(Benesse Corporation)

■ The Benesse Corporation develops its business activities based on the Group Corporate Philosophy (Benesse = Well-being), Group Principles, Human Rights Policy, and Environmental Policies. We will create a supply chain that can deliver high-quality products and services safely and securely in cooperation with all of our corporate partners.

■ We are constantly aware of the fact that the impact of our business activities is widespread, and that we promote socially responsible management. Together with all of our corporate partners, we comply with international laws, regulations, and guidelines and ensure that we are taking ethical action.

1. We promote procurement transactions that are just and fair
2. We will continue to offer products that are both safe and secure
3. We will work to be thorough with supply chain information management and security
4. We will continue to seek out quality products and services that always go beyond customer expectations
5. We will work to create a supply chain with reduced environmental impact, take actions that respect human rights, and consider industrial health and safety
6. We will create partnerships that allow for mutual growth and development based on relationships of trust

(Benesse Corporation)

Scope of Supply Chain Management Supervision

We promote supply chain management based on the Benesse Corporation's Purchasing Management Regulations and Authority Regulations, with the focus of supervision being the Operations Transformation Division and the Supply Chain Management Department.

Promotional Framework

The SCM Department, which is the main division, is in charge of promoting the supply chain management framework based on Benesse Corporation's "Purchasing Management Regulations".

●Purchasing Management Regulations

The foundation for all purchasing, management of transactions, and procedures in procurement at the Benesse Corporation have been defined. We work for fair and accurate management and operations, and promote improvements in operational efficiency.

●Authority Regulations

We have established the following through decisions based on Authority Regulations:

• ・Policies for material purchasing, manufacturing agreements, shipping, and storage management for all companies
• ・Purchase sorting and purchasing methods for transactions
• ・Purchasing trade partners, transaction conditions, price, etc.

Value Chain Committee

Management and the Operations Transformation Division investigate major issues in the value chain to select priority themes based on risk analysis from a medium to long-term perspective based on our business strategy.

【Examples of Priority Themes】

• ・Business continuity plans for risks of infectious diseases and natural disasters
• ・Promotion of sustainability (switch to environmentally-conscious materials, promotion of recycling, etc.)

≪Promotional Framework Diagram≫

(Benesse Corporation)

Just and Fair Procurement Transactions

The Benesse Group Risk Management and Compliance Regulations have affirmed their legal compliance with fair trade and fairness in competition. We ensure justice and fairness through transactions based on the Benesse Corporation's Purchasing Management Regulations and the Supply Chain Management's Purchasing Management Outline.

Putting Safety and Security First

Based on the Benesse Corporation Product Safety Policy, we have established procurement standards for paper and materials for teaching aids and toys as well as product safety standards for manufacturing. Specifically, we strictly prohibit the use of materials that impact the environment and have established an inspection system to do so.

●Benesse Corporation Product Safety Initiatives

• The Five Safety and Security Activities【Japanese】

1. Ensure an understanding of materials
2. Control substances that are harmful to the environment and to the human body
3. Work to prevent accidents by imagining use scenarios
4. Third party checks
5. Work to make improvements together with affiliated companies

Full Enforcement of Information Management

We meticulously manage and utilize the information we handle based on our Policy on Personal Information and our Management Guidelines for Outsourced Personal Information so that entrusted companies can safely carry out their work. We also check the status of the implementation of the information management at entrusted companies annually and carry out outsourced auditing as a major process to identify and improve issues.

• Initiatives to Protect Personal Information【Japanese】

Reducing Environmental Burden

We are consistently working from a procurement and logistics point of view in all of our processes to make the supply chain one that is environmentally-conscious, based on the Benesse Group's Environment Policies. We promote actions on low-waste product specifications, environmentally conscious procurement, improvements in the accuracy of production numbers. We also work with our corporate trade partners to evaluate environmental initiatives, efficient shipping methods, etc.
At our main logistics hub, the Benesse Logistics Center, we are engaged in actions to reduce CO2.

• Actions to Reduce CO2 at the Benesse Logistics Center【Japanese】

The Respect of Human Rights and Consideration of Industrial Health and Safety

● The Benesse Group has declared its support for the UN Global Compact.

• ・We regularly carry out factory audits, mainly with our overseas suppliers, based on the Global Compact.
• ・We hold supplier meetings with contracted factories producing teaching aids and toys to promote the understanding and implementation of our policies.

● We carry out human rights assessments based on the Benesse Group Human Rights Policy.

• ・We continuously confirm that if each employee involved in the procurement process is carrying out their everyday work sound manner while respecting human rights.

● Benesse Corporation endorses the aims of the "White Logistics" promotion movement advocated by the Ministry of Land, Infrastructure, Transport and Tourism, the Ministry of Economy, Trade and Industry, and the Ministry of Agriculture, Forestry and Fisheries as a voluntary activity to realize sustainable logistics and has submitted a voluntary action declaration to the "White Logistics" promotion movement secretariat.

• White Logistics Action Declaration [89KB]

Partnerships with Corporate Trade Partners

We have offered a Partnership Building Declaration to create strong, sustainable partnerships through the prosperous coexistence of the entire supply chain, the creation of new values, and desirable business transactions with subcontractors.

• Partnership Building Declaration [127KB]