CSR Report > Archive 2012 > Feature2 Promoting CSR Procurement With Production Partners

CSR Report

Feature2 Promoting CSR Procurement With Production Partners / Our CSR Procurement Journey

In order to promote CSR procurement*1 , we have continued to carry out our on-site inspections. We never cease to think of what is important to Nintendo and the people involved with Nintendo and, through trial and error, we have made continual improvements. With that, we would like to take a look back on our journey over the past five years.

*1 CSR Procurement
Our production partners also are required to be involved in
CSR and to encourage the promotion of CSR activities
throughout the entire supply chain.
  • 2007 1st YEAR - Formulating Our CSR Procurement Policies  (October) / We began to consider measures we could introduce with our production partners to advance production practices.
  • 2008 2nd YEAR - First On-Site Inspection To formulate guidelines for CSR procurement, we formally carried out inspections in March to grasp the current status of our production partners. / Implementation of CSR Procurement Guidelines We drafted and implemented the Nintendo CSR Procurement Guidelines in July based on the results from our inspections conducted in March.
  • 2009 3rd YEAR - Expansion of the Inspection Scope During this expansion process, we identified large regional differences.
  • 2010 4th YEAR - Steady Improvements As we gained on-site inspection experience, we noticed various improvements and began to feel that Nintendo's objectives for CSR procurement were getting across to production partners.
  • 2011 5th YEAR - Amendments to the CSR Procurement Guidelines (April) Based on continuous improvement efforts and best practices learned over the past four years, we revised the guidelines for ease of application, making the content and approach to CSR procurement as practical as possible.

What has Changed in Five Years?

For the promotion of CSR procurement, it is imperative that production partners*2 understand and share the same philosophy as Nintendo. Our on-site inspections are more than just mere surveys of facilities; we regard this time as an opportunity for direct communication with our partners and to confirm the current situation with our own eyes.

When we initially began our on-site inspections, we faced many challenges, but as our relationships grew and we continued to have dialog with our production partners, we began to feel as though they understood and appreciated our CSR policy.

In addition, our on-site inspections not only enable us to convey feedback and input to our partners, but they also provide us with an invaluable opportunity to directly experience what takes place on the production floor. To support our ongoing effort to put smiles on the faces of everyone Nintendo touches, we will continue to communicate our expectations on CSR procurement to our production partners.

*2 Production Partners
The factories to which Nintendo outsources assembly and the suppliers of component parts and materials.

Improvements

Understanding Our Approach to CSR Procurement
Production partners now voluntarily report on human resources development matters.
Various rules and internal regulations have been reviewed to protect minors in the workforce.
Improvement to the Work Environment
Improvements in labor conditions have led to a decline in turnover.
Disaster prevention equipment has been installed to create a safer environment.

Future Topics

Information Management System
An information management system is an extremely important item to verify during our on-site inspections. We always request that production partners consider and review whether their current business practices are optimal for their businesses.
Education and Training
We believe that the training for each worker at our production partners' sites helps to maintain the high quality standard set for all Nintendo products. We not only request that production partners focus on the education of administration staff, but also the training of factory workers.

How Nintendo Conducts its On-Site Inspections

What must be achieved at a production level to put smiles on the faces of everyone Nintendo touches? We visit the facilities of our production partners in person to address any concerns and provide feedback directly to ensure CSR Procurement standards are being met. Below is the flow of our standard inspection.

  • (Left) Daisuke Arakawa, Production Planning & Coordination Office, Uji Plant, Nintendo Co., Ltd.
  • (Right) Hirokazu Shinshi, Deputy General Manager, Manufacturing Division, Nintendo Co., Ltd.
We are here to carry out the on-site inspections.

1 9:00-11:00 Interview Managers and Supervisors

  • We pose specific questions regarding the CSR Procurement Guidelines and confirm these one by one.
  • While inquiring about matters, such as the future of the factory, we are able to grasp production partners' attitudes toward management and manufacturing.

2 11:00-12:00 Check Documents, including Overtime and Paid Leave Records, Employment Contracts, etc.

  • We physically inspect important documents regarding areas such as compliance and respect for human rights.

We confirm that all of the inspected factories utilize labor contracts and that these contracts have been signed by all workers in compliance with the Chinese Labor Contract Law, which has been in effect since January 2008.

3 13:00-15:00 Check Manufacturing Line(1)

  • In order to ensure that a safe working environment is maintained, we confirm the safety status of equipment, including equipment noise (ultrasonic waves and press noise, etc.), odor, solder smoke-extraction equipment, etc.
  • We verify the existence and number of certified occupational health and safety officers, and confirm their patrol schedules.

13:00-15:00 Check Manufacturing Line(2)

  • Fire extinguishers are inspected for location and visibility, number of units, expiration date, maintenance records and status (whether it is still functional, holds air pressure, etc.).
  • Emergency exits and evacuation routes are inspected for any obstructions, etc.

4 15:00-16:00 Confirm Educational Facilities

  • We confirm whether company regulations, wage structure, worker welfare, etc. are adequately explained during new-worker orientation, and that records are kept of worker attendance, implemented training and education.
  • In addition to confirming the content of skills training program curricula, lectures and tutorials, we check the process by which worker certification occurs.

5 16:00-17:00 Confirm Welfare Facilities

  • We verify whether men and women occupy separate housing, and in addition to the number of people sharing a room, we check whether a toilet, hot water shower, ventilation equipment and lockers with keys are installed and, if there are communal toilets and showers, whether an adequate number is available. We also examine room sanitation conditions.

Previously, there were an overwhelming number of female workers, but the ratio of male to female workers has become more even over the past few years. It has been challenging to keep up with this sudden change. At times dormitory buildings at some factories have not been divided according to gender, but we will persist in addressing this challenge.

Production Partner's Comment

President TABUCHI ELECTRIC HONG KONG Ltd. Takuji Yoshihara
Worker Awareness has Changed Through
Nintendo's On-Site Inspections
While we promote improvements based on the results of on-site inspections, we always keep in mind the need to convey to production staff why improvements are important. As a result of these efforts, I have really felt the growth of workers' understanding of CSR. Now, we are focusing on the improvement of our working environment and, as always, we are communicating with production staff about the importance of these new activities.

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