Philosophy
Our purpose is to sincerely contribute to the future of manufacturing by uniting the hopes of those who make products and those who use them. Under sound management, we believe it is essential to build trusting relationships with our business partners and engage in appropriate collaboration. Our business partners are indispensable to us, and as partners in value creation, we aim for mutual growth and prosperity while working together to achieve a sustainable society.
Sustainable Procurement Guidelines
To promote sustainable procurement, the Nichiden Group has established the following Sustainable Procurement Guidelines for its business partners.
Nichiden Group
Sustainable Procurement Guidelines
1. Introduction
As an industrial distributor specializing in mechanical parts and systems, the Nichiden Group places importance on social responsibility throughout the entire supply chain in order to contribute to the realization of a sustainable society. These guidelines summarize our basic approach to procurement as well as stipulate the matters with which we ask our business partners to cooperate. We ask for our business partners’ understanding with regard to the purpose of these guidelines and ask that they work together with us towards building a sustainable society.
2. Basic Policy on Sustainability
The Nichiden Group complies with all applicable laws, regulations, and internal rules related to procurement transactions in each country, and engages in fair dealings with business partners on an equal footing, thereby providing opportunities for fair and free competition.
In selecting business partners and procuring products, we place importance not only on quality, price, delivery time, and supply stability, but also on environmental and social considerations. In particular, before entering into new transactions, we confirm the reliability, stability, and sustainability of prospective business partners. Through these efforts, we aim to realize responsible and sustainable procurement for both parties and contribute to solving social issues. If a business partner commits a serious compliance violation, we will consider corrective measures through dialogue and may take actions including termination of transactions until remediation is completed.
3. Requests to Our Business Partners
To promote the Nichiden Group’s sustainable management, responsible corporate behavior through the supply chain is essential. In addition to the quality, technology, and long-term stability of all procured products and services, we make fair judgments by taking into account the following Code of Conduct items. We ask our business partners to fully understand and comply with these requirements. We also ask that business partners ensure proper management, supervision, and communication not only within their own organizations but also among their related suppliers, and actively encourage compliance.
4. Code of Conduct
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Legal Compliance
Comply with the laws and regulations of one’s own country and the countries or regions where business is conducted, and respect international codes of conduct.
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Consideration for the Global Environment
a. Climate Change
Set targets for reducing greenhouse gas emissions and strive to reduce emissions by promoting energy efficiency and the use of renewable energy.b. Biodiversity
Work to conserve biodiversity and the natural environment.c. Chemicals and Hazardous Substances
Prevent environmental pollution from chemicals and oils, mitigate their impact, reduce emissions of air pollutants, and reduce and properly treat hazardous waste and wastewater.d. Waste
Promote waste reduction and recycling and contribute to the formation of a circular economy.e. Water
Strive to reduce water usage through efficient use and recycling, and ensure appropriate water treatment.f. Raw Material Procurement
Ensure traceability of raw materials and procure them in a manner that conserves resources and considers environmental impact. -
Occupational Health and Safety
a. Employee Safety
Conduct safety assessments in workplaces and company-provided housing and implement appropriate safety measures.b. Safety of Equipment and Facilities
Conduct regular inspections of production machinery, vehicles, and other equipment and implement safety measures.c. Physical Work
Implement safety measures for tasks that place heavy physical burdens on workers.d. Hygiene
Provide clean toilet facilities, access to drinking water, and facilities for hygienic meals in workplaces and company-provided housing.e. Health Management
Give due consideration to maintaining employee health and provide appropriate health management. -
Human Rights and Labor
a. Prohibition of Forced Labor and Child Labor
Do not engage in slavery, forced labor, or human trafficking in any form. Do not employ children below the minimum working age. Do not assign young workers under the age of 18 to night work, overtime, or work that threatens health or safety.b. Elimination of Discrimination, and Equal Opportunity
Prohibit all forms of discrimination in recruitment and employment based on race, ethnicity, birth, nationality, religion, gender, age, disability, sexual orientation, beliefs, or the form of employment contract.c. Prohibition of Harassment
Prohibit all forms of harassment, including power harassment and sexual harassment.d. Freedom of Association and the Right to Collective Bargaining
Respect freedom of association and the right to collective bargaining. Comply with laws and labor agreements and engage in sincere dialogue and consultation with employees or their representatives.e. Working Hours in Compliance with Laws
Do not require employees to work beyond the legally prescribed limits on working hours.f. Wages and Benefits in Compliance with Laws
Pay wages and provide benefits to employees in accordance with applicable laws. -
Business Ethics
a. Prohibition of Bribery and Corrupt Practices
Do not engage in any corrupt practices, including bribery, corruption, extortion, or embezzlement.b. Exclusion of Antisocial Forces
Do not conduct any transactions with antisocial forces.c. Anti-Competitive Behavior
Comply with relevant laws and refrain from anti-competitive conduct such as collusion.d. Disclosure of Company Information
Disclose appropriate information regarding business activities to stakeholders in a transparent manner. Respond appropriately to requests from business partners based on laws or industry standards and strive to provide accurate and sincere information. -
Management Systems
a. Establishment of Management Systems
Establish appropriate internal management systems to comply with this Code of Conduct and operate those systems effectively.b. Quality Management
Ensure the quality and safety of products and services.c. Information Management
Properly manage and protect internal information of other companies, including intellectual property, as well as personal information of related parties.d. Grievance Mechanism
Operate mechanisms to receive reports from stakeholders regarding violations of this Code of Conduct and to take corrective action.
Version 1.0, Revised April 2025, First Edition Issued
Partnership-Building Declaration
We have declared our commitment to undertaking the following priority initiatives to build new partnerships by pursuing mutually beneficial collaboration with suppliers and other businesses working to create value.
1. Mutual Growth Across the Entire Supply Chain and New Forms of Collaboration Beyond Size or Affiliation
We are working to enhance added value across the entire supply chain by engaging not only with our direct vendors but also with those in deeper tiers of the supply chain. In addition, we are striving to build mutually beneficial relationships with business partners through collaboration that goes beyond existing business relationships and corporate scale.
(Individual Items)
At Nichiden, we handle a wide range of products, including bearing and linear motion equipment, power transmission equipment, pneumatic and hydraulic equipment, control equipment, FA equipment, and environmental equipment. As a specialized industrial distributor, we have particular strength in offering a comprehensive product lineup in the fields of machine elements and industrial machines. We address challenges at manufacturing sites, such as labor saving, energy conservation, safety measures, and automation, supporting our customers’ manufacturing through improvements in productivity and workplace environments.
2. Compliance with Development Criteria
We comply with the desirable business practices between commissioning businesses and small and medium-sized contractors (the “Development Criteria” based on the Act on Promotion of Entrusted Small and Medium-sized Enterprises), including improvements to ordering methods, methods for determining compensation, payment methods, transaction terms related to molds and similar items, protection of intellectual property, and the proper conduct of transactions. We actively work to address trade and business practices that hinder the building of collaborative relationships with business partners.
May 9, 2023
(Updated March 6, 2025)
(Updated February 20, 2026)
We make this declaration with a full understanding of the content of the Development Criteria based on the Act on Promotion of Entrusted Small and Medium-sized Enterprises.
(Remarks)
- ・This declaration will be posted on the portal site operated by the National Association of Small and Medium Enterprise Promotion Organizations.
- ・If it is determined that this declaration has not been fulfilled (including cases where guidance or advice is provided by the competent minister based on the Development Criteria), the posting of this declaration may be withdrawn.
Communicating with Business Partners
Business Policy Briefings
To gain business partners’ understanding of, and cooperation with, the Nichiden Group’s business policies and specific measures, we hold a briefing on the same day that we announce financial results for the year. The meeting explains topics including the thinking of top leadership, the previous year’s business performance, investment results, business strategy progress, and market forecasts in order to foster understanding and empathy on the part of business partners with regard to the Group’s business policies.
