Sustainable Procurement

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Practicing CSR Throughout the Supply Chain

Epson selects suppliers using fair criteria and procedures that are based on our Basic Procurement Policy. We have established internal rules that set forth criteria for selecting suppliers to help us to ensure that a prospective new supplier will be able to provide us with a stable supply of quality parts and raw materials at a fair price.
Once a year we also conduct a general evaluation of suppliers with whom we regularly do business. These periodic general evaluations are used to evaluate a supplier's performance in management, environmental management, quality management, cost management, and delivery deadline management so that we can ensure stability of supply. If a supplier receives a poor evaluation, we ask the supplier to provide us with a corrective action plan. We then re-evaluate the supplier and provide feedback on the results. This process helps lay the foundation for a stronger relationship.
In the 2014 fiscal year we evaluated approximately 1,500 business units at 900 companies.
We also presented suppliers with Epson's Procurement Guidelines and communicated our approach to CSR, which is to foster trust with all stakeholders as we progress with, and contribute to the creation of a better society. With this as a starting point, we are promoting initiatives toward socially responsible procurement in cooperation with our suppliers.

Compliance Management

Exercising high ethical standards and a social conscience, Epson conducts procurement activities in strict compliance with both the letter and spirit of laws and regulations, both national and international, in every country and region around the world. Training and education are an important part of this commitment.

Epson Group companies in Japan train employees on the laws, regulations, and social norms of various countries and regions around the world to ensure that employees have the required expertise and awareness.

All employees in Japan are required to take an online training course in Introduction to Procurement (Ethics & Code of Conduct) and another in Subcontracting Law Fundamentals. Moreover, procurement personnel, including persons with procurement approval authority, must earn in-house certification by successfully completing the Procurement and Compliance Management course. In the past, certification was permanent, so employees never had to renew their certificate once they earned one. However, we changed the system in the second half of the 2014 fiscal year. Now, employees are required to take Procurement and Compliance Certification Renewal Training five years after earning certification.

Epson will continue to provide regular training going forward to heighten compliance awareness and will strive to strengthen its internal processes to ensure the highest level of compliance management possible.