With approximately 300 parts supplier companies in Japan and overseas, Mitsubishi Motors recognizes the magnitude of its influence, including on tier 2 and subsequent suppliers. As such, we are strengthening collaboration with our suppliers to maintain and increase sustainable competitiveness across the entire supply chain. We promote cost competitiveness, industry-leading quality, and local procurement at our main production bases.
We work as one with our suppliers to contribute to society on a foundation of shared CSR guidelines.
Sharing of Supplier CSR Guidelines
Aiming for collaborative initiatives with suppliers, Mitsubishi Motors formulated its Supplier CSR Guidelines in 2010. Through these guidelines, we promote collaborative activities with our suppliers from the same point of view. The scope of these activities covers all domestic suppliers and their quality, while also including labor practices, environment management and compliance. In addition, we provide self-check sheets so that suppliers can carry out self-assessments and independent improvements.
For fiscal 2017, we will continue to share these guidelines with all new suppliers and request that self-checks be conducted on a regular basis.
We are also taking this to the global level. In May 2017, we issued an English-language edition of the guidelines to expand the coverage to our overseas suppliers. In the future, in reference to our guidelines, our overseas affiliates in Thailand, Indonesia, and the Philippines will prepare their own Supplier CSR Guidelines, while taking into consideration the situation in each region.
Policies and initiatives for conflict minerals
The “conflict minerals” (tin, tantalum, tungsten and gold) produced in the Democratic Republic of the Congo and neighboring countries have become a source of funding for armed groups, resulting in serious violations of human rights. Mitsubishi Motors has updated its Supplier CSR Guidelines to ensure that it is not complicit in human rights abuses through the procurement of these conflict minerals. The updated guidelines clearly state the policy of not using conflict minerals as raw materials, thereby promoting responsible procurement.
Mitsubishi Motors formulated its Green Procurement Guidelines in 2012 to ensure that its procurement and manufacturing have minimal impact on the environment. We promote green procurement in partnership with our suppliers. These guidelines request that suppliers manage environmentally hazardous substances and promote the three R’s (reduce, reuse and recycle).
In addition, we clearly state in the Parts Purchase Agreement signed with our suppliers that they are requested to comply with our Green Procurement Guidelines. Our Supplier CSR Guidelines and Green Procurement Guidelines are posted on our portal site for suppliers, which suppliers have ready access to.
Promoting Supply Chain Management
In addition to putting into effect management based on the Supplier CSR Guidelines, Mitsubishi Motors holds a Suppliers Meeting each year to share and spread information about CSR policy in conjunction with procurement and other policies.
We not only adhere to the guidelines for proper trading in the automotive industry formulated by Japan’s Ministry of Economy (METI) ourselves, but also request that our tier 1 suppliers follow these guidelines as well to ensure that transactions are properly handled with tier 2 and subsequent suppliers.
Ensuring knowledge of Supplier CSR Guidelines within the company
As part of managing the Supplier CSR Guidelines, we take efforts to ensure that the guidelines are well-known within the company. We do this through procurement education during training for new employees (both entry-level employees and new mid-career employees), as well as training when employees are transferred to the procurement division. In fiscal 2016, we included material from our Suppliers Meeting in these training sessions.
Establishing a Business Partner Helpline
As part of our efforts to adhere to the METI guidelines, we have established a Business Partner Helpline for the suppliers of our procurement division.
Communicating with suppliers
Providing suppliers with appropriate information and two-way communication is essential for proper supply chain management. Every year, Mitsubishi Motors holds Suppliers Meeting to make our policy well-known. In Japan, we help the Mitsubishi Motors Cooperation Council, a voluntary organization of around 200 supplier companies, hold lectures and conduct research activities each year. We also regularly conduct quality audits and quality self-check guidance with our suppliers to improve quality along the entire supply chain.
In fiscal 2016, 228 suppliers conducted quality self-checks.
We will continue to improve communication and quality across the supply chain through these activities.
Respect for human rights across the supply chain
Mitsubishi Motors not only considers human rights in its own business activities, but also encourages suppliers to consider human rights. For that reason, the Supplier CSR Guidelines include clauses on human rights and labor, and we request our suppliers to carry out self-checks to find if the appropriate actions are being taken. In addition, we request new suppliers to state that they have no links to anti-social forces.
Initiatives for Business Continuity Plans in the Supply Chain
To reduce the risk of suspended manufacturing operations due to a shortage of parts during a large-scale natural disaster, Mitsubishi Motors formulates business continuity plans (BCPs) in the supply chain and takes measures that include finding alternative production for each supplier and part.
In addition, we ask that our suppliers be registered in the safety confirmation system, so that in the event of a natural disaster, the damage status of plants will be reported to us immediately. We have created a special supplier map that enables us to better understand the status of damage and risk with regard to not only tier 1 but also tier 2 and subsequent suppliers.
At the time of the Kumamoto Earthquakes that struck in April 2016, we visited suppliers to confirm the status of damage and offer support on the following day, April 15. We then implemented countermeasures such as finding alternative production.
Our parts suppliers have already formulated their BCPs. In fiscal 2017, we plan to implement a checklist to allow self-assessment by our suppliers so as to maintain and improve the effectiveness of the BCPs.
You can download PDF of our "CSR Report", that is introducing our social and environmental activities.
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