Supply Chain Management

Basic Concept

As the supply chain expands around the world today, striving to realize a sustainable society throughout it beyond the scope of a company’s own group is an important social responsibility. The GOLDWIN Group established the GOLDWIN Group Procurement Policy, which positions mutual benefit with suppliers at its foundation, to promote sustainable and responsible procurement that takes the environment, society, and human rights into consideration with high ethical standards.

GOLDWIN Group Procurement Policy

GOLDWIN Group (hereinafter referred to as “The Group”) aims to realize a sustainable society through our business activities based on our corporate philosophy “to realize a fulfilling and healthy lifestyle through sports”.
With coexistence and co-prosperity with our suppliers as the basis, we established the GOLDWIN Group Procurement Policy in order to promote sustainable and responsible procurement which considers the environment, society and human rights with high ethical standards.

1.Considerations for the environment, society and human rights

  • To achieve prosperity in harmony with nature, we provide environmentally friendly products and services based on The Group’s “Basic Principles of Environmental Protection” and “GOLDWIN’s Environmental Policies”.
  • We respect human rights of employees and local communities in accordance with the “GOLDWIN Group Policy on Human Rights”.
  • With continuous improvements, we promote procurements with respect to working environment and occupational health and safety.
  • Through our corporate activities, we live in harmony with local communities and promote social contribution.
  • We ensure traceability of materials and processes within procurement.
  • Considering the impact on society, we purchase raw materials that are not involved in conflicts or crimes.
  • We respect The Five Freedoms for Animals and use materials that are treated ethically.

2.Ensuring transparency and fairness

  • We conduct our procurement with integrity, respecting not only the laws and regulations of each country, but also the international code of conduct and ethics.
  • When selecting suppliers, in addition to ensuring quality, cost, and delivery, activities regarding the environment, society and human rights are evaluated fairly and impartially to promote honest transactions.
  • We manage confidential and personal information obtained through procurement securely. We will not conduct procurements that infringe intellectual property of third parties.

3.Ensuring quality and safety

  • To provide valuable products and services, we will work with suppliers to maintain and improve the quality and safety.

GOLDWIN Group Supplier Code of Conduct

The Group established the GOLDWIN Group Supplier Code of Conduct as a set of fundamental principles for suppliers to be followed when conducting transactions with the Group and seeks their understanding of and compliance with the Code. In fiscal 2022, we revised the Code to clarify the conduct norms that all suppliers are required to follow (including labor and human rights, the environment, and safety and hygiene) as well as management structures (including management systems, grievance mechanisms, and disclosures). In fiscal 2023, we will seek the understanding of suppliers regarding the revised Code, re-request that suppliers sign memoranda of consent, and contribute to the development of a sustainable society by conducting supply chain management that emphasizes transparency.

Main Items of the Supplier Code of Conduct

※ This table can be scrolled horizontally.

Category Main Items
1 Corporate Governance Create structures to fulfill social responsibilities and achieve business continuity as a company
2 Legal Compliance In addition to complying with relevant laws and regulations, conduct business ethically
3 Labor and Human Rights Comply with the GOLDWIN Group Policy on Human Rights and comply with prohibitions of child labor and forced labor and other requirements
4 Safety and Hygiene Maintain environments where employees can work in a safe, hygienic, and healthy manner
5 Environment Collaborate in accordance with the Group’s environmental strategy and strive to minimize environmental impacts
6 Fair Corporate Activities Do not engage in illegal acts and conduct corporate activities based on fair and free competition
7 Responsible Procurement Conduct procurement with consideration for human rights, the environment, and animal welfare and endeavor to ensure traceability
8 Communities Reduce negative impacts on local communities and work toward the development of local communities
9 Monitoring Compliance Cooperate with retention of records and audits to confirm the status of compliance with the Code of Conduct; if any instances of nonconformity are discovered, work to correct them
10 Product Quality and Safety Comply with the GOLDWIN Products Quality Standard to produce safe and secure products; when problems occur, respond appropriately

THE GOLDWIN Group Supplier Code of Conduct can be accessed here.

Promotion Framework and Person Responsible

We have built a supply chain management system led by the Sourcing Department and Quality Assurance Department, with the Executive General Manager of the Sourcing Headquarters having responsibility. We maintain communications with suppliers in Japan and overseas, and ask for their understanding and cooperation with our company policies. Activities are reported to the ESG Management Committee and Executive Management Meeting, with oversight and guidance received from the Board of Directors through the Executive Management Meeting.

GOLDWIN’s Supply Chain

We conduct direct and indirect procurement activities with a wide range of suppliers inside and outside Japan.
We take a broad view of our supply chain as encompassing primary suppliers that deliver finished products to our Group and secondary and subsequent suppliers that supply materials, chemical substances and raw materials for our products through primary suppliers.
Primary suppliers comprise manufacturing factories for our products and trading companies and production management companies involved in the manufacturing. Along with quality guidance and other direct communication, we have also started conducting desktop audits of all manufacturing factories since FY 2021. Approximately 90% of these manufacturing factories (on an order value basis) are located outside Japan.
Secondary suppliers refer to materials manufacturers that manufacture materials (fabrics, auxiliary materials, etc.) after raw materials procurement, dyeing, and other processing, as well as trading companies.
We require that our primary suppliers and main secondary suppliers sign a memorandum of understanding for the Code of Conduct for GOLDWIN Suppliers and the GOLDWIN Restricted Substance Management Regulations.

Country of origin ratio

Selection of New Suppliers

Prior to beginning transactions between the GOLDWIN Group and new suppliers, we ensure that they meet all of our standards, including the Code of Conduct for GOLDWIN Suppliers and the GOLDWIN Restricted Substance Management Regulations. We only begin transactions after confirming that all documents have been received and that the supplier is found to be conforming through a desktop audit. In FY 2022, we started dealing with 98 new suppliers.

Documents required prior to entering a supplier contract

  • Memorandum of understanding for the Code of Conduct for GOLDWIN Suppliers
  • Corporate data sheet
  • Company confirmation documents (business license, factory registry)
  • Desktop audit report (manufacturing companies only)
  • List of affiliated companies (subcontractors, processing factories, etc.)
  • Memorandum of understanding for the GOLDWIN Restricted Substance Management Regulations
  • Hazardous materials management survey

CSR-Based Procurement

To build a healthy supply chain, improve product quality, and strengthen initiatives for human rights, the environment, and safety, we ask suppliers to cooperate with audits, both desktop and on-site, and make continuous improvements. We request that the necessary paperwork is updated each year.
We have established an internal operational flow for the Code of Conduct for GOLDWIN Suppliers, and conduct management with clearly defined roles and responsibilities among the Business Department, Sourcing Department and Quality Assurance Department. We aim to increase corporate value for both GOLDWIN and suppliers through CSR-based procurement incorporating sustainability criteria.

Supplier Audits

Since FY 2021, our Group has been conducting desktop audits (self-assessment questionnaire) and on-site audits by third-party auditors at all manufacturing factories with which we do business to monitor their compliance with the legal, social, and ethical requirements defined in the GOLDWIN Group Supplier Code of Conduct.
Desktop audits are conducted simultaneously once a year. In FY 2022, suppliers shared their answers with us on a total of 107 questions in 11 categories. In addition, any suppliers whose responses indicate a risk are asked to make improvements on a case-by-case basis. In FY 2022, 348 companies were subject to desktop audits, and responses were collected from all companies.

Desktop audit details

  1. Compliance with laws and regulations, and acquisition of business license
  2. Labor and human rights
  3. Health and safety
  4. Use of subcontractors
  5. Compliance with environment-related laws and regulations
  6. Intellectual property and duty of confidentiality
  7. Facility security and maintenance
  8. Confirmation of compliance
  9. Production of safe and reliable productions
  10. Fair trade
  11. Coexistence with local communities

FY 2022 desktop audits (348 companies)

Desktop audits in FY 2022 produced a 437% increase in findings of non-compliance compared to FY 2021. Reasons for this increase include a partial revision and addition to the questions in FY 2022 as well as a revision of some of the criteria in accordance with the GOLDWIN Group Policy on Human Rights which was established in December 2021. We will continue to ask suppliers for whom findings have been identified to make improvements on a case-by-case basis, and we will strengthen our efforts.

As of FY 2022, we had also conducted on-site audits at 158 companies, primarily at our main manufacturing factories. In FY 2022, we conducted initial audits at 101 companies and follow-up audits at 40 companies. We continue to build our monitoring system, conducting on-site audits at manufacturing factories that have not yet been audited and gradually conducting periodic follow-up audits at manufacturing factories that have.
The main issues identified from on-site audits related to workplace health and safety (55%, including inadequate safety devices such as finger guards on sewing machines, inadequate safety and protective equipment such as masks, gloves and goggles, and inadequate documentation for buildings and structures) and labor and human rights (33%, including excessive overtime hours and partially inadequate social insurance). Audit results are provided to suppliers as feedback, and factories requiring corrective measures are asked to implement such measures and submit corrective action reports. In FY 2023, we are expanding the scope of monitoring by asking trading companies, management companies, main materials-related companies, and other suppliers, in addition to manufacturing factories, to complete the desktop audit. We are also taking steps to request that some of our business partners provide us with environmental data. As well as asking our suppliers for their understanding that the number of checked items is expanding each year, we are carefully explaining our efforts to build further relationships of co-creation with them.

Communication with Suppliers

Our business would not be possible without the cooperation of suppliers that produce products and deliver products and materials to us. We broadly share our principles for promoting sustainability through business activities with our supply chain, and focus on communication with suppliers on an individual basis to build a cooperative framework based on mutual trust.

GOLDWIN Supplier Summit
Once every two years, GOLDWIN hosts a two-day supplier summit—a meeting that brings together its major suppliers (trading companies, materials manufacturers) under the one roof. Our representative directors and general managers of each business division also participate, and on the first day, they present our management and business policies. On the second day, we venture out into nature in an effort to build partnerships through communication, such as by actually using GOLDWIN products while trekking or trying marine sports.
In FY 2022, 38 representatives from 29 suppliers participated in the summit. First, they visited the “PLAY EARTH PARK” event being held at Fugan Unga Kansui Park, Toyama Prefecture, before attending a meeting at our Toyama Office. On the next day, the summit moved to Tateyama, where participants experienced hiking and other activities.

Briefings for Business Partners

GOLDWIN holds briefing sessions for its suppliers on its CSR framework for the supply chain. In the briefing, suppliers are asked for their understanding and compliance with the Code of Conduct for GOLDWIN Suppliers, and we explain the background and specific revisions to the Code, as well as practical aspects of the paperwork that needs to be submitted.
In FY 2023, we formulated a Procurement Policy, updated the Code of Conduct for GOLDWIN Suppliers, and revised the desktop audit questions accordingly, so at the briefing session, we explained the key points of the update and reiterated our Group’s approach to building a sustainable supply chain. The briefing was conducted in the form of a video distributed to 453 companies from among manufacturing factories, trading companies, production management companies, and materials-related companies. As of the end of July 2023, 134 companies had viewed the video. In addition, efforts are being made for some factories to improve their understanding with the cooperation of trading companies and production management companies.

Meetings with Main Suppliers (Trading Companies)

GOLDWIN holds separate regular monthly meetings with each of its major suppliers (trading companies). The meetings are a place to exchange information on quality, cost, delivery schedules, and other matters as well as to discuss issues that arise from time to time and resolve them together. Engaging in communication helps deepen our cooperation and build better partnerships.

Internal Education

We provide regular education to internal persons in charge of procurement to enhance our CSR framework for the supply chain.
In FY 2022, in promoting the CSR framework for the supply chain, we invited outside instructors to speak to our employees. They gave a seminar on sustainable management and restricted substance management in the supply chain from a global perspective, and encouraged understanding and awareness among our employees. We also carefully explain our review of the Code of Conduct for GOLDWIN Suppliers, its content, and approaches for promoting the current system, and share information so that we can respond appropriately when performing our role as a point of contact with suppliers.

Subcontract Act Training

Internal training is regularly provided on the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors (Subcontract Act), which is a law that helps ensure that transactions are fair. In addition to explaining things like the purpose of the Subcontract Act, as well as relevant conditions and obligations of procuring companies, we discuss information that is required on order forms to ensure compliance with the act when company employees place orders.

Future Issues

The GOLDWIN Group will continue to deepen collaborations with suppliers to fulfill its social responsibility through the entire supply chain.
In FY 2023, we will work to instill our newly formulated Procurement Policy both internally and externally, and to promote responsible procurement activities. In addition, following the update of our Code of Conduct for GOLDWIN Suppliers and revision of the desktop audit questions, we will carefully explain the changes to our suppliers to gain their understanding and cooperation, and we will work to build a highly transparent supply chain.