Declaration of Partnership Building

We hereby declare our commitment to actively pursue the following key initiatives in order to build new partnerships through cooperation and coexistence and mutual prosperity with suppliers and business partners engaged in value creation throughout our supply chain.

1. Coexistence and Mutual Prosperity Throughout the Supply Chain and New Partnerships that Transcend Business Scale or Affiliation

 

By encouraging direct suppliers to engage with their own suppliers (from “Tier N” to “Tier N+1”), we will work to enhance added value throughout the entire supply chain and foster coexistence and mutual prosperity through partnerships that transcend existing business relationships, corporate groups, or company size. In doing so, we will also support our partners in areas such as remote work adoption and the formulation of business continuity plans (BCP), with consideration for business continuity in times of disaster and workstyle reforms.

(Specific Measures)

１）Inter-Company Collaboration

We will work to improve logistics efficiency and optimization through collaboration with 3PL (third-party logistics) partners and strive to reduce greenhouse gas (GHG) emissions as a result.

２）Carbon Neutrality Initiatives

We will promote environmentally conscious products and services across our entire value chain, engage in environmentally friendly procurement, and pursue carbon neutrality at the household level.

２. Compliance with the “Promotion Standards”

We will comply with the Promotion Standards for desirable business practices between main contractors and subcontractors (as stipulated under the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises), and actively work to correct any business or commercial practices that may hinder partnership building with our suppliers.

１）Pricing Method

We will not make unreasonable demands for cost reductions. In determining transaction prices, we will engage in discussions with subcontractors at least once annually, ensure that prices include fair profits for subcontractors, and allow for improvements to their labor conditions through sufficient consultation. Price negotiations will be conducted in accordance with the actions set forth in the Guidelines for Price Negotiations to Appropriately Pass Through Labor Cost. In the event of increases in raw material or energy costs, we will aim to fully pass on the appropriate cost increases. All contract terms, including transaction pricing, will be clearly documented and provided in writing.

 

２）Payment Terms (Including Negotiable Instrument)

We will make subcontract payments in cash whenever possible. When using a negotiable instrument or similar instruments, we will not require subcontractors to bear any discount fees, and the date of payment will not exceed 60 days.

 

３）Intellectual Property and Know-How

We will conduct transactions in accordance with the Basic Concepts and Model Contracts presented in the Guidelines for Intellectual Property Transactions, and will not demand one-sided nondisclosure agreements, forced disclosure of know-how, or free transfers of intellectual property rights by leveraging our business position.

 

４）Addressing the Impact of Workstyle Reforms

To ensure that our business partners can also adapt to workstyle reforms, we will not place orders with unreasonably short delivery times or request sudden specification changes that impose excessive costs on subcontractors. In the event of disasters or similar circumstances, we will avoid imposing unilateral burdens on subcontractors and will give full consideration to maintaining business relationships when operations resume.

3. Other

In line with our management philosophy—Connecting People and Society to the Future with a Smile—and in accordance with our Code of Conduct, Procurement Policy/Guidelines, and Anti-Corruption Policy, we aim to build long-term relationships of trust with all stakeholders through fair business dealings, while promoting the co-creation of new social value and coexistence and mutual prosperity.

July 22, 2024

(Updated: November 2, 2024)

Tetsuya Takahashi

Representative Director, President and Chief Executive Officer

Joshin Denki Co., Ltd.

Notes

  • This declaration will be posted on the portal site operated by the National Association of Small and Medium Enterprise Promotion Organizations.
  • If it is determined that this declaration is not being fulfilled, such as when guidance or advice is issued by the competent minister based on the Promotion Standards, the declaration may be removed from the portal site.