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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. In light of this, we also revised our basic policy and guidelines.
For new suppliers, we revamped procedures for in-house screenings in November 2017 in order to reinforce compliance efforts. These rigorous screenings 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 oversight of transactions and employee legal compliance training to ensure full-fledged fair business transactions. The oversight of transactions consists of self-audits twice a year and mutual audits among Hitachi Construction Machinery Group companies once a year. This is carried out to enhance the transparency of our audits.
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 FY2017, 1,559 (of which 239 were from the head office) participated in this training. All employees responsible for outsourced inspections have completed the training course.
In FY2018 and beyond, we will continue to carry out transaction audits and provide legal compliance training to employees.