The Daiichi Sankyo Group stipulates in Article 2 of the Daiichi Sankyo Group Corporate Conduct Charter that “We respect international norms, diverse cultures and customs, conduct business in a fair manner through free and fair competition, and conduct responsible procurement by complying with laws and regulations in each country and region in which we do business.” In addition, the Daiichi Sankyo Group is committed to sustainable procurement in the Daiichi Sankyo Group Procurement Policy.
The Daiichi Sankyo Group will continue to make every effort to put into practice our corporate mission of “contributing to the enrichment of quality of life around the world through the creation of innovative pharmaceuticals, and through the provision of pharmaceuticals addressing diverse medical needs,” while promoting sustainable procurement activities with the aim of realizing better societies, the environment and economic development.

 

 

Implementation of the Business Partner Code of Conduct

The Daiichi Sankyo Group has established the Business Partner Code of Conduct below based on the Daiichi Sankyo Group Procurement Policy. This report sets out expectations for the promotion of sustainable procurement to business partners that provide products and services to us. We are committed to communicating with our business partners, who understand the Code, and working with our business partners to fulfill our social responsibilities and achieve a sustainable society.

Daiichi Sankyo Group Procurement Policy
Business Partner Code of Conduct

Outline of the Business Partner Code of Conduct

1.Business Integrity Based on Ethics

  1. (1) Prohibit and prevent corruption
  2. (2) Specify and comply with related laws, regulations, standards, and terms of agreement with customers
  3. (3) Fair competition and sincere, accurate advertising
  4. (4) Whistleblowing system
  5. (5) Animal welfare
  6. (6) Protect intellectual property rights
  7. (7) Protect confidential information and personal information
  8. (8) Information disclosure regarding CSR

2.Labour and Respect for Human Rights

  1. (1) Prohibit forced labour
  2. (2) Prohibit child labour and protect young workers
  3. (3) Promote a work environment free of discrimination, inhumane treatment, and harassment
  4. (4) Fair treatment
  5. (5) Comply with statutory minimum wages, benefits, and working hours
  6. (6) Respect the freedom of association and the right of collective bargaining

3. Health and Safety

  1. (1) Worker protection
  2. (2) Process safety
  3. (3) Emergency preparedness and response
  4. (4) Hazard information

4. Promoting Environmental Management

  1. (1) Reduce greenhouse gas emissions
  2. (2) Appropriately manage waste and emissions
  3. (3) Prevent and mitigate spills and leakages
  4. (4) Promote energy and resource conservation
  5. (5) Support biodiversity

5. Optimal Quality, Cost and Stable Supply

  1. (1) Optimal quality
  2. (2) Proper pricing based on market competition
  3. (3) On-time delivery

6. Management System

  1. (1) Commitment and accountability
  2. (2) Risk management
  3. (3) Documentation
  4. (4) Training and competency
  5. (5) Continual improvement

Implementation of CSR Self-Assessment Surveys

The Daiichi Sankyo Group requests its major business partners to conduct a CSR Self-Assessment Survey every three years based on the Business Partner Code of Conduct, in order to deepen their understanding of the Daiichi Sankyo Group’s view and strengthen communication with them. Approximately 350 major domestic and global business partners responded to the first survey. A follow-up survey was also performed. In fiscal 2019, the final year of the survey, we had face-to-face communication with 20 partners to help them gain an in-depth understanding of the Daiichi Sankyo Group’s sustainable procurement policy and to exchange views for generating ideas and sharing issues. These efforts aimed to promote sustainable procurement based on mutual cooperation. The Daiichi Sankyo Group will keep on going through the PDCA cycle for sustainable procurement to further deepen the mutual understanding with our business partners.

First CSR Self-Assessment Survey (period surveyed, FY2017 to FY2019)

  Number of companies the questionnaire sent to Number of respondents (Response rate) Number of Companies that communicated
Total 381 355 (93%) 20
Sub-total of (1) to (3) 248 230 (93%) 17
(1) Raw materials *1 119 113 (95%) 11
(2) Licensed Products and Consigned Manufacturing Products *2 99 92 (93%) 2
(3) Manufacturer / Non-tier 1 Supplier *3 30 25 (83%) 4
Indirect materials *4 133 125 (94%) 3
  • *1Raw materials for pharmaceutical products manufactured by the Daiichi Sankyo Group
  • *2Contract manufacturing outsourcing
  • *3Manufacturers of raw materials for our products that have no direct contract with the Daiichi Sankyo Group
  • *4Purchased goods (facilities, equipment, services) other than those described in (1) to (3)

Reinforcing Compliance in Procurement

The Daiichi Sankyo Group conducts training for employees engaged in procurement activities in order to realize responsible procurement activities. In fiscal 2019, the Group reviewed the procurement procedures of all Group companies and set the procedures in place at each company in order to ensure the establishment of fair and reliable relationships with business partners and compliance with laws, regulations, and internal rules. Every year in Japan, we hold seminars on the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (Subcontracting Act), which is a law to supplement the Anti-Monopoly Law. In fiscal 2019, the seminars were held for nine companies, including main Daiichi Sankyo Group companies in Japan, and 71 persons in charge of the Subcontracting Act from each division participated. Continuously, we will keep providing similar training to raise awareness for procurement compliance.

education

Measures to Ensure Stable Procurement

In recent years, many companies have faced unprecedented natural disasters, infectious diseases, geopolitical risks, and other adverse circumstances. Maintaining and stabilizing the supply chain, not limited to Tier 1 suppliers but including Tier 2 or 3 which are upstream suppliers, is an issue. The Daiichi Sankyo Group conducted a retrospective assessment of suppliers covering approximately 2,300 raw materials for our four main plants (Hiratsuka, Takatsuki, Odawara and Onahama) and analyzed geographical risks. Of these, we asked 25 Non-Tier 1 suppliers of critical raw materials (upstream suppliers of raw materials for our products that have no direct contract with the Daiichi Sankyo Group) to complete our CSR Self-Assessment Survey. In fiscal 2019, we had face-to-face communication with 4 companies based on the results of the survey and asked them to understand our policy with the aim of strengthening relationships through mutual understanding. We will continue to enhance stable procurement through communication with our partners.

Geographical distribution of Tier 1 suppliers for four main production bases*

Geographical distribution of Tier 1 suppliers for four main production bases

*Direct materials for four main production bases (Hiratsuka, Takatsuki, Odawara, Onahama), FY2016 Procurement Amount Basis

Implementation of Quality Audit for Raw Material Suppliers

To ensure the quality of our pharmaceutical products, the Daiichi Sankyo Group systematically conducts audits of Japanese and overseas suppliers of raw materials, etc., and checks the improvement status if necessary. The subject and frequency of the audit are determined based on the results of risk assessments of quality, etc. The Daiichi Sankyo Group will continue to conduct audits to ensure the quality of pharmaceuticals going forward.