Initiatives
PHC Group Third Party Code of Conduct
PHC Group has established and published the PHC Group Third Party Code of Conduct on our website. This Code sets out expectations in key areas including labor and human rights, occupational health and safety, environmental responsibility, ethics, and management systems, in alignment with internationally recognized standards. It also incorporates considerations such as patient safety and access to information. Through this Code, PHC Group continues to engage in ongoing dialogue and collaboration with its third-party partners to build a more responsible and sustainable value chain.
*Note: The PHC Group Third-Party Code of Conduct is an enhanced version of the CSR Procurement Guidelines previously in operation.
Supply Chain Management
PHC Group conducted a supplier survey (self-assessment questionnaire based on CSR Procurement Guidelines*) with our major business partners, and in fiscal 2025, achieved a response rate of over 97%. The contents of the survey are reviewed every year and updated as appropriate. Additionally, as part of our environmental audits, our technical and quality management departments collaborated to formulate a supplier checklist for auditing management systems for chemical substances contained in products. Based on this, PHC Group checks supplier responses for the parts each supplier provides, informs suppliers about any relevant social and environmental issues regarding those parts, and monitors supplier changes. Additionally, we are implementing internal procurement initiatives to seek cost optimization and reduction of environmental impact, as part of our efforts to be a sustainable business.
Initiatives to Increase Transparency and Efficiency of the Procurement Process
PHC Group prioritizes the transparency and efficiency of our procurement process, increasing groupwide understanding of our overall supply chain. Specifically, we promote transparency of expenditures by category and lead workshops that bring together the procurement departments of business divisions to maximize synergistic effects in the procurement of direct and indirect materials across PHC Group. Through these efforts, we seek to reduce supply risks while working to optimize costs and promote sustainable procurement activities.
Moreover, we are constantly aware of the effects on procurement demanded by ESG management and compliance with the laws and regulations of each country, and we engage in strengthening the resilience of procurement activities in PHC Group with the goal of increasing the sophistication of our procurement organization and digitalizing operations.
We will continue to develop our sustainable supply chains through collaboration with suppliers and standardization of procurement processes. These activities will contribute to the stability of business overall in PHC Group and improving our business competitiveness.