Sustainability | Governance | Supply Chain ManagementSocial and Environmental Consideration at Manufacturing Sites
Our Approach
As a supplier, TDK recognizes the importance of fulfilling our social responsibilities by striving for social and environmental considerations at the Group’s manufacturing sites in order to continue our business. We strive to understand issues and make continuous improvements in a three-stage framework comprising self-assessments, audits, and training and dialogue.
Roles and Responsibilities
CSR function at the headquarters takes the lead in promoting this initiative, with a responsible person assigned at each manufacturing site.
Goals and Achievements
| Fiscal 2023 Goal | Achievements |
|---|---|
| Achieve 100% implementation of CSR self-checks at manufacturing sites (TDK Group manufacturing sites) | Achieved 100% implementation |
| Achieve 100% implementation of labor, human rights, and ethics risk assessments at manufacturing sites (TDK Group manufacturing sites) | Achieved 100% implementation |
| Conduct either of RBA-authorized audit, customer CSR audit, or CSR assessment based on the RBA VAP Operations Manual at all our manufacturing sites at least once every three years | Conducted at 63% of sites in the two-year period from fiscal 2022 through fiscal 2023 |
| Conduct training for personnel involved with CSR in Japan and overseas | Conducted CSR internal auditor training in Japan and the ASEAN region, and training on the RBA Code of Conduct and RBA VAP Operations Manual in China |
| Achieve 100% implementation of labor, human rights, and ethics internal audits at targeted manufacturing sites | Achieved 100% implementation at targeted sites |
Evaluations and Future Activities
Starting in fiscal 2022, we launched an initiative to conduct either an RBA-authorized audit, a customer CSR audit, or a CSR assessment based on the RBA VAP Operations Manual at all manufacturing sites at least once every three years. In the two-year period from fiscal 2022 through fiscal 2023, 63% of sites were audited, resulting in the achievement of the target by fiscal 2023.
From fiscal 2024 onward, we will pour further energy into each activity aimed at achieving our plan, and, while keeping a close eye on trends at the RBA, pursue efforts on a global level to strengthen CSR management in accordance with RBA standards.
| Fiscal 2024 Goal |
|---|
| Achieve 100% implementation of CSR self-checks at manufacturing sites (TDK Group manufacturing sites) |
| Achieve 100% implementation of labor, human rights, and ethics risk assessments at manufacturing sites (TDK Group manufacturing sites) |
| Conduct either of RBA-authorized audit, customer CSR audit, or CSR assessment based on the RBA VAP Operations Manual at all our manufacturing sites at least once every three years |
| Conduct training for personnel involved with CSR in Japan and overseas |
| Achieve 100% implementation of labor, human rights, and ethics internal audits at targeted manufacturing sites |
Initiatives
Self-assessments
| Frequency | Target site | Content | |
|---|---|---|---|
| CSR self-checks | Every year | All TDK Group manufacturing sites | Personnel at each site respond to a questionnaire on RBA check items (human rights, health and safety, environment, and ethics). Improvement measures are taken at each site based on feedback from the survey results. |
| Labor, human rights, and ethics risk assessments | Every year | All TDK Group manufacturing sites | The check items are updated every year based on social trends. Personnel at each site respond to a questionnaire. Based on the analysis results, improvement plans are developed and implemented. |
CSR Self-Checks
At TDK, we use the Self-Assessment Questionnaire (SAQ) provided by the RBA to conduct annual self-checks regarding labor (human rights), health and safety, the environment, ethics, and management systems at all of our manufacturing sites. The purpose is to get a sense of the current status of CSR activities at manufacturing sites, to identify and address potential issues, and to promptly respond to requests from customers for CSR surveys.
After the staff in charge at each site have answered the questionnaire, the Sustainability Promotion HQ analyzes the responses and provides feedback to those manufacturing sites that need it.
In fiscal 2023, of all the sites where SAQ was conducted, feedback to improve issues was provided to nine sites at which issues were identified as a result of evaluations.
Labor, Human Rights, and Ethics Risk Assessments
Every year, risks related to labor/corporate ethics are analyzed at all manufacturing sites. In the event that there are any inherent risks, they are corrected after having formulated a plan for improvement and work is performed to mitigate the risks (environment and health and safety assessments are conducted separately). Each site aims for continuous improvement by going through the PDCA cycle.
The items to be checked are updated every year based on social trends and so forth. After the staff in charge at each site have answered the questionnaire, the Sustainability Promotion HQ assesses risks and returns the results of their assessment back to the sites. When inherent risks have been discovered, plans for improvements are formulated and the issues are corrected at each site.
In fiscal 2023, we conducted a human rights risk assessment, with a focus on supplier management (labor agencies and service providers) in accordance with RBA standards. Remedial measures were taken by the end of the fiscal year at the 10 sites where risks were identified during evaluations.
Audits
| Frequency | Target site | Content | |
|---|---|---|---|
| RBA-authorized audit | Starting fiscal 2022, launched initiative to conduct either an RBA-authorized audit, a customer CSR audit, or a CSR assessment based on the RBA VAP Operations Manual at all manufacturing sites at least once every three years | Priority target sites based on Medium-Term Plan | RBA-authorized audit (VAP, AMA, or CMA) |
| Customer CSR audit | Sites requested by customers | Performed based on customer's audit standards | |
| CSR assessment based on the RBA VAP Operations Manual | Site where no RBA- or customer-based audit has gone in |
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| Internal audit | Annual | Site where high-level management is requested |
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Our company promotes mainly three types of CSR audit: an RBA-authorized audit, a customer CSR audit, and a CSR assessment based on the RBA VAP Operations Manual. By conducting audits based on the standards that customers require and on RBA standards, we have constructed a mechanism to ensure that the levels of labor, health and safety, the environment, ethics, and management systems are maintained at a global standard.
In addition, starting in fiscal 2022, all manufacturing sites are required to conduct either an RBA-authorized audit, a customer CSR audit, or a CSR assessment based on the RBA VAP Operations Manual at least once every three years. In the two-year period from fiscal 2022 through fiscal 2023, 63% of all manufacturing sites were audited, resulting in the achievement of the target by fiscal 2023.
Trainings and Dialogues
With a systematic understanding of RBA and customer requirements related to CSR, we provide timely training for quick responses. In fiscal 2023, in addition to having an RBA-authorized company conduct "CSR internal auditor training" in Japan and the ASEAN region, we held hybrid-format training relating to the RBA Code of Conduct and RBA VAP Operations Manual for the China region.
