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  On February 15, 2005, members of the Toshiba Group, including our company, unveiled the “Toshiba Group Procurement Policy,” which, among others, places a priority on transacting business with enterprises which whose activities display due respect to legal and regulatory compliance while promoting protection of human rights and the natural environment.  
     
  Basic procurement policy | Supplier selection policy | Requests to suppliers |  
 
 
Basic procurement policy
 
When procuring materials and services required to manufacture products for supply to customers, the Toshiba Group will comply with all relevant laws and regulations. The group will also promote fair and open transactions with its suppliers and forge partnerships based on the spirit of mutual trust.
  Compliance with laws and regulations, consideration for environment
When carrying out procurement activities, we will comply with the relevant laws and regulations of the countries and regions concerned while giving full consideration to conservation of the environmental and natural resource.
Promotion of fair and open transactions
When conducting business at home or abroad, our dealings with suppliers (potential suppliers) will be fair and open.
Strengthening of partnerships with suppliers
We will strive to forge and maintain strong partnerships with suppliers in Japan and overseas based on the spirit of mutual understanding and trust.
 
Supplier selection policy

When selecting suppliers, we will actively seek out enterprises that meet the following five requirements:
 
Track record for compliance with relevant laws and regulations and promotion of environmental conservation.
Presence of sound management.
Ability to supply materials and services to the Toshiba Group at a reasonable price and in a timely manner.
Ability to guarantee stable supply and to respond flexibly to sudden changes in supply and demand.
Sufficiently advanced technical capability that adds value to Toshiba Group products.
 
Requests to suppliers

The Toshiba Group manufactures and markets a wide range of products on a global scale; as such the group considers from every possible perspective all procurement requests submitted by customers. In association with the above, we request the each and every supplier mind the following items:
  Compliance with laws and regulations
Suppliers are asked to comply with local laws, regulations and social mores in countries/regions where they have a presence.
· Strict compliance with relevant laws and regulations (Antimonopoly Law, Commercial Law, Subcontracting Law, Foreign Exchange Law, Privacy Protection Law, Copyright Law, etc. in the respective countries/regions)
· Prohibition of use of juvenile and forced labor
· Prohibition of discrimination
· Realization of safe and hygienic work environments
  Consideration of the environment
In line with our commitment to “Handing down to future generations the irreplaceable global environment,” suppliers are requested to vigorously promote activities that contribute to the manufacture of “green” products. Such activities include the following:
· Improvement of our ISO 14001-based environmental conservation setup and promotion of acquisition of third-party certification
· Procurement of parts and raw materials via a process that places a minimal load on the environment (“Green Procurement”) due to reduced use of hazardous chemicals, etc.
· Promotion of environmental conservation activities (formulation of environmental policies, system improvements, educational activities, etc.)
  Presence of sound management
Business enterprises seeking to prosper rely on strong, sound corporate management. Accordingly, suppliers are requested to:
· Disclose the state of their business management (including full disclosure of financial condition).
  Maintenance of quality
To maintain and improve the quality of products supplied to customers, suppliers, in collaboration with the Toshiba Group, are requested to improve their ISO 9000 series quality assurance set-ups and strive for the acquisition of third-party certification. They are also requested to:
· Comply with local safety standards (JIS, Electric Appliance & Material Safety Law, UL, CE marking, etc.).
· Supply materials and services that meet Toshiba Group specifications and quality levels.
  Supply at reasonable prices
It is not enough to provide value when supplying our products; suppliers are requested to supply materials and services at competitive prices at all times and make ongoing efforts toward reducing prices.
  Punctual delivery and stable supply
To ensure stable product supply and sustainable response to sudden changes in supply and demand, suppliers are requested to ensure punctual delivery times and to take steps for stable and flexible supply of materials and services.
  Improvement of technical capabilities
To supply safe and superior products based on customer needs, suppliers are requested to continually improve their technical capabilities.
 
     
 
  Purchasing Management Group,
Toshiba Shomei Precision Corporation
 
     
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TOSHIBA SHOMEI PRECISION CORPORATION
1-1 Aza Machida, Tsuchifune, Fukushima City, Fukushima Prefecture 960-2152, Japan
Tel: +81-(0)24-593-5550 Fax: +81-(0)24-593-5559
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