Supply Chain Sustainability Survey (Year ended March 31, 2018)

On-Site Inspection

To confirm the status of compliance with the Basic Supply Chain CSR Policy, Marubeni conducts on-site inspections of suppliers who are based in countries designated by the FTSE4Good Global Index as carrying a high risk associated with supply chain labor standards, and who trade in the apparel, agriculture, and other sectors. The person in charge from Marubeni directly visited the manufacturing sites, or production sites, of the suppliers to conduct such inspections.

Multifaceted surveys suitable for the business situation and regional characteristics are conducted on-site, covering areas such as respect for human rights, observance of law, preservation of environment, fair trade, safety and health, quality control, and disclosure of information. The issues of the survey and the survey methods are constantly being reviewed, including third-party opinions, in an effort to always be relevant to the current situations. Survey results are also reported back to the visited sites, so that the information can be shared and utilized for further improvement. If there are cases that do not meet our rules, are non-compliant, or are likely to have negative impact, we encourage the suppliers to report by their own initiative and take actions to lessen the effects, in our effort to reduce environmental and social impact throughout the entire supply chain.

When non-compliance is identified, we handle it through actions for improvement towards the supplier. We give training, enlightenment activities, support, and corrective instructions to the suppliers to promote environmental and social countermeasures. If no improvements are made after these activities, we warn the supplier that we may stop doing business with them.

Visit to Sweater Factory in Cambodia, March 2018

In March 2018 a visit was made to a factory belonging to Unity Fashion Cambodia Co., Ltd., a supplier of Marubeni which manufactures sweaters in Cambodia, to inspect the company’s compliance on CSR issues.

As a result of this survey, no infringements of Marubeni’s Supply Chain CSR policy were found.

We were able to confirm that the company has appropriate policies and management procedures in place, including on the prevention of child labor and long working hours, the regular testing of emissions and wastewater discharges, a health and safety management system and employee training, a quality management system, the working environment, and the cleanliness and orderliness of the factory.

General Legal Compliance

The laws which must be observed by the factory are listed up specifically to ensure that there are no omissions. The legal requirements are explained to all new employees when they start work.

Human Rights, Labor Conditions, Wages

To prevent child labor (established by law as below the age of 18), ID cards are checked at the time of employment to confirm age.
The company has concluded contracts with each employee setting out employment conditions such as working hours, wages, overtime pay and holiday entitlement.
Following an inspection of the Payroll List, which records the payment of wages, we were able to confirm that wages are above the legal minimum wage, and are paid regularly on a monthly basis, together with other items such as travel allowance and overtime pay. Receipt of wages is confirmed by the employee with their signature.
A labor union has been established, to which all employees belong.
An suggestion box exists for employees to express their views on human rights issues and working conditions, as well as any other CSR issues.

Preservation of the Environment

The company has a written environmental policy covering consideration for the environment and compliance with environmental laws.
Potential environmental impacts arising from the operations of the factory include emissions from the boiler and wastewater from the laundering process. Regarding water discharges, the company holds a government permit, and carries out checks of water quality on a regular basis. As for boiler emissions, safety inspections are conducted regularly by the authorities, and emissions are tested on a regular basis. Records show that the factory meets all the related legal standards and requirements.

Fair Trade

An Anti-Bribery Policy is in place, and is displayed in the factory.

Health and Safety

A Health & Safety Policy is in place, and is displayed in the factory.
From the health and safety perspective, there is a possibility of employees incurring injuries from scissors. Measures have been taken to prevent such accidents, for example scissors are secured with string so that they cannot be moved from the area where they are being used, and are stored by employees in plastic containers.
A Health & Safety Committee has been established to decide and implement the factory’s Health & Safety Policy. Lectures and safety training for employees are conducted every six months.
Each section of the factory is equipped with a first aid box.

Quality Control

Potential quality control issues include marking or fraying, or needles becoming entangled in garments. During the visit we were able to confirm that appropriate quality control measures are taken in each of the subdivided sections. Furthermore, the work flow for quality control is displayed in each section.