“We contribute to the advancement of society by … being trustworthy and,
together with all our stakeholders, thankful for the increase in prosperity.”
This is a quote from Murata’s Philosophy.
This phrase is a foundation of the ideas that we see as most important as we work to advance our
business together with our suppliers.
With honesty, fairness, and transparency as the guiding principles of its procurement activities,
Murata has always sought to build partnerships with its suppliers, working to realize mutually
satisfying and prosperous relationships based on the Murata Procurement Policy.
Going forward, we will seek to further enhance this principle in order to realize prosperity for all of
our stakeholders, without changing its essence in any way.
We are actively working to reduce supply chain CSR risks in relation to procurement, such as prohibition of child labor, forced labor, and gender or religious discrimination, and responsible procurement of minerals.
All employees at Murata, including buyers, approach daily operations having received e-learning training on CSR risks, including those pertaining to human rights, the environment, health and safety, and information security.
Murata is currently focusing efforts on the following four areas:
We have formulated a Murata CSR Charter, which rests on the foundation of the Murata Philosophy,
and, based on this, a statement of “Our Expectations of Suppliers,” and we request our suppliers to
comply with both.
When starting a new transaction with a supplier, we conclude a "CSR Agreement" and request that the supplier agree to pursue their business activities in conformance with the Murata Group Supply Chain CSR Procurement Guidelines and the RBA Code of Conduct.
Risk evaluations are periodically performed on important suppliers using the "CSR Compliance Checklist" (hereinafter, "CSR Checklist").
CSR audits of new suppliers are performed based on the CSR Checklist.
Assessments conducted using the CSR Checklist confirm compliance with the items pertaining to CSR risks such as human rights and labor, health and safety, environment, ethics, and management systems established in the Murata Group Supply Chain CSR Procurement Guidelines in accordance with the RBA Code of Conduct.
In the previous fiscal year, we conducted a survey of approximately 154 major suppliers and obtained survey results with a "response rate of 100%" and a "critical and material risk rate of 0% at the time of the survey." While the risks are insignificant, corrections were made in the case of two companies which required improvement. We believe that in order to effectively put these initiatives into practice, it is important for us to avoid simply making unilateral demands on our suppliers. Rather, we work together with our suppliers, based on the partnerships that we have built with them.
||FY 2021 Performance Goals (KPIs)
|CSR Agreement acquisition rate
|Ratio of suppliers in conformance with the CSR assessment
|Ratio of CSR audit execution
ESG related KPI targets within the supply chain
In recent years, we have been required to expand the scope of these CSR activities from companies with which we are directly involved to our entire supply chain. Based firmly on the spirit of the Murata Philosophy, we will continue in our efforts to realize mutually satisfying and prosperous relationships with our stakeholders, working to build long-lasting trust and solid partnerships, expanding the scope and increasing the sophistication of our CSR procurement as we strive to realize a supply chain that all of our stakeholders can have confidence in.
Percentage of suppliers that have undertaken CSR Agreements (as of March 31, 2021)
Also, based on the idea that non-financial issues such as CSR and ESG should be incorporated into management strategies, Murata has identified material issues (key issues) starting with social issues and launched company-wide projects to be proactive. From a procurement point of view, we are participating in this project to address material issues into the supply chain. Further, the procurement department’s medium-term policy is “Realizing CSR Procurement while Incorporating ESG,” and we will strive to implement this policy by considering issues from our stakeholders’ perspectives as well as our own. Specifically, we identified about 30 issues based on the ESG index and other survey items, as well as questions from shareholders, investors, and customers. To clarify the positioning of these issues, we used a matrix created from the two perspectives of “Are we working on these issues internally?” and “Is this information available to stakeholders?” The implementation plan was prepared by further dividing into three quadrants based on how the plan will be implemented: “Start actions based on new themes,” “Study and implement information disclosure methods,” and “Reconfirm and revise the currently published content as necessary.” This year, we will focus and act on the key themes of “Creating a code of conduct for suppliers” and “Conducting CSR audits of suppliers.”
We will work together with our suppliers to resolve issues based on the plan we have prepared, regularly update the matrix as we progress, and strive to disclose information to our shareholders, investors, and other stakeholders.
CSR procurement that responds to environmental issues
Based on RBA Code of Conduct, Murata decides on suppliers after presenting them with a list of environmentally-friendly items for implementation.*1
In addition, we ask that our suppliers sign and comply with a letter of consent regarding our CSR
procurement policies and code of conduct.*2
We also work to survey and identify the status of compliance with CSR principles, including those
related to environmental issues, at our existing suppliers.
Environmentally-friendly Items for Implementation by Murata’s Business Partners (Excerpt)
Social responsibility in relation to the environment based on local laws
Reduction of emissions and runoff: Efforts including monitoring, control, and treatment of air and
Efforts to conserve resources and energy through the establishment of voluntary
targets and the realization of efficient use
Reduction of greenhouse gas emissions
Minimization of consumption of water
Establishment, operation, and maintenance of an environmental management system
Management, reduction, and recycling of waste
Reduction of resource use, recycling, and the setting of voluntary targets for conservation of resources
Business activities that consider biodiversity
Letter of Consent regarding Murata’s CSR Procurement Policies and Code of Conduct
In order to collaborate with the industry, 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 manage information on chemical substances contained in an article appropriately and to establish and disseminate a concrete system to disclose and transmit the information through companies on the supply chain smoothly.”
Link: JAMP (Joint Article Management Promotion-consortium)
Link: Member List
Link: JEITA (Japan Electronics and Information Technology Industries Association)
Link: JEITA Members