Supply Chain Management

Approach to Supply Chain Management

Based on its “Basic Policy on Responsible Procurement,” the OPEN HOUSE Group creates value through collaboration with many business partners and provides products and services to our customers.
This policy is translated and communicated to the domestic and overseas supply chains.
With an awareness that a focus on sustainability is required not only in our business, but also at the supplier stage, we exercise appropriate influence in supply chain management and work to reduce the environmental impact at the supplier stage.
Furthermore, with the goal of appropriate supply chain management in line with the material issues, we have formulated the “OPEN HOUSE Group’s Business Partner Sustainability Guidelines,” and by distributing the Guidelines to each of our business partners, we create understanding of the Guidelines and compliance in implementation.
Through supply chain management, we work to streamline and optimize the “flow of goods,” promote fair business activities based on thorough legal and regulatory compliance, and strive to provide fair opportunities in our supply chain.
Furthermore, aiming to create a sound supply chain, in the Group’s “Employee Code of Conduct,” guidelines are established mainly for fair transaction activities and competition, the prohibition of conflicts of interest, and the prohibition of involvement with antisocial forces.
By complying with these policies, we are working to protect the global environment and the human rights of workers throughout the entire supply chain as we aim to contribute to local communities.

Partnership Building Declaration

Partnership Building

Our company is participating in the "Partnership Building Declaration" established by the Cabinet Office and others.
The "Partnership Building Declaration" is a commitment to build new partnerships by promoting collaboration and co-prosperity between businesses and their suppliers in the supply chain.

Supplier Training Sessions to Resolve Social Issues

To contribute to the realization of a truly valuable society through our business activities, we believe that cooperating with our business partners to promote CSR procurement throughout the entire supply chain is essential. We have established a “Basic Policy for Responsible Procurement,” and we work to create understanding about the purpose and details of this policy in our supply chain. We also provide year-round guidance to our suppliers by holding supplier training sessions on social issues and sharing best practices for each region and project.

Business Partner Evaluation Initiatives

Open House Development Co., Ltd. has established initiative policies with our business partners that consider the unique qualities of their businesses. Standard order prices are set through dialogue with our suppliers, and we work to ensure fairness among our various suppliers.
For business partners involved in single-family home construction projects, we perform a fair, comprehensive evaluation that considers their project capabilities and trustworthiness.
Furthermore, in addition to fair evaluations of material shipping companies and manufacturers, we take care to avoid simple price competition when setting construction prices to ensure transparency in base costs for materials and shipping expenses.

About Supply Chain Risk Assessment

The Group's basic policy is to apply the same approach as the Group Action Guidelines to our business partners regarding environmental conservation, labor issues, bribery, etc.
Open House Development Co., Ltd. conducts self-inspections of the status of compliance through interviews and other means, and then conducts operations such as receiving checks from the Legal Department.
In addition, for large-scale projects, the Review Committee, chaired by our President and Representative Director, meets to deliberate.

Consultation and Reporting Hotline

Based on the Whistleblower Protection Act, we have established a compliance hotline for consultations and reports from our employees and business partners. Through this hotline, we are strengthening a fair, open transaction environment that complies with related laws and regulations, aiming to establish relationships of trust and mutual development between OPEN HOUSE and our business partners.
Consultations and reports from our business partners are received either by an external hotline supervised by a lawyer who is well versed in our internal reporting system, or by our internal staff members who handle public interest reporting duties within the Group.
Furthermore, reports from business partners of our subsidiaries are received by the parent company, Open House Group Co., Ltd., as well.

Types of consultations and reports received

Legal violations and regulatory violations, such as abuse of a dominant bargaining position, and violations of the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors, or suspicion of such by OPEN HOUSE its employees. Specifically, we receive consultations and reports on the following types of situations.
・Demands for economic benefits such as entertainment and gift-giving from OPEN HOUSE’s employees.
・Bad-faith treatment of business partners, including verbal abuse, harassment, and revenge

Participation in Environmental Impact Initiatives

In Japan Wood-Housing Association where the Group is the founding member and the director of the company, our goal is to realize a sustainable society through wooden housing for sale, while also promoting environmental conservation.
In addition to the domestic Lumber distribution business of the associations, the continuation of afforestation and tree planting activities in collaboration with local governments in various parts of Japan has contributed to establishing a sustainable development cycle of domestic Lumber through "logging," "using," "planting," and "nurturing."