I. Share Basic Management Philosophy

We would like to carry out the following philosophy together with our suppliers:
 
■Creation of Working Environment based on Respect for our Employees
We create conditions in the workplace where our employees can work with trust and develop a work climate to promote human development.
 
■Monozukuri based on Genchi-Genbutsu
The Seiren Group focuses on the Five Corporate Principles (Go-gen-Shogi) of theoretical approach, observance of rules, field visits, actual product and fact-based analysis.
We are committed to thoroughly observing actual products in the field and discover the true cause behind the facts.
 
■Relentless Kaizen Efforts
We improve our business operations continuously, always driving for innovation and evolution.
 
■Two-way Communication
In order to make good products, we must maintain close two-way communication with our suppliers as one company.
We must maintain close communication, exchanging ideas frankly and coming to terms with each other on all matters of importance.
 

Ⅱ. Expectations of Suppliers for providing "Products and Services"

The Seiren Group is committed to providing optimum, high-quality products and services based on environmental changes and customer’s needs.
We expect suppliers to provide the best possible products at the lowest possible cost. This must also consider providing in the most timely manner on a stable and long-term basis.
 
■Safety
Manufacturing is carried out by people, so it is most important to secure a safe environment for people to carry out manufacturing without worry.
In a safe working environment, workers can concentrate their efforts on manufacturing, and make products of good quality.
 
■Quality
The Seiren Group’s highest priority is quality.
We appreciate suppliers' understanding that quality is an absolute prerequisite for our business, and we assume that our suppliers will devote themselves to quality in providing.
 
■Delivery and Production
Automobile manufacturers, who are the main customers of the Seiren Group, maximize efficiency through lean manufacturing, producing only what is needed, only when it is needed, and only the amount that is needed. We expect suppliers to contribute to this lean efficiency through flexible, error-free execution in preparation for mass production, in mass production, and in delivery.
 
■Cost
We expect our suppliers to offer the most competitive cost in the world.
Suppliers need to develop new technologies and innovative production technologies to support their continuing cost reduction.
 
■Technological Capabilities
Technology is becoming increasingly important in the three areas of environmental protection, safety, and comfort.
We expect our suppliers to be proactive in proposing new technologies when supplying us with their products.
In addition, we expect our suppliers to be a pioneer in their ability to offer new embodied products at low cost.
 
■Stable Supply
We appreciate our supplier’s response to emergencies (accidents, disasters, disputes, etc.) in providing us with long-term, stable products. For special products, we expect our suppliers to share information with the Seiren Group in advance, consider multiple suppliers, and plan for a Business Continuity Plan (BCP).
 

Ⅲ. Expectations of Suppliers in the Process of Developing "Products and Services"

The Seiren Group expects our suppliers to comply with the following items to undertake sustainability activities.
In addition, we expect our suppliers deepen and expand sustainability initiatives with their suppliers by developing and deploying individual sustainability policies and guidelines incorporating the following items:
 
1. Legal Compliance
(1)Development of management system
・Our management will be proactive in promoting sustainability, establishing an appropriate business portfolio, allocating appropriately the necessary management resources for sustainability promotion, and developing systems.
・We thoroughly disseminate the policy to all employees and educate them to create awareness.

(2) Compliance with Laws and the Spirit thereof
・We recognize that compliance is prioritized in all aspects of business execution.
・We comply with all applicable domestic and foreign laws, international norms, and company regulations.
・We act fairly and honestly based on social good senses.
・We establish and implement policies, structure and mechanisms including a code of conduct, confidential compliance hotline and training, for ensuring and verifying legal compliance.

(3)Management and Protection of Confidential Information
・We manage and protect company’s confidential information such as trade secrets and use such information in an appropriate manner.
・We obtain confidential information concerning other companies only from authorized personnel by legitimate means. We verify the permissible scope of use and other conditions concerning such confidential information and use it only within the scope allowed, while maintaining its confidentiality and not infringing upon the rights of the other companies.
・We obtain personal information concerning employees, customers and business partners only by legitimate means. We manage and protect such information in a secure manner and use the information only within the scope allowed.

 (4)Protection of Intellectual Property
・We continually monitor and protect all intellectual property of the company against any infringement by others.
・We don’t infringe the intellectual property (such as patents, utilities, designs and trademarks) of others, illegally use such intellectual property or make illegal copies of software or publications.

(5) Compliance with the Competition Laws
・We don’t engage in illegal acts against the competition laws and regulations of each country and region including private monopolies, unreasonable restraint of trade (cartel, collusive bidding, etc.), abuse of superior bargaining position or unfair trade practices.

(6) Export Controls
・We comply with laws and regulations concerning export controls, thoroughly implement such controls and establish management as confirming whether products, technology or other exports are subject to regulations, and prepare and provide documentation of such confirmation.

 (7)Anticorruption Measures 
・We comply with applicable laws and regulations concerning political donations or contributions and strive to build transparent and fair relationships with political parties or administrative bodies.
・We don’t engage in giving or receiving presents, entertainment or money with customers, suppliers and other business partners in order to acquire or maintain unjust interest or wrongful preferential treatment.
・We don’t conduct off-the-book, fictitious or otherwise falsified transactions, or any other similar acts prone to be misconstrued as such, and shall make and keep books, records and accounts(ledger sheets and account ledgers, etc.), which, in reasonable detail, accurately and fairly reflect the transactions and disposition of assets.

2. Labor and Human Rights
The Seiren Group understands the purpose of the “Guidelines on Respecting Human Rights in Responsible Supply Chains” prepared by the government and the “Guideline for Responsible Business Conduct for the Textile and Clothing Industry of Japan” prepared by the Japan Textile Federation.
In line with these guidelines, we declare that we will implement the following conducts to respect the human rights of rights holders which include foreign technical interns, with the cooperation of our direct and indirect business partners in the supply chain.
We expect our suppliers to understand and will proceed with their efforts.
 
(1)Commitment and Stakeholder Engagement
・We will integrate a policy on respecting human rights into management based on the fact that companies have a responsibility to respect human rights.
・We will create an internal foundation for fulfilling our responsibility to respect human rights and promote initiatives with the understanding of our direct and indirect business partners in the supply chain. 

(2) Prevention and Mitigation of Risk
・When we need to address the issues through checking human rights risks, we will prioritize them based on the severity of the risks and take necessary conducts to prevent and mitigate the highest priority risks first.

(3) Prohibition of Forced Labor
・We ensure that all work is voluntary and employees are free to leave work or terminate their employment.
・We don’t tolerate forced labor, which is often extracted through violent and threatful means or by entrapment of debt, or any other form of modern slavery including human trafficking.

 (4)Freedom of Association Guarantee
・We recognize freedom of association and collective bargaining rights as a means to exercise and realize employee rights.
・We don’t interfere excessively with union activities, nor discriminate or unfavorably treat our employees because of their union activities.

(5) Prohibition of Discrimination, Diversity & Inclusion
・We don’t tolerate any form of discrimination relating to gender, age, nationality, race, ethnicity, creed, religion, sexual orientation, gender identity, disability, marital status or the presence of children with regards to all aspects of employment, including the application process, hiring, promotion, compensation, access to training, job assignment, wages, benefits, discipline, termination and/or retirement.
・We consider diversity and inclusion to be one of the key elements of the business framework, and promote activities accordingly.

 (6)Prohibition of Child Labor
・We don’t tolerate child labor which deprives children of accessing to education and restricts their development by forcing them to work from early age.
・The minimum age for employment shall be 15 years of age, the legal minimum age for employment, or the age for completing compulsory education, whichever is greatest under the local applicable laws and regulations, etc.
・We don’t use employees under 18 years of age for dangerous or harmful jobs.
・We allow children to work in job training or apprenticeship programs permitted under the local applicable laws and regulations, etc.

(7)Prevention of Harassment
・We don’t condone harassment which includes among others power harassment, sexual harassment, peer pressure, nor any form of harassment that lowers the dignity of an individual.
・Harassment may involve verbal, visual or physical conduct that negatively interferes with work performance, diminishes the dignity of any employee, or creates an intimidating, hostile or otherwise uncomfortable working environment.
・We implement procedures for prompt reporting and examination of any harassment complaints.
・We enable our employees to report any instances of harassment without fear of reprisal, intimidation, or harassment.

(8) Foreign Worker Guarantee
・We don’t require foreign workers to hand over their passport, official identification or work permit as a condition of employment.
・We don’t charge foreign workers any fees that are considered unreasonable under international norms, such as recruitment fees.
・We strive to promote understanding of the motherland’s culture of foreign workers and to create a working environment where they can respect each other regardless of race, nationality or position.

(9) Development of Safe and Healthy Working Environment
・We place the highest priority on safety and health programs and policies at work, so that each employee is able to work without undue concerns, and strive to prevent accidents and injuries from happening at work.
・We support efforts to improve the health of employees through health promotion activities, guidance for preventing illness, and other means at work.

(10) Wages and Benefits Guarantee
・We pay wages in compliance with local applicable laws and regulations, etc, including those relating to minimum wages, overtime hours, deductions from wage, piece rates and other elements of compensation.
・We provide legally mandated benefits.
・We ensure wages, other compensation, benefits and deductions are detailed and explained, in compliance with local applicable laws and regulations, clearly and regularly to employees.

(11) Development of Good Working Environment
・We comply with the relevant laws of each country regarding employee’s working hours, including overtime.
・We aim to enrich the lives of employees and their families through work.
・We aim to create an environment where employees can balance work and family life, even during important life stages such as marriage and childbirth.
・We promote work style reforms and improve operational efficiency through digitization and systemization.
 
3. Environment
The Seiren Group is committed to providing optimum, high-quality products and services based on environmental changes and customer’s needs.
We expect suppliers to provide the best possible products at the lowest possible cost. This must also consider providing in the most timely manner on a stable and long-term basis.

 (1)Initiatives for Preventing Global Warming through Energy Conservation Activities
・In order to achieve carbon neutrality, we will install renewable energy, rationalize manufacturing processes, reduce losses, and install energy-saving equipment.

(2) Initiatives for Reducing Waste to Achieve a Recycling-Oriented Society
・We will be committed to aiming to achieve a Recycling-Oriented Society by recycling and reusing discharged waste as valuable resources as much as possible.

(3) Measures for Pollution and Biodiversity through Management of Chemical Substances and Reduction of Emissions
・We comply with the relevant laws and regulations of each country and region, manage chemical substances (i.e. elimination, reduction in use) as well as especially ensure that prohibited substances aren’t used in products and production processes etc.
 
4. Responsible Material Procurement
・We engage in procurement activities to avoid the use of materials that could cause social issues such as human rights violations and environmental problems (e.g., conflict minerals, cobalt, mica, etc.)
 
5. Local/Global Community
・We recognize that we are a member of the international community and aim to grow in harmony with the local community.・We disclose information appropriately and fairly to a wide range of stakeholders, including shareholders and investors, and build relationships of trust through ongoing dialogue.

6. Developing and Deploying Policies and Guidelines for Suppliers
・We expect our suppliers to deepen and expand sustainability initiatives with their suppliers by developing and deploying individual sustainability policies and guidelines incorporating the guidelines outlined above.・We promote the above activities in consideration of the entire supply chain and conduct the necessary countermeasures for follow-up of suppliers.

7. Compliance with Seiren Supplier Sustainability Guidelines
The Seiren Group will develop fair and equitable procurement activities based on mutual trust and cooperation with suppliers.
We will address compliance of these guidelines throughout the entire supply chain which supports our manufacturing efforts. It is our policy to ask all our suppliers to carefully read and understand these guidelines and take the initiatives necessary to ensure that they penetrate down through your supply chain.

To confirm compliance status for these guidelines and for mutual communication, if necessary, there may be times when we visit your plant or other facilities.
There may be some cases where we accomplish this by having a third party carry out an audit. In the unlikely event that appropriate countermeasures are not taken, this may result in the cancellation of business orders.