Relationships with Our Business Partners
Declaration of Partnership Building
For the purpose of setting up new partnerships by promoting collaboration and prosperous coexistence with business partners of supply chains and business operators who are working to create value, we hereby declare that we will work on the following items in a focused manner.
September 21, 2021
1. Prosperous coexistence throughout supply chains, and new collaborations beyond company size, affiliation, etc.
By making appeals through direct business partners to other business partners beyond (from “Tier N” to “Tier N+1”), we will work on boosting added value throughout supply chains, and seek to realize prosperous coexistence with business partners through collaborations beyond existing business relationships, company sizes, and the like. In doing so, in pursuit of business continuity in such cases as disasters and work style reforms, we will provide our business partners with support to introduce remote working systems, advice to formulate business continuity plans (BCP), and more.
(Individual item) We will expand the “wa” (circle of harmony) by engaging in sound business with business partners, and make significant contributions to society.
2. Compliance with “Promotion Standards”
In compliance with desirable business practices between the parent business operators and subcontractors (“Promotion Standards” based on the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises), we will proactively strive to correct trade and business practices that may hinder our partnership building with business partners.
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(1) Price decision method
The Company will not make unreasonable cost reduction requests. In determining transaction prices, we accept requests for consultation from subcontractors, and hold sufficient discussions to include appropriate profits of subcontractors, taking into consideration the impact of factors such as increasing labor cost. In the course of entering into contracts—including those concerning the determination of transaction prices—the parent business operators clarify and deliver the terms and conditions thereof in writing.
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(2) Payment terms of promissory notes, etc.
The subcontract proceeds will be paid in cash to the extent possible. If paid by promissory notes, we will not cause subcontractors to bear discount charges or the like, and will set the payment term within 60 days.
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(3) Intellectual property and know-how
We will engage in transactions in accordance with the guidelines and contract templates regarding intellectual property transactions. Furthermore, we will not engage in acts such as demanding the conclusion of one-sided non-disclosure agreements, or using our advantageous position in transaction to ask for the disclosure of know-how or request the transfer of intellectual property rights without compensation.
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(4) Adverse impact of work style reforms
To help our business partners implement work style reforms, we will not place orders to subcontractors with short deadlines without appropriately bearing the cost, or suddenly change specifications. In the case of disasters and the like, we will not impose one-sided burdens of business on subcontractors, and upon resuming business, we will consider continuing our business relationships to the extent possible.
3. Other (voluntary statement)
Under relationships of mutual trust with our business partners, we will not make unfair or unreasonable requests to them, and will make requests and conduct negotiations in a reasonable manner based on data, market prices, and the like.