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Guidelines for Procurement Activities

These guidelines define business transaction standards which shall be applied to all Hitachi Chemical executives and employees in connection with their activities purchasing necessary materials, products, services, and information from outside sources.

  1. 1.Overall procurement activities of Hitachi Chemical shall adhere to the "Hitachi Chemical Company Conduct Standards".
  2. 2.Hitachi Chemical shall maintain proper partnerships, mutual understanding, and reliable relationships with suppliers with a view to the long term results.
    1. (1)Hitachi Chemical shall treat all suppliers impartially and be prohibited from favoritism such as giving unfair priority to any specific suppliers.
    2. (2)Hitachi Chemical respects fair business dealings with suppliers and will avoid any improper act which might cause a loss to a supplier apart from normal and customary business transactions.
    3. (3)Hitachi Chemical shall keep suppliers' trade secrets strictly confidential and prevent them from being revealed or improperly used.
  3. 3.Hitachi Chemical develops suppliers to maintain competitiveness from a worldwide point of view.
    1. (1)Hitachi Chemical responds to all suppliers' offers sincerely, and is always willing to offer the information necessary for suppliers to complete on an even playing field.
    2. (2)Hitachi Chemical shall periodically check and review suppliers' performance and will consider offering more advantageous business opportunities when comparison with other resources allows.
  4. 4.Through a designated selection process, suppliers shall be evaluated by product quality, reliability, delivery, price, suppliers' business stability, technical development ability, fair and transparent information release, compliance with societies' rules, regulation compliance, respect for human rights, elimination of discrimination in respect of employment and occupation, elimination of all forms of forced and compulsory labor, environmental preservation activities, social contributions, good working environment, and recognition of social responsibilities with business partners.
    1. (1)Hitachi Chemical shall not request quotations from suppliers with whom there is no intention to enter into a future business relationship.
    2. (2)In accordance with specified internal procedures, the role and responsibility for specifications, terms and conditions, product acceptance and inspection belongs to each Requester, Procurement Department and Inspection Department.
    3. (3)Procurement Departments shall be a representative of Hitachi Chemical when contracting with suppliers.
  5. 5.Hitachi Chemical members shall obey the laws of each country and region in procurement activity. When the fact of contradiction is found, they must report it to responsible party at once, and execute proper countermeasure.
  6. 6.Hitachi Chemical members are prohibited from privately receiving any of suppliers' gifts or benefits.
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