Adoption of and Compliance with the Sony Supply Chain Code of Conduct
In recent years, stakeholders have become increasingly concerned about manufacturers' general responsibilities in relation to products, including issues related to human rights, labor conditions, health and safety, and environmental protection at the production sites of outsourcing partners and parts suppliers. Recognizing that partner firms are involved in the production of Sony products, and seeing the importance of addressing various issues in conformance with a framework that would meet Sony's own standards, in 2005 Sony established the Sony Supplier Code of Conduct, based on industry best practices as highlighted in the EICC Code of Conduct.
In line with subsequent changes to the EICC Code of Conduct, Sony made an amendment to its own code, including adding a reference to the conflict minerals reporting requirements set forth in Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was passed by the U.S. government in 2010. The updated second edition of the Sony Supplier Code of Conduct was published in 2012. Also, Sony has participated in the EICC (Electronic Industry Citizenship Coalition) since the EICC was established in 2004 and has continuously taken approaches for compliance with the industry standard EICC Code of Conduct at all of its own electronics manufacturing sites. To enhance its CSR management in the supply chain, in January, 2016 Sony has established the Sony Supply Chain Code of Conduct, where the EICC Code of Conduct is adopted as this Code, for the manufacturing process at both our own electronics manufacturing sites and those of its suppliers.
Sony's basic procurement contract with material suppliers lays down observing related laws and regulations and the Sony Supply Chain Code of Conduct. Sony requests all potential new suppliers to comply with the Code, as well as to conduct assessments as a part of requirements of a preliminary examination.
It is Sony's basic policy to reconsider its business relationship with the supplier in the event that an existing supplier is confirmed to have committed a major violation of the Sony Supply Chain Code of Conduct or is not exhibiting an appropriate level of cooperation with studies and audits. In the event that a violation of the Sony Supply Chain Code of Conduct is reported by a third party and a violation is confirmed, Sony will ask the supplier to take corrective actions and report back on the progress. If the violation has been committed by a secondary supplier, Sony will work in cooperation with the relevant primary supplier to urge corrective action.
Sony Corporation has also installed a hotline for suppliers to report compliance violations on the part of Sony Group company employees or executives. Appropriate actions are taken in response to such reports once veracity has been confirmed.