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 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. The most important points are stipulated in contracts concluded with suppliers and confirmed when the contracts are agreed.
The Obayashi Group is making suppliers and subcontractors aware of the revised Obayashi Group CSR Procurement Policy. We are managing our supply chain by giving questionnares which evaluate their understandings, so that suppliers of all products and services connected with our business can grow and develop with us.
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.
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.
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
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. Wokers completed the training use their skills at construction sites.
Additionally, we have an incentive system in place for cases where construction workers with certain certifications work on our construction sites. The program gives incentives and rewards to certified workers to help shape their careers and increase their wages. Incentives are also available to suppliers and subcontractors company.
*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)
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.
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 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.
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.