Shiseido purchases ingredients and perfumes used in the manufacture of cosmetics, packaging, promotional sales materials, and other products from outside companies. We view all suppliers as partners in the creation of new value and consider mutual understanding, including in the promotion of CSR activities, to be of the greatest importance.

Shiseido has also actively worked with partners to promote involvement in environmental activities. In February 2001, we conducted a survey of suppliers' environmental activities in accordance with the Green Procurement Standards. Based on the results, we established Seven Preconditions for Collaborating with Business Partners, starting with our Environmental Policy, and as of April 2003 we had obtained agreement from all suppliers.
In July 2004, Shiseido established a Business Partner Subcommittee under the Corporate Ethics Committee (currently the Compliance Committee) to begin examining how the scope of our initiatives could be expanded from a focus on the environment to encompass more general CSR activities. Then starting in March 2005, we surveyed approximately 400 domestic and 200 overseas suppliers to assess the state of current practice. In March 2006 we compiled and distributed to target suppliers the Shiseido Group Supplier Code of Conduct based on the survey results and taking into account the United Nations Global Compact, case studies of other companies pioneering efforts, and other resources. The document lays out standards in the areas of legal compliance, labor (child labor, discrimination, occupational safety and health, etc.), the protection of intellectual property and confidentiality, environmental conservation, and fair commercial transactions.
A survey conducted in June 2006 based on the same content indicated that suppliers understand and empathize with these initiatives.
Shiseido is committed to pursuing activities to increase corporate value along with our business partners, including making formal acceptance of the Shiseido Group Supplier Code of Conduct a requirement when selecting business partners.

Shiseido Group Supplier Code of Conduct

As a means of expanding the circle of "creating a beautiful lifestyle culture at the global level," Shiseido clearly stated that the Company aims to achieve growth together with its business partners while promoting "coexistence with society" via procurement activities and practicing "new value creation" also from the perspective of procurement. Since the understanding and cooperation of business partners is indispensable in promoting CSR initiatives, and in order to address social requirements in the future, Shiseido considers it important that our business partners show greater understanding toward Shiseido’s concept of CSR and promote manufacturing together with a sincere stance for society.
To this end, procurement departments are holding annual briefing sessions of purchasing policy and section meetings of activity policy sessions, which are held by respective fields such as raw materials, fragrance and materials, with our business partners. These sessions are held with the aim of strengthening the partnership with our business partners, in which Shiseido’s idea of corporate social responsibility (CSR) is communicated while reaffirming that the respective parties will work together in this endeavor.
Approximately 130 companies of business partners participated in these sessions in fiscal 2009, in which Shiseido conveyed the Company's environmental and CSR needs in greater detail and asked for their continued cooperation.

Briefing session on purchasing policy
in fiscal 2009

Shiseido environmental and
CSR information materials