Highlights of CSR Guidelines for Suppliers

1. Safety and Quality - Providing products and services that meet customer needs
- Providing products and services
- Ensuring quality of products and services
2. Human Rights and Labor - Prohibiting discrimination
- Respecting human rights
- Prohibiting child labor
- Prohibiting forced labor
- Compliance with the laws of wage
- Compliance with the laws of working hours
- Practicing dialogue and discussion with employees
- Ensuring a safe and healthy working environment
3. Environment  - Implementing environmental management
- Reducing greenhouse gas emissions
- Preventing air, water, and soil pollution
- Saving resources and reducing waste
- Managing chemical substances
- Conservation of ecosystem
4. Compliance -Compliance with the laws, in particular, competition laws and export laws
- Preventing corruption
- Managing confidential information
-Protecting intellectual property
5.Information Disclosure  -Disclosing information to stakeholders


2. CSR Guidelines for Suppliers
A) Overview and Use of Guidelines
These Guidelines outline common items with the aim of encouraging our suppliers to review their corporate activities from the perspective of CSR and to take clear actions to further improve. We have selected 24 specific items in five areas in which expectations of suppliers are especially high in the automobile industry.
B) CSR Areas and Items
ⅰ. Safety and Quality
- Providing products and services that meet Customer needs
Identify customer needs to develop and provide socially effective products. It means in particular products that can be easily used by all of our customers regardless of age, gender or physical / mental handicap or products that save energy and resources or limit their impact on the environment.
- Ensuring safety of products and services
Produce and provide products and services that meet the safety laws and regulations set by each country and region.
- Ensuring quality of products and services
Establish and manage company-wide mechanisms for quality assurance.

ⅱ. Human Rights and Labor
- Discrimination
Do not discriminate in any aspect of employment (recruitment, employment, promotion, wages, dismissal, retirement, assignment of duties, disciplinary measures, etc.) on the basis of race, nationality, gender, religion, physical / mental handicap, age, background, or any other reason.
- Respecting human rights
Do not allow any form of harassment in the workplace on the basis of race, nationality, gender, physical / mental handicap, age, background, or any other reason.
- Prohibiting child labor
Do not permit the employment of minors who do not meet the legal minimum working age of each country and region and in all cases if minors are below the age of 15.
- Prohibiting forced labor
Do not practice forced labor. Guarantee that all labor is voluntary and that employees are free to leave their jobs.
- Wage
Comply with the laws of each country and region regarding minimum wages, overtime, wage deductions, performance-based pay, and other remuneration.
- Working hours
Comply with the laws of each country and region regarding the setting of employees’ working hours (including overtime) and the granting of scheduled days off, paid annual vacation time and others.
- Practicing dialogue and discussion with employees
Practice dialogue and discussion with employees or their representatives in good faith.
Recognize employees’ right to freely associate or not associate based on the laws of each country and region where the business operations are executed.
- Safe and healthy working environment
Make the safety and health of workers in their operation the top priority and make every effort to prevent occupational accidents.
- Calsonic Kansei Standard
 For detailed standards, please refer to:
 Calsonic Kansei Global Codes of Conduct


ⅲ. Environment
- Environmental management
Try to anticipate future changes in laws while complying with the laws in each county or region in order to promote a wide range of environmental activities. Structure and continuously operate / improve companywide management scheme. Record and report to Calsonic Kansei when the information is required.
- Reducing greenhouse gas emissions.
Try to anticipate future changes in laws while complying with the laws in each county or region. Manage greenhouse gas emissions from business activities and promote reduction activities. Strive to use energy effectively. Record and report to Calsonic Kansei when the data is required.
- Preventing air, water and soil pollution
Try to anticipate future changes while complying with the laws in each country or region regarding the prevention of air, water and soil pollution. Prevent pollution by undertaking continuous monitoring and reducing pollutants.
Record and report to Calsonic Kansei when the data is required.
- Saving resources and reducing waste
Comply with the laws in each country or region regarding proper disposal and recycling of waste. Strive to reduce water consumption as well as the amount of final waste disposal by using resources effectively. Record and report to Calsonic Kansei when the data is required.
- Managing chemical substances
Try to anticipate future changes while complying with the laws in each country or region.
Specify and safely manage chemical substances that have the potential to pollute the environment.
Do not include chemical substances prohibited by the laws of each country and region in products.
Do not use prohibited chemical substances in manufacturing processes. Confirm the amount of emissions of chemical substance designated by the laws of each country and region to report to the relevant authorities.
Record and report to Calsonic Kansei when the data is required.
- Conservation of ecosystem
Strive to conserve ecosystem regarding parts production including cooperate activities and material procurement.
- Calsonic Kansei Environment Standards
 For detailed standards, please refer to:
 Calsonic Kansei Green Purchasing Guideline
ⅳ. Compliance
- Compliance with the laws
Comply with the laws in each country or region.
Establish and operate policies, systems, codes of conduct, reporting systems, educational, and other mechanisms to ensure compliance.
- Compliance with the competition laws
Comply with competition laws in each country and region. Do not engage in such practices as private monopolies, improper restraint of trade (cartels, bid rigging, etc.), unfair business practices or abuse of dominant position.
- Preventing corruption
Make political contributions and donations based on the laws of each country and region and strive to establish transparent and fair relations with your suppliers. Do not accept from or provide to business partners any entertainment, gifts or money whose aim is to gain or retain improper benefit or preferential treatment.
- Managing and protecting confidential information.
Obtain personal information about customers, third parties, and your employees and confidential information on customers and third parties through proper methods. Rigorously control and protect this information and use it only with the appropriate scope to protect.
- Managing exports
Undertake appropriate procedures and management of exports of technologies and goods restricted by the laws and regulations of each country and region.
- Protecting intellectual property
Protect intellectual property rights owned by or affiliated with your own company. Do not improperly obtain, use the intellectual property of third parties, or infringe the rights.
ⅴ. Information Disclosure
- Disclosing information to stakeholders
Disclose information on financial situation, results and business activities to stakeholders in a timely and appropriate manner. Strive to maintain and develop mutual understanding and relations of trust with stakeholders through open and fair communication.

 

3. To Our Supplier
As described in the previous clauses, considering the recent increasing demand in society to comply with laws/regulations and conventional wisdom and principle, and the situation in which CSR activities have already been implemented in suppliers, Calsonic Kansei requires from suppliers to comply with this guidelines.
Calsonic Kansei explains the measures taken should suppliers’ activities not meet the CSR guidelines.
Calsonic Kansei requests suppliers to understand the following:
1.Calsonic Kansei requests suppliers to comply with all of laws/regulations, including those which are included in the 2th B) iv clause of this guideline, “Compliance”,
and promote to comply with laws/regulations to your supply chain and consignment suppliers.
Meanwhile, if efforts or activities in Calsonic Kansei do not conform to the guidelines, Calsonic Kansei requests to immediately report the details through main responsible manager in Purchasing.
2. In order to ensure 1, Calsonic requests suppliers to establish and operate their own internal CSR organization and system.
3. If a supplier’s activities violate this compliance, Calsonic Kansei requests the supplier to immediately report the detail and submit the investigation result / countermeasures to Calsonic Kansei.
Calsonic Kansei may stop any new RFQs until the measures are concluded as appropriate.
Calsonic Kansei included this CSR policy to Master Purchasing Agreement (MPA) or other agreement.
For suppliers that already have a current MPA with Calsonic Kansei, the MPA will remain as it is, however Calsonic Kansei does request that suppliers completely execute on points 1~3.