Due to changes in social structure and technical innovation, supply chain management has been more and more important for conducting business activities. We seek to continue a sound network that we have established with suppliers through the supply chain for quality assurance and stable supply of pharmaceutical products. We also believe that it is essential to enhance the CSR management system and approach with respect for the human rights, labor environment and natural environment in cooperation with all suppliers throughout the supply chain for the realization of sustainable society.
We therefore established the Basic Policy for Procurement Activities that serves as the basis for all employees involved in procurement activities and Guidelines for CSR in Procurement that compile matters for which supplier cooperation is required. We aim to enhance the corporate value of both ONO and our suppliers through CSR procurement.
We utilize a third-party EcoVadis's CSR Assessment System (hereinafter, EcoVadis) to objectively and continually monitor the CSR management status of suppliers in our supply chain. The use of EcoVadis enables us to obtain highly reliable information regarding suppliers’ CSR management at least once a year, and thereby propose appropriate corrective actions to our suppliers.
When using the evaluation of EcoVadis, we hold explanatory meetings for suppliers whom we request to receive assessment to share our ideas about procurement for suppliers. In the FY2020 evaluation, following FY2019, none of our suppliers were classified as having a high risk in terms of CSR. We are working on to enforce CSR procurement activities to attain a risk-free status pertaining to CSR in the supply chain. To this end, we held a meeting for several suppliers among those who received assessment by EcoVadis in the FY2020 to review the situations of the CSR management system, efforts and corrective measure plan. We are going to conduct activities from the standpoint that we would decide to terminate the contract with the suppliers if they could not respond to corrective measures or communication in the future.We seek to promote further cooperation with suppliers through meetings, utilization of EcoVadis, feedbacks of the results and proposal of corrective actions.
Please refer to ONO’s Approach to CSR regarding the supply chain management by promotion of CSR procurement..
When we outsource animal experiments, we ensure that the outsourcing contractor complies with the laws and standards of the relevant country concerning animal welfare. We also make every effort so that such an outsourcing contractor complies with our standards as much as possible. Please click here for our thoughts on ethical considerations in animal experiments.
Before appointing a third party such as a subcontractor or an agent, we perform due diligence using an Anti-bribery Check Sheet to see if there are any red flags. We have developed a process through which we submit the third party’s replies to our detailed question sheet to the Corporate Compliance Officer to get his/her approval before appointing the third party in case we identify a red flag.