Partnership Building Declaration
We declare that we will prioritize the following items in order to build new partnerships by promoting cooperation, co-existence, and co-prosperity with our supply chain business partners and other businesses that create value.
- Co-existence and Co-prosperity in the Entire Supply Chain and New Collaboration Beyond Scales and Affiliations
- Aiming for co-existence and co-prosperity through stable transactions, Kyowa promotes CSR procurement and green procurement throughout the supply chain.
- We promote business efficiency across the entire supply chain through IT implementation support such as the introduction of EDI.
- Compliance to Promotion Standards
By reaching out to new potential business partners through our existing business partners (from “Tier N” to “Tier N+1”), we aim to build co-existence and co-prosperity with business partners through collaboration that goes beyond existing business relationships and enterprise scale, while working to improve added value throughout the supply chain. In doing so, we will also promote support such as advice on the introduction of remote work for business partners and the formulation of BCPs (Business Continuity Plans), from the perspective of business continuity in the event of disasters and work style transformation.
Individual Items
Kyowa will adhere to desirable business practices between the parent company and subcontractors (promotion standards based on the Act on Securing Business Opportunities for Small and Medium-sized Enterprises) and proactively identify and correct inappropriate trade and business practices that hinder the building of partnerships with business partners.
(1) Pricing method
We will not make unreasonable requests for cost reduction. In determining the transaction price, if a subcontractor requests for negotiations, we will respond to the request and fully discuss the matter so as to include the appropriate profit for the subcontractor. When making a contract that includes the determination of transaction compensation, the parent contractor will clearly state and issue the contract terms in writing.
(2) Cost burden of mold management, etc.
We conduct mold transactions in accordance with the basic transaction agreement and individual contracts (order forms), facilitate the disposal of unnecessary molds, and do not request subcontractors to store our molds free of charge.
(3) Payment terms of bills, etc.
Subcontract payments will be made in cash whenever possible. When paying by bill, the subcontractor will not be responsible for any discount fees, etc., and we will commit to making the payment within 60 days.
(4) Intellectual property and knowledge
We do not require the conclusion of unilateral non-disclosure agreements, the disclosure of knowledge using a business position, or the transfer of intellectual property rights free of charge.
(5) Negative consequences of work style transformation, etc.
To ensure that our business partners can also respond to work style transformation, we will not place orders to our subcontractors with short delivery times without reasonable cost burden or with sudden specification changes. In the event of a disaster, we will not impose a unilateral burden on our subcontractors in terms of transactions, and we will give due consideration to the continuation of business relationships as much as possible, when business resumes.
September 1, 2022
President and CEO
President and CEO