Strengthening compliance with purchasing policies

Instruction and training for associates

To ensure every associate involved in Honda's purchasing operations engages in purchasing that is fair, honest, and in keeping with Honda's three purchasing principles, Honda has prepared training and reference manuals that detail standards of purchasing staff behavior and explain applicable laws and regulations. In addition, to maintain strict compliance with anti-trust laws, Japan's Act Against Delay in Payment of Subcontract Proceeds, and other laws of special relevance to purchasing, newly hired associates receive special training during orientation, and Honda associates review these important topics at periodic seminars. In FY2014, we prepared an additional manual and held a seminar to explain to all members of relevant divisions specific content in the Act on Special Measures for Addition of Consumption Tax, brought into force in 2013, and the METI Guidelines on Proper Trade in the Automotive Industry, revised in 2014, they need to consider in Honda purchasing activities. Additionally, the standards of purchasing staff behavior as well as associated manuals are available on the corporate intranet to facilitate easy access by associates at any time.

Standards of Purchasing Staff Behavior published on the intranet

Taking an aggressive approach to ensuring legal compliance by suppliers

The basic agreements covering part transactions into which Honda enters with suppliers ensure legal compliance by prohibiting suppliers from infringing on third parties' intellectual property rights through their parts or manufacturing methods, and by including provisions that require suppliers to: give due consideration to safety, disaster prevention, environmental conservation, and resource protection in their operations, comply with anti-trust laws and all other applicable laws and regulations, and cooperate with audits conducted in accordance with these laws. In addition, Honda and its suppliers mutually pledge to eradicate organized crime.

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