Sustainability

ESG Activities Supply Chanin Initiatives

Fair Purchasing Practices

In accordance with the OKI Group Code of Conduct, we emphasize fair, honest, and non-discriminatory selection of suppliers, as well as sincere and fair business transactions. To ensure that our procurement activities are conducted properly, we conduct biannual workshops on purchasing-related laws for persons in charge of materials- and procurement-related divisions, including those of subsidiaries. At the workshops, we provide education and share information on the OKI Group's policies as well as relevant laws including the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors. In fiscal year 2020, we held the workshops on purchasing-related laws online in September and March. A total of 241 people participated.

Procurement BCP(Stable Procurement of Materials)

The OKI Group provides many products in businesses that support social infrastructure. To ensure stable procurement of materials in these businesses, we have established a procurement BCP system. We have produced a Groupwide procedural manual to prepare for typhoons, torrential rains, and other natural disasters that are occurring frequently in recent years, in which regularly examining the locations of our suppliers' manufacturing bases and improving communication protocols for times of emergency are included.
In fiscal year 2020, facing the spread of COVID-19, the torrential rains of July 2020 that caused tremendous damage, and the earthquake off the coast of Fukushima prefecture in February 2021, we were able to maintain our supply chain by keeping in contact with suppliers and business partners across the OKI Group and making necessary adjustments. As a countermeasure against the impact of COVID-19, OKI undertook supply chain verifications such as checking the operational status of factories and impacts on delivery timelines at approximately 2,000 companies, including not only suppliers and business partners, but also secondary and lower materials manufacturers. At the same time, we are also committed to improving systems in order to respond to changes in daily habits and work-style due to the COVID-19 pandemic.
From the second half of fiscal year 2020, a global materials shortage has emerged, including for semiconductors, as demand rapidly recovered for automobiles and increased for computers and servers due to the spread of telework and lifestyle changes. OKI will continue to work with suppliers and business partners and strive to secure materials.

Constructing a Relationship of Trust with Suppliers and Business Partners

In July 2020, OKI prepared and announced a "Declaration of Partnership Building" following the encouragement of the Ministry of Economy, Trade and Industry of Japan. In addition to seeking improved added value across supply chains, OKI endorsed the framework implemented by the Council on Promoting Partnership Building for Cultivating the Future, which is made up of representatives from the business circles and the labor organizations, as well as related ministers, in order to prevent small and medium enterprises from bearing burdens caused by trade conditions under the influence of the COVID-19 pandemic. By forming new collaborations with suppliers, OKI aims to increase mutual added value to benefit parties across all supply chains.
The OKI Group has built relationships of trust as a partner in the supply chain and strengthened collaboration with suppliers for the promotion of ESG initiatives, including compliance with laws, regulations and societal norms, and environmental conservation. The framework of the Declaration of Partnership Building is based on these initiatives. This declaration once again states OKI's intention toward initiatives that increase mutual and collaborative added value through the sharing of purchasing plans and measures to improve operational efficiency by sharing and visualizing information across the entire supply chain. By training employees to make judgements and act based on the OKI Group Procurement Policies, OKI is striving to further strengthen partnerships.

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