To ensure that corporate social responsibility is fulfilled, as well as monitoring its own organization, Shionogi needs to build relationships of trust and cooperation with suppliers, who are important business partners. The Shionogi Group's Procurement Policy sets out a basic approach designed to ensure that procurement activity is founded on honesty, fairness, equity, and transparency, and forms the basis on which we work together with suppliers to strengthen supply chain management.

 

Initiatives Covering the Supply Chain

At Shionogi, we are aware of the extreme importance of collaborating with our suppliers if Shionogi is to achive continuous growth hand in hand with society as a drug-discovery-based pharmaceutical company. Therefore, in accordance with our procurement policy, we ask our suppliers to adopt Code of conduct for third party.
Code of conduct for third party refers to the Pharmaceutical Industry Principles for Responsible Supply Chain Management (“Principles”), proposed by Pharmaceutical Supply Chain Initiative (PSCI),1 a non-profit organization comprising over 40 pharmaceutical companies around the globe and advocating CSR procurement, procurement whereby corporate customers require their suppliers to engage in similar CSR initiatives, in the pharmaceutical industry. The Principles cover a wide range of areas, including not only the environment, health and safety, but also ethics, workers’ rights, management systems concerning these values. Shionogi endorses and acts in accordance with all of the Principles.

PSCI Principles

【Ethics】

  1. 1
    Business integrity and fair competition
  2. 2
    Identification of concerms
  3. 3
    Animal welfare
  4. 4
    Privacy

【Environment】

  1. 1
    Environmental authorizations
  2. 2
    Waste and emissions
  3. 3
    Spills and releases

【Helth and Safety】

  1. 1
    Worker protection
  2. 2
    Process safety
  3. 3
    Emergency preparedness and response
  4. 4
    Hazard information

【Labor】

  1. 1
    Freely chosen employment
  2. 2
    Child labor and young workers
  3. 3
    Non-discrimation
  4. 4
    Fair trement
  5. 5
    Wages, benefits and working hours
  6. 6
    Freedom of association

【Management Systems】

  1. 1
    Commitment and accountability
  2. 2
    Legal and customer requirements
  3. 3
    Risk management
  4. 4
    Documentation
  5. 5
    Training and competency
  6. 6
    Continued improvent
At Shionogi’s manufacturing and research sites, we conduct environmental impact assessment regarding all aspects of their operations from the purchase of raw materials to disposal. Our awareness raising targets not only high-risk in-house operations but also outsourced services, waste disposal operators and other related parties. An emergency communication system is also established between Shionogi and its suppliers.
We perform EHS audits on suppliers of important active pharmaceutical ingredients (API), confirming the safety measures and environmental consideration in their manufacturing processes and other aspects. We have drawn up“ Suppliers’ EHS/CSR Management Guidance,” which stipulates EHS risk categories and management procedures for suppliers, as well as auditing items to be implemented at each supplier management level. For questionnaire surveys, we use PSCI’s Self-Assessment Questionnaire (SAQ) forms to check items such as ethics, labor, environment, and health and safety.
Table 1 Supplier Management Level and Auditing Items
No. Category (by handled products) Management level Auditing items implemented
Written confirmation Questionnaire survey On-site audit
1 Suppliers of API, intermediates or preparation (GMP[*4]-conforming process) for drugs deveolped since the adoption of PV[*3]-based manufacturing High
2 Irreplaceable suppliers Suppliers of API, intermediates of preparations (GMP-conforming process) for new products Intermediate  
3 Suppliers other than the above (Manufacturers of general-use raw materials, subcontractors in charge of packagingm, etc.) Low    
  1. ※1
    PV: Process validation; confirmation and documentation that the process is valid for permanently manufacturing products of the target quality when operated under a permissible range of conditions set based on the results of industrialization research, the past manufacturing records of similar products, or other such data and in consideration of variables likely to affect the preset product quality (physical properties of raw and other materials, operating conditions, etc.)
  2. ※2
    GMP: Good Manufacturing Practice: international standards for the manufacturing and quality control of pharmaceutical products; the GMP-conforming manufacturing of pharmaceutical products is required to follow GMP procedures and guidelines concerning operations such as the delivery of raw materials, inspection, manufacturing, packaging, shipment management, storage, and collection and disposal.