2016 Stakeholder Engagement Programmein Thai（Human Rights Due Diligence Workshop）

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August 30, 2016
Nippon CSR Consortium

Human Rights Issues by Thai and Japanese companies
Since 2012, discussions and activities on “business and human rights” have been very active. The
members of the Nippon CSR Consortium, made up of companies, NGO/ NPOs, academics and related
institutions, have been working to identify the potential negative impacts of corporate activities onhuman rights.
Following consideration of the received comments from the public, the Nippon CSR Consortium hereby
releases “Human Rights Issues by Thai and Japanese companies”.
Nippon CSR Consortium expects that companies will address properly human rights issues identified inthis paper.
The comments were integrated consistently to the format of this document, and the sole responsibility
for the content of this document lies with Caux Round Table Japan, as a platform organizer of Nippon
CSR Consortium.
Caux Round Table Japan
Executive Director, Hiroshi Ishida
Saul Takahashi

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Table of Content

1. Preface ................................................................................................................................................ 4
1-1. Purpose of the Stakeholder Engagement Programme Workshop ............................................... 4
1-2. Workshop for Identifying Human Rights Issues ........................................................................ 6
1-3. Procedure of the Workshop in 2016 ........................................................................................... 72.

CRT Japan's viewpoint as the Secretariat of Nippon CSR Consortium in Thailand .......................... 8

3. Overview of the Public Consultation 2016 ................................................................................10
4. Human Rights Issues by Thai and Japanese companies
4-1. Thai companies………….…………………………………………..…….……………………..….11
4-2. Japanese companies………………………………………………………………………………14
5.

List of Participants Stakeholder Engagement Programme in Thailand 2016 ...................................... 16

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Preface

1-1.

Purpose of the Stakeholder Engagement Programme Workshop

The Nippon CSR Consortium was established in September 2012 to raise awareness and promote
activities in the fields of business and human rights by offering a forum in which companies can discuss
human rights issues with NGOs and other Japanese companies. The consortium consists of corporate
participants, NGOs/NPOs, human-rights experts and representatives from academia.
There are some underlying factors that contributed to the establishment of the consortium. Companies
sometimes struggle to address diverse human rights issues with limited budgets and resources.
Therefore, even once a year, it is useful for them to get together to try to be leaders in their field byproactively seeking to understand and address human rights issues that their industry may be involvedin.
The consortium also emphasizes sustainability of activities. As stated above, the companies arecommitted to continuous efforts for incremental improvement. In order to respond dynamically to adiverse range of issues, participant companies seek to stay abreast of changes and issues in the societythat potentially link their activities to human rights impacts.
The Nippon CSR Consortium positions the Human Rights Due Diligence Workshop as an activity thataims to assist companies at industry levels in (1) identifying and assessing any actual or potentiallyadverse human rights impacts as defined in the UN Guiding Principles 1, which are connected to theiractivities at company levels, and (2) integrating and acting upon the findings, (3) tracking responses,
and (4) communicating how impacts are addressed to the affected stakeholders. We hope participants’companies can use the knowledge acquired at this workshop to support their human rights due diligence
activities at each company.
Marimo5 and CRT Japan organised with The Embassy of Japan in Thailand and NIDA（National
Institute of Development Administration）this Stakeholder Engagement Programme in Thailand firsttime, the participants to the first workshop, noting that there were 11 Japanese companies (13participants), 7 Thai companies (9 participants), and 10 NGOs and other organizations (11 participants).
The participants of this programme must to think about ‘what is right, not who is right’, and to aim forconcrete solutions to social problems in Thailand, based on the principles of ‘fairness, sincerity, andhonesty’. In order for business to succeed, there had to be social order, which in turn required thatbusinesses co-operate with the various stakeholders in society.
Refer to: Human Rights Council, 2011, Report of the Special Representative of the Secretary-General on the issue ofhuman rights and transnational corporations and other business enterprises, Available at:

http://www.ohchr.org/documents/issues/business/A.HRC.17.31.pdf#search='report+of+the+special+repr
esentative+of+the+secretarygeneral+on+the+issue+of+human+rights+and+transnational (Accessed Nov
10th, 2014).

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The workshop was also an opportunity for the participants to discuss the issues within the framework ofbusiness and human rights, and to show the international community that this framework is indeed
being utilized in the Thai and Japanese context. Most Japanese businesses had difficulty understanding
the framework of business and human rights, and until 2015, CRT Japan used terms such as ‘CSR risk
management’ in its approaches to Japanese companies. Given that it was a similar situation in Thailand,
for this Stakeholder Engagement Programme, CRT Japan used terms such as ‘good for people, good forthe company, and good for the community’, on the understanding that, in practice, these terms could be
implemented in a way analogous to respect for human rights. There was little point in forcing newconcepts on to persons on the ground before they are ready.
Nevertheless, as companies increased their business with Western countries, it was inevitable that
respect for the business and human rights framework would be called for. In addition, the companies
must respect for human rights, including the maintenance of a responsible supply chain, will be key inthe preparation for, and during, the 2020 Tokyo Olympics Games such as “Mega Sporting Events andHuman Rights”.

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1-2.

Workshop for Identifying Human Rights Issues

The Nippon CSR Consortium, guided by the UN Guiding Principles, has been working on identifying
important potential human rights issues by industry sector. The process used to identify the issues is
explained in the following section. All the comments from participants reflect personal opinions and do
not represent any of the affiliated organizations and companies.
In the 2016 Stakeholder Engagement Programme in Thailand, important human rights issues by Thaiand Japanese companies were identified through dialogue with the participants based on identifying thehuman rights issues and expectations relevant to business 2 in UNEP FI Human Rights Guidance Tool3(‘Human Rights Guidance Tool’).

2 http://www.unepfi.org/humanrightstoolkit/fundamentals.php（Accessed on 2012.11.01）
3

http://www.unepfi.org/humanrightstoolkit/fundamentals.php (Accessed Nov 10th, 2014).

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1-3.

Procedure of the Workshop in 2016

The workshop consists of the following four steps.

Step1: Understanding the context in which human rights issues ariseIn Bangkok June 7th, corporate participants were given a lecture on the particular context in whichhuman rights issues arise by members of NGOs/NPOs, academics and subject experts.

Step2: Reviewing and identifying adverse human rights impacts that can arise from corporate activities


In Bangkok June 28th, the corporate participants conducted a series of discussions Thai andJapanese companies to examine any added/removed/modified points in “Human Rights Issues by
Sector (v.2)” based on Human Rights Guidance Tool (2014) developed by UNEP FI.

Step3: In Bangkok June 28th, integrating perspectives from both corporations and stakeholders


The participants summarised discussion contents and exchanged views on them with NGO/NPO,
academic and subject experts. Then, the participants reviewed the feedbacks and finalize the resultof the discussions by sector. The Secretariat aggregated their reports and developed “2016
Stakeholder Engagement Programme in Thailand (draft)”.

Step4: Collecting Public Comments and finalizing our report

The Secretariat invites public comments on “2016 Stakeholder Engagement Programme in
Thailand” from 19th July, 2016 to 10th August, 2016 (Japan time).

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2.

CRT Japan's viewpoint as the Secretariat of Nippon CSR Consortium in Thailand

Making efforts in the “Business and Human rights” issues in the field of international CSR movement
attract greater attention mainly among the Western countries. Demands for companies to take actions
regarding CSR become certainly growing as their social environments are changed. These changes canbe defined as: CSR legislation and CSR mandatory; a rapid market growth in the Socially Responsible
Investing; developing the guidelines and rules on human rights issues; increasing the media coverageand the development of social media.
It addition, along with global business expansion, companies are always in a situation of facing local
human rights and environmental issues which are occurring in areas of their operation sites. There arealways various types of “risks” beyond the scope of companies’ understanding. This means that thecompanies are always exposed to unpredictable “mine risks”. From the perspective of risk-management,
it is important for companies to deal with such social changes and issues.
“Guiding Principles on Business and Human Rights: Implementing the United Nations “Protect,
Respect and Remedy” Framework” (2011) so-called “Ruggie framework” guided by the UN
recommends implementing human rights due diligence which requires companies to identify, protect,
mitigate and explain human rights impact.
The Nippon CSR Consortium was established in 2012, positioning a series of workshops as an activity
that aims to assist companies in identifying and assessing any actual or potentially adverse humanrights impacts as defined in the UN Guiding Principles. Through the Stakeholder Engagement
Program in 2015, it came out to be clear that gaps still exist between the companies and the NGOs forthe degree of understanding the “Business and human rights”. The companies do not fully understandthe exact meaning of the specific terms in the context of NGOs. For instance, as for business overseas
expansion and operation in local areas, the infringement of the right of indigenous people becomes a
crucial matter in a context of NGOs. However, companies are likely to deal with this issue in a context
of land ownership. Gaps, or “misconception”, between NGOs and the companies come out as an
obstacle for advancing human rights because they take the same issue in different ways, with the one
perceives it as their own while the others as issues of third parties.
In 2016, it was first time that Thai and Japanese companies had met with the NGOs and experts throughthe open framework of “the Stakeholder Engagement Programme in Thai” and both of them learned
each others perspective. Especially it was important for the companies to know more deep meaning of“Business and Human Rights”. The companies need to develop effective human rights grievancemechanisms, conduct a dialogue with human rights victims and NGOs supporting them to implement ahuman rights due diligence in the near future.

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The issues raised by NGO participants in June 7th , and listed the priority human rights issues that had
been identified by Thai and Japanese companies in accordance with the UN Guiding Principles on
Business and Human Rights.
The companies identified the following as priority issues, in the order listed:
Priority 1. Work conditions: health and safety at the workplace
Priority 2. Work conditions: adequate pay
Priority 3. Child labour
Priority 4. Relations with authorities: corruption and bribery
Priority 5. Relations with authorities: money laundering and transparency
Priority 6. Forced labour and human trafficking
Priority 7. Security: forced payments to non-governmental actors
Priority 8. Security: law enforcement
Priority 9. Security: arrest and detention
Through this process, the companies are able to listen to the local voices, recognize their specificpressing issues, and approach the identified issues and risks with utilizing high expertise and strategies.
And, as outlined in the Guiding Principles, the companies should be held accountable for any harm theycause and outcomes of their actions, as well as should enhance their transparency by disclosing
information linked to economic, environmental, and ethical aspects related to their businesses in orderto ensure legitimacy. By doing so, the companies can earn “License to Operate” and trust fromstakeholders which becomes a backbone for corporate sustainable competitiveness in the long run.
Particularly in Thai there were two main agendas had been discussed among the participants and came
to conclusion that also important to be challenged with collaboration between companies and NGOs,
first is “Health and Safety” and second is “Responsible supply chain with labour practice and include
community”.

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3.

Overview of the Public Consultation 2016

We would like to express our gratitude for all the valuable comments we have received from the public
consultation.
We have received many affirmative comments on the program. The comments are as followed: Throughthis paper, readers can understand that risks which seem unrelated to their businesses have relevance tothem; This program is highly evaluated in providing a platform where companies and NGOs can discuss
human rights issues. However, there are also comments expressing the concern that this stakeholder
dialogue does not include persons whose human rights are abused. NGOs are voices speaking on behalfof those affected persons, so they cannot fully convey actual circumstances of violations of humanrights. When companies address human rights issues, they need to recognize the importance ofconducting a dialogue with affected persons.
We have also received comments stating that training programmes were needed for persons responsiblefor incorporating the identified issues into business operations. These programmers should aim at
enabling those persons with the conviction and the skills necessary to inspire other departments within
their companies. Expectations that companies manage their supply chains responsibly have increased inrecent years. In response to this trend, we are exploring the possibility of conducting similar stakeholder
engagement programmes in other Asian countries, next year.
There are also comments stressing the need for Japanese and Thai companies to investigate thepossibility of human rights violations against foreign workers (especially in business operations inborder areas) and workers in palm oil producing farms, and to implement concrete action plans toaddress any human rights issues.
In order to discuss those issues further (health and safety at the workplace, corruption and bribery,
issues of foreign workers, small scale of oil palm farmers), “the Conference on Business and Human
Rights in Tokyo” will held on 15th and 16th September 2016 conducted a panel discussion on themamong invited foreign guest speakers, corporate representatives and NGOs who participated in the 2016
Human Rights Due Diligence Workshop. This panel discussion will lead the conference participants torecognize the importance of conducting a dialogue with rights-holders who are subject to corporate
activities, identifying potentially and actual adverse impacts they produce, and conducing a humanrights due diligence process.
Nippon CSR Consortium will continue to collaborate with companies, NGOs/NPOs, subject experts,
and other initiatives to enhance support for solving issues linked to business and human rights. We
sincerely hope that this report will contribute to further implementation of human rights due diligenceby companies.

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4.

Human rights issues by Thai and Japanese companies

The participants broke out into three groups (one made up of Japanese companies and two of Thaicompanies), to examine the issues raised by NGOs and identify human rights issues that had the largest
potential impact on their operations.
4.1

Thai companies
Comments

Key human rights issues in the Thai companies

Workplaceconditions

Working hours
Wages

Priority 2

Health and
SafetyPriority 1
a. There is a need for concrete action in thisarea, based on self sufficiency, work-life balance,and respect for human dignity.
b. Basic needs: basic infrastructure is neededthat aims at ensuring health services for all insociety. Healthy and nutritious food needs tobe provided, including food based on traditional
Thai herbs.
c. Though Thai law requires companies toestablish safety committees, this is rarely
implemented. Working conditions are often
unsafe, e.g. work in extremely hightemperatures, exposure to harmful chemicals,
excessively loud noise. There is also often a lackof qualified supervision of work at aerial
platforms at construction sites.

Core operation/ Supply

Disciplinary
practices
Discrimina

Recruitment-tion

During work
Redundancy anddismissal

Child labour

Risk to children
Minimum age
Working hours
and conditions of
employment

Priority 3

Employment ofyoung workers
Worst forms ofchild labour
Forced orcompulsory

Prison labour
Deposits and11labourpapersForced overtime
Trafficking ofworkers

Priority 6

OthersForced labour and migrant labour:
These are still common. In particularCambodians tend to work in furniture
manufacturing, Laotians as domestic workers,
and Burmese and Vietnamese in all sorts ofindustries. Migrant labourers are increasingly
faced with abuses. Some Thai managers arestarting to take measures to engage with
migrant labourers, e.g. organized trips totemples.

Communities

Freedom of
association
andcollective
bargaining

Freedom toassociate and to
bargaincollectively

Resources

Use of natural
resources

Natural resource issues: droughts and otherfactors have led to a shortage of water, resulting
in conflicts between factories and communities
over the resource.
Effectiveness use of natural resources anddevelopment Eco friendly technology.
There are also a need for implementing such as ;a. 3R (reuse, reduce, recycle)
b. Water management

Security

State provision of
security

Priority 8

Non-state groups
and security
payments

Priority 7

Detainment

Priority 9

Access toLand

Conflict withlocal law

Tittle to land
Voluntary
relocation-consul
tation andcompensation
Forced relocation

Community
Investment

Othersa. Safety and well being: the safety of not only
companies but also communities needed to beprotected.
b. Quality of life is important, as is theworkplace environment (in particular pregnant
women, persons with disabilities, migrantlabourers and children).
c. There is a need to prepare for natural12

disasters, and lessons could be drawn fromJapan.
d. Management of waste: there is a need toreduce both industrial waste and rubbish in thecommunity.
Operations incountries inconflict
Entry(pre andpost conflict)Society andGovernments

Bribery andcorruption

Priority 4

Moneylaundering andtransparency

Priority 5

Relations to statewith poor humanrights records
Respect rights ofindigenous
peopleRespect to ESG
Others

1. Educationa. Environmental issues : many factories still
do not abide by environmental regulations.
b. The Thai government is encouraging a shift torailtransportation,
toreduceenergyconsumption
andtheimpacttotheenvironment.
c. Governance and transparency: there needs tobe a board or a steering committee to ensurethat decisions are taken in a transparent andunbiased manner.

Quality education is vital for sustainability. Though the Thai government
puts considerable financial resources into education, the results are still
mixed. Diversity within ASEAN: there are six hundred million people in
ASEAN, and a system is needed to understand and harness that diversity,with a common knowledge base and a common education system.
2. Inequality is growing and is a serious issue: there is a need to create employment
in the provinces.
3. Sustainability: goods and services produced by disadvantaged communities need
to be promoted, so as to ensure self-sufficiency.
4. Some companies translate documents such as SOPs, fire procedures and others
into the languages of migrant labourers.

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4.2

Japanese companies
Comments

Key human rights issues in the Japanesecompanies

Workplaceconditions

Working hours
Wages
Health and Safety

Disciplinary
practices
DiscriminationPriority 2
Priority 1
Ensuring health and safety at the workplaceleads to higher motivation on the part of
employees and better productivity: a positive
cycle. Neglecting this, on the other hand, leads
to a negative spiral for all, and must be avoided.

Recruitment
During work
Redundancy anddismissal

Core operation/ Supply

Child labour

Risk to childrenChild labour had serious implications for the
future of the children involved and must be
avoided at all costs. It also would lead to serious
damage to the brand of the company.
Nevertheless, it remains a serious problem.

Minimum age
Working hours
and conditions of
employment

Priority 3

Employment ofyoung workers
Worst forms ofchild labour
Forced orcompulsory
labourPrison labour
Deposits andpapersForced overtime
Trafficking ofworkers

Freedom ofPriority 6
There are many cases of migrants being
subjected to forced labour in Thailand.
Unscrupulous brokers are engaged in humantrafficking. The case of the shrimp industry is
receiving wide ranging international attention,
but this is just one example, and it is imperativethat companies are aware of the situation
throughout their supply chains.

Freedom to

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association
andcollective
bargaining

associate and to
bargaincollectively

Resources

Use of natural
resources

Security

State provision of
security

Priority 8

Non-state groups
and security
payments

Priority 7

Detainment

Priority 9

Tittle to land

Ambiguity regarding land ownership rights inmany countries in SE Asia often leads tosituations where the rights of disadvantaged
persons and communities are disregarded.
Companies need a complete understanding ofland rights, as there is a high risk of infringing
on the rights of others.

Access toLand

Conflict withlocal law

Voluntary
relocation-consul
tation andcompensation
Forced relocation
Community
Investment

OthersOperations incountries inconflict
Entry(pre andpost conflict)Society andGovernments

Bribery andcorruption

Priority 4
It is not uncommon in ASEAN countries that
senior government staff would demand bribes.
This is unacceptable.

Moneylaundering andtransparency

Priority 5

Relations to statewith poor humanrights records

OthersRespect rights ofindigenous
peopleRespect to ESG

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Stakehlder Engaegement Programme in Thailand’s Participants organisation list
＜Japanese companies＞
Ajinomoto, ANA Holdings, AEON, Wako Sangyo Thailand Co.,Ltd. 、AGC Flat Glass (Thailand)
PLC, JSR BST Elastomer Co.,LTD, Fuji Xerox Thailand Co.,LTD, OKAMURA,
THAI KAJIMA Co.,Ltd, Business Consultant, Mitsubishi Heavy Industries, LTD.
11 companies and 13 participants＜Thai companies＞
Loxley Public Company Limited, CRISTRALLA CO.LTD, Metropolitan Electricity Authority,
Thai Beverage Plc., Central Trading Co.,Ltd., Osotspa Co.,LTD, Thailand Productivity Institute (FTPI)
7 companies and 9 participants＜NGOs and experts＞
OHCHR、BHRRC、Mekon Watch、

Save the Children、Protection International、Fortify Rights、Cross Cultural Foundation、The Embassy of Japan in Thailand、Marimo5, CRT Japan
10 organisations and 11 participants

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