Together with Suppliers

Social Background

One of the issues raised by ISO26000 is "Promoting social responsibility in the value chain." Moreover, the Leaders' Declaration of G7 Summit 2015 in Schloss Elmau included "Responsible Supply Chains." When engaging in purchasing activities, a company is expected to consider human rights, labor practices, fair business practices and the environment as well as the conventional QCD (quality, cost, and delivery.)

The way of thinking by JTEKT

Fair and Equitable Business Practices with Suppliers

JTEKT has clearly stated in the JTEKT Corporate Activities Standards and our Purchasing Philosophy that we conduct open and fair business practices with our suppliers regardless of their country, size of business, and experience to do business with us. In accordance with the policy, we have posted procedures for starting business with us on our website to provide each supplier with an opportunity for equitable competition. Moreover, we announced our "Partnership Building Declaration" in October 2021, which includes our commitment to growth and development of both our company and suppliers through mutual trust built by respecting suppliers as partners.

We engage in fair, transparent, and free competition and proper business practices based on a law-abiding spirit.
(Excerpted from JTEKT Corporate Activities Standards)

Purchasing Philosophy
Open and Fair Business Practices We provide each supplier with an opportunity for equitable competition regardless of its country, size of business, and experience to do business with us.
Basic Purchasing Policy
Mutual Trust We build mutual trust with our suppliers through close communication.
Coexistence and Co-prosperity We achieve co-prosperity with our suppliers based on mutual trust with them.
Long-term, Stable Business Relationships We achieve stable purchasing that meets customers' demands for quality, price, quantity, and delivery dates through continuous transactions with our suppliers.
Global purchasing We achieve optimal purchasing from a global viewpoint and strengthen our international competitiveness by establishing a strong supplier chain.

[ JTEKT Supplier Sustainability Guidelines ]

In May 2022, JTEKT renewed the JTEKT Supplier Sustainability Guidelines for sharing the aim of our CSR Policy with our suppliers. The guidelines provide guidance on global environmental initiatives, protection of human rights, and respect for diversity in light of the recent social context. We require our suppliers and their suppliers in the upstream supply chain to comply with the guidelines.
Each division of our company complies with various guidelines in each industry to maintain appropriate transactions with suppliers. We also use every possible opportunity to disseminate information to suppliers and obtain their opinions to improve communication with them.

CSR activity guidelines for JTEKT's business partners

Green Purchasing

JTEKT promotes companywide green purchasing activities to build a sustainable, recycling-based society. For this purpose, we have issued the JTEKT Green Purchasing guidelines to ask our suppliers for their cooperation.

Request to Suppliers

We ask our suppliers for the following actions in the Green Purchasing Guidelines.

  • Establish an environmental management system, including the acquisition of certification from external organizations such as ISO 14001.
  • Comply with and thoroughly enforce environmental laws and regulations.
  • Prohibit or restrict the use of substances of concern.
  • Improve environmental performance, including reducing CO2 emissions to achieve carbon neutrality.
  • Promote biodiversity conservation.

Main Activities with suppliers in FY2023

Annual Policy Meetings and Awards Ceremony

We held the fiscal 2023 company policy meeting and awards ceremony for suppliers face-to-face for the first time in four years since the outbreak of the COVID-19 pandemic. The annual awards ceremony recognizes suppliers for their outstanding performances through the year in quality, technology, VE/VA proposals, and the environment. We also distributed a video about our annual purchasing policy to our suppliers, in which we asked them to promote safety, quality, and competitiveness as well as carbon neutrality as a way to strengthen their business foundation. While continuing appropriate transactions with suppliers, we will further improve our mutual communication based on the Partnership Building Declaration.

JTEKT Supplier Association

Consisting of 248 suppliers (as of FY2023), the JTEKT Supplier Association is engaged in various activities to contribute to creating a prosperous society and improve the suppliers' business foundation through mutual study and trust. The association holds safety subcommittee meetings, quality management meetings, training sessions, and other activities this fiscal year. JTEKT also continuously supports the suppliers for strengthening our partnership.

Addressing Conflict Minerals Issues

JTEKT has continuously conducted our conflict minerals survey since FY2013. With the cooperation of our suppliers, we have confirmed the history of minerals used in our products to respond appropriately to customer inquiries.

Initiatives for Carbon Neutrality

Led by an internal organization dedicated to carbon neutrality, established in 2021, we work with our suppliers to achieve carbon neutrality, introducing good practices on carbon neutrality and advising suppliers on energy-saving activities.

Consultation Desk for Suppliers

On April 2017, JTEKT established the consultation desk for suppliers to further strengthen our response to the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors.
In addition, through interviews with suppliers, we are working to understand their' problems, improve communication, and promote appropriate transactions.