[Priority issue 3] Enhance Value Chain Management from the Viewpoint of CSR "Outline of Activities in FY2014 : Enhancement of CSR Procurement Activities"

Reviewing the procurement activities conducted from viewpoint of CSR since 2000, we revised the Fujifilm Group Procurement Policy focusing on our CSR procurement activities (see page 39). In addition, we summarized the activities that we expect our suppliers to conduct from viewpoint of CSR in the “Requests to Suppliers” and disclosed the document to the public.

In FY2014, self-evaluations were undertaken at 35 affiliates in Japan and 61 overseas concerning human rights and labor management (prohibition of child labor and forced labor, working hours, wages, respect for the freedom of association and the right to bargain collectively), occupational health and safety, environmental preservation, and business ethics (information security and whistle-blowing and so on). Based on the results, Fujifilm checked the progress of CSR activities conducted by the Group as a whole. We also responded to requests for CSR audits from our customers and sincerely worked on the improvements according to the customers’ comments.

For suppliers, Fujifilm checked the CSR situations of 58 suppliers to our major procurement division, who had kindly responded to the request for CSR self-check at the end of FY2013, and of other 59 companies in Japan and overseas who supply parts, materials, and OEM products to the division of Fujifilm. Based on the results, we asked some of the suppliers to make improvements in their CSR activities. Fujifilm is thus enhancing management from the viewpoint of CSR across the supply chain through the communication with our Group companies, and suppliers.

Fuji Xerox is working to foster procurement from the viewpoint of CSR regarding not only production materials but also paper and transportation, in consideration of the environment, human rights and corporate ethics.

In FY2014, we continued reinforcing CSR procurement in the countries where our major production sites are based. We focused particularly on communicating with the management of our business partners, and presented the Business Partner Top Seminar in Japan, China, and Vietnam.

In the field of production materials, where we have been promoting the CSR approach since 2007, the effectiveness has been established particularly in China. At Fuji Xerox Shenzhen, assessment visits were conducted by a team of specialists, including procurement, HR management, general affairs, legal affairs, and CSR, in order to give advice on the performance level of the CSR activities of business partner in their workplaces. We have confirmed that such advice has now started to make a contribution to their stable business operations. To further this positive effect, Fuji Xerox Shenzhen has enhanced a structure of the specialist team to increase the number of visiting partners.

In the field of logistics, we strengthened instructions to overseas business partners who showed low assessment scores in their self-check of the previous fiscal year. As a result of this reinforcement, the percentage of partners who indicated 90% or more matching ratio in the priority issues in the checklist now exceeded 90%, which is our target figure. Also, in the indirect materials field, we dispatched a specialist team to service providers that operate the Fuji Xerox sites. Finally, the FY2014 CSR performance in paper procurement was assessed in the meeting attended by the paper procurement and sales managers inside and outside Japan, and confirmed 100% compliance with paper procurement rules, as was achieved in the previous year.

Fujifilm has declared that it will not use any minerals mined or refined by illegal practices or take any part, directly or indirectly, in supporting such illegal activities. The company also participates in the working group on Responsible Procurement of Minerals formed by JEITA(*1) to help the industry to resolve the issue of conflict minerals.

Further, Fuji Xerox has clearly declared in the basic policy for procurement transactions that we are sincerely addressing the issue of conflict minerals. Although Fuji Xerox is not registered with the U.S. Securities and Exchange Commission (SEC), we participate in the working group on Responsible Procurement of Minerals organized by JEITA and conduct surveys in order to cooperate with the survey conducted by customer companies which registers SEC, as well as clarifying the absence of any involvement of armed groups in our supply chain by investigating the origins of all the minerals used. In the FY2014 survey, the response rate to the questionnaire to our primary partners increased from the previous year to 92.4% and no involvement of any armed group was identified.