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.
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.

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 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.

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.
Representatives of the OPEN HOUSE Group or third-party organizations receive consultations and reports provided by the OPEN HOUSE Group’s business partners.
Furthermore, reports from business partners of our subsidiaries are received by the parent company, Open House 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