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Underlying Philosophy
(Updated on July 7th, 2010)
Sony approaches CSR in procurement from two perspectives. One relates to materials procurement
procedures and involves creating and maintaining sound business partnerships with suppliers, regarded
as Sony's stakeholders, in line not only with relevant laws and regulations but also with internal policies.
The other relates to production processes and involves providing the necessary support to realize CSR
from such standpoints as the environment, human rights and labor conditions.
• For information about Sony's procurement policy, please visit the following website:
CSR in Procurement
(Updated on September 28th, 2009)
Sony is committed to undertaking procurement activities based on fair business practices, transparency
and equal opportunity. Sony's procurement agents are not permitted to form personal ties or relationships
In Japan, procurement agents in the electronics business are required to participate in e-learning
programs designed to ensure a thorough understanding of the company's handbook, "Working Principles
for Procurement Personnel." The content of these programs is translated into English and Chinese to help
train overseas procurement agents, thereby ensuring the highest ethical standards on a global basis.
Training programs employing case studies illustrating acceptable and prohibited behaviors and other
approaches are used to enhance the business capabilities of newly appointed procurement agents.
Supplier Hotlines
Sony Corporation has also installed a hotline for suppliers to report compliance violations on the part of
Sony Group company employees or executives. Appropriate actions are taken in response to such
In addition to the quality of the products it delivers to consumers, Sony also ensures appropriate
standards throughout its production processes from such standpoints as the environment, human rights
and labor conditions. As a part of policy for product quality, Sony views appropriates standards in
environment, human rights and labor condition this as a vital issue in relation to its CSR activities. In
particular, as supply chains have expanded to include developing countries, this interest has broadened
to encompass not only the company's own production lines, but also those of the companies that supply it
with parts and materials and the companies to which it subcontracts work.
While working together with other companies in the industry to develop a common framework, Sony is
seeking to introduce "CSR procurement," namely, CSR management programs through our supply chain
that include legal compliance, employment, occupational health and safety, and environmental
protection.
Sony's expectations of its suppliers include compliance with laws, regulations and social standards and
an environmental program.
Given the global nature of its suppliers, Sony has led the industry by introducing our own global standards
substances to be controlled which are included in parts and materials" (SS-00259). Sony has also
established the Green Partner Environmental Quality Approval Program for Sony suppliers. Sony
maintains a common global quality standard for parts by purchasing electronic parts only from suppliers
who have passed an audit and have been certified as Green Partners.
Stakeholders's interests have risen sharply in companies' overall responsibility for their products,
including such issues as human rights, labor conditions and environmental protection of OEM/ODM
companies and parts suppliers. In response, we established the Sony Supplier Code of Conduct, which is
based on the Electronic Industry Citizenship Coalition (EICC) Code of Conduct and is centered on the
premise that since suppliers are engaged in the manufacture of Sony products, they should adhere to the
Code and address such issues, and thus comply with Sony's standards.
Sony's basic procurement contract with material suppliers lays down observing related laws and
regulations and the Sony Supplier Code of Conduct. Sony requests all potential new suppliers to comply
examination.
It is Sony's basic policy to reconsider its business relationship with the supplier in the event that an
existing supplier is confirmed to have committed a major violation of the Sony Supplier Code of Conduct,
In the event that a violation of the Sony Supplier Code of Conduct is reported by a third party and a
violation be confirmed, Sony will ask the supplier to take corrective actions and report back on the
progress. If the violation has been committed by a secondary supplier, Sony will work in cooperation with
Basic Framework
(Updated on September 28th, 2009)
Supply chain overlap considerably in the electronics industry, with multiple manufacturers of finished
products sharing the same subcontractors and parts suppliers. Accordingly, there are fears that the
introduction of independent, company-specific standards for socially responsible management will cause
With the aim of improving processes in the electronics industry supply chain, Sony, a s one of the
member companies, participate in the establishment of the Electronic Industry Citizenship Coalition
(EICC) in 2004.
The EICC formulated a basic code of conduct based on industry best practices and is working to develop
the tools and Web-based system, as well as the skills development programs for suppliers, necessary to
create a framework for ensuring the code is upheld. As of June 2009, the EICC consisted of 40
participating companies from Europe, the Americas and Asia. Members include manufacturers, OEM
companies. In cooperation with the Global e-Sustainability Initiative (GeSI) Supply Chain Working Group,
consisting mainly of the European telecoms sector and other electronics industry organizations, the EICC
The EICC continues to address a number of crucial issues. As part of this effort, Sony is participating in
the Supplier Carbon Reporting Project, an environmental sustainability working group of the coalition that
Basic Framework
(Updated on September 28th, 2009)
A tool designed to help companies identify areas of risk and prioritize activities
A self-administered survey for suppliers to provide information on their CSR efforts and management
systems
• Audits
• A Web-based information system for collecting, managing and analyzing CSR data provided by
individual suppliers
• Stakeholder engagement
• Work groups relating particular subjects
Sony's head office division, CSR, procurement operations and manufacturing operations groups, are
mainly promoting supply chain management in CSR initiative, in cooperation with other head office-
related groups, business groups and manufacturing sites. The head office's CSR group keeps abreast of
external trends and communicates with stakeholders, drawing on both to formulate company-wide basic
supply chain management policies. The procurement group is responsible for implementation to
suppliers, ensuring that suppliers comply with the Sony Supplier Code of Conduct by requesting
compliance to the code, conducting necessary studies and audits, analyzing the results thereof and
Implementation Framework
(Updated on September 28th, 2009)
In 2005, Sony established the Sony Supplier Code of Conduct, based on industry best practices as
highlighted in the EICC Code of Conduct, to ensure that suppliers understand Sony's expectations in
more detail and that the code is observed by suppliers of products and materials around the world.
As part of its effort to assess supplier compliance with the Sony Supplier Code of Conduct, in fiscal year
2007 Sony has introduced assessment questionnaires and explanatory meetings for its approximately
As of the end of fiscal year 2008, Sony had conducted 30 of these explanatory meetings to suppliers in
Japan, Mainland China, Pan-Asia and the United States. Sony continues to support efforts for suppliers to
conduct their business in a socially responsible manner by conducting assessments and further inquires
of follow-up measures.
As of March 31, 2009, assessments had been conducted in approximately 90% of the areas where Sony
has suppliers and Sony had received the results of assessments from almost all of its suppliers
worldwide. The results of these assessments indicate several overall trends, including that organizational
development, i.e., the establishment of labor and ethical management systems, remains at a transitional
stage. Sony will continue to support the efforts of suppliers to improve their activities.
The EICC also conducts shared supplier audits based on the EICC Code of Conduct it has formulated for
the electronics industry. Taking stakeholder opinions into account, such audits currently focus on
As of the end of fiscal 2008, Sony's suppliers have also undergone audits based on EICC standards
The results of these audits identified a comparatively substantial number of non-conformance issues in
the categories of labor and ethical management systems, health and safety, and labor.
*
Reference: EICC 2008 Annual Report
38 suppliers of EICC member companies from mainland China which participated in the EICC
pilot shared audit program, from 2007 to 2008.
Stakeholder Engagement
(Updated on September 28th, 2009)
With the aim of developing a framework for promoting effective supply chain management, the EICC
holds discussions periodically with NGOs, socially responsible investors and other stakeholders, in which
Sony is also participating. Between April 2006 and May 2009, a total of eight such discussions were held,
in Mexico, the United States, Switzerland, Mainland China and the Netherlands.
Challenges
(Updated on September 28th, 2009)
The EICC and the GeSI also keep a watchful eye on common issues facing the electronics industry. In
environmental degradation, the human rights of laborers and conflicts related to the extraction of rare
metals essential in the manufacture of electronics products. The EICC and the GeSI have established a
working group to address these issues, and are exploring options for industrywide responses. As of the
end of 2008, this working group had completed a study of the current use of metals in the electronics
industry as a whole and the potential for efficient industrywide action. Based on the results of this study,
the EICC and the GeSI will announce a common industry stance and implement joint studies to identify
what rare metals are currently used and to develop a supply chain for these raw metals. Sony will