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. We share our thoughts with our suppliers globally and promote initiatives for themes such as human rights, health and safety, environment, quality, and social contributions.

Obayashi Group CSR Procurement Guidelines

Obayashi Group CSR Procurement Guidelines were established in June 2011. The guidelines apply to all of our Group's suppliers. The most important of the nine sections of the guidelines are stipulated in contracts concluded with suppliers and checked when the contracts are made.

To Our Suppliers

The importance of corporate social responsibility (CSR) is increasing every year. As a construction company, We believe that its core social responsibility is providing safe and secure buildings for its customers and society at large. However, nowadays companies are expected to undertake a broad range of initiatives ranging from global warming countermeasures to human rights.
We established Obayashi Principles that guide the ways in which the company contributes to the achievement of a sustainable society. The Obayashi Group conducts its procurement activities based on the five action commitments set forth in our Corporate Principles.

Initiatives related to the supply chain as a whole are naturally expected to be part of a company's business activities aimed at fulfilling its commitment to social responsibility. The understanding and cooperation of our suppliers is essential to the success of its CSR initiatives. Against this background, We have established the Obayashi Group CSR Procurement Guidelines which encompasses common expectations from society.

We request that its suppliers, on an ongoing basis and in a manner that seeks constant improvement, proactively implement programs which support the nine areas below. Further, We require that suppliers' CSR efforts also apply to the entirety of their own supply chains. Going forward, the company will take measures to ensure supplier compliance with the Obayashi Group CSR Procurement Guidelines.

1 Compliance with Laws and Regulations

Operations will be conducted in compliance with all national and local laws and societal norms and in the spirit of said laws and norms. Suppliers will:

  • participate in seminars conducted by our group companies and undertake other efforts to raise awareness and ensure thorough knowledge of compliance issues
2 Establish Corporate Ethics

Suppliers are expected to maintain high ethical standards and conduct their operations in compliance with fair business practice laws and regulations. Suppliers will:

  • not make/receive inappropriate payments to/from others;
  • not engage in dealings with anti-social forces, in accordance with anti-organized crime laws, etc.;
  • respect intellectual property rights;
  • protect the rights of internal whistle-blowers; and
  • strive to disclose appropriate corporate information to the extent possible.
3 Respect for Human Rights

Suppliers are expected to conduct their operations on the basis of respect for human rights. Suppliers will:

  • not discriminate on the basis of gender, age, race, origin, disability, or physical appearance, nor permit sexual harassment or other activities that infringe upon human rights.
4 Safety and Health

Suppliers are expected to provide a safe and healthy workplace for all employees. Suppliers will:

  • autonomously establish, maintain and seek to improve systems to ensure a safe and healthy workplace;
  • at construction sites, establish safety and health management systems, improve autonomous safety and health management abilities through implementation and operation of appropriate occupational safety and health management systems, and collaborate in accident prevention efforts;
  • at construction sites, thoroughly enhance the safety and health of customers, people in areas surrounding construction sites, and other related stakeholders;
  • participate in seminars conducted by our group companies and other activities to raise awareness and ensure thorough knowledge of workplace safety and health issues; and
  • cooperate with our group companies in safety and health related activities.
5 Environment

Suppliers are expected to conduct their operations in an environmentally responsible manner, including efforts to reduce CO2 emissions and promote responsible use of resources and harmony with nature. Suppliers will:

  • strive to reduce CO2 emissions through efforts to reduce energy and resource consumption;
  • promote responsible use of resources through waste management measures that promote waste reduction and improve recycling ratios, etc., chemical management measures that reduce use of and promote proper handling of hazardous chemicals, etc., and green procurement measures that promote the use of products, technologies and construction methods with low environmental impact, etc.;
  • promote harmony with nature through biodiversity conservation;
  • autonomously establish, maintain and seek to improve systems that ensure effective environmental protection;
  • at construction sites, work to ensure protection of the environment for customers, people in areas surrounding construction sites, and other related stakeholders;
  • participate in seminars conducted by our group companies and other activities to raise awareness and ensure thorough knowledge of environment issues; and
  • cooperate with our group companies in environment related activities.
6 Quality

Suppliers are expected to provide products and services that meet requirements for quality. Suppliers will:

  • autonomously establish, maintain and seek to improve systems that ensure product and service quality;
  • participate in seminars conducted by our group companies and other activities to raise awareness and ensure thorough knowledge of product and service quality issues; and
  • cooperate with our group companies on product and service quality issues.
7 Disaster Risk Management Systems

Suppliers are expected to establish risk management systems to be activated in response to disasters. Suppliers will:

  • proactively develop business continuity planning measures and respect construction timelines and deadlines.
8 Information Security

Suppliers are expected to undertake efforts to ensure the security of personal information and proprietary corporate information, including blueprints, and all matter of construction-related documents and electronic files. Suppliers will:

  • implement measures to prevent the theft or loss of data by prohibiting the use of file-sharing software, privately-owned computers and external memory devices;
  • ensure use of updated versions of anti-virus and security software;
  • not permit the posting or reproduction of construction related information on any kind of public community site such as blogs, Twitter or any social networking site; and
  • not permit access to our group company networks from in-house computers, and ensure the proper management of IDs and passwords.
9 Social Responsibility

Suppliers are expected to proactively contribute to solutions to issues facing societies and communities, as appropriate, in implementing and raising awareness of CSR procurement activities. Suppliers will:

  • enhance communication with local communities through volunteer activities, etc.; and
  • actively support activities undertaken by our group companies.

Established June 1, 2011

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Obayashi Rin-yu-kai

Approximately 1,100 suppliers that perform different kinds of work throughout Japan are members of Obayashi Rin-yu-kai. Obayashi monitors the soundness of the affiliated companies on a regular basis. The corporate members of the Obayashi Rin-yu-kai hold regular meetings, and work to provide information on revisions to safety-related laws and regulations, handling of legal welfare expenses, the acceptance of the recently increasing number of foreign technical intern trainees, and other matters. We regard the Obayashi Rin-yu-kai as an important stakeholder. We strive to improve communication through listening sessions and other means, and are building a relationship of trust.

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Support for Various Educational and Training Sessions

A scene from safety training

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.

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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 working to develop skilled construction workers and secure human resources by promoting enrollment in social insurance, addressing problems with such as improving the stratified subcontracting structure, and other means. 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.

Obayashi Rin-yu-kai Vocational School

Learning to assemble scaffolding by doing the actual work

In April 2014, we opened a vocational training school(*1) to nurture skilled workers and pass on their expert skills to future generations. The school offers three courses: scaffolding, ferro-concrete reinforcement, and formwork. Trainees spend two months acquiring critical construction knowledge and technical skills necessary for construction worksites, including safety management and computer-assisted design (CAD). Also, we have established a course for mid-level skilled workers in the fiscal year ended March 31, 2017, looking to broaden the training horizons. As of March 31, 2018, 105 workers have completed the training and putting their skills to use at construction sites.

*1 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

Certification Programs (Excellent Site Supervisor, Excellent Operator)

Excellent site supervisor and excellent operator ceremony

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. So far, 30 operators have been certified in the first year of this program. 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. Around 80 people participated in these sessions in FY 2017.

Supporting Recruiting Activities

Promoting recruitment of skilled workers who will lead future generations and passing on techniques is not just up to suppliers. It is a matter in which Obayashi can play an important role. We work together with our suppliers to convey the appeal of the construction industry. Since FY2015.3, we have been holding company introduction seminars jointly with Obayashi Rin-yu-kai. These events are open to high school career counselors. We held 13 such events in FY2018.3. Personnel from 75 schools participated in seminars in six locations: Sapporo, Tohoku, Nagoya, Osaka, Hiroshima, and Kyushu.

We also hold hands-on occupational construction site tours for high school and vocational school students. Students get hands-on experience in multiple areas, including rebar, gas pressure welding, plastering, and painting. This way, they can learn the differences between various kinds of work and get a sense of their own aptitudes. Another objective is to let them imagine themselves working in construction.

A high school student learning how to use a gas burner

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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.

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Green Procurement

We have established "Obayashi Green Procurement Guideline" 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.

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