Suppliers
We conduct fair transactions with suppliers and build stronger mutual trust with them as partners who can grow with us.
Promotion of CSR Procurement
Initiatives down the entire supply chain are essential for a company to fulfill its social responsibilities through business activities. Based on the Obayashi Group's CSR Procurement Policy, we are promoting CSR procurement initiatives throughout the entire supply chain together with suppliers involved in the Obayashi Group's business.
Obayashi Group CSR Procurement Policy
The Obayashi Group established the Obayashi Group CSR Procurement Guidelines in June 2011 as part of our effort to fulfill our corporate social mission as based on the Obayashi Basic Principles. Since then, we have been working to practice CSR procurement in league with our wide range of suppliers and other partners.
In March 2020, we revised the guidelines to include more concrete items based on society's various needs and named the new document the Obayashi Group CSR Procurement Policy. When concluding contracts with suppliers, we have added a clause requiring compliance with this procurement policy and the Obayashi Group Human Rights Policy.
This clause stipulates that if a supplier commits a significant violation of these policies and continues to do so despite our requests for improvement, we will terminate the contract.
Implementation of Education and Training
The Obayashi Group conducts training every fiscal year with the aim of sharing and spreading CSR procurement, which is essential for conducting "responsible supply chain management" as stated in the ESG initiatives, throughout the Group.
CSR Procurement Questionnaires
Obayashi conducts questionnaire surveys across the supply chain every fiscal year to confirm the widespread awareness and acceptance of the Obayashi Group CSR Procurement Guidelines, and the degree of compliance. In FY2024, the survey covered approximately 1,350 companies, including members of the Obayashi Rin-yu-kai and companies that conduct regular business with the Group. We score and analyze each company's compliance status, and provide feedback on the analysis results to improve their efforts.
Past education and training
| Date of implementation |
Contents of training | Subjects | ||
|---|---|---|---|---|
| December, 2021 | E-learning on overall CSR procurement |
All employees of Obayashi and domestic group companies |
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| December, 2021 | Training on supply chain management by an external charge of procurement operations external instructor |
Personnel in charge of procurement operations at Obayashi and domestic group companies |
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| December, 2022 | E-learning on human rights issues, mainly on the subject of foreign technical intern trainees |
All employees of Obayashi and domestic group companies |
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| December, 2023 | Themed e-learning video regarding procurement of construction materials from the perspective of respect for human rights and environmental protection |
All employees of Obayashi and domestic group companies |
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| December, 2024 | Themed e-learning video regarding supply chain and human rights |
All employees of Obayashi and domestic group companies |
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Traceability of Procured Materials
Among the materials procured for Obayashi Group's business activities, timber and solar panel components have been identified by NGOs and other organizations as posing relatively high risks. These materials have been flagged for environmental destruction and human rights violations occurring during raw material extraction, manufacturing, and processing. Starting in fiscal year 2021, the Group initiated traceability investigations for these materials. These investigations are conducted annually, with ongoing revisions to the scope of investigation and expansion of the materials covered.
Survey on the Reception of Foreign Workers
Potential human rights violations against foreign technical intern trainees have been pinpointed as a social concern, so since FY2022 Obayashi has conducted a questionnaire survey on how foreign technical intern trainees are being accepted at relevant suppliers and subcontractors. In FY2024, In addition to foreign technical intern trainees, we have also conducted an investigation on the status of accepting workers with specific skills. Based on the results of this investigation, we conducted interviews with suppliers and foreign workers. Furthermore, for companies in which we identified areas requiring improvement, we provided written guidance for improvement.
Survey on the current status of respect for human rights in overseas offices and group companies
To promote respect for human rights in our overseas operations in addition to our domestic operations, in FY 2022 we conducted a questionnaire survey of our overseas offices and overseas group companies on their efforts to respect for human rights.
The survey asked whether or not human rights training and education were provided, and whether or not language considerations were made for foreign national employees and foreign workers at construction sites.
The survey results showed that all business sites and group companies regularly provide training and education, and some offices even provide such training and education to their suppliers. We also confirmed that foreign employees communicate in languages they can understand, and that safety signs and precautions on construction sites are translated, posted, and explained to foreign workers in languages they can understand.
Scope of the Survey: Asia-Pacific Regional Headquarters, the offices and Group companies under their control, North American Regional Headquarters, offices and group companies under the control of the North American Regional Headquarters, and group companies under the control of the Real Estate Development Division (19 offices in total)
Obayashi Basic Partnership Policy
We endorse the initiatives of the "Conference on Promoting Partnership Building for the Future", organized by the Cabinet Office, the Small and Medium Enterprise Agency and attended by the Ministry of Economy, Trade and Industry, Ministry of Land, Infrastructure, Transport and Tourism, and other relevant ministries, agencies, economic organizations and labor organizations, and we are making the declaration public.
We declare that we will actively work to correct our business practices and commercial practices in order to build new partnerships by promoting cooperation, coexistence, and co-prosperity with our supply chain business partners and business partners that create value.
Engaging with Suppliers and Subcontractors
Every year, Obayashi holds a meeting with Obayashi Rin-yu-kai member companies to discuss a wide range of issues that encompass quality, safety, and environmental consideration, as well as how to reform work styles, improve productivity, and secure workers.
Any useful opinions or examples shared during the discussion are applied across the entire Company and incorporated into subsequent activities. Every six months, suppliers and subcontractors are evaluated on a five-level scale based on seven factors, including quality, safety, and environmental consideration. Each participating company is individually notified of the evaluation results, guidance is provided in the form of interviews and other means to spur improvements, and awards are presented to excellent suppliers and subcontractors.
Obayashi also offers regular training sessions on sustainability and digital transformation (DX) to raise awareness and encourage the formulation of various initiatives at each company.
Obayashi Rin-yu-kai
Obayashi Rin-yu-kai is made up of suppliers and subcontractors across Japan and boasts approximately 1,200 member companies engaged in various types of construction work and businesses. We regularly monitor the health of the operations of its member companies.
Obayashi Rin-yu-kai regularly holds liaison meetings to share information on revisions to various laws and regulations, while also conducting unique initiatives at each of its branches nationwide.
Obayashi Rin-yu-kai Vocational School
In 2014, we opened a vocational training school(*2) to nurture skilled workers at our suppliers and subcontractors and pass on expert skills to future generations. The school offers three courses (in scaffolding, ferro-concrete reinforcement, and formwork) as well as a short course that focuses on Computer-Assisted Design (CAD). Employees of Obayashi and its suppliers and subcontractors serve as instructors. Through this training, trainees acquire the knowledge and technical skills needed at construction sites. These include construction tasks, safety management, and CAD.
In March 2023, the school set up a new O-DX Room and started offering training on crane slinging* operations using virtual reality (VR) tools. Going forward, the school will enhance its training programs so that workers can acquire a more diverse range of skills. The school will also strive to contribute to securing more workers.
Additionally, we have an incentive system for graduates with certain certifications who work on our construction sites. The program gives financial incentives and rewards both to the graduate and the supplier or subcontractor. This helps workers shape their careers and increases their wages.
*2 This school is certified by the Tokyo metropolitan government to implement a Ministry of Health, Labour and Welfare program as a regional organization conducting occupational training. Employees from Obayashi and our suppliers serve as lecturers, enhancing the skills of younger workers
Support for Various Educational and Training Sessions
We are working with suppliers to improve safety and health, through such methods as safety patrols and safety and health training sessions. We provide support to develop and enhance management systems, with the aim of improving suppliers' autonomous safety and health management abilities.
We also support suppliers in other ways by providing information and training seminars for supplier management teams on subjects ranging from health and safety to regulatory compliance.
Moreover, each construction work office has a foremen's association consisting of suppliers. Matters concerning safety, desired improvements in the workplace environment, and other topics are discussed at foremen's association meetings, and the contents of those discussions are passed on to Obayashi for discussion of improvements.
We have also established a reporting system for employees of suppliers using the Obayashi Group Corporate Ethics Reporting System. This system enables them to use anonymous hotlines (internal and external) to report forced labor or child labor, and other improper acts by Obayashi Group employees at construction sites and elsewhere that lead to legal violations, if such an event occurs. Individual reporters and the companies of individual reporters will not be subjected to unfair treatment under this system.
Obayashi Group Internal Reporting System (Available only in Japanese) (466.2 KB)
The Business and Skills Transfer Support Center
The business continuity of specialized construction companies has become a challenge for the industry, due to the aging of skilled workers and the lack of successors to take over the management of such companies. Obayashi Rin-yu-kai member companies, which are important Obayashi stakeholders, face similar problems, so, in April 2023, Obayashi opened the Business and Skills Transfer Support Center to help solve these management issues and provide the necessary support.
The center has set up a consultation desk for individual companies to discuss business succession (M&A, internal successor training), talent recruitment, human resource development and retention, the use of IT, and other issues, and receive individualized support from specialist consultants. Obayashi will also provide educational opportunities by holding training sessions for management and employees and streaming e-learning programs.
Skill Improvement Training for Each Trade
Since FY2022, we have been conducting skill improvement workshops by trade to improve technical capabilities and safety and quality management skills in the specialized aspects of each construction project. To this date, we have held workshops covering plastering work, demolition work, structural work, and interior finishing work.
Initiatives to Secure Human Resources
In recent years, the construction industry has been confronted with the problem of a shortage of skilled workers. This is due to the aging workforce and a decline in younger recruits and retention rates. To solve this problem, We are undertaking various initiatives, of course including improving working conditions at construction sites, but also promoting social insurance enrollment and reforming the multi-tiered subcontracting structure. In confornity with the Japan Federation of Construction Contractors' statement for respecting fair labor cost estimation, we reference the unit labor costs specified by the Japanese government in determining contract amounts with subcontractors and provide guidance that will facilitate payment of fair wages that include legal welfare expenses.
Certification Programs (Excellent Site Supervisor, Excellent Operator)
We introduced "Obayashi Excellent Site Supervisor Certification Program" aiming to raise the motivation of young skilled workers.
Under the system, we began certifying and raising the pay of particularly exceptional supervisors.
We have been working to increase the scope of the system. The number of applicable occupational categories and the eligible age limit was expanded. Now we provide 25 categories for skilled workers up to 65 years old.
Recognizing the growing importance of crane operators, we have also launched a similar program, "Obayashi Excellent Operator Certification Program" in the fiscal year ended March 31, 2017, offering certification and higher pay for outstanding crane operators.We encourage self-awareness among supervisory foreman and hold regular networking sessions for supervisory foremen to heighten awareness and strengthen ties among the foremen.
Networking sessions include lectures on safety, presentations by Construction Work Office managers on expectations and wishes, plus opinion exchanges on topics concerning improving efficiency and other matters, such as the five-day work week and creative ways to improve retention of young skilled workers.
Developing Multiskilled Workers
We develop multiskilled and semi-multiskilled workers to deal with the shortage of skilled workers, make work more efficient while saving labor, and stabilize business for our subcontractors. We set up a framework joint venture consisting of scaffolding, ferro-concrete reinforcement, and formwork subcontractors. Under the instruction of Obayashi retirees, subcontractors teach each other skills as they work. In addition, we send subcontractor personnel of supervisor class to Obayashi construction sites to gain experience in site construction management duties. The plan is to use them to manage a multiskilled worker organization.
Going forward, we plan to expand the types of work covered in this program and expand it to all branches.
Subcontractors Teach Each Other Different Types of Work to Produce Multiskilled Workers
Supporting Recruiting Activities
We collaborate with Obayashi Rin-yu-kai to host various events aimed at promoting the appeal of the construction industry, promoting understanding, and helping secure workers for the construction industry. In addition to site tours and roundtable discussions for high school and vocational school students, we hold the "Construction Career Experience Festival, where participants can experience various trades such as reinforcing steel and formwork assembly, and plastering.
Health and Safety
We work to create workplace conditions not only pleasant for diverse personnel, including young, old and female construction skilled workers, but also attractive to young people considering a career in construction.
Green Procurement
We have established "Obayashi Green Procurement Guideline (Available only in Japanese)" to promote more environmental friendly procurement. Also, for construction materials, we hold material inspections at factories to verify that the quality of material we use is under the legal standards.