CSR Action Guidelines for Supply Chains
MC handles a multitude of products around the world and accordingly supply chain management is one of the key areas of focus in our overall commitment to CSR. We request that our suppliers adhere to our CSR Action Guidelines for Supply Chains to help ensure that the products we deal with have been produced in an environmentally and socially responsible manner.
These action guidelines, which were first formulated in February 2008, are published on MC's website and communicated directly to our suppliers and other relevant parties. The guidelines cover the basic environmental and social standards that we expect all of our suppliers to adhere to.
Surveys and Site Monitoring
MC conducts surveys of suppliers of a range of products, including those industries where CSR considerations are particularly impactful, such as agricultural produce and apparel.
In the fiscal year ended March 31, 2009, replies were received from 193 companies in 28 countries and regions. Respondents answered questions pertaining to matters such as the existence of regulations and legal compliance; forced labor, child labor and prohibition of discrimination; environmental conservation; and information disclosure.
No particular problems were identified by this survey, but as a measure of assurance we have also begun site visits to key suppliers. In July 2009, we visited two companies in China to inspect manufacturing work sites, interview management and monitor the CSR activities of each company.
Looking Ahead
Supplier surveys and site visits provide a valuable opportunity to communicate MC's stance on CSR and environmental affairs and will therefore be conducted on an ongoing basis.
MC conducts transactions with a large number of suppliers throughout the world. Moving forward, the company plans to continue efforts to ensure that its supply chain guidelines are well understood by overseas offices and MC Group companies, while eliciting the understanding and cooperation of suppliers on a global basis.
Zhangjiagang Guotai United Creation Garments (Zhangjiagang, Jiangsu)
This company is a member of the Guotai Group, which is made up of 16 operating companies and 45 factories. The company has approximately 400 employees with an average age of 25, and produces mainly knitwear such as sweaters and dresses. In 2004, Zhangjiagang Guotai United Creation Garments drafted CSR regulations pertaining to various key areas like legal compliance, labor conditions, prohibition of child labor and the environment and regularly reviews these regulations. In 2005, it obtained CoC (Chain of Custody) supplier certification regarding its CSR from customers in Japan, the U.S. and Europe. When hiring, it checks the government-issued identity cards of prospective employees to ensure they are of legal working age. In terms of environmental performance, the company has identified manufacturing waste - wastewater from washing, textile waste such as cotton waste as well as packaging waste like bags and boxes - as the main source of its environmental impact. The company properly treats waste and has installed wastewater treatment equipment to prevent pollution.
Nantong Sunrise Industrial and Commercial (Nantong, Jiangsu)
When the company was established in 1997, it was initially engaged only in trading. In 2003, however, it built a factory and began producing mainly casual wear for the Japanese market. Today, it employs around 600 people, with an average age of 30 years old. In 2006, the company obtained ISO 9001 and ISO 14001 certification as well as CoC certification from major customers and also undergoes several audits each year. All employees belong to a labor union, which negotiates changes in working hours and other terms and conditions of employment with the company. Nantong Sunrise Industrial and Commercial regards prevention as of paramount importance in terms of safety management and carries out maintenance of steam irons and other equipment and facilities twice a month. Wires inside the factory have also been laid with safety in mind. Wastewater and energy use (electricity, coal, etc.) were identified as its main sources of environmental impacts. The company not only measures these impacts but also works to lessen them by implementing various steps like cutting energy use through employing energy-saving lamps in factories.
- Feature 1 "MC's Businesses From a Sustainability Standpoint"
