EXEDY Group's Sustainability Activities

Supply Chain

Our approach to procurement

EXEDY conducts procurement activities based on the following four basic policies and "Promotion of Appropriate Transactions (Compliance with the Antimonopoly Act and Subcontract Act)" in order to provide products and services that satisfy our customers.

  1. Open, Fair and Impartial Transactions
    In selecting business partners, we will provide fair and impartial opportunities regardless of nationality, corporate size, or business experience, and will make comprehensive judgments based on quality, delivery, cost, technology, and other capabilities, as well as management stance toward continuous improvement, and efforts toward social responsibility such as environmental issues.
  2. Coexistence and Co-prosperity Based on Mutual Trust
    Through close two-way communication with our partner companies, we share necessary information with each other and build a relationship of trust. Based on this, We will strive for mutual improvement and coexistence and co-prosperity as partners in strengthening our competitiveness.
  3. Promoting Green Procurement
    We will promote the supply of products and services with low environmental impact in accordance with the Green Procurement Guidelines for Cooperating Companies.
  4. Compliance
    We will comply with all applicable laws and regulations, as well as the "Guideline for Appropriate Transactions in the Automobile Industry" (formulated by the Ministry of Economy, Trade and Industry) and its spirit.

In addition, when entering into transactions with new suppliers, we evaluate their safety, health, and environmental efforts. We form contracts that include provisions on "environmental conservation," "resource conservation," and "elimination of antisocial forces". When signing contracts with new suppliers, we distribute our Green Procurement Guidelines (for environmental conservation) and CSR Guidelines for Cooperating Companies (CSR compliance) (we provide an English version for companies outside Japan). We have started doing business with suppliers after showing them the social issues that we are seeking to address and informing them that we are seeking similar initiatives not only internally but also upstream in the supply chain.

In addition, we visit existing suppliers on a regular basis for the purpose of conducting on-site audits of safety, health, and environmental aspects, and provide guidance for improvement if any deficiencies are found. In FY2019, we conducted audits of 12 of our existing suppliers and provided guidance on a total of seven environmental and hygiene issues.

CSR Guidelines for Cooperating Companies

At EXEDY we believe CSR efforts throughout the automotive industry's supply chain are of vital importance, if we want to keep developing in a way that is sustainable to earth and society. Therefore, in May 2017, we established the "CSR Guidelines for Cooperating Companies". We ask our cooperating companies to comply with these guidelines and to forward them to their suppliers.


CSR Guidelines for Cooperating Companies
  1. Guidelines
  2. EXEDY’s Corporate Philosophy and CSR Policy
  3. Basic Procurement Policy
  4. CSR Guidelines for Cooperating Companies
    1. Compliance
    2. Human Rights and Labor
    3. Local and Global Societies
    4. Share with Your Suppliers

Respect for Human Rights

Regarding the following eight items stipulated in CSR Guidelines for Cooperating Companies, we request that cooperating companies carry out activities and education, etc. to respect human rights.

Elimination of Discrimination

In all employment situations (application, hiring, assignment, promotion, compensation, training, benefits, discipline, dismissal, resignation, etc.), it is strictly prohibited to discriminate on the basis of birth, nationality, race, ethnicity, creed, religion, sex, age, disability, hobbies, educational background, or any other characteristic that should be protected by applicable laws of each country.

Respect for Human Rights
  1. It is also strictly prohibited to infringe upon one’ s human rights by bullying or intimidating them by use of violence, inappropriate language, slander or verbal abuse.
  2. We shall not engage in or tolerate any form of harassment on the basis of individuality, which should be protected by applicable laws in each country.
  3. We shall not behave in a way that interferes with an employee's performance, diminishes their dignity, or creates an intimidating, hostile, or offensive work environment.
  4. Immediately report and investigate complaints of harassment. Employees should be able to report harassment without fear of retaliation, intimidation, or harassment.
Child Labor
  1. We will never engage in child labor.
  2. Minimum age for employment is 15 years old, or the minimum age for employment in the country, or the age for completing compulsory education, whichever is greatest.
  3. We shall not allow employees under the age of 18 to perform potentially dangerous or harmful work, nor shall they be allowed to work during night shifts.
  4. For vocational training and apprenticeship, employment is possible only to the extent permitted by the applicable laws of each country.
Forced Labor
  1. We will never force anyone to work for our corporation.
  2. We will never demand that employees hand over their passports, identification cards or work permits as a condition of employment.
  1. We shall pay employees in compliance with applicable local laws and regulations regarding minimum wages, overtime, payroll deductions, piece-rates, and other benefits.
  2. We shall provide legally required benefits.
  3. Wages, benefits and deductions shall be in compliance with applicable laws and regulations of each country and shall be clearly communicated to employees in a timely manner.
Working Hours

We shall comply with applicable laws and regulations of each country governing employee working hours (including overtime).

Dialogue and Consultation with Employees
  1. We shall consult and dialogue in good faith with employee representatives or employees, and always promote mutual understanding.
  2. We shall recognize the right of employees to associate or not associate at will in accordance with applicable laws and regulations of the country in which the business activity is conducted.
  3. We shall ensure that employees have the right to open and direct dialogue with management without fear of retaliation, intimidation or harassment.
Safe and Healthy Working Environment
  1. To ensure that everyone can work with peace of mind, we place the highest priority on ensuring safety and health on the job and strive to prevent accidents and disasters.
  2. Support employees' health promotion through health promotion activities in the workplace and guidance for disease prevention.