fundamental spirit guiding the human rights related activities of the Fujifilm Group.

Every year, we conduct educational courses on the Code of Conduct for all employees of Fuji Xerox and its affiliates, combined with training on such topics as human rights in general, sexual harassment, power harassment, and mental health. Code of Conduct education is also provided in training programs targeting specific strata of the company, such as new employees and newly appointed managers. Further efforts are made to raise human rights awareness through human rights slogan contests and the distribution of a human rights related bulletins to executive general managers twice a year.

Regarding the supply chain and overseas suppliers in particular, we strive to prevent human rights violations, such as child and forced labor, by requiring compliance in ethical procurement and through rigorous evaluation by Fuji Xerox.

Going forward, Fuji Xerox is committed to preventing human rights violations and to raising awareness of human rights.

[High-Priority Management Themes at Fuji Xerox]
Information security
- Securely protecting Fuji Xerox's own and customers' important information from data security risks

Features of Fuji Xerox Activities

With progress in the service and solutions domain, the opportunities in which Fuji Xerox deals with the customers' personal / confidential information are increasing. Under these circumstances Fuji Xerox includes ensuring information security in its management priorities. In addition to product- and service-related information security measures, we are implementing a range of other measures, including those to enhance corporate governance so that our customers can entrust their information assets to us with peace of mind. For details, please refer to our information security report, which is available at the following website.

Fiscal 2015 Performance

We improved our manuals to deal with vulnerabilities and incidents by forming a cross-departmental Computer Security Incidence Response Team (CSIRT) against cyberattacks. We also carried out inspections and evaluations to ensure the information security of our services, while fostering the central management of security-related information regarding the companies to which we give access to important information.

Fiscal 2016 Initiatives

We will establish and start operating an information security center within the General Affairs Department for the consolidation of our information security functions and promotion of company-wide collaboration. Through this center we will deal with both internal and external threats, prevent internal frauds, quality problems and cyberattacks, identify problems in preparation for emergencies, and foster countermeasures.

Case Study

Risk Management Council

In addition to the aforementioned activities, we worked to enhance the information security of our sales companies in the Asia-Pacific region including China in fiscal 2015. In July of the year we held a conference of risk managers in Yokohama, in which we asked participants to carefully report any information security incidents. We are also raising the awareness of more than 15,000 employees about the categories of information and measures to be taken in the event of an incident through online education in English, Chinese, Thai and Korean.

As a result in fiscal 2015, we received detailed reports about information security from our bases, including those related to the cases that nearly caused information security incidents. We will continue to implement measures to decrease information security incidents and deal with new threats in Japan and abroad by fostering regular information exchange through online conferences.

Sustainability Report 2016 Questionnaire