Integrity in Corporate Activities

Our business activities give us a large sphere of influence when it comes to social accountability, so it is crucial for the many companies and individuals along our supply chain to help the Ricoh Group avoid or minimize unintended negative effects. To that end, we make sure not only our employees, but also the employees of our suppliers, always act ethically. We spotlight this concern in our international guidelines on human rights, labor, the environment and more, and are working continuously to raise our initiatives to the next level.

CSR procurement

Since procurement is integral to the Ricoh strategies of "intensive production" and "local production for local consumption," we have implemented a global online procurement system that optimizes costs, suppliers and other factors. Our environmentally and socially responsible methods of procurement are given further support by the strong, cooperative ties we have with our suppliers.

Ricoh Group basic policy in procurement activities

The Ricoh Group, along with suppliers, aims to discharge its social responsibility in the supply chain, by conducting purchase activities on the basis of the following policy: 1) Coexistence and co-prosperity with suppliers by establishing long-term reliable relationships and cooperation, 2) Fairness of transactions (comprehensive evaluation of suppliers based on their participation in corporate social responsibility activities on the basis of economic rationality), 3) Establishment of an environmental management system and reduction of environmental impact through purchasing environment-friendly products, 4) Compliance with the law and 5) Respect for social ethics.

Ricoh Group basic policy in purchasing activities

■ Rollout of supply chain CSR

Rollout of supply chain CSR

Ricoh Group Supplier Code of Conduct

In January 2006, the Ricoh Group established the Ricoh Group Supplier Code of Conduct for our suppliers to make efforts to aim at a better society and global environment and sustainable development of society. All of our suppliers are required to comply with this code of conduct. The Supplier Code of Conduct includes clauses on human rights such as prevention of child labor and environmental conservation.

Ricoh Group Supplier Code of Conduct (18k)

Green procurement in partnership with suppliers

The Ricoh Group purchases materials and parts used to manufacture products in line with Green Procurement Standards. As part of our efforts to help suppliers promote environmental protection, we have developed Environmental Management System (EMS) Guidelines and Chemical Substance Management System (CMS) Guidelines to help the suppliers establish their own EMS and CMS Guidelines in line with those of the Ricoh Group. These guidelines are used to provide suppliers with training and education as well as support in operating the management systems.

Green Procurement Standards

Supplier CSR Procurement Self-Assessment System

The Ricoh Group Supplier Code of Conduct contains CSR-related standards, including environmental conservation and regulations regarding human rights such as the prohibition of child labor. We request suppliers to comply with these standards in their business activities. We have developed the Supplier Code of Conduct Guidebook and distribute it to suppliers to help them better understand the necessity of compliance with the Code of Conduct. In 2009, we held an explanatory meeting on the Ricoh Group's CSR activities, inviting all major suppliers in Japan to attend, with the aim of raising their awareness of the importance of making efforts in the CSR area and improving their understanding of the Code of Conduct in order to share our values.
Also in 2009, a CSR Self-Assessment System for monitoring the level of compliance with the Supplier Code of Conduct was introduced. Implementation of the system was initiated in Japan and has gradually been expanded to other countries. Based on assessment results reported to the Ricoh Group, activities needing to be improved are identified, results are fed back to the suppliers and advice and support necessary to further improve their activities are provided. The CSR Self-Assessment System has been applied to local suppliers in China since 2010 and was introduced to Thailand in 2013. The system helps suppliers to implement the PDCA cycle by themselves, and this will eventually enable them to meet society's needs and requests.

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Conflict Minerals Issue

The Ricoh Group believes the Conflict Minerals Issue*1 is crucial. We are constantly working with our business partners to improve transparency in the supply chain to ensure responsible mineral sourcing practices. As of July 2013, about 800 companies globally had attended sessions to hear about our directives, and by November 2013 we plan to complete a survey of our suppliers, with results to be disclosed in May 2014.

  • *1"Conflict Minerals Issue" is the issue that the minerals mining or trading finances armed groups and fosters conflicts, or closely related to human rights abuses, labor issues or environmental destruction, etc. The Dodd- Frank Wall Street Reform and Consumer Protection Act enacted in July of 2010 requires specified companies to report the use of conflict minerals; tin, tantalum, tungsten, and gold and any other minerals determined by the U.S. Department of State, which are originated in the Democratic Republic of the Congo and/or an adjoining country.

Ricoh Responds to Conflict Minerals related rules of the U.S.

The U.S. Securities and Exchange Commission (SEC) adopted the final rule pursuant to Section 1502 of Dodd Frank Wall Street Reform and Consumer Protection Act, called Conflict Minerals provision, on August 22nd, 2012. The rule requires listed companies, etc., to disclose and report to the SEC about the use of conflict minerals *2 originating from the Democratic Republic of Congo or adjoining countries in their products.
Ricoh, as a member company of the "Responsible Minerals Trade Working Group", launched in May 2012 by the Japan Electronics and Information Technology Industries Association (JEITA), is participating in a Working Group for the entire global supply chain. Activities of the working group include compliance with the rule, all part of Ricoh's commitment as a good global citizen.

  • *2columbite-tantalite, cassiterite, gold, wolframite or their derivatives. Primary derivatives are tantalum, tin and tungsten

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Promotion of efforts to address child labor issues

Child labor is one of the priority issues of the Ricoh Group's TRM (total risk management) efforts, and relevant departments have been engaged in various projects to address child labor issues. The Ricoh Group has already surveyed the compliance with laws that prohibit child labor by manufacturing sites in Japan and abroad. The survey results have confirmed that there have been no violations. The self-assessment results from supplier companies have also confirmed that there have been no reports of child labor violations. We will continue to monitor child labor.

Sharing information with suppliers

In 2001, the Ricoh Group launched RaVenderNET, a network for sharing information on production and environmental impact caused by raw materials and parts. RaVenderNET was expanded in 2005 to include overseas vendors. The network, which is maintained jointly with our suppliers, has streamlined the process of confirming the compliance of purchase orders with Ricoh standards from two or three days to just half a day, substantially shortening production lead times. The system has also been used to share information on socially responsible procurement since 2010.

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