CSR Report > CSR Report2017 - Advancing CSR Procurement With Our Production Partners

CSR Report

Advancing CSR Procurement With Our Production Partners / Building on Conversations and Cooperation To Create More Consumer Smiles

CSR Priority Areas

Advancing CSR Procurement With Our Production Partners

Building on Conversations and Cooperation To Create More Consumer Smiles

Nintendo adopts a fabless (fabrication-less) production model, meaning that we do not own the production factories that manufacture our products. Consequentially, the cooperation of our production partners in Japan and abroad is essential.
I believe that working directly with our production partners on CSR procurement initiatives enables us to produce high-quality and safe products, which, in turn, leads to more smiles from our consumers.

Realizing Stable Quality For Nintendo Products

  At Nintendo, we work closely with our production partners, with an emphasis on building relations of trust and achieving mutual understanding. We believe that placing a special focus on labor environment issues, human rights issues and risk management results in higher quality products and parts, decreased risks, and mutually improved corporate value and competitiveness.

 This is why direct communication is indispensable within our CSR procurement and we continue to perform on-site inspections of our production partners. By directly communicating the reasons that improvements are necessary and reinforcing Nintendo's approach to CSR, we can share the direction that each of our respective production initiatives should follow while valuing the use of our respective strengths.

Steadily Advancing CSR Procurement

 The CSR procurement initiative, which was launched in fiscal year 2007, has now reached its tenth year. Over the years, our progress may have proceeded somewhat slowly at times, but we have continued to move forward. The Nintendo CSR Procurement Guidelines have been revised regularly, we have been investigating our supply chain to address the conflict minerals* issue and we brought in a third party to conduct monitoring of our production partners' sites. In fiscal year 2016, we worked with more production partners, as we began to produce new products. Whenever we start working with a new production partner, we visit their sites to review the conditions. According to the results of those initial visits, we conduct on-site inspections that examine issues more closely.

*Conflict minerals are the four minerals, gold, tantalum, tin and tungsten, extracted from the conflict-affected regions of the Democratic Republic of the Congo or its adjoining countries, and are used as a financial source for inhumane armed groups that violate human rights and, in the process, destroy the environment.

Improvements to Better Understand Conditions

 To accurately understand the actual conditions of our production partners' CSR activities, we aimed for two improvements in fiscal year 2016.

 First, although we have continually sent our Business Status Survey to companies that have been working with Nintendo over the years to understand their current situation, we determined that the questions regarding risk evaluation had been lacking and thus revised them to be more specific and provide a greater level of detail.

 The second improvement was to focus on increasing the skills of the Nintendo Co., Ltd. employees who actually perform the on-site inspections. At Nintendo, we believe that the better we know the sites and people who work for our production partners, and the better our on-site inspectors' are at communicating with their counterparts, the greater our inspectors' proficiency and the quality of those on-site inspections will improve. We enhanced the certification program for employees performing our on-site inspections and we will conduct training to improve the ability of our inspectors.

Primary Training

  • Education based on the Nintendo CSR Procurement Guidelines
  • On-site inspection experience, using on-the-job training
  • Learning through third-party monitoring

CSR Procurement Process

Share Guidelines With Production PartnersShare Guidelines With Production Partners

Confirmation by Survey / Site Visits to Understand Current Status / Follow-UpConfirmation by Survey / Site Visits to Understand Current Status / Follow-Up

Promoting Understanding and Cooperation for Production Partners

 From an international perspective, there is no guarantee that our production partners' site operations will be adequate, even if they comply with local customs and laws. We continually have conversations regarding the Nintendo CSR Procurement Guidelines, aiming to improve our production partners' awareness to facilitate CSR activities that recognize the various requirements from countries around the world.

 We also share case studies on different issues with our production partners for reference to help them better understand the kinds of issues occurring in the world and society's expectations for companies.

Addressing the Issue of Conflict Minerals

 We referred to the Due Diligence Guidance for Conflict Minerals* from the Office of Economic Cooperation and Development to create the Conflict Minerals Guidelines, which set forth the chain of responsibility and investigation methods for the handling of conflict minerals. We have also been working on strengthening our investigation system and improving investigation methods. As a part of these efforts, we visit production partners and interview them on investigation methods and issues to be addressed.

*Guidance from the Office of Economic Cooperation and Development (OECD) that presents a supply-chain management framework for minerals extracted in high-risk or conflict areas.

Nintendo Conflict Minerals Policy (9KB)

Partner Comment

Undergoing an On-Site Inspection

Masaaki Egi

Senior Manager
Data and Devices Japan Sales

Mobile & CE Sales Group Tyco Electronics Japan G.K.

Undergoing an On-Site Inspection

 In the fall of 2016, Nintendo conducted an on-site inspection of a production outsourcing company in China that manufactures our antenna products. Despite only being established 10 years ago, this production company has built an impressive track record of corporate social responsibility following its creation and then operation of a proprietary CSR management system.

 After we were informed that Nintendo wanted to visit the site to perform an on-site inspection, our purchasing team, and the local environmental and CSR contacts decided to join the Nintendo team for the inspection. We discovered new issues in terms of health and safety, and labor management through Nintendo's conversations with site workers. The Nintendo inspection team not only focused on the workplace but also pointed out the need to remove hazardous materials from around the outside of the buildings, and to improve the electrical equipment layout within employee dormitories. Having the Nintendo inspection team point out these problems enabled us to make further improvements and develop new preventive measures.

 This on-site inspection was particularly meaningful for the executives at the plant in China to realize the significance of Nintendo's goal, which is to put smiles on the faces of everyone it touches.

 A working environment that is safe and friendly for all employees fosters improved employee retention rates and leads to even higher levels of proficiency. In the future, we will continue to advance CSR activities to ensure high-quality production processes.

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