Supply Chain Management
As a company handling a diverse range of products and services across the globe, ensuring that our supply chains operate sustainably is crucial to our business. In order to reflect this, MC stipulates its requirements through the Mitsubishi Corporation Policy for Sustainable Supply Chain Management, established originally in February 2008. MC and all its suppliers take the same fundamental position towards the themes addressed in the Policy, which include human and labor rights, anti-corruption and environmental conservation.
Core Principles
Since its foundation, Mitsubishi Corporation has adhered to three corporate principles which have guided its corporate philosophy and which place considerable emphasis on the importance of its corporate social responsibilities. Moreover, Mitsubishi Corporation's Corporate Standards of Conduct state that the company will develop its business activities in compliance with all relevant laws and international regulations and that it will act responsibly and respect the highest social standards. The Corporate Standards of Conduct also underline Mitsubishi Corporation's dedication to preserving the global environment and pursuing sustainable development through all aspects of its business activities.
Mitsubishi Corporation Policy for Sustainable Supply Chain Management Updated: December 2017
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Policy
Mitsubishi Corporation (hereafter ‘MC’), as a global company with business in a wide variety of products and services, has established the Mitsubishi Corporation Policy for Sustainable Supply Chain Management, a policy which outlines MC's actions to address human rights, labor rights, and environmental issues in the supply chain. This policy serves to convey MC's fundamental perspective to its suppliers around the world, and expects all suppliers to understand, embrace and abide by it.
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(1) Forced Labor
Suppliers shall employ all employees of their own free will with no employee being subject to forced or bonded labor.
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(2) Child Labor
Suppliers shall not employ people under the minimum legal working age of the country in question.
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(3) Safe and healthy Working Environments
Suppliers shall work to provide employees with safe and healthy working environments.
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(4) Freedom of Association and Collective Bargaining
Suppliers shall respect the right of employees to associate freely and engage in collective bargaining as methods of negotiating working environments, wages and other matters with employers.
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(5) Discrimination
Suppliers shall strive to ensure equal opportunities in the work place and shall not engage in discrimination with regard to recruitment and employment practices.
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(6) Abuse and Harassment
Suppliers shall respect employees' human rights and must not tolerate abuse or any form of harassment.
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(7) Working Hours
Suppliers shall ensure that employees' working hours and use of leave entitlements are appropriately monitored and that excessive overtime labor is prohibited, so as not to infringe upon any statutory regulations.
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(8) Suitable Remuneration
Suppliers shall pay employees at least the statutory minimum wage, endeavor to pay at least the living wage, and shall not unreasonably reduce wages.
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(9) Anti-corruption
Suppliers shall engage in fair business practices, avoid corruption including bribery and extortion, and comply with applicable laws and regulations.
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(10) Environment
Suppliers shall endeavor to protect the environment and consider the impacts of their business activities on local communities and ecosystems, while paying special attention to energy use efficiency, climate change issues such as greenhouse gas emissions, sustainable use of resources, waste reduction, and air, soil and river pollution.
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(11) Information Disclosure
Suppliers shall disclose information with respect to the aforementioned matters in a timely and appropriate manner.
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Monitoring
MC conducts regular surveys of suppliers to monitor the status of their compliance with basic policies and to strengthen communication with suppliers.
Furthermore, MC visits suppliers to confirm the status of their activities when it determines that site visits are necessary based on the regions where suppliers are active and their business activities. -
Response to Compliance Violations
If a violation of the basic policies is confirmed, MC will demand that the relevant supplier implement corrective measures and will provide guidance and assistance to the supplier as necessary.
If MC determines that the supplier is unlikely to implement corrective measures even after providing continuous guidance and assistance, MC will review its business relationship with the relevant supplier.
Surveys and Supplier Visits
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 2016, MC conducted annual survey for the fiscal year ending March 2016 and replies were received from 439 companies in 40 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 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.
Supplier Visits
Recognizing the importance of managing environmental and social impacts in our supply chains, we have established the Mitsubishi Corporation Policy for Sustainable Supply Chain Management. In addition to sharing the policy with business partners, we also conduct a regular questionnaire in order to strengthen our supplier partnerships while ensuring that measures are being implemented on the ground.
In the year ended March 2018, our MC employees visited two suppliers in Vietnam: Viet Tien Garment, a garment factory, and Vinh Hoan Corporation, a company in aquaculture and processing of pangasius. Interviews were conducted with employees and management executives in order to cultivate a better understanding of best practice in each industry.
At the Viet Tien Garment factory, through interviews with management we were able to confirm that sustainability has been integrated into the company’s core strategy. As part of its strategy to improve efficiency, Viet Tien Garment is in the process of setting energy-saving targets and strengthening its occupational health and safety (H&S) standards. In addition to interviews, we visited Viet Tien Garment factory and recognized that an H&S manual is distributed to workers and H&S signs are clearly posted around the factory to prevent accidents; the factory floors are kept clean at all times to prevent personal injuries, and working hours are managed by a fingerprint authentication system to prevent overtime.
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Viet Tien Garment factory inspection -
Regular cleaning to prevent accidents
Vinh Hoan Corporation also takes a serious approach to sustainability as their management policy. The company has acquired several certifications such as ASC*1 and BAP*2 as part of its efforts to differentiate itself from its competitors. During the site visit, we recognized that hygiene standards were observed properly (including the use of worker uniforms), and also confirmed that its wastewater treatment process is independently verified by a third-party. Although an H&S minor issue was identified during the visit, improvement measure was promptly agreed upon and adopted soon after the visit.
- *1Aquaculture Stewardship Council: Certification program for sustainable aquaculture.
- *2Best Aquaculture Practices: Certification program for safe and sustainable aquaculture.
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Safe and hygienic environment for workers -
Hazardous pavement: before improvement and after improvement
As a result of these visits, we are confident that our two Vietnamese suppliers are committed to strong sustainability standards and are working to apply them on the ground through ongoing training and structural improvements. We wish to reach out to our Group Companies to encourage similar standards. Working in partnership with our suppliers, we will continue to promote sustainable operations across the whole MC Group.
Modern Slavery Act Statement for FY 2017
As a corporation which carries out business in the UK, MC has published a statement to comply with Section 54 of the Modern Slavery Act 2015. Please refer to the link below for details.
Mitsubishi Corporation's Statement on Modern Slavery Act for FY2017 (PDF:62KB)
Our Bluefin Tuna Business
As a corporation playing a major role in the marine products business, MC recognizes the crucial part that we play in conserving marine resources and ensuring a sustainable supply for future generations. To find out more about MC's stance on Bluefin Tuna and the specific measures we are implementing, please refer to our most recent policy below.
Mitsubishi Corporation's Bluefin Tuna Sustainable Sourcing Policy (Updated 7/28/2017) (PDF:116KB)
