Responsible Supply Chain

Management Approach

Materiality Rationale

In recent years, stakeholders have grown increasingly aware of how crucial it is that companies fulfill their overall responsibilities throughout their supply chains, including procurement and production. Sony takes these stakeholder concerns seriously and is working closely with its suppliers on initiatives in fields such as human rights, labor conditions, health and safety, and environmental protection. These initiatives cover not only Sony's own sites, but sites throughout the supply chain — from parts and material suppliers, to mineral mining operations, to production sites operated both by Sony and by subcontractors.

Basic Approach

The foundation of Sony's efforts to build a responsible supply chain is the compliance of each and every director, executive, and employee with the Sony Group Code of Conduct and ethical business practices. Based on this approach, Sony focuses on supply chain management and responsible procurement of raw materials and works with suppliers and subcontractors to establish a responsible supply chain that ensures compliance with the Sony Supply Chain Code of Conduct and the Sony Group Policy for Responsible Supply Chan of Minerals. These efforts are undertaken in collaboration with relevant industry organizations and other stakeholders.

Structure

At Sony, the CSR and compliance groups at the head office, and the Employees & general affairs and procurement groups at Sony Global Manufacturing & Operations Corporation (SGMO), take the lead in promoting responsible sourcing activities in cooperation with other related head office divisions, business groups and relevant functions at manufacturing sites. The CSR group at the head office formulates group-wide supply chain management policy. With guidance from the corporate executive officer in charge of production and procurement, the representative director and president of SGMO is responsible for the implementation of the policy.

Sony also operates the Supplier Hotline for complaints and the Sony Group Policy for Responsible Supply Chain of Minerals Hotline for stakeholders to report possible policy violations in the supply chain. These hotlines help Sony to improve its responsible sourcing.

Main Achievements in Fiscal 2018

Here are the main results of fiscal 2018 initiatives:

  • CSR self-assessment surveys were conducted at 16 Sony manufacturing sites in Japan, China, Korea, Thailand, Malaysia, the UK, Mexico, and Brazil.
  • Several manufacturing sites in Japan conducted fact-finding surveys of business partners engaged in contracted factory work regarding employment of foreign workers.
  • CSR assessments were conducted at 233 Sony suppliers
  • Secondary suppliers were requested to comply with the Sony Supply Chain Code of Conduct.
  • On-site visits were made to supplier plants to assist with safety management
  • Encouraged cobalt refineries in supply chain to join the audit program, and donated funds to the foundation that covers the cost for refineries to undergo assessments.

Milestones

  • 2004:
    Sony joins the Electronic Industry Citizenship Coalition (EICC, now the Responsible Business Alliance) as a founding member
  • 2005:
    Sony Supplier Code of Conduct established
  • 2006:
    EICC self-assessment started at electronics manufacturing sites
  • 2012:
    Sony Supplier Code of Conduct revised to create second edition
  • 2014:
    Sony Group Policy for Responsible Supply Chain of Minerals established and a survey on use of conflict minerals started
  • 2016:
    Sony Supply Chain Code of Conduct established and cobalt supply chain assessment started
  • 2017:
    Sony Supply Chain Code of Conduct revised to create second edition and Sony Group Policy for Responsible Supply Chain of Minerals established

Looking to the Future

In order to further strengthen efforts to establish a responsible supply chain, Sony will expand assessments of its own sites and its suppliers, for example by having primary suppliers request secondary suppliers and other subcontractors to comply with the Sony Supply Chain Code of Conduct. Sony remains committed to ongoing efforts to raise awareness, educate, and provide training in order to focus the attention and boost the capacity of Sony employees — likewise for supplier employees engaged in the supply chain-to respond effectively to responsible supply chain issues. Sony will also continue to strengthen its countermeasures of high-risk minerals in its procurement.

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