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Basic Approach
Our suppliers and licensees are important business partners in initiatives to realize a sustainable society based on our corporate philosophy of “Minna Nakayoku (Getting Along Together).” We are impartial in providing opportunities to companies that want to do business with the Sanrio Group as a supplier or licensee, and we endeavor to share our Group’s philosophy of helping to build a society where people live together in peace and harmony through our social communication business, in our transactions. We have also established the Sanrio Supplier/Licensee Code of Conduct and strive to create a sustainable supply chain by asking each supplier and licensee to comply with the provisions of the code.
Sanrio Supplier/Licensee Code of Conduct
- Prohibition of Forced Labor
Suppliers/licensees must not use any forced or involuntary labor. Forced or involuntary labor includes work performed by any person who is under the threat of penalty or coercion or work that is not voluntarily offered by any person. Restrictions on movement and retention of employees' identity documents or work permits by suppliers/licensees are also forms of forced labor. - Prohibition of Child Labor
Suppliers/licensees must not use child labor. Child labor refers to work by people under the age of 15, the local legal minimum age for employment, or the age for completing compulsory education, whichever is higher. No person under the age of 18 must be engaged in work that is dangerous or harmful, or that poses a risk to their health, safety or morals. - Offer of Appropriate Wages and Benefits
Suppliers/licensees must comply with all applicable laws and regulations related to wages and benefits.
Suppliers/licensees must ensure employees are compensated for overtime hours at the legally prescribed premium rate or, if there is no legally prescribed premium rate, at a rate higher than the regular hourly compensation rate.
Employee benefits must be provided in accordance with local laws and regulations. - Restricting Long Working Hours
Suppliers/licensees must manage working hours and holidays in compliance with applicable local laws and regulations and working hours must not exceed the limits established by local laws and regulations. In addition, employees must be granted the right to leave as established by applicable laws and regulations. - Ensuring Employees’ Health and Safety
Suppliers/licensees must ensure a safe and healthy environment in all facilities, including offices, factories and dormitories provided, and take all necessary measures to prevent and mitigate injuries, accidents and disasters that may occur during work. Suppliers/licensees must properly manage and dispose of chemical substances.
Procedures for various emergencies that may occur, such as fire, natural disasters, and security must be prepared and communicated to employees. - Prohibition of Discrimination
Suppliers/licensees must not discriminate in hiring, wages, training, promotion, disciplinary action, or any other employment practice, on the basis of race, creed, religion, color, gender, sexual orientation, nationality, family origin, age, marital status, disability, pregnancy, union membership, political affiliation, etc. - Freedom of Association and Collecting Bargaining
Suppliers/licensees must respect the rights of employees to join, associate or organize unions and bargain collectively in a lawful and peaceful manner, without penalty, interference, discrimination, retaliation or harassment. - Prohibition of Harassment
Suppliers/licensees must not subject workers to corporal punishment, threats of violence, or any form of physical, psychological or sexual harassment or abuse. - Communication to Employees
Suppliers/licensees must communicate the provisions of the Supplier/Licensee Code of Conduct to employees, whether orally or in writing, and take appropriate measures to ensure that it is fully understood by employees. - Environmental Protection
Suppliers/licensees are encouraged to engage in environmental considerations including the reduction and recycling of waste.
Also, suppliers/licensees must comply with applicable environmental laws and regulations and dispose of chemical substances in a controlled and safe manner. - Prohibition of Corruption and Bribery
Suppliers/licensees must comply with all applicable anti-bribery and anti-corruption laws and regulations and must not engage in corruption, extortion, embezzlement or bribery in any form. - Retention of Inspection and Audit Rights
Where Sanrio requires, suppliers/licensees must, upon prior notice, allow Sanrio and its designated agents (including third parties) to inspect and audit all facilities, including offices and factories, to ensure compliance with the Supplier/Licensee Code of Conduct. - Protection of Intellectual Property Rights
Suppliers/licensees must not infringe any intellectual property rights of Sanrio and any third party, including unauthorized or improper use. - Information Management
Suppliers/licensees must properly protect confidential information, including trade secrets they or Sanrio handle, as well as the personal information of customers, employees, etc., and must not misuse such information or disclose it to outside parties.
Risk Management
Monitoring via self-inspection checklists
Suppliers and licensees are asked to complete a self-inspection checklist to verify the status of compliance with the Sanrio Supplier/Licensee Code of Conduct. We request responses from all suppliers/licensees involved in the manufacture and handling of Sanrio products to ascertain the status of each company relating to child labor, forced labor, and other issues. Sanrio uses the checklist to identify high-risk suppliers and licensees and implement appropriate risk management for its business, and works with its partners to make improvements when issues arise. We also request compliance with the code of conduct for new transactions and request new business partners to complete the same checklist.
As a supplemental effort to the self-inspection checklist, Sanrio conducts on-site inspections of suppliers and licensees and as well as overseas manufacturing plants contracted by licensees. Sites selected for inspections are chosen with a priority on locations with geopolitical risk and the volume and status of transactions with Sanrio. External specialized organizations may also be engaged to confirm the labor conditions at local factories and, in the event that issues are identified, Sanrio requests the company to implement improvements and supports efforts to resolve the issues.
For more information, please refer to Main Initiatives under Respect for Human Rights.
Main Initiatives
Communication with suppliers
We request compliance with the Sanrio Supplier/Licensee Code of Conduct by asking each supplier and licensee to sign a contract, and request compliance again when renewing each contract. We also ask each supplier and licensee to complete a self-inspection checklist based on the code of conduct and promote communication with suppliers by providing guidance on improvement based on the results. We will continue these initiatives and strive to implement sustainability activities throughout the supply chain.