Toshiba Announces Group Procurement Policy Promoting Corporate Social Responsibility

15 February, 2005

New policy extends respect for human rights, labor and the environment to suppliers around the world

TOKYO -- Toshiba Corporation today announced the introduction of a Group-wide procurement policy that places corporate social responsibility at the heart of its relations with suppliers of goods and services. The Toshiba Group Procurement Policy requires suppliers to promote legal compliance and operations that respect human rights and the environment, and gives priority to companies that meet high standards. Toshiba and its Group companies will start implementation of the Procurement Policy this month by providing suppliers in Japan and the US with explanations of the policy and seeking their understanding and support. In the next phase, the policy will be extended to suppliers in Europe and Asia.

The core of the Toshiba Group Procurement Policy is concern to assure that Group companies comply with all applicable laws and regulations, with an emphasis on environmental consciousness, whenever they procure goods and services required for the production and supply of products. Promotion of the policy is expected to promote positive partnerships and fair business transactions with Toshiba Group suppliers throughout the world.

Introduction of the policy allows Toshiba to extend CSR activities to cover product manufacture and supply processes throughout Toshiba Group and its suppliers. By sharing the Toshiba Group Procurement Policy with its suppliers, Toshiba asks them to give full consideration to the human rights and labor standards, including prohibition of child and forced labor, prohibition against discrimination and provision of a safe, clean working environment.

Toshiba has long promoted policies reflecting CSR concerns. In procurement, the company introduced green procurement guidelines as early as December 1999. Since then Toshiba has promoted procurement of products, parts, processed materials and raw materials that have lower environmental impacts and that support development of environmentally conscious products.

In July 2003, Toshiba established the Corporate Social Responsibility Division, which reports directly to the President. The division is charged with clarifying and promoting CSR within Toshiba Group. In January 2004, Toshiba announced its supports for the United Nations Global Compact Initiative and its ten principles on human rights, labor and the environment. The company subsequently revised the Toshiba Group Standard Conduct, the guiding principles observed by 400 Toshiba Group companies.

Toshiba regards CSR as base for earning the trust of society and sustainability of company, and will continue to promote policies for assuring the highest standards of corporate citizenship.

Outline of Toshiba Group Procurement Policy

1. Basic Procurement Policy
(A) Compliance with Laws, Regulations & Environmental Considerations
(B) Fair and Open Transactions
(C) Strengthening of Partnerships with Suppliers
2. Policy for Selecting Suppliers
(A) The company complies with laws, regulations and places emphasis on environmental consciousness.
(B) The company has sound business operations.
(C) The company has the ability to supply goods and/or services to Toshiba Group with emphasis on adequate quality, price and delivery lead-time.
(D) The company is capable of providing a stable supply of goods and/or services. Also the company must have the flexibility to respond quickly to supply/demand fluctuation.
(E) The company possesses technology that contributes positively to Toshiba Group products.
3. Supplier Expectations
(A) Compliance with Laws, Regulations and Social Customs
1) Ensuring compliance with the laws and regulations in effect in the countries and regions in which they operate include, for example, anti-trust laws, commercial codes and personal privacy laws.
2) Prohibition of child and forced labor
3) Prohibition against discrimination
4) Must maintain a safe and clean working environment
(B) Environmental Considerations
1) Suppliers are encouraged to adopt ISO 14001-based environmental management systems and to promote third-party certification.
2) Suppliers are encouraged to utilize green procurement, which provides for the procurement of parts and materials that have smallest negative impact on the environment such as reduction of hazardous chemical substances.
(C) Maintain Sound Business Operations
(D) Securing Excellent Product Quality
(E) Offering Goods and/or Services at Appropriate Prices
(F) Firm Delivery Commitment and Establishment
(G) Enhancement of Technological Capabilities

The Toshiba Group Procurement Policy will available on the Toshiba website. URL:

Toshiba Group Procurement Policy

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