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Kubota New Zealand

Corporate Governance

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Supplier Code Of Conduct

This code of conduct applies to all businesses that provide products or services for Kubota New Zealand Limited (Kubota) and its joint ventures, divisions, or affiliates. Kubota requires suppliers and their employees to commit to this code of conduct as a condition of doing business

Kubota suppliers must comply with the laws, rules, regulations, and Kubota policies of the countries and locations in which they operate. They are expected to be familiar with the business practices of their suppliers and subcontractors, and ensure they operate according to this code of conduct. Kubota may discontinue its relationship with suppliers who fail to comply with this code.

People Responsibilities

Labour and human rights

Suppliers are expected to provide a fair and ethical workplace, maintaining high standards of human rights, with appropriate labour and human rights policies and practices in place.

At Kubota, we pride ourselves on providing an equal employment and gender equality workplace and expect our suppliers not to discriminate against any employee based on age, disability, ethnicity, gender, marital status, political affiliation, race, religion, sexual orientation, gender identity, union membership, or any other status protected by law, in hiring and other employment practices. Suppliers are expected to proactively support gender equality initiatives. Kubota strives to promote and influence improvements in gender equality across its Supply Chain through procurement policies and practices.

Suppliers are expected not to bully or threaten employees or subject them to unlawful or inhumane treatment. This includes, but is not limited to, abuse and harassment which can be verbal, physical, sexual, or psychological. Consistent with Modern Slavery Policy of Kubota Australia, suppliers are expected to proactively identify, address and where required by legislation, report on risks of modern slavery practices in their business operations and supply chains. You can read more in our Modern Slavery Statement.

Suppliers should take reasonable endeavours to ensure that any third-party labour agency it may use to fulfil services to Kubota, is compliant with the Modern Slavery Policy of Kubota Australia Pty Ltd and any Labour Hire laws within the relevant jurisdiction/s including payments, recruitment related fees, practices and expenditure in recruiting foreign contract workers.

Suppliers are expected to freely allow employees to associate with others, form and join (or refrain from joining) industrial organisations or associations of their choice and bargain collectively, or engage in any lawful industrial activity without interference, discrimination, harassment, victimisation or adverse action.

Suppliers must abide by The Privacy Act 2020, which regulates the treatment of personal information about individuals. This includes the collection, storage, and disclosure of personal information about individuals.

Health and Safety

Suppliers are expected to provide a healthy and safe work environment, with comprehensive health and safety management practices in place.

Suppliers with employees who need to enter Kubota premises must ensure those employees meet any applicable requirements and be able to provide verified evidence.

Suppliers must comply with Health and Safety at Work Act 2015 and all other applicable laws relating to workplace health and safety and provide their employees with job-related training and consult with employees in relation to the provision of information and training.

Environmental Responsibilities

Suppliers are expected to conduct their operations in a way that minimises the impact on natural resources and protects the environment, customers, and employees. They must ensure their operations comply with all applicable laws related to air emissions, water discharges, toxic substances, and hazardous waste disposal. Throughout the world, laws and regulations prohibit or restrict certain substances and/or require manufacturers and suppliers to provide information about restricted substances in their products. Suppliers must, therefore, comply with the Kubota Group’s environmental charter and when requested by Kubota, provide regulatory compliance declarations for identified products.

Ethical Expectations

Ethics, Gifts and Gratuities

Suppliers must not offer gifts to Kubota employees. This includes gifts of nominal value. Although giving gifts is acceptable in some cultures, Kubota requests that suppliers respect its policy of not accepting gifts.

Improper Payments

Bribes, ‘kickbacks’, and similar facilitation payments are strictly prohibited. This ban applies even when local laws may permit such activity. Employees, suppliers, and agents acting on behalf of Kubota are strictly prohibited from accepting or giving such considerations under any circumstances. Suppliers must, therefore, comply with Kubota New Zealand’s Anti-bribery and Corruption Policy and Procedures.

Confidential Information

Proper management of confidential information is critical to the success of both Kubota and suppliers. Suppliers must protect all Kubota information, electronic data, and intellectual property or Kubota technologies with appropriate safeguards.

Any collection, transfer, archiving or deletion of confidential information must be executed in a way that secures and protects the intellectual property rights of Kubota and its suppliers as well as ensure all privacy obligations are complied with (as relevant).

Suppliers may receive Kubota confidential information only as authorised by a Confidentiality or Non-Disclosure Agreement and must comply with their obligations to not disclose the confidential information, to not use the information except as permitted by the agreement, and to protect the information from misuse or unauthorised disclosure.

Our suppliers can expect Kubota to similarly safeguard their confidential information when authorisation is provided to Kubota. Suppliers may not use the Kubota trademark, images, or other materials to which Kubota owns the copyright, unless explicitly authorised in writing.

Supplier Management

System/s of management

Suppliers are expected to have management system/s that ensure they comply with applicable laws, regulations, and Kubota policies, conform to this Supplier Code of Conduct, and identify and reduce operational risks related to this Code. The system should also promote continuous improvement and compliance with changing laws and regulations.

Supply Chain Transparency

Supply chain transparency is required to confirm compliance to this Code. Internal or external audit shall be utilised to monitor this. This may include, but not be limited to; Kubota’s Compliance Officer request for documentation/ evidence, on-site audit, corrective action planning and verification of the implementation of corrective action.

Communication

Suppliers are expected to assist Kubota in enforcing this Supplier Code of Conduct by communicating its principles to their supervisors, employees, and suppliers.

Corrective Action

Non-compliance

Kubota will address confirmed Supplier Code of Conduct non-compliance. Actions may include, but not be limited to, any of following:

  • Require a supplier to implement changes to policy, procedure or related conduct and confirm/ evidence effective implementation in writing and/or via on-site inspection by Kubota or its representatives
  • Require specific action to be taken by a supplier, evidenced by a specified date
  • Vary the terms of, or terminate a contract, which may include summary termination
  • Referral to appropriate authorities.

Non-Compliance Reporting

Violations of the Kubota Supplier Code of Conduct can be reported confidentially via any of the following ways:

  • By email to kau_g.whistleblower@Kubota.com.au for receipt by Kubota’s Compliance Officer in respect to Australia and New Zealand.
  • To a General Manager or officer of Kubota (such as a Board member) by email or telephone at +61 9394 4400, on the understanding that these will need to be referred to the Compliance Officer
  • Anonymously to: Kubota Australia Pty Ltd, Compliance Officer, 25-29 Permas Way, Truganina, VIC, 3029 Australia

More Information or Questions

Any supplier may direct questions or comments about this Code to their Supply Management representative or Kubota’s Compliance Officer.


Modern Slavery Statement 2021

This statement, pursuant to the Australian Modern Slavery Act 2018 (“the Act”) (Cth), sets out the actions taken by Kubota Australia Pty Limited ACN 005 300 621 and its controlled entities (together referred to as “Kubota Australia”, “KAU”) to address modern slavery in our business and supply chain over the Calendar year ended 31 December 2021. This statement also includes the planned actions to mitigate the modern slavery risk in future.

About Kubota Australia

KAU is Australia’s leading supplier of agriculture, construction, and power equipment, operating in Australia for over 40 years. It is part of the global Kubota Group of companies (KBT).

Since its foundation in 1890, KBT has delivered a variety of products that contribute to people’s lives and society, including iron water pipes for the development of modern waterworks, and agricultural machinery to increase food production and save labour. KBT believes that its mission is to comprehensively solve the problems of food, water and the environment through its superior products, technologies, and services, thereby continuing to support the future of the earth and humanity.

Brand Statement

For Earth, For Life

The Kubota Group promises to continue supporting the prosperous life of humans while protecting the environment of this beautiful earth.

Mission

Food, water, and the environment are indispensable for human beings. The Kubota Group continues to support the future of the earth and humanity by contributing products that help the abundant and stable production of food, help supply and restore reliable water, and help create a comfortable living environment through its superior products, technologies, and services.

Vision

To be a company that can make the greatest contribution to society by earning the trust of the greatest number of customers.

Kubota Australia’s Structure, Operations, and Supply Chains

Structure

KAU is a company incorporated in Australia and our registered office is located at 25-29 Permas Way Truganina VIC 3029.

KAU is a subsidiary of Kubota Corporation, headquartered in Japan. Under the trading name of Kubota Australia Finance (KAF), KAU offers equipment finance. Kubota New Zealand Limited (KNZ) is domiciled in New Zealand. It is a wholly owned subsidiary of Kubota Australia. Under the trading name of Kubota New Zealand Finance (KNZF), KNZ offers equipment finance.

Operations

KAU conducts a diversified range of business activity which include agriculture, construction, and power equipment. KAF offers designated services to its corporate and retail customers by providing finance for new, demo and used Kubota machinery and equipment, including tractors, excavators, mowers, utility machinery/equipment, generators, and Krone equipment. KAF also offers finance for used equipment and machinery of competitor brands which are sold by Kubota Australia’s authorised dealers. KNZ, conducts a diversified range of business activity which include agriculture, construction, and power equipment in New Zealand. KNF offers designated services to its corporate customers by providing finance for new, demo and used Kubota machinery and equipment.

As of 31st December 2021, KAU employed 161 team members in Australia and 8 team members based in New Zealand. All team members are paid in accordance with local Australian and New Zealand requirements.

Supply Chain

KAU engages in various dealings with international related parties. Material dealings during the year included, purchasing goods from related and unrelated parties of KAU located in Australia, New Zealand, Norway, Netherlands, Indonesia, Japan, South Korea, Thailand, United States of America, Germany, France, and Italy. For the year ending 31 December 2021 KAU had a supply chain made up of approximately 2,100 suppliers.

KAU seeks to engage with suppliers that act consistently with Kubota values in relation to modern slavery and human rights. Our supplier code of conduct which is provided to every supplier we intend to do business with, outlines our expectations on supplier activity.

In 2021 KAU conducted our initial modern slavery risk assessment of its Tier 1 supply chain. We engaged a specialist consulting firm who conducted a risk assessment on our current supply chain using risk assessment software along with their specialist industry knowledge. In assessing the risk, following factors were considered:

  • Geographic location of the Supplier
  • Annual value of the purchase with each supplier
  • Type of products or services procured

This risk assessment highlighted KAU’s highest Modern slavery risk within Tier 1 suppliers is with offshore suppliers. This assessment has allowed us to prioritise due diligence process according to the risk of modern slavery for suppliers. The risk assessment also identified following industry categories in our direct supply chain, where modern slavery risks are high:

  • Agricultural & Farm Machinery
  • Industrial Machinery.

This graph shows the breakdown of KAU’s suppliers considering the industry risk, location and total spend.

Operations

All employees of KAU (permanent and maximum term) reside and work in Australia and New Zealand as citizens or residents with a very small proportion of expatriates holding work visas. All employees are engaged via a legally reviewed Employment Agreement. Work at times is performed by Australian employees, via infrequent short-term travel, in respect to KNZ operations only.

KAU do not currently, nor have we during 2021 employed any casual employees.

KAU generally do not utilise employment agencies. All agencies utilised must be contracted via a Services Agreement which includes a requirement to be registered under any relevant Labour Hire laws and provide evidence of such to KAU.

All employees and workers placed by agencies are subject to probity processes based on the inherent requirements of their position, identity check, legal right to work check and criminal records history check at a minimum. All are assessed against the inherent requirements of the position they will fulfill based on a Position Description in line with process dictated by our Recruitment and Selection Policy.

KAU considers that our systems and controls are satisfactory to manage potential risks of Modern Slavery occurring through our employment practices.

Kubota Australia’s approach to tackle Modern Slavery practices

KAU has taken steps to strengthen its governance and controls to assess and respond to risk of Modern slavery in its operations and Supply Chain relationships. KAU has conducted a comprehensive review around current sourcing, selecting, contracting and on boarding of suppliers to further build awareness to Modern Slavery Risk identification.

In line with our intentions discussed in the initial MS statement of KAU in 2021, these include

  1. KAU has developed specific policies to mitigate Modern Slavery risks in its operations and supply chains. These policies have been reviewed and approved by Senior management and are made available to KAU employees, contractors, and business partners
    These policies are:
    Modern Slavery Policy
    Supplier Code of Conduct Policy
    Whistleblower Policy
  2. When onboarding new suppliers, applying a Modern Slavery risk assessment criterion, and adopting a risk-based approach. KAU’s compliance team manage the operational aspects of identifying Modern Slavery risks when engaging with new suppliers. Our process considers the potential risks of engaging with a supplier and include both a compliance review and a review of the Suppliers Modern Slavery policies and statements where they are available.
  3. Existing first tier suppliers are evaluated on a periodic basis to ascertain the levels of Modern Slavery risks. The assessment considers factors such as low skill labour by suppliers, goods manufactured in high-risk countries and services provided by suppliers using non-transparent contracting arrangements. KAU’s compliance team manage the operational aspects of identifying Modern Slavery risks when extending relationship with existing suppliers.
  4. All KAU and KNZ team members have been provisioned e-learning training to raise awareness of Modern Slavery. This includes Modern Slavery risks, practices, and requirements under the Modern Slavery Act. Training is provisioned upon commencement with the business and annually to all employees. From 2022 training completions are reported periodically to assist Managers to ensure compliance, although each Manager has full visibility at all times of employee training records, and this must be discussed quarterly as part of our Performance Management policy. All team members must notify our Compliance team immediately if they become aware of a potential act or an increased risk of Modern Slavery within business operations, supply chain or commercial partnerships.

Assessing and Reporting on effectiveness of actions taken by Kubota Australia

KAU has already commenced and intends to continue further developing frameworks and processes to appropriately review the effectiveness of KAU’s actions to assess and address modern slavery risks in KAU’s operations and supply chains.

KAU currently monitor compliance with our organisational policies and procedures through:

  • Internal audit and risk assurance reviews
  • Review of complaints raised under dispute resolution process
  • Review of concerns raised through whistleblower program
  • Centralised review of new supply contracts
  • Annual review of existing supply contracts.

During the reporting period:

  • There were no reports or complaints received by KAU in relation to Modern Slavery
  • KAU completed and submitted number of reports to Law enforcement bodies and none of the matters were concerned on Modern Slavery risks.

KAU continuously review how we can effectively monitor modern slavery risks further under our 2021-2022 compliance program.

Consulting with entities that Kubota Australia own and Control

This Modern Slavery Statement covers all controlled entities of KAU. Each controlled entity relies on KAU for the resources they require for their operations. KAU provides and procure all goods, services, and personnel requirements. Therefore, all controlled entities work under the management of KAU.

This statement is made after due consultations with key stakeholders in KAU and its controlled entities, including the relevant Business Unit Leaders and their team members. Stakeholders have been provided with the opportunity in our business forums to share their insight on the processes implemented to manage Modern Slavery risks during the reporting year. KAU will continue to monitor and report on the effectiveness of this Modern Slavery Statement to the Board of Directors of KAU.

The Kubota Australia’s Modern Slavery Statement 2021 was approved by its Board of Directors on 21 January 2022.

Tetsu Kojima

Managing Director