Sustainability | Key CSR IssuesConsider the Societal and Environmental Impact of the Supply Chain

Basic Policy

Consider the Societal and Environmental Impact of the Supply Chain represent extremely important issues for the TDK Group as a midstream company. In light of the latest related laws and ordinances as well as global industrial regulations, as part of our responsibilities as a supplier we take note of the labor environment at TDK Group production sites. Similarly, as a buyer, we ascertain the labor environment conditions of our business partners. We then implement training and guidance as required with a view to improvement. In this way we forge a solid supply chain—from upstream to downstream—to fulfill our social responsibilities.

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Relevant SDGs

  • SDGs 8.働き街も経済成長も
  • SDGs 12.つくる責任 つかう責任
  • SDGs 16.平和と公正をすべての人に

Social Impact (Positive and Negative Impacts)

Positive impact

  • Reduction of risk in own Group
  • Continuation of transactions with customers
  • Promotion of alternative material development

Negative impact

  • Concerns arise of serious human rights violations at sites in Asia where the Group operates
  • Concerns arise of serious human rights violations or environmental pollution at sites of group suppliers in Asia
  • Concerns arise of complicity in conflict, serious human rights violations, or environmental degradation at sites where minerals are mined through the purchase of metal materials and component materials that contain metal

Important Theme―Consider the Work Environment at Manufacturing Sites

Main efforts

  • Implementation of CSR self-checks and risk assessment at all manufacturing sites
  • Improvement of activity levels through CSR audits by customers and independent CSR audits
  • Continuous improvement of knowledge and abilities through internal auditor training, etc.

Functions

  • CSR Function
Fiscal 2018 goals Fiscal 2018 achievements Fiscal 2019 goals
1) Perform 100% CSR self-checks at manufacturing sites 1) Achievement 1) Perform 100% CSR self-checks at manufacturing sites
2) Perform 100% labor and ethics risk assessment at manufacturing sites 2) Achievement 2) Perform 100% labor and ethics risk assessment at manufacturing sites
3) Secure 100% opportunities for third-party CSR audits once every two years (High-risk countries of Asia including China) 3) Achievement (High-risk countries of Asia including China) 3) Secure 100% opportunities for third-party CSR audits once every two years (High-risk countries of Asia including China)

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Important Theme―Consider the Work Environment of Suppliers

Main efforts

  • Understanding and promotion of CSR procurement globally
  • Improvement of the management level of CSR procurement
  • Build a set up to conduct CSR efforts to sub-contractors

Functions

  • Procurement Function
  • Each business group
  • Human Resource Development Function
Fiscal 2018 goals Fiscal 2018 achievements Fiscal 2019 goals
1) CSR-compliant supplier ratio: over 95% 1) CSR-compliant supplier ratio: 94.4% 1) CSR-compliant supplier ratio: over 95%
2) Build a set up to conduct CSR efforts to sub-contractors 2) Build a set up to conduct CSR efforts to sub-contractors 2) Perform 100% CSR self-checks at sub-contractors and conduct CSR audits once every two years at major sub-contractor upon whom TDK has high dependence in China
3) Perform 100% CSR self-checks at dispatch companies used by manufacturing sites in high-risk countries of Asia including China. 3) Achievement 3) Perform 100% CSR self-checks at dispatch companies used by manufacturing sites in high-risk countries of Asia including China.

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Important Theme―Responsible Sourcing of Minerals

Main efforts

  • Improvement of confirmed DRC conflict-free supplier ratio
  • Continuous participation in and cooperation with industrial organizations and related groups

Functions

  • Procurement Function
  • Quality Assurance Function
Fiscal 2018 goals Fiscal 2018 achievements Fiscal 2019 goals
1) Confirmed DRC conflict-free supplier ratio: over 90% 1) Confirmed DRC conflict-free supplier ratio: 92.6% 1) Confirmed DRC conflict-free supplier ratio: over 92%
2) Monitor number of customer responses 2) Implement monitoring 2) Monitor number of customer responses

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