SHIONOGI Group Procurement Policy

With SHIONOGI Group Heritage that "SHIONOGI strives constantly to supply the best possible medicine to protect the health and wellbeing of the patients we serve", the SHIONOGI Group conducts procurement activities based on honesty, accuracy, fairness, and transparency, in order to maintain and enhance the health, safety, and daily comfort of people around the world and to realize a sustainable and healthier society. This policy sets out the main principles that the SHIONOGI Group complies with when purchasing materials, goods and services.

 

1. Basic principles on procurement

In addition to the SHIONOGI Group Code of Conduct and relevant Shionogi Group policies, the SHIONOGI Group also supports and respects a broadly recognized set of fundamental principles and international norms, including the ten principles of the United Nations Global Compact relating to human rights, labor, environment and anti-corruption, the principles of the PSCI*1, a non-profit organization, consisting of global pharmaceutical companies and promoting sustainable procurement, ISO26000 (Guidance on Social Responsibility), and ISO20400 (Guidance on Sustainable Procurement).

※ *1 PSCI: Pharmaceutical Supply Chain Initiative

2. Appropriate procurement

The SHIONOGI Group procures appropriate quantities of materials, goods, and services with good quality at reasonable prices in order to develop high-quality, safe, cost-effective healthcare products and services which are beneficial to a lot of patients, healthcare professionals, and society, and to provide them continuously and stably.

 

3. Promoting sustainable procurement

3.1 Strict compliance with laws, regulations, and best practices

  • We comply with laws, regulations and best practices related to procurement activities in each country, including but not limited to, anti-trust laws and subcontractor regulations.
  • In implementing procurement operations, we strive for integrity along with transparency and objectivity, and never demand or receive interests (money, goods, hospitality, favors, etc.) through influence peddling nor have personal interests with business partners.
  • We responsibly manage any confidential information acquired through our procurement activities and never use the information for any purposes other than the transaction in question nor leak it to any unrelated third parties.
  • We implement our procurement operations by following fair, transparent and obvious procedures, and never has business dealings with fraudulent or criminal individuals or organizations.

3.2 Consideration for human rights, the working environment, safety and health, and the global environment

  • In accordance with relevant international norms, we respect the human rights of all people and promote procurement in consideration of the working environment and safety and health.
  • We comply with environment-related laws and regulations and promote environmentally friendly procurement.

3.3 Education and Training, and Continuous Improvement

  • To ensure that people involved in procurement activities in the SHIONOGI Group fully recognize the importance of sustainable procurement, we provide the necessary education and training.
  • We regularly evaluate our efforts for sustainable procurement and work with our business partners to make continuous improvements.

4. Relationships with business partners

  • We strive for deepening mutual trusting relationship with our business partners and to build prosperity together by putting a high priority on communication as good partners with sincere attitude on an equal footing.
  • When choosing our business partners, we make impartial and fair selections by comprehensively examining potential partners' management stability, reliability, past performance and efforts for sustainable procurement, as well as quality of materials, goods and services, technical capabilities, economic rationality (prices, delivery time) and degree of cooperation, and we never favor particular partners.*2

※ *2 See the SHIONOGI Group Business Partner Code of Conduct established by SHIONOGI for further details.

 

Established on October 1, 2011

Revised on April 1, 2015

Latest Revised on November 1, 2021

 

 

Shionogi & Co., Ltd.

Representative Director and President and CEO

Isao Teshirogi