SDP follows the basic idea of using just and fair evaluations to purchase outstanding parts and materials that meet our demands. This ensures that our supplier companies are provided with equal opportunities. As for our procurement activities (including commissioning manufacturing), SDP will comply with all laws, regulations, and social norms, while enhancing mutually beneficial relationships with suppliers. Also, we will practice conservation of the environment and corporate social responsibility with our suppliers’ support.

1. Basic Procurement Concepts
   1)SDP’s procurement activities are conducted in an open and impartial manner, with a fair evaluation given to suppliers in and outside Japan. 2)SDP will comply with all laws, regulations, and social norms and achieve mutual prosperity with suppliers. 3)Through its procurement activities, SDP will uphold its social responsibility with respect to conservation of the environment. 4)SDP will pursue optimal quality and cost to the fullest extent.
2. Guidelines for Procurement Activities
   SDP will conduct its procurement activities with the following perspective and based on the Basic Procurement Concepts.
   
   1)Open and impartial procurement activities and purchasing at optimal cost
   ・In its procurement activities, SDP will pursue optimal cost through market competition, giving first priority to openness and impartiality. 2)Establishing mutually beneficial relationships
   ・All board members and employees will comply with relevant laws, regulations, and social norms. In this way, relationships with suppliers will be enhanced.3)Conservation of the environment
   ・SDP practices product development and business operations in an environmentally conscious way. In addition, we improve our environmental protection activities in cooperation with suppliers and promote environmentally friendly procurement activities by purchasing parts and materials that are harmless to the environment.4)Ensuring good product quality
   ・It is an obligation of a manufacturer to provide products trusted by customers. Therefore, SDP will obtain parts and materials that meet our quality demands to produce the best quality products.5)Ensuring reliable delivery times and stable supply
   ・In order to provide a stable supply of products to its customers, SDP will strive to obtain a reliable supply of parts and materials delivered at the necessary time. Furthermore, as a manufacturer’s obligation, we will ensure a supply of repair parts and materials now and in future years.6)Leading technology
   ・In order to create new demand through innovative technologies, SDP will adopt uniquely and technologically excellent parts and materials. 7)Non-disclosure of confidential information
   ・SDP will place strict controls on any information that it obtains through its procurement activities and will not disclose this information to a third party without the supplier’s consent.
3. Request to Suppliers
   It is important to accomplish our CSR efforts not just by ourselves, but across the supply chain, which includes our suppliers. Therefore, SDP requests each of its suppliers to comply with and practice the following items.
   
   1)Compliance with laws and social norms
   Suppliers are required to comply with their respective local laws and social norms, including the following items:
   ・Compliance with laws related to the manufacture and distribution of material
   ・Compliance with laws related to labor
   ・Compliance with laws related to health and safety and the arrangement of a proper labor environment ・Prohibition of child and forced labor
   ・Prohibition of discrimination based on race or sex and respect for the dignity of each employee ・Compliance with environmental laws
   ・Prohibition of bribery and unfair acts2)Promotion of sound business operations
   ・Suppliers are requested to conduct open and fair business management (with proper disclosure of information, etc.) to continue business and build mutually beneficial relationships.3)Consideration for the environment
   ・Suppliers are requested to take positive measures concerning the conservation of the environment and environmental management, conducting business operations and developing products in an environmentally conscious way. Suppliers are also requested to provide parts and materials in accordance with our Green Purchasing Guidelines.4)Ensuring optimal quality and cost
   ・Suppliers are requested to comply with safety standards required in each country and region and to supply parts and materials that meet our quality demands to provide the best quality products to our customers. ・Suppliers are requested to supply parts and materials at optimal prices, based on the principle of market competition. 5)Stable supply of parts and materials
   ・Suppliers are requested to keep their delivery commitments and maintain a stable supply of parts and materials, so we can ensure a reliable supply of products to our customers.6)Leading technology
   ・Suppliers are requested to offer parts and materials with leading technologies, including unique and innovative technologies.7)Non-disclosure of confidential information
   ・Suppliers are requested to put in place strict controls to maintain the confidentiality of any information they have obtained through their procurement activities and not to disclose such information to a third party without our consent.