Case study: How Toshiba Group promotes sustainability across its supply chain
Since it was established over 140 years ago, throughout its long history, Toshiba Group has cultivated creativity and technological abilities, and combined them in solutions to the social issues of the day. In order to fulfill CSR with regard to human rights, labour, and the environment in cooperation with its suppliers, Toshiba Group continues to actively promote CSR activities throughout its supply chain.
This case study is based on the 2020 Sustainability Report by Toshiba Group, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Contributing to solving social issues in its supply chain through appropriate procurement transactions, is a top priority for Toshiba Group. Tweet This! In order to promote sustainability across its supply chain Toshiba Group took action to:
- cooperate with industry organisations
- promote compliance
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With this case study you will see:
- Which are the most important impacts (material issues) Toshiba Group has identified;
- How Toshiba Group proceeded with stakeholder engagement, and
- What actions were taken by Toshiba Group to promote sustainability across its supply chain
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What are the material issues the company has identified?
In its 2020 Sustainability Report Toshiba Group identified a range of material issues, such as respect for human rights and environmental management. Among these, promoting sustainability across its supply chain stands out as a key material issue for Toshiba Group.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Toshiba Group engages with:
To identify and prioritise material topics Toshiba Group engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Customers
| · Routine sales activities · Call centre (via phone, email, etc.) · Exhibitions |
| Shareholders/Investors | · General Meeting of Shareholders · Shareholder Newsletters · Communication with Institutional Investors and Securities Analysts · Reports (Securities Report, Integrated Report, Sustainability Report) · Websites (Investor Relations, Sustainability, Environment) |
| Suppliers
| · Routine procurement activities · CSR survey · Clean Partner Line |
| Employees | · Employee morale survey (TEAM Survey) · Dialogues, information exchange meetings · 360-degree survey · CSR workplace meetings · Providing Information through an in-house website · Toshiba Hotline · Audit Committee Hotline · In-house communication magazine · Labour-management negotiation |
| Local Communities
| · Dialogues, information exchange meetings · Factory visits · Employees’ participation in community activities · Local volunteer activities |
| Governments and Public Bodies | · Dialogues and proposals via economic associations and industry associations |
| NPOs/NGOs | · Dialogue through collaboration · Exchange of views at stakeholder dialogues |
| Global Environment | · Reduction of environmental impacts in Toshiba Group’s business activities · Development and promotion of products and services for reduction of environmental impacts in society as a whole |
What actions were taken by Toshiba Group to promote sustainability across its supply chain?
In its 2020 Sustainability Report Toshiba Group reports that it took the following actions for promoting sustainability across its supply chain:
- Cooperating with industry organisations
- In order to drive forward its CSR management in its supply chain in accordance with global standards, in June 2011, Toshiba Group joined the RBA (Responsible Business Alliance), the electronics industry’s CSR promotion organisation. In order to fulfill CSR for labour, occupational health and safety, the environment, and ethical standards throughout its supply chain, Toshiba Group takes measures in accordance with the spirit of the RBA Code of Conduct. In January 2017, Toshiba Group established the RBA Japan Network together with RBA membership companies in Japan. The Network builds awareness and understanding of the RBA Code of Conduct through translation support and outreach meetings. It also conducts activities to resolve common issues. In October 2019, Toshiba Group participated in an RBA membership meeting held in the United States, where it learned about the latest global trends. To create a responsible supply chain, Toshiba Group exchanged information and held discussions with experts. Toshiba Group requests its suppliers to carry out a CSR self-assessment every year in accordance with the RBA Code of Conduct depending on their respective industries and sizes, thereby checking how initiatives are being implemented regarding compliance with regulations and social norms, human rights, occupational health and safety, environmental conservation, and ethics. Based on assessment results, Toshiba Group provides guidance to individual suppliers in accordance with their risk levels, and requests that they make improvements.
- Promoting compliance
- Toshiba Group requests its suppliers to consider CSR in accordance with the Toshiba Group Procurement Policy and in FY2014 revised the policy and included expectations for suppliers to act in accordance with the UN Global Compact and the RBA Code of Conduct, and requested some 10,000 suppliers to abide by this revised content, and got consensus from them. In FY2019, Toshiba Group selected approximately 3,000 companies as new suppliers based on the Policy for Selecting Suppliers stipulated in the Toshiba Group Procurement Policy. The Toshiba Group Procurement Policy, which includes encouraging secondary suppliers to also adhere to implementation measures, was distributed and explained to new suppliers. Toshiba Group requested them to agree to the policy. Additionally, Toshiba Group monitors the status of CSR management in the supply chains that have ongoing businesses at manufacturing sites at the time of quality audits and requests improvements and provides guidance as necessary. For new procurement transactions, Toshiba Group checks the supplier’s conformity with Toshiba Group’s procurement and selection policies, their manufacturing sites and management structure, and whether they comply with laws and regulations on environment, human rights, and occupational health and safety. Toshiba Group holds briefings to explain to suppliers its policies on the environment, human rights, and occupational health and safety and also conducts supplier surveys to monitor their performance in accordance with the Toshiba Group Procurement Policy (including self-assessment) at each business site. If a supplier violates the standard of transaction, Toshiba Group asks the supplier to implement remedial measures and provides guidance and support as necessary. If the remedial measure is deemed to be unsatisfactory, Toshiba Group suspends transactions with the supplier.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
1) Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken
2) Disclosure 414-2 Negative social impacts in the supply chain and actions taken
Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken does not correspond to any SDG.
Disclosure 414-2 Negative social impacts in the supply chain and actions taken corresponds to:
- Sustainable Development Goal (SDG) 5: Gender Equality
- Targets: 5.2
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.8
- Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
- Targets: 16.1
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References:
This case study is based on published information by Toshiba Group, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
https://www.toshiba.co.jp/sustainability/en/report/pdf/report20_en.pdf
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