Suppliers

Fundamental approach to suppliers

A single Honda automobile is made of 20,000 to 30,000 parts. Manufacturing our automobiles and other products depends on close cooperation with business partners who supply the necessary parts and materials.
In striving for growth through long-term relationships, Honda’s purchasing division takes care to provide equal opportunity to any supplier who seeks to do business with us. We choose suppliers via fair processes while respecting their independence and treating them as equals.
Seeking to foster the trust of our business partners worldwide, we maintain fairness in our relationships by respecting all prevailing laws and regulations while securing free competition, treating all suppliers as equals and respecting the independence of suppliers in accordance with our three purchasing principles.

Seeking to foster the trust of our business partners worldwide, we maintain fairness in our relationships by respecting all prevailing laws and regulations while securing free competition, treating all suppliers as equals and respecting the independence of suppliers in accordance with our three purchasing principles.

Purchasing guidelines and the three purchasing principles

Our purchasing guidelines

Our objective: To foster long-term relationships through the timely procurement of high-quality goods at reasonable prices.

Our three purchasing principles

1. Procurement based on free competition

· Through free competition, we will build greater global competitiveness.
· We will open our doors to all suppliers around the world.
· We will seek to realize stable procurement of quality goods in the right volumes, at the right times, and at the right prices.

2. Equal treatment of all suppliers

· We will treat all suppliers as equals, regardless of their size.

3. Respect for the independence of suppliers

· We will respect the independence, policies, technology, and expertise of our suppliers.
· We expect suppliers to compete vigorously and choose their own business path.

Implementing the 2020 Vision of providing good products that maximize the joy of customers with speed, affordability and low CO2 emissions

Honda has adopted "Best possible QCDDE*: Sensing worldwide, acting worldwide, creating worldwide" as its purchasing policy to help achieve its 2020 Vision. We are communicating closely with business partners around the world to implement this policy in order to achieve our goal of providing customers with good products that maximize the joy of customers with speed, affordability and low CO2 emissions.

*QCDDE: Quality, Cost, Delivery, Development, and Environment

We choose suppliers via fair processes while respecting their independence and treating them as equals. We select optimal vendors for parts and raw materials from multiple candidates based on an evaluation of such factors as technical capability; quality, cost, and delivery (QCD); financial position; and compliance, environmental conservation, and information security initiatives.

Bringing CSR to suppliers

We have a well-established history of working with suppliers to implement CSR policies founded on the Honda Philosophy by pursuing safety, disaster prevention, compliance, environmental protection, and QCD-related measures. In 2010, we issued a series of Supplier CSR Guidelines that clearly define our standards in areas such as human rights and labor in order to augment those initiatives and encourage suppliers to undertake active CSR programs based on a shared understanding of their significance. At the same time, we issued a CSR Checklist for suppliers to use in the in-house application of their initiatives as well as in their secondary application to upstream suppliers.

Furthermore, we issued a revised guideline in 2013 adding our standards on conflict minerals*.

*Conflict materials: Minerals that originated in the Democratic Republic of the Congo or adjoining countries which are thought to be contributing to the funding of armed groups or to the abuse of human rights in that region.

Enhancing partnerships

We strive to build strong partnerships with suppliers in order to maintain high levels of quality.

Human rights and environmental considerations

We are involved in a range of initiatives based on the Honda Philosophy that seek to ensure that the autonomy and human rights of all employees and business partners are respected. We are also striving to reduce environmental impacts throughout the supply chain.

Strengthening compliance with purchasing policies

We strive to enhance compliance through associate training and aggressive observance of all applicable laws and regulations.

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