Asahi Glass | With Business Partners

For the fulfillment of its CSR, AGC Group believes it essential to cooperate with business partners who are the members of the Group's supply chain. Based on this belief, we will press forward with CSR measures in cooperation with our business partners.

AGC Group Purchasing Policy

AGC Group values the idea of the Group Vision "Look Beyond" and the "AGC Group Charter of Corporate Behavior" and will regulate our performances on purchasing which are explicitly stated in the following "AGC Group Purchasing Policy"

1. Basic Purchasing Principle

Fair & Equitable trade
Our procurement policy is to consistently search for innovative technologies, product and services with a "Fair" and "Equitable" manner globally.
Compliance to related Laws & Regulations, and Pro-environment behavior
AGC Group will comply with the applicable laws and regulations of each country where our procurement takes place, and give due regard to safety and environment.
Partnership
AGC Group will establish a long-term, mutual prosperous partnership, based on our shared vision, to produce a better product with our business partners. To this end, we shall endeavor to keep close communication with our business partners to build and enhance our trusting relationship.
Protection of information, intellectual property and other assets
AGC Group will properly manage and protect the proprietary information, intellectual property and assets of our business partners while procuring goods and services.

2. Criteria for Selecting Business Partners

AGC Group will apply key criteria to evaluate and select business partners, as follows.

Sound management, Steady supply and Flexibility to match with the fluctuating demand.
Appropriate Quality, Pricing, Delivery date punctuality and technical service level.

3. Expectation of Business Partners

The AGC Group strives to be a company trusted by all its stakeholders, a company that meets the expectations of the world business community to grow and develop responsibility, and a company that significantly contributes to a healthier global society.

Essentially, CSR activities are performed on voluntary basis initiated by each individual company. However, for the AGC Group, to pursue the CSR policy, it is imperative for all the supply-chain linked companies to pursue their individual CSR activities as well. Accordingly, to enable us to jointly work with our business partners, we kindly ask our partners to understand our policy and to cooperate.

The factors related with our Business Partners are,

Concentrate to supply products and services with good quality, considering Safety & Environment and Compliance to Laws & Regulations of each country.
Secure and proper managing of Proprietary information and Intellectual property.
Not to be engaged to forced labor or child labor and never tolerate infringements of human rights.
Make efforts to environment preservation and ensuring safety and security.
Maintain adequate level of occupational health and safety.

Ensuring Fair Purchasing Practices

In 2004 Asahi Glass adopted an ombudsman system for purchasing and has since been implementing the system to ensure transparency in its procurement activities and prevent misconduct. Under this system, business partners are able to report any problems concerning deals with AGC Group companies in writing to the General Manager of the Purchase and Logistics Center of Asahi Glass. We strictly respect the confidentiality of our business partners who make such reports and promptly implement measures to solve any identified problems.
In addition, we formulated AGC Group Purchasing Policy in 2009 and ask our business partners to support us in conducting purchasing activities in line with this policy. In the future, we will globally raise the awareness of the policy.

Topic
Conducting a Satisfaction Survey to Improve the Relations of Trust with Business Partners

Questionnaire targeting business partners

From October to November 2009, Asahi Glass conducted a questionnaire survey among its approximately 170 major business partners to measure their levels of satisfaction with the company. The survey, which was started in fiscal 2008, is designed to help us maintain and improve the relations of trust with respondents and develop together as partners who aim to manufacture better products.
The survey results indicate that we were able to make improvements reflecting the results from previous survey, to our business attitude toward and communications with our business partners. From respondents, however, we have also received requests for closer communications and better treatment as well as proposals that will be beneficial to both sides. We sincerely accepted the results and will use them for future improvement.

Conference and Presentation of Letters of Thanks for Business Partners

A commemorative photo with business partners who received letters of thanks

AGC Group has been holding an annual conference for business partners since 1997, wanting to share information with the partners for the enhancement of business operations across its supply chain. The FY2009 conference was attended by about 250 people from companies engaged in a range of industries. At the event, President Ishimura (then COO of AGC Group) explained the Group's medium-term management plan and its growth strategies to participants. He also encouraged them to take the initiative in suggesting new products and businesses for their mutual customers. Subsequently, letters of thanks were awarded to five companies in recognition of their special cooperation with AGC Group.

Compliance with the Act for Securing the Proper Operation of Worker Dispatching Undertakings and Improved Working Conditions for Dispatched Workers

Contract workers and temporary workers dispatched from employment agencies play an important role in the business of Asahi Glass. In light of this, we formulated the in-house guidelines for the proper treatment of these workers and held briefing sessions at each of our plants to make them fully aware of the guidelines. Moreover, we have been providing employees and managers in charge with appropriate education to encourage them to make proper responses to the so-called 2009 problem on the employment periods of dispatched workers and prevent the illegal mid-term cancellation of contracts with these workers.

Compliance with the Act against Delay in Payment of Subcontract Proceeds, Etc., to Subcontractors

Asahi Glass checks the details of agreements with subcontractors and is educating employees and managers in charge of subcontractor matters to comply with the Act, in order to ensure fair trade with subcontractors. We are also working to improve education methods through such measures as e-learning.

Cooperation with Business Partners

Training program for cooperating companies

AGC Group conducts its business in cooperation with a large number of business partners, and implements a range of measures with the entire supply chain.
For occupational health and safety, we hold lectures on health and safety given by invited external speakers, and tours to the plants of other companies with excellent safety records in cooperation with our business partners. We thus ensure the health and safety of employees based on strong ties built with the partners, with whom we also exchange information about the new type influenza.
As for contract workers and temporary workers dispatched from employment agencies, we hold seminars jointly with business partners to ensure the legal employment of these workers. For example, we held seminars to introduce AGC Group's related measures and invited external lecturers to make presentations.
Furthermore, we hold seminars for business partners, with a view to fostering quality manufacturing and personal growth enhancement throughout the supply chain.

Voice
Inspired by Participating in a Plant Tour and Sharing Safety- Related Information in a Seminar

Mr. Minoru Hidaka
Mishima Kosan Co., Ltd.

I participated in a training seminar held by AGC Group and felt that the Group had chosen a timely theme for the seminar. At the seminar, I was also able to exchange information with the heads of the Group's In-house Companies/SBUs, which would help me deal with rapid changes in the manufacturing environment, and review the important points to ensure compliance with the law on dispatched workers. The safety assessor program and risk assessment for machinery design which the Group has been implementing were also introduced to participants, which provided useful tips for our own occupational health and safety activities. I was greatly inspired by the seminar: it gave me an opportunity to obtain firsthand knowledge and share information about safety-related activities.

Green Procurement

AGC Group is implementing its procurement criteria, which now includes environmental friendliness as one of the items, eventually to deliver environmentally friendly products to customers. We operate in a range of fields, including glass, electronics, and chemicals in which we deal with materials that have different properties. In view of this fact, we have established green procurement guidelines for each of our In-house Companies/SBUs under "AGC Group Integrated Green Procurement Guideline." Based on these guidelines we manage the procurement of materials in a manner that is suitable for them in cooperation with our business partners.
In fiscal 2009, we revised the green procurement guideline for the automotive glass business, and held briefing sessions for related business partners and asked them to cooperate in our procurement activities.

The Integrated Green Procurement Guideline(Corporate Information)

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