The following explains Kubota's basic approach to materials procurement in its business activities.
Customers are becoming increasingly aware of what goes on in the entire supply chain that creates products and services.
For this reason, Kubota has established the Kubota Group CSR Procurement Guidelines, based on the belief that it is necessary to have a common understanding of CSR with its major business partners in order to engage in collaborated efforts. By requesting business partners to submit a consent form indicating their intention to observe the terms of these guidelines, Kubota is encouraging its business partners' initiatives that target safe work practices, respect for human rights, and other important factors.
Kubota addresses the issue of conflict minerals as part of its CSR procurement initiatives. Conflict minerals refer to the tantalum, tin, tungsten and gold produced in the Democratic Republic of the Congo and its neighboring countries. Armed insurgents, many of whom have repeatedly committed inhumane acts of violence, use these minerals as a source of funds and this is a major international issue of concern.
Kubota conducts investigations into the use of conflict minerals, and promptly takes steps to discontinue use in the unlikely event that it becomes clear they are being used. To this end, Kubota seeks mutual understanding regarding this issue with its business partners, which are a part of the supply chain, and requests their cooperation in surveys and audits conducted by Group companies.
In FY2016, Kubota partially revised the Kubota Group CSR Procurement Guidelines so as to include a clear statement on conflict minerals in the Guidelines.
Procurement at overseas production bases has risen sharply in parallel with the rapid globalization of business.
The Kubota Group promotes optimal procurement in every region through the establishment of a global supply system. Moreover, the Group unites with major global suppliers to promote systematic improvement activities for the purpose of strengthening competitiveness by improving quality and productivity.
In FY2016, as a continuation of the previous year, Kubota held the 3rd Supplier Skills Competition to improve the skill level of its suppliers. Moreover, the 3rd Supplier Improvement World Cup was also held in order to vitalize improvement activities. In this World Cup, suppliers selected from various regions around the world present their company's successful improvement cases as they compete for the status of World Champion.
Throughout the entire supply chain, Kubota will continue its efforts to make the Kubota brand trusted and appreciated by its customers around the world.