HOME > Sustainability > For Our Business Partners > Fair, Equal Partnerships

Fair, Equal Partnerships

Last Updated: 2017.05.30
to Japanese page

Efforts to Ensure Fair Negotiations

The Fast Retailing Business Ethics Committee enforces its own Guidelines to Prevent the Abuse of Superior Bargaining Power*. This was intended to raise employee awareness and review corporate activities to eliminate wrongdoing during transactions. The committee uses these guidelines to ensure equal, friendly relationships with its business partners, raise employee awareness about business ethics, and review corporate conduct. The committee is chaired by a Sustainability department officer and is primarily staffed by full-time corporate auditors, external auditors, corporate lawyers and representatives from relevant Fast Retailing Group departments. The committee examines the circumstances of each issue and conducts hearings with Fast Retailing and its business partners. The Sustainability department officer then reports to the Business Ethics Committee and notifies the relevant Fast Retailing Group departments about the results. The committee convened 12 times in 2016.

*The "abuse of superior bargaining power" refers to situations in which one party uses its dominant position to push another party to accept unfavorable business terms that would not be accepted if their relationship was equal.


Guidelines to Prevent the Abuse of Superior Bargaining Power

Objective:
To prevent Fast Retailing employees from engaging in inappropriate behavior when dealing with other companies, the Fast Retailing Group aims to operate in line with established global standards for responsible corporate conduct.
Details:
This policy was designed to prevent improper behavior related to transactions with other companies, in order to establish necessary and appropriate internal procedures.
Example:
Employees shall not make one-sided revisions to contract terms or one-sided decisions to downsize or terminate business relationships, and shall not make improper demands for the compensation of losses.

Number of Cases Reported to Business Ethics Committee

  • Fiscal 2012 79
  • Fiscal 2013 63
  • Fiscal 2014 53
  • Fiscal 2015 101
  • Fiscal 2016 105

Business Partner Surveys

The Fast Retailing Sustainability Department conducts quarterly surveys of business partners to identify any unresolved monetary issues that may have arisen. The department started conducting annual surveys of the Fast Retailing Group's business partners in fiscal 2003. In fiscal 2016, surveys were sent to 421 Fast Retailing Group companies and business partners, with 297 companies providing responses.

Fast Retailing, as the company that submits orders, may enjoy a dominant bargaining position over its business partners. It is therefore possible that the fairness of its transactions could be compromised. Based on the findings from questionnaires, the Fast Retailing Group tries to ensure that all transactions with its business partners are fair and equitable on a daily basis.

Business Partner Survey: Fiscal 2015 Results

Top of page