Policies for Procurement

Kao is committed to fulfilling its corporate social responsibility in its purchasing activities with the aim of realizing a Kirei World in which all life lives in harmony. Furthermore, we conduct purchasing with fairness, legal compliance and the highest ethics in accordance with the Kao Business Conduct Guidelines.

1. Fairness

  1. We determine with fairness suppliers based on rational judgment of quality, price, delivery time, corporate management stability, manufacturing and supply capability, ESG activities and other important elements of candidates.
  2. We provide potential suppliers with the opportunity for fair competition.

2. Compliance and Ethics

  1. We carry out our purchasing with the highest ethics in compliance with the letter and spirit of all relevant laws.
  2. We maintain confidentiality regarding all supplier information obtained in our purchasing activities in accordance with the terms of the applicable confidentiality agreement. We also do not engage in purchasing activities which infringe on third party rights such as intellectual property rights.
  3. We do not conduct reciprocal trade for the purpose of selling our products or services.
  4. We keep entertainment and receipt of gifts involving suppliers within socially acceptable standards.

3. Social Responsibility

  1. We strive to fulfill our corporate social responsibilities by giving full consideration to preservation of resources and the environment, safety, human rights and other social issues.
  2. We establish the guidelines, including “Partnership Requirements for Suppliers” and “ESG Promotion Activities with Suppliers” and will contribute to solving social issues throughout our supply chain.
  3. We exchange necessary information with our suppliers, earnestly evaluate each other’s
     business conditions and mutual actions, and strive to improve each other’s level of performance.

December 26, 2024
Masakazu Negoro
Representative Director, Senior Managing Executive Officer
Kao Corporation

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