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Together with business partners

Social background

One of the issues raised by ISO26000 is the “promotion of social responsibility in the value chain.” Moreover, the Leaders' Declaration of the 2015 G7 Elmau Summit included “Responsible Supply Chains.” When engaging in procurement activities, in addition to conventional QCD (quality, cost and delivery), a company is expected to also consider factors such as human rights, labor practices, fair business practices and the environment.

The way of thinking by JTEKT

Promoting fair business

JTEKT regards business partners as equals and aims for mutual development and growth based on strong relationships of trust. JTEKT has stipulated policies for open and fair business practices in its Corporate Activities Standards and its Purchasing Philosophy regardless of country or company size and including companies with no experience supplying to JTEKT. On the company website, JTEKT has outlined procedures for becoming a business partner, as a means of providing fair, equal opportunities for all.

 “Follow proper business practices and engage in fair, transparent and free competition based on a respect for the law.”(from JTEKT Corporate Activities Standards)

Purchasing Philosophy
Fair and transparent business transactions We provide open, fair and equal opportunities to all regardless of nationality or company size, including companies with no experience doing business with JTEKT.
Purchasing Basic Policy
Mutual trust Build mutual trust through close communication with business partners.
Coexistence and co-prosperity Achieve harmonious mutual prosperity with our business partners by establishing reliable relationships.
Long-term, stable business relationships Achieve stable procurement meeting JTEKT's quality, cost, volume, and delivery requirements through continuous business.
Global purchasing Achieve optimal purchasing from a global viewpoint and improve international competitiveness by a strong supplier chain.

[ CSR Activity Item Guidelines ]

We issued the CSR Activity Item Guidelines for our business partners, in order to share with them the purpose of our CSR Policy and clarify items that we would like our business partners to observe. We request our business partners deploy these guidelines upstream as well.
Moreover, in order to maintain fair trade, we ensure that all departments which interact with business partners respect the various industrial fair trade guidelines and, in order to improve communication with business partners, utilize every opportunity to disseminate information and gather opinions.

1. Management-related initiatives

  • Legal compliance
  • Risk management

2. Initiatives for stakeholders

  • Securing quality
  • Fair trade
  • Good labor-management relations
  • Protection of human rights/respect for diversity
  • Observance of corporate ethics
  • Initiatives for local communities

3. Initiatives for the global environment

  • Environmental management
  • Environmentally friendly business activities

CSR activity guidelines for JTEKT's business partners

Green Purchasing activities

Our company promotes companywide Green Purchasing activities in order to contribute to the creation of a sustainable recycling-based society. For this purpose, we have issued Green Purchasing guidelines and have requested the cooperation of business partners.

Requests to our business partners

We make the following requests to our business partners under the Green Purchasing Guideline.

  • Construction of an environmental management system based on obtainment of external certification such as ISO14001.
  • Observation and reinforcement of environmental laws and regulations
  • Prohibit or restrict use of environmentally burdensome substances
  • Improve environmental performance by reducing CO2 emissions, etc.
  • Promote actions to conserve biodiversity

Main activities FY2018

Purchasing Policy Briefing

On April 17th, 2018, the Procurement Policy Briefing was held at Hotel New Otani Osaka, attended by 261 companies and 297 people. As FY2018's procurement policy, we requested to strengthen CSR and thorough safety, which are major preconditions of business. At the same time, we explained our major implemented items for the fiscal year. We also awarded our business partners who had demonstrated outstanding performance in regards to quality, technology, cost improvement, and VE/VA proposals (a newly-established category in FY2018) for the year overall.

Major Implementation Items for FY2018
  • Strengthen initiatives to solve significant quality problems
  • Achieve superior international cost competitiveness
  • Manage the global optimal procurement

Holding the General Meeting of Suppliers in India NEW!

In May, 2016, the first India Procurement Policy Briefing was held after the integration of purchasing functions of three genpos: JIN, JSAI, and KBIN. In addition to explanations of purchasing policy, market trends, and quality policy, we set aside enough time for Q&A, in order for attendees to understand "new JTEKT India" future activities.

Quality control tournament of the JTEKT Supplier Association

The Quality Management Convention was held on November 21st, 2018, at Osaka Matsushita IMP Hall, and was participated in by around 370 people from all 252 member companies of the JTEKT Supplier Association (*).
The event consisted of the examples of outstanding improvements from 7 companies and presentations by JTEKT's QC Circle.

* The JTEKT Supplier Association
The JTEKT Supplier Association is comprised of 252 business partners (as of FY2018). It intends to foster mutual trust among members and enhance their capabilities through activities such as quality control tournaments, workshops, and lectures.

JTEKT Supplier Association Workshop

The event of JTEKT Supplier Association was held at the Midland Hall in Nagoya on February 6th, 2019. An external lecturer was invited to deliver a presentation on automotive industry outlook, employment in the manufacturing industry, and labor management.

JTEKT Supplier Association
Disaster Mitigation Study Session NEW!

With JTEKT Supplier Association members' participation, we held disaster mitigation study sessions in Osaka and Nagoya between May and December, 2018. Three different topics were covered there.

Initiatives for the conflict minerals issue

In FY2018 as well, we conducted the survey regarding conflict minerals ongoing since FY2013. With the cooperation of our business partners, we confirmed the status of conflict minerals all the way to the supply chain and appropriately responding to the relevant customer enquiries.

Interviews to learn business partners' difficulties

Since the first interview in FY2017, JTEKT had met with approximately 200 suppliers (as of September, 2018) to learn business-related difficulties they face, and engaged in improvement. We will continue the activities including revisiting them.

On April 14th 2017, JTEKT established the dedicated consultation desk for business partners in order to further strengthen our response to the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors.