Murata and People

Responsibility to and Actions Concerning Suppliers (CSR Procurement Initiative)

Murata observes all laws and ordinances in its procurement, and expects the same compliance, along with due consideration for the community and environment, from its suppliers as they conduct their corporate activities. We believe that Corporate Social Responsibility (CSR) procurement helps to build mutual trust and prosperity.

Link: Click here if you wish to newly transact with Murata

Procurement policy

Murata is working to realize a sustainable society based on the company's management philosophy. Under this philosophy, the company engages in activities based on a "Procurement Policy" which consists of the "Basic Procurement Policies" and "Procurement Code of Conduct." By acting in accordance with the "Procurement Policy," we build strong partnerships with suppliers and cooperative relationships from a long-term perspective with the goal of realizing a sustainable society throughout the supply chain.

Basic Procurement Policies

Murata engages in procurement activities under the following basic policies.

  • 1.

    Legal compliance
    We observe laws and ordinances, regulations, and company rules, and we conduct business in accordance with social ethics.

  • 2.

    Fairness
    We broadly open the door on a global level and strive for equality in business opportunities.

  • 3.

    Impartial and honest
    We build relationships of trust and cooperation with suppliers and aim to develop strong partnerships with suppliers.

  • 4.

    Social responsibility
    We fulfill our social responsibility with respect to human rights and the environment, etc. through our procurement activities.

Procurement Code of Conduct

  • 1.

    Observance of laws, ordinances and social norms
    We observe the applicable laws, ordinances and social norms in the countries and regions where we conduct procurement activities as well as the RBA (Responsible Business Alliance) Code of Conduct.

  • 2.

    Promotion of sound business management
    In order to continue doing business and build relationships of cooperation and trust with our suppliers, we promote sound and fair procurement activities. Moreover, we disclose the proper information regarding our procurement policy.

  • 3.

    Emphasis on quality, delivery dates, and stable supply
    In order to provide higher quality products to customers in a timely manner, we require suppliers to observe the prescribed levels of quality and delivery dates as well as maintain a stable supply.

  • 4.

    Strengthening the ability to respond to demand fluctuations
    Within the rapidly occurring demand fluctuations of the electronics industry, we are required to quickly respond to customer demands at all times. The Murata Group will build a procurement system that is able to flexibly respond to these demand fluctuations.

  • 5.

    Building supply chain BCP
    We will build a response system across the entire supply chain in preparation for the occurrence of disasters and other unforeseen circumstances in order to continue supplying our customers.

  • 6.

    Environmentally-conscious material procurement
    We conduct procurement activities which help reduce the global environmental load.
    We promote preferential procurement (green procurement) from suppliers who are actively engaged in materials with a low environmental load and environmental conservation.

  • 7.

    Observance of information security rules
    We securely store and protect confidential information and personal information which becomes known during the transaction process.

  • 8.

    Respect for human rights and consideration of the labor environment
    In addition to respecting international standards relating to human rights, we promote procurement activities which consider the labor environment at suppliers.

  • 9.

    Maintenance of sound business relationships
    With the exception of actions which are clearly permitted under the conventions of social and commercial practices as well as the laws and ordinances which are applied in the countries and regions where procurement activities are carried out, we do not accept offers of entertainment, the receipt of money or goods, or other provisions of convenience. We have established and operate a point of contact for the purpose of consultation regarding acts which are in violation of compliance, etc. or concerns about such actions.

  • 10.

    Promotion of responsible mineral procurement
    Regarding the procurement of minerals contained within materials, we have a stated response policy which we strive to carry out. We promote activities with respect to "the achievement of conflict free materials in delivered products" such as establishing and putting into practice an internal control system, surveying the supply chain and carrying out due diligence, and procuring materials only from RMAP conformant smelters.

Supplier selection criteria

We fairly and equitably evaluate and select suppliers based on rational criteria such as consideration for quality, delivery date, continuation of supply, business conditions, product technical capabilities, human rights and labor, environmental conservation, safety and health, ethics, BCP, and information security.

  • 1.

    Observance of laws, ordinances and social norms
    Suppliers are requested to observe the applicable laws, ordinances and social norms in the countries and regions where they conduct business activities as well as the RBA (Responsible Business Alliance) Code of Conduct.

  • 2.

    Promotion of sound business management
    In order to continue doing business and build relationships of cooperation and trust, suppliers are requested to promote sound and fair business management. Moreover, suppliers are requested to disclose the proper information regarding their management policies and business conditions (including their financial condition) to Murata.

  • 3.

    Emphasis on quality, delivery dates, and stable supply
    Murata emphasizes quality and delivery dates in order to provide higher quality products to customers in a timely manner. Therefore, we are required to conduct business with suppliers who can observe the prescribed levels of quality and delivery dates and able to supply materials in a stable manner.

  • 4.

    Strengthening the ability to respond to demand fluctuations
    Within the rapidly occurring demand fluctuations of the electronics industry, we are required to quickly respond to customer demands at all times. Suppliers are requested to build a system that can flexibly respond to these demand fluctuations.

  • 5.

    Building supply chain BCP
    In preparation for the occurrence of disasters and other unforeseen circumstances, we request your cooperation in building a system which shares information with the entire supply chain including suppliers and is able to respond in such a way as to continue the supply.

  • 6.

    Environmentally-conscious product supply
    Murata conducts procurement activities which help reduce the global environmental load.
    We actively adopt materials which do not include toxic chemical substances and promote green procurement which helps reduce the environmental load. Suppliers are also requested to supply environmentally conscious products.

  • 7.

    Strengthening technical capabilities which can contribute to product development
    The speed of technical innovation in the electronics industry is extremely rapid, and the possession of cutting-edge technical capabilities is a source of corporate competitiveness. Suppliers are also requested to continuously improve their technical capabilities to promote technical innovation.

  • 8.

    Establishment and observance of information security
    Suppliers are requested to securely store and protect confidential information and personal information which becomes known.

  • 9.

    Respect for human rights and consideration of the labor environment
    In addition to respecting international standards relating to human rights, suppliers are also requested to engage in procurement activities which consider the labor environment.

  • 10.

    Maintenance of sound business relationships
    With the exception of actions which are clearly permitted under the conventions of social and commercial practices as well as the laws and ordinances which are applied in the countries and regions where procurement activities are carried out, suppliers are requested to refrain from accepting offers of entertainment, the receipt of money or goods, or other provisions of convenience. Please consider establishing and operating a point of contact for the purpose of consultation regarding acts which are in violation of compliance, etc. or concerns about such actions.

  • 11.

    Promotion of responsible mineral procurement
    Murata has a stated response policy regarding the procurement of minerals contained within materials which it strives to carry out. Suppliers are also requested to understand Murata's policy and promote activities with respect to "realizing conflict free materials in delivered products" such as formulating a response policy, establishing and putting into practice an internal control system, surveying the supply chain and carrying out due diligence, and only procuring materials from RMAP conformant smelters.

Moreover, based on the "RBA (Responsible Business Alliance) Code of Conduct" (hereinafter, "RBA Code of Conduct"), we have established the "Murata Group Supply Chain CSR Procurement Guidelines" (hereinafter, "Guidelines") which add information security, Business Continuity Planning (BCP), and import and export controls, etc. The details which we would like suppliers to observe and put into practice are clearly specified under the "Supplier Code of Conduct." In addition to publishing the Guidelines in Japanese, English, and Chinese on our website, they are also distributed to existing suppliers as well as to new suppliers before they begin doing business with Murata. Suppliers are requested to promote CSR activities based on these Guidelines.

Link: Murata Group Supply Chain CSR Procurement Guideline (PDF: 438KB)Open the New Window

CSR procurement promotion system

Murata has issued the "Murata Group Supply Chain CSR Procurement Guidelines" and is working to achieve an understanding of the CSR procurement approach that suppliers are to observe and put into practice. In addition, we have established the CSR Management Committee to share information with top management and make decisions about issues in the status of compliance in CSR procurement regarding "human rights and labor," "safety and health," "environment," "ethics," "BCP," "information security," and "control systems," etc.

Diagram of CSR procurement promotion system

Supply chain conditions

Conditions within the Murata Group supply chain are as follows. (as of Fiscal 2020)

Ratio of the number of suppliers by region
Ratio of the supplier transaction amount by region

Identification of important suppliers

Based on the following approach, Murata conducts a prior evaluation in various areas including CSR of all suppliers before they start doing business with Murata and identifies important suppliers.

Diagram of Identification of important suppliers

CSR evaluation of suppliers

Before starting to do business, suppliers sign the "CSR Agreement" to consent to the Guidelines above while also performing a self-assessment through the "CSR Compliance Checklist" (hereinafter, "Checklist") based on the Guidelines. In addition, we also started auditing important suppliers for the purpose of CSR related risk evaluation and improvement in conjunction with an evaluation of their quality control systems and chemical substance control systems. In the event that risks are verified in either the self-assessment or the supplier audit, which include "human rights and labor," "safety and health," "environment," "ethics," "procurement BCP," "information security," and "control systems," the suppliers are requested to implement improvements and start doing business based on those results. Currently, this approach is mainly applied within Japan, but it is scheduled to be expanded to overseas suppliers going forward according to the level of risk.

Diagram of CSR evaluation of suppliers

CSR assessment (document inspection)

In addition to striving to achieve an understanding and dissemination of Murata's procurement policies and guidelines, each year the suppliers implement a self-assessment using a checklist for the purpose of recognizing CSR risks and initiating improvements. With the enactment of the Guidelines, the checklist questions have also been revised, and a survey of 154 important suppliers was carried out during fiscal 2020. As a result, we collected surveys from 100% of the suppliers who were asked to participate in the survey, and no critical risks were found in any of the suppliers. Furthermore, while slight risks were found in two companies, the corrections are already complete.

Total number of suppliers Number of important suppliers Ratio of suppliers evaluated
within the past three years
Assessment results
(most recent three years)
Fiscal 2020 Goals Results Suppliers
with risks*
Number of companies Implementation rate Supplier ratio Number of companies Ratio
4,500 companies 177 companies 80% (monetary basis)
4% (based on the number of companies)
177 companies 100% Survey scope: 154 companies
Target: 80% (monetary basis)
154 companies 2 companies 1.1%

*Suppliers with an evaluation of B or C rank and below in an assessment of "labor (including human rights)," "safety and health," "environment," "ethics," "control systems," "procurement BCP," and "information security."

Rank Rank explanation Evaluation criteria
Overall score
A Determined that there are no CSR risks 80% or more
B Slight CSR risks detected 50-79%
C Serious CSR risks detected 49% or less

On-site audit

In response to requests from customers who claimed that a CSR assessment based on a document investigation alone was insufficient, we started on-site audits in addition to document investigations for new suppliers in April 2021. Due to the impact of the novel coronavirus, remote audits have played a central role, but on-site audits have been performed for 15 companies so far. Among those companies, two were found to have non-compliant items with respect to ethics, but the corrections are already complete.

Risk description Number of companies Improvement ratio
Suppliers which required correction in an on-site audit 2 companies 2 companies (100%)

Future specific initiative targets (KPI) in CSR procurement

FY 2021 Performance Goals (KPIs)
CSR Agreement acquisition rate Japan: 98%,
Overseas: 94%
Ratio of suppliers in conformance with the CSR assessment 95%
Ratio of CSR audit execution 95%

CSR procurement concerning environmental issues

In order to respond to environmental issues that are deepening in various locations around the world, material selection and procurement which consider the global environment are essential. Based on the Procurement Code of Conduct, Murata promotes preferential procurement from suppliers who are actively addressing environmental problems.

When conducting new business, we ask that our partners address global environmental problems such as climate change and environmental pollution based on the "Murata Group Supply Chain CSR Procurement Guidelines." Moreover, in addition to asking to verify the certification status of suppliers under environmental management systems (ISO 14001, etc.), we audit the state of chemical substance control at the manufacturing sites to determine whether we can do business with a supplier. After we have started doing business with a supplier, we ask them to periodically fill out the CSR Checklist and continuously verify the status of initiatives for environmental problems and the results of improvement at suppliers.

Murata participates as a member of JEITA (Japan Electronics and Information Technology Industries Association) and as a founding member of JAMP (Joint Article Management Promotion-consortium), whose purpose is "to appropriately manage the information on chemical substances contained in an article and to establish and disseminate a system to smoothly disclose and transmit the information through the companies in the supply chain." We are actively cooperating with industry organizations on issues that are difficult to solve as an individual company such as creating industry-wide frameworks.

Link: JAMP (Joint Article Management Promotion-consortium)Open in New Window
Link: Member ListOpen in New Window
Link: JEITA (Japan Electronics and Information Technology Industries Association)Open in New Window
Link: JEITA MembersOpen in New Window

Green procurement

In order to reduce the environmental load of products, "green procurement" is required to procure materials with a low environmental load. At Murata, we ask for the understanding and cooperation of suppliers in putting environmental management into practice.

Link: Green procurement

Initiative regarding human rights and labor (supply chain)

Concerns about forced labor, child labor, and other human rights risks in the supply chain are increasing. As an initiative to reduce these human rights risks, at Murata we also ask suppliers to observe the "Murata Group Supply Chain CSR Procurement Guidelines" while also monitoring the state of compliance through a "CSR assessment" using a checklist and initiating corrections as needed. Moreover, regarding forced labor, child labor, and other human rights violations under harsh labor environments at small-scale mines, Murata actively promotes responsible mineral procurement activities and appropriately discloses information in response to customer demand.

Link: Murata Group basic policies regarding "human rights and labor"
Link: Declaration regarding the Modern Slavery Act (United Kingdom)Open in New Window

Promotion of responsible mineral procurement

Responsible mineral procurement response policy

  • 1.

    Address as part of CSR procurement activities based on the Murata Manufacturing CSR charter

  • 2.

    Build a management system for target minerals included in Murata products which complies with "OECD Due Diligence Guidance"

  • 3.

    Utilize the system above and continuously strive to use lower risk materials to prevent the funding of armed groups, protect human rights, promote fair trade, and promote responsible procurement of minerals used by the company in the company's supply chain for minerals such as gold/tin/tantalum/tungsten/cobalt/mica, etc. or refrain from engaging in procurement from companies which fall under Annex II risks* for conflict and human rights violations, etc. in conflict-affected and high-risk areas (CAHRAs)

  • 4.

    Closely cooperate with industry organizations to carry out rational and efficient surveys based on global standards in good faith

  • 5.

    Share information regarding minerals obtained through the supply chain with partner companies as soon as possible

*Annex II risks
Human rights violations (child labor, etc.) relating to the mining, transport, and trade of minerals
Direct or indirect support for non-governmental armed groups
Illegal acts by public or private security forces (protection money)
Corruption or falsification of mineral origin
Money laundering
Nonpayment of taxes to the government, fees, and mining right fees (tax evasion)

Promotion system

Murata regards this as part of its corporate social responsibility (CSR) and conducts surveys in compliance with global standards and provides information based on its response policy.
Furthermore, as an internal framework, the CSR Management Committee, chaired by the President, shares information with top management on activities, progress, and any issues regarding responsible mineral procurement, and makes any resulting decisions.

Diagram of Promotion system of responsible mineral procurement

Initiative details

We have established a response policy to promote responsible mineral procurement and are building a system to manage whether there are any Annex II risks in CAHRAs (Conflict-Affected and High-Risk Areas)*1 for target minerals included in our products. In order to identify smelters and refiners in the supply chain, we conduct surveys in compliance with the RMAP*2 (smelter auditing program promoted by RMI) industry-standard and evaluations in accordance with internal standards. In the event that we are using high risk smelters and refiners, we communicate the details of those risks and advance initiatives aimed at improvement. In response to requests from our customers for our supply chain information, based on surveyed results we are also providing information on cobalt using the CRT (Cobalt Reporting Template) in addition to the CMRT (Conflict Minerals Reporting Template) published by the RMI (Responsible Minerals Initiative)*3.

Efforts for compliance with 5-Step framework of OECD Due Diligence Guidance

In order to reduce the Annex II risks of human rights violations in CAHRAs, such as human rights violations for 3TG and cobalt in our products, Murata is committed to the following initiatives in compliance with the OECD Due Diligence Guidance.

5-Step Framework for OECD Due Diligence Guidance

Step 1: Establish strong company management systems
Step 2: Identify and assess risks in the supply chain
Step 3: Design and implement a strategy to respond to identified risks
Step 4: Carry out independent third-party audit of smelter/refiner’s due diligence practices
Step 5: Report annually on supply chain due diligence

Step 1: Establish strong company management systems

  • Murata has established a Responsible Minerals Sourcing Policy and a system to manage any Annex II risks in CAHRAs for the minerals contained in our products.
  • Responsible minerals sourcing initiatives and issues are regularly shared with top management in the CSR Management Committee for decision making.
  • We make our policies known through our website and other media, and we ask our suppliers to agree with us on initiatives based on Murata’s policies.
  • To identify smelters/refiners in the supply chain, we conduct surveys based on industry standards (RMAP) for domestic and international suppliers.
  • Every year, we send our suppliers an invitation to the JEITA’s*4 annual Responsible Minerals Sourcing Inquiry Briefings and invite them to attend workshops on the latest industry trends and current issues.

Step 2: Identify and assess risks in the supply chain

  • We regularly conduct smelter/refiner surveys using the CMRT and CRT issued by the RMI.
  • We require our suppliers to use smelters/refineries that have been certified under the audit program of a third-party institution.
  • Our surveys include confirmation of 3TG and cobalt content, confirmation of country of origin, and identification of smelters/refiners.
  • We conduct risk assessments in accordance with internal standards on the smelter/refiner information reported by our suppliers and the management system for responsible minerals sourcing.
  • For identified smelter/refiners, we review RMI audit reports, websites, and other sources of information that may lead to risk as needed.

Step 3: Design and implement a strategy to respond to identified risks

  • Suppliers are asked to work for human rights and to reduce conflict risk in accordance with Murata’s responsible mineral procurement policy. If we use high-risk smelters/refiners, we communicate the details of the risks and discuss appropriate measures for improvement with our suppliers.
  • If a company’s relationship with an Annex II risk, such as a relationship with armed forces or human rights violations, is identified, we will consider suspending the transaction.

Step 4: Carry out independent third-party audit of smelter/refiner’s due diligence practices

  • As a member of the RMI and the JEITA Responsible Minerals Trade Working Group, Murata works at the industry level to address issues that are difficult for individual companies to resolve.
    For example, we provide speakers at industry-sponsored explanatory meetings and encourage smelters/refiners who do not participate in RMAP to undergo the validation process.

Step 5: Report annually on supply chain due diligence

  • Reports on Murata’s actions in responsible minerals sourcing are published on the website and in a consolidated report.

Current recognition and issues

At Murata, we also regularly conduct surveys of our suppliers to check for any changes in the provided information. In previous conflict mineral surveys, we confirmed that our mainstay products such as multilayer ceramic capacitors, inductors, thermistors, and piezoelectric components are already conflict-free. In the fiscal 2020 survey of conflict minerals, we carried out a survey of 200 major suppliers handling 3TG and achieved a 100% response rate to identify 310 smelters. Moreover, in the cobalt survey of 104 companies, we achieved an 83% response rate to identify 45 refineries. We have confirmed that 77% of suppliers overall are conformant with RMAP.

gold tin tantalum tungsten cobalt total
Total number of smelters and refineries 159 73 36 42 45 355
Total number of conformant smelters and refineries 109 62 36 40 26 273

Through this most recent survey, Murata broadly recognizes three issues and believe that it is important to advance initiatives to address them.

Issue (1) Improving the procurement rate from RMAP-conformant smelters and refineries:
Suppliers are requested to build control systems and implement risk evaluations to use RMAP-conformant smelters and refineries. At the current time, we have not reached a 100% rate of RMAP conformant, and it is difficult to guarantee that all of our products are not contributing to Annex II risks.

Initiative (1):
With respect to suppliers who report the use of non-RMAP-conformant smelters and refineries, Murata does not unilaterally demand that they be excluded from the supply chain but rather shares the current issues and consults with the supplier to reach a solution while advancing improvement activities.

Issue (2) Initiative to reach a 100% response rate in the cobalt survey:
Because the cobalt survey is not a legally required response, it is difficult for it to be treated as a priority issue that should be undertaken by the suppliers, and in some cases they do not cooperate with the survey.

Initiative (2):
We will continue to request their understanding and cooperation with the survey by sending letters, etc. to the suppliers to encourage the disclosure of smelters and refineries.

Issue (3) Handling new minerals other than 3TG and cobalt with risks that are a matter of concern:
In recent years, inquiries from customers have been increasing regarding whether CSR risks also exist for minerals other than 3TG and cobalt. Murata carries out risk evaluations based on the industry standard RMAP assessment, but there is no method for performing a risk assessment for new minerals that RMAP does not support, and it is difficult to guarantee the safety of such minerals.

Initiative (3):
Starting from last year, mica was added to the list of minerals managed by RMI. At the current time, the use of mica has not been confirmed in the company's products. However, this will be addressed by verifying its usage in our products with respect to the expansion and growing risk of target minerals such as lithium, copper, lead, nickel, and zinc, etc. going forward. We will also work more closely with our customers, suppliers, and industry personnel to ensure transparency in the supply chain, and we will continue to engage in CSR procurement that takes the human rights problem and other risks into account.

Initiative to address issues through industry actions

Murata is also a member company of the JEITA "Responsible Minerals Trade Working Group" and RMI. We are proactively working on issues that are difficult to solve as an individual company, such as creating industry-wide frameworks as a member of industry organizations.

Initiative (1):
Because the cobalt survey has only just started, there are a large number of smelters/refineries which are not RMAP-conformant compared to 3TG.
As a member of the JEITA "Smelter Support Team"*5, we carry out activities to encourage smelters and refiners that do not participate in RMAP to undergo the validation process.

Initiative (2):
We participate as a lecturer in the "Responsible Minerals Sourcing Inquiry Briefings" hosted by JEITA and share the latest information with suppliers and many other companies through these briefings to educate and enlighten them so as to deepen their understanding of the importance of this initiative.

Image of Responsible Minerals Sourcing Inquiry Briefings

Initiative (3):
Regarding worries about the risks of new minerals, we are clarifying the problems, proposing mechanisms, and engaging in other active debates at the JEITA working group to make proposals to RMI so that RMAP support may proceed in an efficient manner.

Procurement BCP

In order to provide a stable supply to our customers even in times of emergency, the Murata Group deepens its ties with its partners on a regular basis and advances the following initiatives.

Emergency situations

Earthquakes, tsunami, fire, floods and other wide-area disasters, accidents, compliance violations, infectious disease, and other unforeseen circumstances

BCP (Business Continuity Planning) procurement initiative

  • Prior collection of information to be used in an emergency and a rapid initial response
    In order to verify the damage suffered by business partners, status of their safety, and supply conditions in times of emergency, we have created a database of manufacturing locations, etc. and other information which includes secondary business partners.
    We are building a system to extract information about business partners to be verified together with disaster information particularly during urgent natural disasters, and we are working on an initial response system.
  • BCP/BCM survey of business partners
    In addition to surveying business partners regarding the status of BCP initiatives, we are requiring them to promote BCP activities as needed.

Supplier consultation window

Window for consultation on improper conduct

Suppliers can use a consultation service in the event of apparent legal violation or social impropriety arising in dealings with Murata.

That service is a "dedicated consultation service" that can be consulted via email, and messages can only be received by the Procurement Manager. The dedicated e-mail address will be provided to suppliers at the start of the transaction.

Nothing detrimental will occur to people as a result of seeking consultation.

We are bolstering our stance on compliance by continually urging suppliers to make use of this service when appropriate.

Initiatives aimed at fair trade

Implementing buyer education

In addition to providing various training programs and career development support to all employees at Murata, we carry out general education regarding "human rights and labor," "safety and health," "environment," and "information security," etc. as well as buyer education. Education which is necessary for procurement activities is carried out at the time of assignment and on a regular basis. This includes education about the Act against Delay in Payment of Subcontract Proceeds from the perspective of promoting compliance management as part of the basic education for the Procurement Code of Conduct and Purchasing Code of Conduct.

Link: Responsibility to and Actions Concerning Employees
Link: Information Security
Link: ESG data collection