The Otsuka group, together with its business partners, aims to contribute to the building of a sustainable society by promoting CSR procurement that takes into consideration factors such as legal compliance, the environment, and the protection of human rights.
The Otsuka group engages in business activities that are safe, reliable, socially acceptable, and in compliance with laws and regulations across the entire value chain. When commencing dealings with a business partner, we perform screening and checks to ensure the quality of raw materials and to guarantee stable procurement. We also conclude a basic transaction agreement in advance. In the case of a new supplier, transactions are only determined after we have carried out due diligence beforehand. In seeking mutually sustainable development through fair, equitable, and transparent procurement and the establishment of healthy relationships, we have formulated and share with our business partners our group-wide Otsuka Group Sourcing / Procurement Vision & Policy, which takes into account factors such as human rights, labor issues, the environment, and anti-corruption measures. We have also formulated our Sourcing / Procurement Guideline that embodies the provisions of our policy and plan to hold information sessions in the future for our business partners.
We conduct surveys on business partners by using the CSR procurement self-assessment questionnaire* provided by UN Global Compact Network Japan—in 2018 more than 95% of our partners sent back their responses. We assess our business partners with respect to not just legal compliance but their activities regarding human rights, labor, the environment, and anti-corruption measures. And by providing feedback we are further encouraging CSR procurement.
Moreover, in order to ensure a stable supply of products, we perform risk assessments on key raw materials in advance to identify potential risks so we can take countermeasures. And in principle, we purchase raw materials from multiple companies.
We also take environmental considerations into account. For example, Otsuka Pharmaceutical collaborates with the e-Commerce Department to make suggestions about environmentally friendly packaging.
*Questionnaires are sent to business partners that correspond to predefined criteria.
Otsuka Group Sourcing / Procurement Vision & Policy
Based on the corporate philosophy “Otsuka-people creating new products for better health worldwide” and global CSR standards, Otsuka Group will conduct the sourcing / procurement activities to contribute to building a sustainable society and to the people’s health improvement and QOL. Otsuka will strive to provide products with sufficient quality that are innovative, reliable and safe.
1. Relationship with Suppliers
We will build a relationship of trust with our suppliers within the value chain through open and fair communication to aim for mutual sustainable growth.
2. Supplier Selection Criteria
We will select fair and transparent companies for our suppliers by comprehensively evaluating quality (Q), cost (C), delivery (D), and business stability.
3. Consideration for Society
To achieve a sustainable society, we fulfill our social responsibility for human rights, labor, environment and support for local communities.
While abiding all the laws and regulations, we will thoroughly eliminate unfair transactions and behave with high ethical standards.