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The Hitachi Construction Machinery Group established the Procurement Policy and Guidelines for Procurement Activities, which we are widely disclosing over the Internet to the rest of the world.
In 2006, in addition to conventional items, we clearly stated our heavy emphasis on items such as legal compliance, environmental preservation, human rights and consciousness about the labor environment, and the sharing of social responsibility awareness with our business partners. In 2010, Hitachi, Ltd. revised its Guidelines on Procurement in 2010 in accordance with the United Nation’s Global Compact principles. Considering this, we also revised our basic policy and guidelines.
In November 2017 in order to reinforce compliance efforts, we revamped procedures for internal audits. These rigorous audits are carried out on new suppliers and include provisions in consideration of environmental and social criteria, such as anti-bribery measures.
We are pouring energies into the control of transactions and employee legal compliance training to ensure full-fledged fair business transactions. The control of transactions consists of self-audits twice a year and joint audits among Hitachi Construction Machinery Group companies once a year. This is carried out to enhance the transparency of our audits.
Furthermore, we implement training on the Subcontract Act for all employees engaged in the outsourcing of inspections. Employees responsible for outsourced inspections are required to take this training.
In FY2019 and beyond, we will continue to carry out transaction audits and provide legal compliance training to employees.