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Society

Quality in all we do -Procurement-

Basic Policy

The Otsuka group, together with its business partners, aims to contribute to the building of a sustainable society by promoting CSR procurement that takes into consideration factors such as legal compliance, the environment, and the protection of human rights.

Approach

The Otsuka group engages in business activities that are safe, reliable, socially acceptable, and in compliance with laws and regulations across the entire value chain. When commencing dealings with a business partner, we perform screening and checks to ensure the quality of raw materials and to guarantee stable procurement. We also conclude a basic transaction agreement in advance. In the case of a new supplier, transactions are only determined after we have carried out due diligence beforehand. In seeking mutually sustainable development through fair, equitable, and transparent procurement and the establishment of healthy relationships, we have formulated and share with our business partners our group-wide Otsuka Group Procurement Policy, which takes into account factors such as human rights, labor issues, the environment, and anti-corruption measures. We have also formulated Otsuka Group CSR Procurement Guidelines that embodies the provisions of our policy and plan to hold information sessions in the future for our business partners.
We conduct surveys on business partners by using the CSR procurement self-assessment questionnaire* provided by UN Global Compact Network Japan—in 2018 more than 95% of our partners sent back their responses. We assess our business partners with respect to not just legal compliance but their activities regarding human rights, labor, the environment, and anti-corruption measures. And by providing feedback we are further encouraging CSR procurement.
Moreover, in order to ensure a stable supply of products, we perform risk assessments on key raw materials in advance to identify potential risks so we can take countermeasures. And in principle, we purchase raw materials from multiple companies.
We also take environmental considerations into account. For example, Otsuka Pharmaceutical collaborates with the e-Commerce Department to make suggestions about environmentally friendly packaging.

*Questionnaires are sent to business partners that correspond to predefined criteria.

Otsuka Group Procurement Policy

The Otsuka group of companies, in accordance with our corporate vision, “Otsuka-people creating new products for better health worldwide”, and international norms, conducts procurement activities in a responsible way. Otsuka delivers innovative, safe, secure, and high-quality products in order to contribute to the construction and maintenance of a sustainable society, as well as to the health of people around the world.

1. Relationships with suppliers
As a collaborator with many suppliers, the Otsuka group aims to build good relationships for mutual sustainable development through shared understanding, based on a fair exchange of appropriate information and opinions.

2. Supplier selection
The Otsuka group selects suppliers in a fair, and transparent manner based on comprehensive assessments of supplier quality, costs, quantity, delivery terms, compliance with laws and regulations, promotion of environment preservation, etc..

3. Responsibilities toward society
For the realization of sustainable society, the Otsuka group strives to maintain procurement activities that reflect consideration for human rights, labor, the environment, and non-tolerance of corruption.

4. Compliance
The Otsuka group of companies observes all applicable laws and rules, and all Otsuka employees and supplier employees must act at all times with the highest level of ethics, consistent with social norms.

Otsuka Holdings Co., Ltd.
September, 2020