Sustainable Procurement

Our Concept of Sustainable Procurement

SII complies with the Seiko Group Procurement Activity Policy. To achieve sustainable procurement, SII is committed to: “coexistence and co-prosperity with business partners,“ “promoting procurement activities with consideration for the environment, society, and governance,“ and “fair and impartial evaluation of business partners.” These principles guide our efforts to ensure responsible and effective procurement practices.

Seiko Group Procurement Policy

The Seiko Group will fulfill its social responsibilities by contributing to the realization of a sustainable society through the implementation of our corporate philosophy – creating “A future filled with smiles all over the world” and of being “A company that is trusted by society.” To this end, the Group has established three key aims for its procurement policy: 1) Coexistence and co-prosperity with business partners; 2) Promoting procurement activities with proper consideration for the environment, society, and corporate governance; and 3) Fair and impartial selection of business partners. 
The Group will expand its procurement activities globally based on these three policy aims, which are described in greater detail below.

1. Coexistence and co-prosperity with business partners

The Seiko Group and its business partners aim to build a relationship of mutual trust over the long term. It is our goal to continue to prosper together by helping each other.

2. Promoting procurement activities with proper consideration for the environment, society, and corporate governance

We will respect global social norms and work together with our business partners to promote responsible procurement activities that involve proper consideration for the environment, society, and corporate governance.
We will promote procurement activities that take into consideration the following factors (among others):
(1) Compliance with laws, regulations, and social norms
(2) Respect for human rights
(3) Protection of occupational safety and health
(4) Promotion of global environmental conservation
(5) Promotion of business continuity planning (BCP)
(6) Prohibition of bribes (including illegal gifts, payments, and benefits) to any stakeholder

3. Fair and impartial evaluation of business partners

We respect “fair, transparent, and free competition,” which is a fundamental rule of a freely competitive society, and we evaluate our business partners based on the following criteria:
(1) The partner must be active in environmental, social, and corporate governance initiatives
(2) The partner must be highly trusted as a company (Stable business conditions, appropriate risk management system, etc.)
(3) The partner must have technological capabilities that can contribute to Seiko Group products
(4) The quality, price, and delivery times of the items procured must be at appropriate levels.
We will conduct comprehensive evaluations based on these and other criteria.

We aim to improve the value of our entire supply chain by conducting business in accordance with this Seiko Group Procurement Policy.

Supply Chain Management

Supplier Engagement

SII holds briefing sessions to explain the purpose, background, and specific initiatives of the Seiko Group Procurement Guidelines. During these sessions, we obtain written agreements from our business partners on their efforts to address various social issues, such as human rights and environmental concerns, within their supply chains. We also conduct Self-Assessment Questionnaire (SAQ) surveys to help suppliers self-evaluate their compliance with each item in the guidelines.
In FY2023, we identified the most important and key suppliers based on Seiko Group's standards. We held briefing sessions for these suppliers in Japan and obtained their written consent. Additionally, an SAQ survey was conducted for the most important suppliers. We plan to gradually expand this initiative to international business partners and general suppliers in Japan, as part of our commitment to realizing a sustainable society.

Supplier Briefing Session
Supplier Briefing Session

Seiko Group Procurement Guidelines

Supplier Certification System

SII has traditionally used supplier certification criteria to select business partners fairly and has established a CSR system within the purchasing supply chain.

SII Group Supplier Certification Criteria

  • Existing framework to conduct fair and honest business, respect human dignity and achieve coexistence with society
  • Stable business condition
  • Environmental management system
  • Management system for quality and risk management

SII made efforts for the suitable implementation of a supplier certification system in FY 2023.

Compliance with the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (Subcontract Act)

The Subcontract Act has a major significance in purchasing activities in Japan.
SII established the Subcontract Act Section at the head office to reinforce compliance with the Subcontract Act by cooperating with the SII Group's purchasing staff through activities including appropriate guidance to routine work and education.

Purchasing Risk Management

In our role as a manufacturer that provides products, it is important for us to minimize the risk of a disruption in our supply of parts. Our Purchasing Division clarifies key suppliers and comprehends manufacturing bases to promptly handle emergency situations in case of disasters like earthquakes. In addition, the division is promoting the selection of alternative suppliers or parts to prevent the interruption of parts supplies.

Basic Education Programs for Purchasing Divisions

In order to acquire basic knowledge of purchasing operations, our education programs have been widely provided not only to the employees and managers in purchasing division but also to the employees related to the purchasing practices including engineering, manufacturing, and production control. They are also encouraged to build up fundamental knowledge and awareness for CSR.

Approach to Conflict Minerals

SII recognizes conflict minerals as being a critical international issue that supports the financing of organizations engaged in human rights violations and/or injustices committed in the Democratic Republic of Congo and adjoining countries.
In March 2012, the "SII Group Conflict Minerals Policy" was established, and we ask our suppliers for their cooperation in prohibiting the use of any conflict minerals.

SII Group Conflict Minerals Policy (Established in March 2012)

SII Group is committed to developing, carrying out, and promoting a policy that prohibits the use of any minerals ("conflict minerals" *1), whose extraction, trade, handling and export contribute to conflicts in the Democratic Republic of Congo and adjoining countries, and/or lead to human rights violations.

  • SII Group recognizes conflict minerals as a critical international issue that supports the financing of organizations engaging in human rights violations and/or injustices committed in the Democratic Republic of Congo and adjoining countries.
  • In the SII Group Charter of Corporate Behavior, SII Group clarifies that "we respect the human rights and individuality of all stakeholders in our business activities."
  • SII Group has no intention of taking part in any actions that violate human rights. SII Group has thoroughly communicated and appropriately implemented this policy among SII Group's affiliate companies, and cooperates with them to disseminate the policy widely.
  • SII Group asks our suppliers for their cooperation in following the policy.

*1: Conflict minerals include cassiterite (tin), coltan (tantalum), wolframite (tungsten), and gold.

There is also a substance (cobalt) reported in regard to severe violation of human rights besides tin, tantalum, tungsten, and gold.
SII will cope with the requirements from the industries.