Article 4 Responsible Sourcing Principles
To support the implementation of due diligence, the Company establishes and complies with the following core principles. Detailed principles concerning ESG in general shall follow the "Supplier Code of Conduct."
1. Environmental Responsibility
The Company recognizes the environmental impact of hazardous substances contained in purchased parts and complies with environmental regulations such as RoHS and REACH. It also requests suppliers to reduce hazardous substances and comply with environmental regulations, and promotes environmental improvement activities together.
2. Social Responsibility
The Company strives to ensure that human rights violations such as forced labor and child labor do not occur within the supply chain. Through the "Supplier Code of Conduct," it requests the protection of workers' basic rights and the creation of a safe working environment, and pursues shared prosperity with local communities.
3. Ethical Responsibility
The Company adopts as a principle transparent transactions free from corruption and bribery throughout all sourcing processes. It complies with domestic and international laws related to export controls and economic sanctions, and prohibits transactions with sanctioned countries and institutions. Unethical conduct such as the submission of false information or intentional concealment may constitute grounds for suspension of transactions, and the same ethical standards are requested of suppliers.
4. Awareness and Verification
The Company recognizes that purchased parts may contain conflict minerals or hazardous substances, and requests relevant information from key suppliers. This is not intended to monitor or penalize suppliers, but is a cooperative approach to jointly enhancing transparency across the supply chain.
5. Phased Implementation
The Company does not require immediate and complete implementation from all suppliers. Considering the size and capabilities of suppliers, it raises the level of management in phases, and provides information and guidance to suppliers facing difficulties so that they can improve together.
6. Cooperation First
When an issue related to conflict minerals or hazardous substances is identified, the Company grants an opportunity for improvement first rather than immediately suspending transactions. However, in the case of intentional provision of false information or repeated non-compliance, suspension of transactions may be considered.