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
2.Criteria for Selecting Business Partners
AGC Group will apply key criteria to evaluate and select business partners, as follows.
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,
Asahi Glass adopted an ombudsman system for purchasing in 2004, in order 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 keep the confidentiality of the matters for the business partners who made such reports and promptly implement measures to solve the identified problems.
In addition, we formulated the AGC Group Purchasing Policy and ask our business partners to support us in conducting purchasing activities in line with the AGC Group Charter of Corporate Behavior. Furthermore, we revised the terms and conditions of our basic purchasing agreement from the viewpoint of CSR and have begun updating agreements concluded with business partners in the past to incorporate the revision, starting from those concluded with major business partners in Japan. In the future, we will raise awareness of the Purchasing Policy and expand the number of business partners to whom the revised terms and conditions are applied.
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 in July 2008 and held briefing sessions at each of our plants to make them fully aware of the guidelines. In the future, we will conduct regular monitoring through internal audit to ensure their compliance with the Act.
Asahi Glass is checking the details of agreements with subcontractors and is educating employees in charge of subcontractor matters to comply with the Act, in order to ensure fair trade with the subcontractors. Also, we are improving education methods through such measures as using PCs.
In October 2008, we conducted a questionnaire survey among our 160 major business partners to measure levels of business satisfaction with Asahi Glass. The survey was designed to help us maintain and improve the relations of trust with them and develop together as partners who aim to manufacture better products. In the questionnaire, they gave their evaluations of some given items, including quotations and contracts. We were able to receive a number of useful opinions regarding our purchasing negotiations and communications. We sincerely accepted the results and will use them for future improvement.

Study seminar
Asahi Glass is implementing measures to ensure the appropriate employment of contract workers and temporary workers. These measures include awareness raising and education on the matter within Asahi Glass and study seminars with our business partners. In June 2008, we held a seminar to introduce measures taken by the AGC Group. After the introduction, an external lecturer was invited to give a speech on appropriate work contracting, employee leasing, and the dispatching of temporary workers. We received high evaluations from participants in the seminar, who gave us comments, such as “It is indeed important to raise the awareness of both workers and companies, to ensure their appropriate employment.”