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Basic Purchasing Principles

Today, Sharp products have been manufactured in Japan and overseas. On the occasion of these globally manufacturing operations, Sharp has basic idea "we purchase outstanding parts and materials which meets our demand through just and fair evaluation, thus ensuring that companies are provided with equal opportunities."
As for procurement activities (including commissioning manufacture, the same applies to the below), Sharp will comply with all laws, regulations and social standards, and enhance the mutual relationship with suppliers. Also, we will practice the conservation of the environment and corporate social responsibility with supplier's support.

1. Basic procurement concept

1) Sharp's procurement activities are conducted in an open and impartial manner, with a fair evaluation given to suppliers in and outside Japan.
2) Sharp will comply with the laws and regulations, and achieve the mutual prosperity with suppliers.
3) Sharp will practice such a social responsibility as the conservation of the environment through the procurement activities.
4) Sharp pursues optimal quality and cost to the fullest.

2. Guidelines for procurement activities

Sharp will practice procurement activities with following attitude, based upon the Basic Procurement Concept.
1) Open and impartial procurement activities and purchase at optimal cost
* As for procurement activities, Sharp will pursue optimal cost based upon the market competition, giving openness and impartialness first priority.
2) Establishing mutual relationship
* All the board members and employees will comply with and practice "The Sharp Group Charter of Corporate Behavior" and "The Sharp Code of Conduct" issued to realize the Business Philosophy and Business Creed, thus enhancing mutual relationship with suppliers.
3) Conservation of the environment
* Based upon the Basic Environmental Philosophy "Creating an environmentally conscious company with sincerity and creativity", we practice product development and business operation in an environmentally conscious way. In addition, we improve the environmental protection activity in cooperation with suppliers and promote environmentally friendly procurement activity by purchasing parts and materials which is harmless to the environment.
4) Securing good product quality
* It is an obligation of manufacturer to provide products trusted by customers. Therefore, Sharp will secure parts and materials which meets our quality demands to produce best quality products.
5) Securing steady delivery time and stable supply
* In order to provide stable supply of products to customers, Sharp will strive to secure parts and materials stably, at the necessary time. Furthermore, as an obligation of manufacturer, we will secure repairing parts and materials now and in future years.
6) Leading technology
* In order to create new demand by innovative technique, Sharp will adopt uniquely and technologically excellent parts and materials.

3. Requests to suppliers

It is important to accomplish CSR efforts not only by us but as supply chain including our suppliers. Therefore, Sharp requests each of the suppliers to comply with and practice the following items.
1) Compliance with laws and social standards
Suppliers are required to comply with the respective local laws, social standards and following items.
* Compliance with laws related to manufacture and distribution of material
* Compliance with laws related to labor
* Compliance with laws related to health and safety and arrangement of proper labor environment
* Prohibition of child and forced labor
* Prohibition of discrimination based on race and sex and respect for the dignity of each employee
* Compliance with environmental laws
* Prohibition of bribery and unfair act
2) Promotion of sound business operations
* Suppliers are requested to conduct open and fair business management (proper disclosure of information etc.) to continue business and build mutual relationship.
3) Consideration for the environment
* Suppliers are requested to take positive measures concerning the conservation of the environment and environmental management, conducting business operation and developing products in an environmentally conscious way. Suppliers are also requested to provide parts and materials in accordance with our "Green purchasing guidelines".
4) Securing optimal quality and cost
* Suppliers are requested to comply with safety standards required in each country and region and to supply parts and materials which meets our quality demand to provide best quality product to our customers.
* Suppliers are requested to supply parts and materials at optimal price based on the principle of market competition.
5) Stable supply of parts and materials
* Suppliers are requested to keep delivery commitment and supply parts and materials stably to provide stable supply of products to our customers.
6) Leading technology
* Suppliers are requested to offer parts and materials with leading technology like unique and innovative technique.
7) No-disclosing of confidential information
* Suppliers are requested to place strict controls and keep secrets of any information which they got through their procurement activities and not to disclose the information to the third party without our consent.

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