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Supply Chain Management Social

Promotion of Supply Chain Initiatives

The Nisshinbo Micro Devices Group upholds the principles of “Thorough-Going Compliance” and “Fair and Transparent Business Practices” in its Business Conduct Guidelines. We are committed to acting fairly and sincerely across a broad range of social rules and corporate ethics, and to respecting suppliers as equal partners through sound business relationships. Our goal is to achieve sustainable transactions throughout the entire supply chain.

To promote sustainability throughout our Group’s supply chain, we established the “Nisshinbo Micro Devices Business Group Supply Chain CSR Promotion Guidelines” in 2022, which summarize our fundamental approach from perspectives such as legal compliance, fair trade, information security, environment protection, human rights, safety & health, and quality and safety. In response to recent social demands, we revised these guidelines in 2025. Furthermore, we have also formulated the “Nisshinbo Micro Devices Group Basic Procurement Policy.”

The Nisshinbo Micro Devices Group promotes sustainable procurement initiatives while ensuring that all suppliers understand the Group's basic policies and guideline.

Sustainable Materials Procurement

It is necessary for the Group and its business partners to actively promote CSR (Corporate Social Responsibility) activities from a common perspective. We will continue to promote CSR activities.

Sustainable Materials Procurement

Nisshinbo Micro Devices Group
Procurement Basic Policies

February 17,2025

  • Open-door policy
    In line with the principle of free competition, we will strive to ensure open, fair and impartial purchasing and outsourcing activities.
  • Partnership
    As equal partners through sound business relationships, we aim to develop and grow together with our business partners. To achieve this, we will make efforts to deepen mutual understanding and build trust through closer communication.
  • Procurement at a fair price
    Based on coexistence and mutual prosperity with excellent QCD business partners, we will strive to understand the cost structure and proceed with procurement at a fair price. In addition, we will promote cost reductions through VE/VA activities with our business partners.
  • Promotion of SCM
    By optimizing costs, delivery dates, and inventory, we will advance Group SCM and contribute to the competitive advantage of our products.
  • Promotion of procurement activities utilizing IT
    By promoting procurement activities that utilize IT, we will advance labor-saving, resource conservation, and information sharing.
  • Legal compliance and confidentiality
    In addition to complying with laws and regulations, we will respect social norms and promote responsible purchasing and outsourcing activities. Furthermore, we will properly manage the confidential information of our business partners obtained through transactions and will not disclose it to external parties without their consent.
  • Green procurement
    We will promote reducing environmental impact by purchasing products with a lower environmental footprint.
  • CSR
    We are committed to promoting CSR initiatives company-wide. As part of this effort, we will promote CSR procurement in our purchasing and outsourcing activities.

This policy will be communicated and reinforced through annual training sessions.

Initiatives for Fair Transactions

Declaration to Build Partnerships and Compliance with the Subcontract Act

The Declaration to Build Partnerships mechanism was established in May 2020 at the Council for Promoting Partnership Building for the Future, whose members include relevant cabinet ministers (Cabinet Office, METI, MHLW, MAFF, MLIT, and the Deputy Chief Cabinet Secretary), Keidanren chairman, JCCI president, and the RENGO chairman. This “Declaration to Build Partnerships” is a declaration of efforts for cooperation, coexistence and co-prosperity with business partners in the supply chain and compliance with desirable business practices between parent companies and subcontractors (the Promotion Standards based on the Law for the Promotion of Small and Medium-sized Subcontractors): the prevention of unfair assignment on trade terms and conditions to subcontractors.

Initiatives to Achieve Fair and Transparent Transactions through Subcontract Act Education

At the Nisshinbo Micro Devices Group (domestic manufacturing sites), we conduct annual training for all employees involved in purchasing operations—particularly those in charge of procurement—to ensure thorough understanding and compliance with the Subcontract Act. In 2024, this training was held in July, with participation of 822 employees from Nisshinbo Micro Devices Inc., 157 employees from AT Co., Ltd., and 12 employees from Fukuoka Co., Ltd., totaling 991 participants. The training included viewing a basic instructional video on the Subcontract Act provided by the Japan Fair Trade Commission, followed by a test to confirm comprehension. Through these efforts, we aim to realize fair and transparent transactions across the entire group.