Procurement Policy

1. comply with all applicable laws and regulations and appropriate social practices governing our local and global businesses
2. promote procurement activities in a way that reduces the environmental impacts while selecting suppliers (hereinafter including prospective suppliers) and procurement items.
3. provide suppliers with equal opportunities for transactions with Canon Group.
4. promote procurement activities based on mutual understanding and trust.

While selecting suppliers and carrying out transactions continuously, priority shall be given to companies satisfying the following criteria:

1. The company complies with laws, regulations and places emphasis on human rights and environmental consciousness.
2. The company has sound business operations.
3. The company has the ability to supply goods and/or services with emphasis on appropriate quality, price and delivery lead-time.
4. The company is capable of providing a stable supply of goods and/or services. Also the company must have the flexibility to respond quickly to supply/demand fluctuations.
5. The company possesses technology that contributes positively to the products.
6. The company has a plan for providing a continuing supply of goods and/or services in times of unexpected circumstances that may affect the company and its supply chain.

We conducts business globally, involving a wide range of products. In order to succeed globally, Canon Group must take stakeholder’s requests into consideration. We also request that our suppliers ask their own suppliers adhere to both standards.

1. Compliance with Laws, Regulations and Social Customs
   Suppliers are required to ensure compliance with laws, regulations and appropriate social customs of the countries and/or regions in which they operate.
   • Ensuring compliance with the prevailing laws and regulations in the countries and/or regions in which they operate include anti-trust laws, commercial codes, subcontractor regulations, foreign exchange laws, personal privacy laws, copyright laws, etc.
   • Prohibition of bribery (any gift, payment, consideration, financial or non-financial advantage or benefit of any kind which constitutes a corrupt and illegal practice)
2. Considerations to Human Rights, Labor, Health and Safety
   Suppliers are encouraged, in every sort of business activity, to respect basic human rights and to establish safe and clean working environment.
   • Prohibition of following practices
     1. Forced labor (including slave labor), 2. Trafficking of humans, 3. Inhumane treatment and infringement of human rights, 4. Child labor, 5. Discrimination
   • Consideration to following practices
     1. Payment of appropriate wages, 2. Regulation of working hours, 3. Respect to freedom of association
   • Establishment of safe and clean working environment
3. Environmental Considerations
   This is based upon the conviction that humankind has a fundamental responsibility to bequeath the irreplaceable global environment in a flourishing condition to succeeding generations.
   • Suppliers are encouraged to adopt ISO 14001-based environmental management systems and to promote third-party certification.
   • Suppliers are encouraged to utilize Green Procurement, which provides for the procurement of parts and materials that have the smallest negative impact on the environment. Suppliers are also encouraged to reduce or eliminate use of potentially hazardous substances.
   • Suppliers are encouraged to promote environmental protection activities, such as, the establishment of positive environmental policies, the improvement of systems that affect the environment and to provide training opportunities in the area.
4. Maintain Sound Business Operations
   Maintaining sound business operations over the long-term strengthens business relationships. Accordingly, suppliers are requested to disclose their management policies and the status of business operations (including financial statements).
5. Securing Excellent Product Quality
   Suppliers are expected to establish a quality assurance system in accordance with the ISO 9000 family of standards. This system should help improve and maintain the quality of products delivered to us.
   • Compliance with the safety standards of the countries and regions in which suppliers operate
     (e.g., CCC, JIS, Electrical Appliance and Material Safety Law, UL, CE Marking, etc.)
   • Furnishing goods and services on a continuous basis satisfying the specifications and quality required by us
6. Offering Goods and/or Services at Appropriate Prices
   Suppliers are requested to provide goods and/or services at competitive prices and strive to reduce prices on a continuous basis so we can provide its own customers with products that satisfy them financially.
7. Firm Delivery Commitment and Establishment
   Suppliers are requested to keep delivery commitments. They are also requested to establish a system for the stable and flexible supply of goods and/or services enabling them to successfully respond to rapid supply-demand fluctuations.
8. Enhancement of Technological Capabilities
   Suppliers are requested to continually improve their technological capabilities. This will enable Canon Group to provide excellent and safe products to its own customers.
9. Continuing supply in times of unexpected circumstances
   Suppliers are requested to have a plan for providing a continuing supply of goods and/or services in times of unexpected circumstances that may affect the company and its supply chain.