Updated on August 29, 2018
Sony recognizes the increasing importance of global companies' responsibility to manage their supply chains responsibly as diligent members of society and is taking a variety of steps to structure a responsible supply chain. Sony works with its suppliers to address issues such as human rights, labor conditions, health and safety, and environmental protection throughout its supply chain.
The Sony supply chain stretches across the entire globe. The Group has its own electronics manufacturing facilities in Japan, China, South Korea, Thailand, Malaysia, the UK, Mexico, and Brazil. In fiscal 2017, the value of transactions with parts suppliers and OEM/ODM suppliers by geographic area was as follows: China (39%), Japan (22%), Asia-Pacific (21%), Europe (9%), the US (1%), and other areas (8%)
In recent years, stakeholders have become increasingly concerned about manufacturers' responsibilities in relation to the product supply chain, including issues related to human rights, labor conditions, health and safety, and environmental protection, not only at their own production sites, but also at the production sites of subcontractors and parts suppliers. Conduct at Sony production sites is guided by the code issued by the Responsible Business Alliance (RBA*1), which Sony joined when the alliance was established in 2004. All Sony electronics manufacturing sites are involved in ongoing efforts to ensure compliance with the RBA Code of Conduct, which represents industry best practices. Recognizing that parts suppliers, subcontractors in design and production, and other partner firms are all involved in the production of Sony products, and seeing the need to address these issues within a framework that meets Sony's standards, in 2005 Sony established the Sony Supplier Code of Conduct, based on the RBA Code of Conduct.
To enhance its CSR management in the supply chain, in 2016 Sony established the Sony Supply Chain Code of Conduct. This code adopts the RBA Code of Conduct to govern manufacturing processes at both Sony's own electronics manufacturing sites and those of its suppliers. The RBA Code of Conduct was updated from Version 5.1 to the current Version 6.0 effective January 1, 2018. Accordingly, the Sony Supply Chain Code of Conduct was updated to Version 2 to adhere to the changes in the RBA Code of Conduct.
As part of the requirements under this Code of Conduct, Sony asks that its suppliers comply with items required in its Green Partner Environmental Quality Approval Program and the Sony Group Policy for Responsible Supply Chain of Minerals.
At Sony, CSR and compliance groups at the head office, and 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 Sony CSR group at the head office communicates with external stakeholders to monitor trends and best practices, drawing on both to formulate basic company-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, which is operated by the planning & control division, with the procurement & logistic IPO of SGMO serving as the administrative office. The administrative office is responsible for the general execution of the Operational Rules for the Sony Supply Chain Code of Conduct, which includes ensuring compliance with the Code at electronics manufacturing sites both at Sony and its suppliers, conducting risk assessments and regular monitoring, and implementing necessary improvements. The office is also working to provide training opportunities to build the capacity of those involved with Sony and its suppliers.
In cases where assessments or external sources indicate any possibility of violations of the Sony Supply Chain Code of Conduct or a material legal violation, or in cases where the supplier does not provide adequate cooperation with assessments and audits, the person in charge works together with the CSR and compliance groups at the head office to determine the facts and take action deemed necessary, and the situation is immediately reported to the corporate executive officer in charge of production and procurement.