Philosophy on Fair Dealings
Dealings Based on Our Purchasing Policy
The Daikin Group has a Purchasing Policy that is the basis for fair dealings with suppliers.
Purchasing Philosophy and Purchasing Policy
Purchasing Philosophy:
"Respect Independence" and "Cooperation and Competition"
Purchasing Policy:
- Fair relations based on an open-door policy
Provide open, equal, and fair opportunities for all companies, regardless of their locality, size, and sales results.
- Mutual growth through mutual trust
Create open conditions for business dealings and respect free competition.
- Look for good partners
In procuring from overseas, look for companies to share common profit and offer society useful products.
- Observe laws, and maintain confidentiality
Observe laws on business dealings and respect the spirit of these laws.
Fair Dealings Management Structure
Giving All Suppliers an Equal Opportunity through an Open Door Policy
The Daikin Group has an open door policy on choosing suppliers in which we welcome bids from any company, regardless of nationality, size, or years in business.
In our air conditioning business, information on product specs, desired quality and cost, and delivery times is posted on our website in order to achieve equality of opportunity. All companies satisfying our criteria become eligible to do business with us.
In our chemicals business as well, we do business with any supplier meeting our criteria for quality, price, and delivery time.
Regular Assessment of Suppliers to Review Business Relationship
Before starting business dealings in the Daikin Group, we ensure potential partners understand our Purchasing Policy, and we assess them on consistent standards. After business dealings begin, we conduct assessments based on ISO 9001 and then review the business relationship accordingly.
In the air conditioning business, before we start transactions with new suppliers, we use the Supplier Assessment Standard Sheet to judge companies based on their administration, quality, price, delivery, and environmental measures. Besides ensuring that suppliers are in compliance with laws, we assess them in CSR aspects such as voluntary efforts to improve labor and environmental matters. Suppliers continue to be assessed every year based on our Assessment System for Continuation of Business. We also create standards and rules for qualitative assessment criteria so that we are able to make quantitative judgments. The assessment criteria themselves are also reviewed to keep up with the changing times.
In the chemicals business, we assess new and existing suppliers based on ISO 9001, and we use as many criteria as possible in order to evaluate our suppliers fairly: this includes discussing business with the supplier using multiple Daikin representatives, and making regular visits to the supplier.
Based on such assessments, in fiscal 2010 we began dealings with 20 new suppliers in the chemicals business.
Philosophy on Fair Dealings