January 10th, 2013

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Nippon CSR Consortium

Report on the Human Rights Due Diligence Workshops (Phase 2)

A series of four Human Rights Due Diligence Workshops were held between November and December
2012 at the Lambuth Hall in Tokyo as Phase 2 of the Nippon CSR Consortium’s work. Through theseries, the members of the Nippon CSR Consortium identified key human rights issues by sector.
I.

Time and Date: November 2nd, November 15th, December 5th, December 14th 2012.
18:30-21:00

Venue: Lambuth Hall, Kwansei Gakuin University, Tokyo Marunouchi CampusParticipants: Please refer to the attached list (Appendix 1).

Programmes and contents: Please refer to the following.

The 1st workshop “Learning from experts and leading companies” held on November 2nd
2012.

The Executive Director of CRT-Japan, Hiroshi Ishida, explained the purpose and the structure of thePhase 2 Workshops, mentioning how the human rights due diligence workshops have developed andwhat the members have done so far. He also stated that, though it seems not an easy task for someone toget a whole picture, taking a step forward and improving each other’s activities through collaboration
with others, such as the CSR initiatives and other companies, is crucial for Japanese companies.
Following the academics, experts, and NGO/NPOs, who introduced their important ideas andviewpoints on human rights due diligence, a CSR practitioner from a leading company (SONY
Corporation) presented corporate and industrial initiatives for responsible procurement. Before ending
the workshop, the participants were asked to fill out a worksheet to identify human rights issues bysector.

I.1

I.1.1

Comments from academics, experts, and NGO/NPOs
Makoto Teranaka, Tokyo Keizai University

Makoto Teranaka highlighted the fundamental difference between companies and NGO/NPOs in termsof their perspectives, and emphasized the importance of undertaking a dialogue, and asking “what can
we achieve through collaboration?”. While pointing out the distortion within the Japanese conception ofhuman rights, he defined human rights as “the last stronghold for those who are deprived of their rights
and struggled in that situation” and said “it is quite unlikely that human rights issues will be eliminatedfrom society”.

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1Moreover, he mentioned that human rights issues rise when there is no other possibility to solve theCaux Round Tablesituation. This means that there are some signs of the existence of potential risks. Whether the potential
risks become a human rights issue or not depends on whether a company can recognize the signs before
it initially acts. He stressed the significance of establishing such a system to identify human rights issues
as the first step, and stated that if the company successfully identifies the relevant issues properly, thiswould be the same as accomplishing 60% of the task.

I.1.2

Toshihiko Fujii, Research Institute of Economy, Trade& Industry

Toshihiko Fujii referred to three points concerning human rights due diligence. Firstly, human rights due
diligence requires “intervention” against business partners, which Japanese are not likely to be good at.
Secondly, when it comes to a dialogue with NGOs who have completely different stances fromcompanies, it is important to develop the relationship based on written global standards. Thirdly,
whether they can reach a compromise on individual issues with NGOs, and whether they can generalize
the compromise will be future challenges for Japanese companies. Finally, showing a possible scenario
where Japan comes to need human rights for protecting itself as its economic power and global
competitiveness weakens, he expressed his concern about low awareness of human rights issues among
top Japanese managements.

I.1.3

Kaori Kuroda, CSO Network Japan

Kaori Kuroda shared two impressions that she gained at the international conference on “Sustainable
Supply Chain Management” held in the UK. Firstly, others, including European companies, were likely
not to have a clear picture of human rights due diligence, and were likely to be seeking a way forward.
In such a situation, she sees a growing worldwide interest in our Human Rights Due Diligenceworkshops. Secondly, the existence of influential NGOs and consumers is a distinctive characteristic ofEuropean society, which distinguishes it from Japanese society. Finally, she suggested that building up
constructive relationships with NGOs and consumers through collaboration, rather than confronting
them, may fit more comfortably to Japanese companies.

I.2

Sharing expertise of a leading company

I.2.1

Hidemi Tomita, Sony Corporation

Hidemi Tomita introduced corporate activities concerning human rights due diligence at Sony.
Sony has established the Sony Group Code of Conduct in which “Respect for Human Rights” isallocated into one section and defined as a higher concept. Based on the Code, it is promoting“responsible procurement”.

Specifically, at first, identification of problems as well as improvement of the situation within the supply
chain are sought based on the Sony Supplier Code of Conduct, which defines the basic policy as to

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2

reconsider a business relationship when a supplier does not exhibit an appropriate level of cooperation.

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In order not to make suppliers to be worn out because of extra burdens, Sony participates in theElectronic Industry Citizenship Coalition (EICC) and carries out supply chain audits by using the EICC
framework standardized within the industry. Moreover, audits are preferentially conducted in high-riskareas and operations.

Sony takes the same approach to conflict minerals. Within the EICC platform, investigation into thedownstream of the supply chain and audits of the conflict free smelters are conducted. Because of thecomplexity of the supply chain, it is difficult to discern which minerals are conflict free, but the policy
is “Sony does not procure things that include conflict metals”, and, “if there is evidence that the smelter
uses conflict metals, Sony does not purchase from it”. The corporation from suppliers is essential forSony’s supply chain management, and therefore business relations cease when there is clear evidence of
violation.

II. Contents of a model dialogue at the second workshop and case studies at the third workshop,
held on November 15th and December 5th respectively

Model dialogue in the second workshop described a real situation of foreign workers under forced
labour in Japan, in terms of “long working hours”, “minimum wages”, and “isolation/ disassociation”.
In the third workshop, Aonuma, the representative of ek sathe, introduced human rights issues in
Bangladesh and Myanmar, including background information, the activities of some advanced
companies, and the challenges to be solved. The presentation was concluded with a questions andanswers session where the participants and the presenter had a lively dialogue.

III. Discussion towards identification of sector specific human rights issues at the second, thirdand fourth workshops, held on November 15th and December 5th, December 14th respectively.

The Nippon CSR Consortium is working towards identification of sector-specific human rights issues,
using the Human Rights Guidance Tool issued by the UNEP FI in 2011 as reference. The process anddetails of the discussion that took place between 2nd and 4th workshops are as follows. This summaryreflects points made by different speakers during the discussion, but does not imply that all participants
endorse all points. Many of the points reported in this summary are statements of opinion and should
not necessarily be taken as fact. No remark will be attributed to a specific participant or theorganization.

III.1

The process for identifying sector-specific human rights issues

Worksheet A in which human rights issues possibly relevant to their sectors are listed (Appendix 2) isbased on the “Identifying the human rights issues and expectations relevant to business (based oninternationally recognised standards and voluntary initiatives)” in the Guidance Tool issued by the

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UNEP FI in 2011. It was distributed to the participants.

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Each member examined which issues could have significance to their sectors, and at which point

the issues exist in the value chain, and marked “●” for them. Moreover, they also discussed whichissues are likely to have “no relevance” or “less relevance” and marked “▲” for them in Worksheet
A.
CRT Japan arranged these answers by sector. Then, Worksheet B was created by adding theoutcomes of the Worksheet A to UNEP FI Human Rights Issues by Sector.
Using Worksheet B, the participants discussed a) key sector specific human rights issues, b)potentially significant human rights issues that are not appeared on Worksheet B, and c) the value
chain that would be relevant to the key human rights issues at the second and third workshop.
Representative persons from ten sectors presented the outcomes of their discussion in their group.



Academics, experts, and NGOs gave them feedback at the fourth workshop.
The paper “Draft Version for Public Consultation: Invitation to Comment on Human Rights Issues

by Sector” was written up by adding the comments from academics and experts to the outcomes ofthe discussion in the workshop. The draft has been translated into English, Chinese, and Spanish
and issued for public comments. The public comments period is between January 10th and January
30th 2013.

III.2

The details of the discussion and the identified key human rights issues by sector

III.2.1

Manufacturing

The members basically agreed with the contents written on Worksheet B. Some additional points wereraised as follows.
On discrimination: gender discrimination, the need for promoting the appointment of women.

On child labour: possible risks of using child labour in supply chains that have expanded acrossAsia

On freedom of association and collective bargaining: the need for reducing the gap between regularand non-regular workers, union members and non-union members.



On conflict minerals: the need for adequate consideration of human rights violations related toconflict mineral.



On consumers: positive commitments to the promotion of responsible marketing.

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4Concrete issuesCore
operation/
Supplychain

Working hours

 Working hours of foreign workers at
manufacturing sites in Japan and Asian
workers in the development unit may not be
controlled well.
 Unpaid overtime work

Health andsafety Severe incidents causing death or injury
especially within research and development,
as well as manufacturing sites.
 Long working hours may cause healthproblems, in particular, mental healthproblems.
 Health and safety issues in the supply chain(e.g. conflict mineral)

During work Gender inequality in training and promotion(discrimination against female workers).

Redundancy
and dismissal

 Foreign workers may possibly be dismissed
without due cause.

Child labour

Worst forms ofchild labour There may be possible risks in supply chains
across the Asian continent.

Forced orcompulsory
labourForcedovertime

 Foreign technical interns in Japan may beforced to do extra work.

Freedom of
association andcollective
bargaining－

Resources

Use of natural
resources
Non-stategroups andsecurity
payments
Relations tostates with poor
human rights
records
Bribery andcorruption

 Possible inequality between regular employees
and non-regular employees, and between
union members and non-union members.
 Possible absence of proper unions as
representative of workers despite the existenceof the right to collective bargaining The rights of workers may not be sufficiently
ensured under the union shop system.
 Abuse and pollution of water and land atfactories and sites.
 Possible diversion of funds to non-state groups
during procurement. (e.g. conflict mineral)

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Key human rights issues in the manufacturingsectorCommunity

Society andgovernment

Consumer

Workplaceconditions

Discrimination

Security

Relations withgovernments

Relations withcustomers

Health andsafety Possible diversion of funds to non-state groups
during the procurement process. (e.g. conflictmineral) Possible risks of bribery and corruption whenentering into a contract, as well as of being
involved in corrupt practices when receiving
orders from government.
 Making positive impacts on changing
consumer behaviours (e.g. conducting

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5responsible marketing).

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What the representative of the group reported:
We basically agreed with Point I-1 (Workplace conditions), though there are likely to be diverse issues
concerning this point. As for Point I-2 (Discrimination), although there is no check mark (●) for gender
discrimination on the paper, we concluded that Japanese companies should take this point into account,since Japanese companies are less advanced, compared to Western companies, in terms of theappointment of women. The problem is that most companies have such systems, but it is not usedproperly or effectively. We are not quite sure whether this should be dealt with as a human rights issue
or a management issue, but in either case, the gap should be bridged. Next, with regard to Point I-3-k,which is the worst forms of child labour, we changed the check mark from “▲” to “●”, because there
seems to be considerable concerns in the supply chain in other Asian countries. No additional comment
was given on Point I-4 (Forced or compulsory labour). With respect to Point I-5-q (Freedom to associate
and to bargain collectively), the rights to freedom of association and to bargain collectively are ensured
at headquarters in Japan, but, even so, there are likely to be considerable disparities between regular
workers and irregular workers, as well as between union members and non-union members. We thinkthat it is a weakness of Japanese companies, and therefore we checked a mark “●” for this. Then, on therest, we basically agreed all, including Point II-1 (Resources) and II-2 (Security) in which conflictminerals are mentioned. However, as for the last point, consumer issues, we would like to check a mark“●”, because it is what Japanese companies, especially we manufacturing companies, have not yet
actively committed. We could do more, particularly in research, development and sales, for meeting
consumer needs and providing desirable service.

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6III.2.2

Chemicals and Pharmaceuticals

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The members basically agreed with the contents described on the Worksheet B, but some additional
points were raised as written below.
In the pharmaceutical sector: The rights of study participants may possibly not fully be consideredwhen conducting clinical trials.

In the chemical sector: local people’s lives may possibly be threatened by accidents and hazardous
materials produced at plants, and may be relocated from their residences.

Key human rights issues in chemical sector

Concrete issuesCore
operation/
Supplychain

Workplaceconditions

Health andsafety Risks of skin injuries and cancers posed by theuse of chemical materials.

Community

Resources

Use of natural
resources

 Progressive increase in discharge and leak ofhazardous materials, water and air pollution at
manufacturing sites as well as duringtransportation.

Access to land

Voluntary
relocationconsultation
andcompensation

 Inadequate compensation on relocation may
create tensions with local communities whendeveloping sites, which may endanger the safetyof both corporate and community members.

Key human rights issues in pharmaceuticalsectorConcrete issuesCore
operation/
Supplychain

Workconditions andothersHealth andsafety The use of chemical compound or/and
pharmaceutical products is likely to endanger
the health and safety of employees.
 During the clinical development stage ofpharmaceutical production, the health and safetyof study participants may not be managed
properly at contact research organizations.

Community

Resources

Use of natural
resources

 Sourcing natural compounds that are essential
for drug development may possibly heighten
tensions between companies and local
communities. Especially (e.g. Bio-Piracy;
deprive benefit of community through a patentmonopoly for compound made from medicinal
plants which historically diffuse within a local
community)

Community
investment－

 Having positive impacts on public health suchas rising awareness on diseases and ensuring
access to medicine.

Relations withRelationswith poor Support for public health in state/ local
community may be misused for their politicalSociety and経済人コー円卓会議日本委員会〒150-0031 東京都渋谷区桜丘町 29-33 渋谷三信マンション 505 号室
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government

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Consumergovernments

human rights
recordRelations withpatients

Health andsafetypurposes such as propaganda Taking positive actions towards the fight against
counterfeit medicines Report delay on adverse drug reactions anddelay in recall may endanger health and safetyof patients

What the representative of the group reported:
We basically agreed with the human rights issues written on this sheet. We discussed whether there areother issues, and in what sense these issues should be understood.

In the pharmaceutical sector, the rights of study participants are seriously taken into consideration andprotected when conducting a clinical trial. In various actions for protecting the rights of study
participants, monitoring and assessing of how the contractor operates in the clinical trial will be a key
point. Pharmaceutical Affairs Act in Japan, and global rules and industry initiatives are developing andthe process and framework to identify risks are being built up.

With respect to chemical industry, we discussed about the interpretation of Point II-3 (Access to land),because there was an anonymous comment about this. It is the comment on Point II-3-g, “Voluntary
relocation-consultation and compensation”, saying that “In the development of new production sites orcompany premises, companies may deprive local people of their means of livelihood, resources, andproperty. If compensation including the amount and distribution is insufficient, tensions between thecompany and local communities may be heightened (in the chemical sector)”. Though we could not get
the exact meaning of this comment due to the absence of the person who wrote it, the possible
interpretation was put that the chemical sector could threaten people’s lives by causing accidents andproducing hazardous materials that could involve associated relocation, consultation, and compensation.
Nuclear plants were taken as an example that may violate the rights of local people in this context.

III.2.3

Information, Communication and Technology

The participants highlighted those issues listed below, while illustrating the characteristics of ICT sector
as a relatively-new industry, the invisibility of its products and services, and the labour-intensive natureof its work.
Long working hours and related health problems. The cause of the problems is not likely to be
simple but instead is complicated, since it is often observed that employees voluntarily work longhours from a sense of responsibility to customers and deadlines.

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8

Because of the characteristics of the ICT sector, namely it being a relatively-new industry, large

Caux Round Tableamounts of collaborative work with partners, and increasing offshore services and development,
ensuring freedom of association and the rights to collective bargaining in the supply chain,especially among overseas suppliers, may need particular consideration.

Possible risks of being involved in bribery and corruption through offshore activities.



Possible risks of violation of the privacy rights and the rights to freedom of speech and expression,
especially in the communication sector.

Key human rights issues in ICT sector

Concrete issuesCore
operation/
Supplychain

Working hours

 Long working hours (including attendance atweekends) and unpaid work in the process of
system development, during the busiest period(e.g. pre-release time) and in the case there arenumbers of design changes.

Health andsafety Health problems, especially mental healthproblems, may be raised because of the long
working hours described above.

Discrimination

During work Gender inequality in training and promotion(discrimination against female workers).

Freedom of
association andcollective
bargaining

Conflict withlocal law

 Freedom of association and the rights tocollective bargaining may not be fully ensured
in the supply chain.

Protection andstorage of
personal data－ There may be risks of leaking personal data
both at the company and subcontractors.

Resources

Use ofinfrastructure

Community
investment－

Society andgovernment

Relations withgovernments

Bribery andcorruption

Consumer

Relations withcustomers－

 Having a positive impact on local communities
such as improving local infrastructures throughthe establishment of ICT network system.
 Making a positive impact on local
communities through provision of information
and ICT service, such as enhancement of local
people’s lives by improving the digital divide.
 There may be risks of being involved inbribery and corruption, notably in offshore
market research, and sales and marketing(especially in ICT service provision forgovernmental agencies.) Privacy rights and the rights to freedom ofspeech and expression may possibly beviolated. (Especially related to thecommunication sector)

Community

Workplaceconditions

What the representative of the group reported:
Though we could not discuss all the topics, we began our discussion by talking about the characteristics

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of the ICT sector. Firstly, the ICT sector is a relatively-new industry. Secondly, its product and services

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are likely to be invisible because of the characteristics as network systems. This invisibility makes its
relationships with other actors in business activities difficult to identify. On the other hand, it also has alabour-intensive nature. These are likely to be characteristics of the ICT sector in general.

On the preconditions, long working hours and related health problems were recognized as the biggest
issues. However, when it comes to the background of this, it is not likely that they feel “forced” to work,
rather they voluntarily work for long hours, sometimes just before getting sick, from a sense of
responsibility to customers and deadlines. Thus, the problem may not be so simple but is more
complicated.

In addition, the fact that ICT sector is relatively new is related to issues concerning unions. Unlike
those sectors that have well-established union systems, we need to consider this point from now. In
addition, our work often involves collaboratively working with external parties and partners, andtherefore, we need to take into consideration the fact that our work is not limited within the company.

Generally speaking, these issues tend to be picked up from the perspective of system engineering. In thediscussion, some members from financial sectors raised a question about how ICT sector members
judged the significance of the issues, saying it may be almost impossible to identify concrete issues as“sector-specific” human rights issues in the ICT sector, because the tasks considerably vary between
project management, infrastructure-related work, and sales and marketing. To this question, ICT sector
members replied that it is difficult, but they basically adopt the perspective of system engineering.
As for community issues, there was no further mention on the use of electricity at the data center. On
the other hand, the members from ICT sectors mentioned that there may be bribery and corruption in
relation with government, and possible risks of the offshore activities that cannot be checked or have notbeen checked yet.

In addition, governments may impose regulations and restrictions concerning network systems, and ICT
companies may be forced to accept those governmental controls, such as censorship in Egypt and China.
Moreover, there may also be risks of being involved in bribery and under-the-table deals attendant in therelationships with certain governments. How to deal with these problems was regarded as a big
problem.

III.2.4

Logistics

The issues identified as key issues are as follows.
Long working hours, health and safety issues at the site and in the supply chain. Especially at thesite, employees could be forced to work long hours because of unexpected and uncontrollable

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10situations. There are also some risks of workplace accidents caused by the use of heavy machinery

Caux Round Tableand handling of heavy goods at the site such as a freightliner terminal. Moreover, long working
hours may cause mental health problems.



Discrimination by gender and academic qualification in Japanese companies.



Potential risks of economic loss caused by the existence of huge industrial unions enjoying
considerable influence.

Environmental risks in the upstream of the supply chain concerning fuel procurement

Provision of armed security by states against pirates and related human rights risks (Shipping).

Potential risk of being involved in bribery and corruption in order to avoid paying expensive
anchor costs. e.g. facilitation payment

Key human rights issues in logistics sector

Concrete issuesCore
operation/
Supplychain

Working hours

 Long working hours may happen, especially at
the sites and subcontractors.

Health andsafety Workplace accidents could possibly occur atsites including a ship under operation and afreightliner terminal, where heavy machinery
is used and heavy goods are handled(Shipping).
 Risks to employee safety in the areas where
pirates operate (shipping).
 Long working hours may cause mental healthproblemDuring work Possible discrimination in training andpromotion by gender and educational
backgrounds.

Redundancy
and dismissal

 The requests of part-time and irregular workers
for open-ended employment contracts may not
be fully considered.

Resources

Use of natural
resources Environment, air, and water pollutions, as wellas the destruction of habitat diversity, may
happen in the supply chain of fuelprocurement.

Security

State provisionof security

 Possible risks of excessive power exercise bynational navies deployed against pirates.
 Armed security personnel on board a ship may
exercise excessive power toward sailors andpirates.

Relations withgovernments

Bribery andcorruption

 Possible risks of being involved in bribery andcorruption such as facilitation payment.

Community

Society andgovernment

Workplaceconditions

Discrimination

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11What the representative of the group reported:

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As for core operation and the supply chain, written on the 1st page, Topic I-1-a (Working hours) andI-1-c (Health and safety) could be big problems for logistics companies. At the site, workers often face
unexpected and uncontrollable events, but they have to deliver goods on time. In such a case, theirworking hours inevitably become longer. There are also some cases where the order is given out to
subcontractors because there may be possible risks. As regards I-1-c (Heath and safety), both ships andtrailers haul very heavy goods, and therefore, the health and safety of the workers at such sites isregarded a big problem. Mental health problems of office workers also came up recently.

As for Point I-2 (discrimination), we discussed and concluded that discrimination by gender andacademic qualification may be an issue among Japanese companies. With regard to Point I-2-g(Redundancy and dismissal), although we did not have a concrete example, we supposed that it could beconcerned with the contracts of irregular workers, such as little consideration on employment duration
at expiration of the initial period.

As for Point I-5-r (Freedom of association and collective bargaining- conflict with local law), there isnot such a case in Japan, but some overseas countries have huge industrial unions enjoying considerable
influence. Companies are likely to have some concerns about being affected by such unions.
As for II-1-a (Use of natural resources), though the logistics sector inevitably needs fuel, we purchasethis from oil giants and large trading companies, which are exposed to international concerns and try to
pay attention to the human rights impact of business activities. However, there may be various
unresolved issues, especially in the upstream of the fuel supply chain.

Then, perhaps of particular concern for shipping, pirates are a big issue concerning Point II-2-c (State
provision of security). The coasts of fragile countries, such as Somalia, are very dangerous. This could
raise significant human rights issues.

As for Point III-e (Bribery and corruption), because efficient management of logistics network covering
all over the world is the first priority of logistics companies, there may be possible operations at the sitein order to avoid obstacles.

Finally, as regards to Point III-a (Operation in countries in conflict), III-b (Entry pre and post conflict),
and III-c (Relations to states with poor human rights records), the news does not come through until
Tokyo, we suppose there may be some problems when operating in such regions. Moreover, inassociation with economic sanctions on Iran and Syria, we are often asked about our business in thesecountries from financial institutions. This may also show the relation between our business and humanrights.

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12III.2.5

Apparel and Textiles

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A representative person explained that key human rights issues in the apparel and textile sector could be
divided into three themes, which were workplace conditions including wages, working hours, andaccident prevention, child labour, and forced labour. Moreover, changing consumer’s minds andpromoting ethical marketing are presented as future challenges for the sector.

Key human rights issues in apparel and textiles
sectorConcrete issuesCore
operation/
Supplychain

Working hours

 Long hours working may be caused by setting
production schedules that presuppose overtime
work, and undertaking actions to meetdeadlines in sewing process.

Wages

 Pressure from buyers on cost reduction may
result in ignorance of minimum wage
legislation.

Health andsafety Education on safety and health, including
emergency drill, may not be conducted or may
not be conducted properly.

Child labour

Minimum age

 Children under the minimum age may workwithout confirming identification papers orbased on forged papers.

Forced orcompulsory
labourForcedovertime

 Immigrant workers in China and foreign
trainees in Japan may be forced to do overtime
work.

Community

Resources

Use of natural
resources Discharging of hazardous material fromleather tanneries and dye houses may pollute
rivers, and may damage local people’s health.

Consumer

Relations withcustomers

Health andsafety Making positive impact towards changing
consumer’s mind, and creating ethicalmarketing (e.g. promoting fair trades)

Workplaceconditions

What the representative of the group reported:
Through the discussion, key human rights issues in the apparel and textile sector were divided into threethemes, which were workplace conditions including wages, work hour, and accident prevention,
previously explained by Ms. Aonuma, and child labour, and forced labour. I suppose that these threethemes are recognized as human rights issues despite differences in industry segments. When it comesto the reason why such issues arise, the cause varies widely. For example, sewing is the last bastion for
meeting deadlines, and therefore, sewing workers are likely to be pressured to finish up in short period.
If they cannot achieve a short-time delivery, this means that they cannot meet the deadline, and theycannot manage their business. On the other hand, some subcontractors accept orders beyond theircapacity. The situation seems to be difficult to solve, because it is not likely to be right to make them

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13just give up the orders. I learned that each member in this group is trying to address these issues at sites.

Caux Round Table

There is an additional point that someone added to the sheet. It is consumer issues. The members
attending today also pointed out the importance of creating ethical marketing. This means that
fundamental change could not be achieved without changing consumer’s minds. It can be said thatcreation of ethical marketing is a challenge concerning all the industries, but especially for the appareland textile sector, it could be a big theme that we need to take into account in the future.

III.2.6

Food and Retail

Indications provided are as follows.


Production is often concentrated, such as seasonal products, in our sectors. Forced overtime work
may be observed in the busiest periods.

Freedom of association and the rights to collective bargaining may not be fully ensured in the
countries where unions are not allowed.

Consumer and employee related human rights issues may be likely to be prioritized in the retailsector, while the food sector may need to consider human rights issues concerning raw materials(e.g. agricultural products or fishery products) additionally.
The group members also shared their concerns about how to deal with the situation where
deterioration of public security occurs in an entire state, and also where the company has relatively
limited influence on suppliers.

Key human rights issues in food and retail sector

Concrete issuesCore
operation/
Supplychain

Working hours

・ Long hour working may be a burden at the
manufacturing factories (supplier) where
private brand products are made and within
logistics networks that distribute the goods.

Health andsafety・ Fatal and non-fatal incidents and injuries in
production process including handlingsourcing material, and in handing chemical
substances in supply chain

Discrimination

During work

・ Foreign workers may not be ensured access tosafety education because of language barriers.

Child labour－

・ Child labour of children under the minimum
age and forced labour may possibly occur at
suppliers of raw materials, for example
agricultural and fishery products

Forced orcompulsory
labour－・ Production is often concentrated, such as
seasonal products, in our sectors. Forced
overtime work may be observed in the busiest
periods.

Workplaceconditions

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14Caux Round Table

Community

Freedom of
association andcollective
bargaining

Conflict withlocal law・ Freedom of association and the rights ofcollective bargaining may not be fully ensured
based on international laws in the country
where unions are not allowed.

Resources

Use of natural
resources

・ Agricultural production and fish hauls in thecommunities which run small operations may
be decreased because of large-scalecommercial agriculture and fishing, and the
local ecological system may be affected
negatively.
・ Culturally/ historically/ religiously importantsites for local communities or indigenous
people may be damaged.

Security

State provisionof security

・ Lack of a balance of securities provided bystate, sometimes securities may exercise
excessive power, or may not ensure enoughand adequate security.

Access to land

Title to land

・ Especially when constructing large stores,
titles to the land of local people or indigenous
groups may be ignored.

Society andgovernment

Relations withgovernments

Bribery andcorruption

・ Bribery and corruption may be required whena company expands its business and develops
a new store and plants need to gain approval
and licenses for marketing and manufacturing.

Consumer

Relations withcustomers

Health andsafety Promoting responsible marketing, especiallygiving consideration to consumer health inalcohol and tobacco sales, and on consumer
safety in use of electricity devises and toys.
 Low quality addictive substances andinadequate labeling may cause consumers’
health risks.

What the representative of the group reported:
Concrete examples were raised for the issues checked with a mark “●” in advance.

The topic without a check mark but for which we doubt the possibility of human rights violation isforced overwork in the category of forced labour. In our sectors, there is some peak time when
production concentrates, for example, the making of seasonal products. At such times, we necessarilyurge suppliers to deal with the demand, otherwise business cannot carry on. We discussed that thissituation could possibly produce forced labour.

In addition, as regards Point I-5 (Freedom of association and collective bargaining), there may also berisks if a company does business in a country where unions are not allowed.

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15

There are two additional points that we considered possible risks. As for the use of resources

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categorized as issues concerning communities, we think that the resale of out-of-date meals and reuse ofsuch meals by bringing out from a disposal field carried out beyond company’s control, could be risks
that may harm consumer health. However, how much responsibility we have on our private brands
seems a matter of contention.

In addition to that, safety could also be a problem. There may be risks of a sudden deterioration of
public security across entire states, which the company needs to deal with.

Compared to the Western companies, it seems to be difficult for Japanese companies, which purchasegoods on a smaller scale or through trading companies, and whose amount of deals is much smaller than
the gigantic companies, to carry out exactly the same activities. Thus, how to keep to voluntaryagreements or global standards will be a future challenge in our sector.

III.2.7

Paper and Printing

The issues identified as key human rights issues in the paper and pulps sectors respectively are as
follows.

Paper:
As the paper sector has a strong impact on both the upstream and downstream of the value chain, it
is likely to confront various human rights issues.

Printing:Foreign workers may not be ensured access to safety education because of language barriers andmay work long hours.



There could possibly be long working hours and child labour in the supply chain such as in Asian
factories where products for give-away campaigns are made.



Cancer risks caused by using chemical materials and health risks caused by noise.



Huge amounts of personal data are stored by printing companies. Despite strict controls, there may
be possible risks of the leakage of personal data.

Prison labourers may be used in the supply chain without receiving adequate payments.

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16

Key human rights issues in paper sector

Concrete issues

Workplaceconditions

Health andsafety There may be possible risks of accident whenlogging and operating heavy machineries

Discrimination

During work Workers may be subject to lack of equal
opportunity for education, training andpromotion due to gender discrimination or/and
nationality discrimination

Community

Resources

Use of natural
resources

 In term of forest resources, the rights ofindigenous people and local communities may
not be fully considered. Especially in the casewhere a company purchases woodchips rather
than sawing from company-owned forests,
there may be possible risks of the company
being involved in human rights violations
related to logging.

Access to land

Title to land

 Lack of formal tenure arrangements, or tenure
based on historical use rather thandocumentation can lead to traditional rights
being overlooked.

Caux Round TableCore
operation/
Supplychain

Key human rights issues in printing sector

Concrete issuesCore
operation/
Supplychain

Working hours

 Working long hours in sales and marketing, inthe factory, at suppliers and subcontractors.

Health andsafety Potential cancer risks caused by usingchemical materials in enclosed spaces with lessventilation and in printing factories.

Discrimination

During work Foreign workers may be subject to lack ofhealth and safety education due to language
barriers.

Child labour－ There could possibly be child labour within
the supply chain (at subcontractors, and Asian
factories where products for give-away
campaigns are made)Forced orcompulsory
labourPrison labour Prison labourers may be used for
manufacturing of calendars, exam papers, andaluminum batches and they may not be paid
adequately.

Relations withcustomers

Protection andstorage of
personal data There may possibly be a leak of personal datathat the printing company acquires to produce
products such as credit cards.

ConsumersWork
conditions

What the representative of the group reported:
I will talk about the paper and printing sectors separately because related human rights issues are likely
to be different.

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17Though the academic member joining in our discussion suggested that all the issues could apply to theCaux Round Table

paper industry, in our discussion, some specific issues including natural resources, indigenous people,
and working conditions were raised. I suppose that not only printing companies but also every otherkinds of company uses papers, yet none of us have verified whether the paper company distributing
paper to us ensures human rights.

When it comes to sourcing, there are mainly two routes: sourcing from company-owned forests andpurchasing woodchips. The former may be traceable and controllable, but the latter is difficult to traceback and this problem may lead to human rights abuse being undetected. This characteristic of theindustry drives the institutionalization and promotion of Forest Stewardship Council (FSC) certification.

With the respect to the paper industry, working long hours is obviously a problem. Even the company
which receives the order must work overtime, so subcontractors and sub-subcontractors may naturally
be forced to work long hours too. Moreover, when tracing back to sub-sub-contractors, there may be
more issues concerning foreign workers. For example, they are subject to a lack of safety education andinstructions due to discrimination related to the language barrier.

In addition, there was also an indication regarding the supply chain. At the printing companies, we
receive orders for campaign gifts/ goods/ sales promotion items, and these goods are often outsourced
and made in other Asian countries where the manufacturing involves a long chain of suppliers at low
cost. Because of the complexity and length of this supply chain, we have not been able to assess
information on what human rights issues above involved.

There are two more issues. The first one is health and safety. As bile duct cancer risks in the printing
industry were in the news recently, use of large amounts of chemical materials in printmaking andprinting factories could cause such health problems. Noise could also be an issue. In addition to working
long hours, the printing sector is likely to have risks concerning health and safety.

In addition, you may not know, but printing companies have great quantities of personal information.
Probably, ten million pieces of data are stored at the major printing companies in Japan. To prevent theleakage of this personal information, we are paying special attention to the data storage.

A participant indicated that the printing industries provide the largest amount of work to prisoners while
they are in prison.

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18III.2.8

Finance

Caux Round Table

Indications provided are as follows.


Though working hours and workplace conditions are obviously important issues, they
are distinguished from other human rights issues as internal issues.

The most significant issue in the financial sector is the consideration of human rights
issues with regard to investment and loan decisions. Consideration for ESG(Environment, Society, and Governance) aspects in screening and monitoring is
especially needed, but there is no clear standard for how far and on which issues afinancial institution should carry out screening and monitoring.

Key human rights issues in the financial sector

Concrete issuesCore
operation/
Supplychain

Working hours

 Working long hours as customer’s needs andoperations diversify, and increase in
non-routine work

Health andsafety Long working hours may cause illness
including mental health problems

Discrimination

During work Possible gender discrimination in training andpromotion

Access to land

Title to land

 Lack of regulations for protecting landownership, such as hypothec in regards tofinancial transactions, may lead toinfringement of human rights.
 There may be risks regarding lender’s
responsibilities concerning credit mortgages.

Community
investment－

 Having positive impacts on job creation andaccess to education through microfinance.
 Having positive impacts by dealing financial
products designed to support infrastructure
improvement in developing countries.

Relations toinvestments,
loans, andindividual
investors－

 Human rights are not fully considered when
conducting screening and audits in regard tofunds and investment. Compliance with the
Equator Principles

Community

Customer

Workplaceconditions

What the representative of the group reported:
I would like to introduce the major point of our discussion. Firstly, as regards to money laundering,
though the issue has a significant importance for both human rights and our business, it is regulated as acompliance matter that we cannot ignore in our operations, and therefore, we think that money
laundering is not treated in the same way as other issues.

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19With respect to working hours and workplace environment, they should of course be taken into account,

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but could be treated separately as internal issues like diversity and discrimination.

The biggest question for us is how to judge investments and loans. Financial sectors have impacts onsociety indirectly. This characteristic seems to make it more difficult to deal with human rights issues
because our impact is indirect, but, at the same time, there may be more things we could do. This point
raised a fierce discussion.

As regards screening on investment and loans, financial and compliance screenings are obviously
conducted. Some other issues, such as role of working conditions and the environment, came to beconsidered at each company. However, despite the existence of these practices, they are not conductedaccording to a clear ESG standard. The present status is that investigation is conducted but standards are
not established.

Unlike screening, monitoring involves continuous improvement, which is a grey zone in the financial
sector. The background to this is that obviously audit comprises issues concerning the environment,
workplace, and human rights, but there is a difficult question on how far financial institutions should
conduct audits. On the other hand, the Equator Principles, UNEP FI, PRI, and Principles for Financial
Action for the 21st are voluntary rules in the financial sector that seek for standardization of the scopeand contents of ESG issues including human rights issues. However, this has not been clearly
established nor mainstreamed yet, so each financial institution tries to differentiate themselves byshowing what and how they conduct audits, and this is a challenge for the future in the financial sector.

Experts: I have been interested CSR within the financial sector and I have learned about that today. I
think that the difficulties of CSR in the financial sector come from its characteristics of having productsthat do not have a specific “goods character”. In other words, it is difficult to associate their productswith issues. If it is the case of the textile sector, it could associate their products with the dyeing process
and attendant chemical materials, yet, money could not evoke any images. Paradoxically, this generality
requires the financial sector to have sensitivity toward what society is interested in. The Equator
Principles could be the very example of what society is interested in. This means that the financial
sector is quite likely to get stuck in their CSR activities, confusing what they should do, if they do notfundamentally understand what globally recognized right actions are beyond such established rules.

Itis not financial institutions themselves but their counterparts who decide what they should do. I think
this makes it difficult to carry out CSR in the financial sector.

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20

IV The forth workshop “Learning from experts and presentation of outcomes of discussion”

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held on14th December, 2012.

Osamu Shiraishi from the Asia-Pacific Human Rights Information Center introduced global trends
concerning human rights and business, and some case studies. Then, some members of the Nippon CSR
consortium presented the sector-specific human rights issues identified through discussion at the second
and third workshops. Finally, the academics and representatives of NGO/NPOs gave feedback on theentire Phase 2 workshop.

IV.1

IV.1.1

On corporate activities concerning “business and human rights” in the world
Osamu Shiraishi, Asia-Pacific Human Rights Information Center

Osamu Shiraishi explained the background of global standardization of corporate social responsibility.
He also introduced Professor John Ruggie “Protect, Respect and Remedy” framework and the Guiding
Principles on Business and Human Rights: Implementing the United Nations “Protect, Respect andRemedy” Framework (A/HRC/17/31, 21 March 2011). He presented the following four points as key
elements for a company taking responsibility based on the Ruggie framework; 1.Learn about andunderstand what human rights are based on global standards concerning human rights. 2. Establish
corporate policies to respect human rights. 3. Clarify the way in which the company respects humanrights, namely (a) identify and assess any actual or potentially adverse human rights impacts such as
human rights violation, through corporate activities or as a result of their business relationships, (b)integrate and act upon the findings, (c) track responses, and (d) communicate how impacts are
addressed with the affected stakeholders. 4. Provide for or cooperate in remediation. He explained that
operational-level grievance mechanisms for the potentially impacted by the business activities can be
one effective means of enabling remediation when they meet certain core criteria, such as being
legitimate, accessible, predictable, equitable, transparent, and rights-compatible, and being a source ofcontinuous learning and based on engagement and dialogue.
The Guiding Principles on Business and Human Rights: Implementing the United Nations “Protect,
Respect and Remedy” Framework applies to all types of companies. He stated that companies are
required to shift their perspective from business to vulnerable people who could possibly be excluded,
and pay special attention to them, while mentioning the difficulty of this “shift of perspective”. He also
introduced the possibilities of Guiding Principles for companies; companies could (a) examine whether
corporate policies meet global standards, (b) assess human rights risks in the business process, and (c)evaluate consistency between national laws and global standards.

Finally, he talked about the follow-up activities of the Guiding Principles, and he illustrated the current
status among the Western companies., Although many of them agreed with the principles and establish
corporate policies, the actual integration of the Guiding Principles into business processes and activities,
and human rights due diligence, remain as a future challenge. The meeting was closed following a

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21

question and answer session, where a lively discussion on the LDP’s draft amendment to theCaux Round Table

constitution, the objective examination of human rights due diligence, and a remedy mechanism of the
Guiding Principles took place.

IV.2

The outcome of discussion for identification on key human rights issues by sector

Please refer to the section Ⅲ.2 on this paper.

IV.3

IV.3.1

Comments from academics, experts, and NGO/NPOs
Makoto Teranaka, Tokyo Keizai University

Mentioning the amendment of constitution submitted by the LDP, Makoto Teranaka explained theimportance of supreme law. He referred to article 97 of the Japanese Constitution, which states “Thefundamental human rights by this Constitution guaranteed to the people of Japan are fruits of theage-old struggle of man to be free; they have survived the many exacting tests for durability and areconferred upon this and future generations in trust, to be held for all time inviolate”, and mentioned
possible problems caused by its absence. Based on this premise, he indicated that the human rights
which should be considered concerning “prison work” and “privately armed guards on ships deterring
pirates” are “the rights of prisoners who are not ensured to receive full benefits of their work by being
allocated unpaid work” and “the rights of pirates who are under absolute poverty and do not have otherpossibilities to gain living sources”. He emphasized that when considering human rights issues,questions should be concrete. Specifically, he stated his belief that concrete questions should be on
whose human rights are violated, and what remedies are needed. Finally, he required companies tounderstand the complexity of human rights issues that involve different levels of problems concerningstates, companies, and societies, and to examine from which standpoints they address the issues.

IV.3.2

Kaori Kuroda, CSO Network Japan

Kaori Kuroda appreciated the outcome of the workshops as the importance of human rights issues incore business and in supply chains were recognised in different sectors, and that the inextricable link
between the use of natural resources and human rights issues were recognised. She highlighted theimportance of creating ethical markets that would encourage more sustainable production andconsumption, and showed her expectation of companies’ role. In order to realise ethical markets, she
stated that it is crucial that each producer understands the negative impacts of corporate activity on
human rights (and whose human rights are violated), raising awareness of human rights and social/environmental problems at the individual level, and link the awareness with their own consumption
behaviours. In addition, she introduced the global trends putting human rights at the centre of every
domain, mentioning the Equator Principles that will be revised for integrating the Ruggie Framework as
an example.

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22

IV.4

Participant’s understanding level of human rights (self-evaluation)

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Each participant self-evaluated their understanding level of human rights issues and wrote down acomment on a paper formed like a leaf. Gathering these leaves, a human rights tree was created.

IV.4.1

OverallAt the final session of the series, participants’ understanding level of human rights was evaluated in thesame way it had been at the Phase 1 workshop. Compared to the results of the Phase 1 workshop, theaverage scores of participant’s understandings on human rights issues slightly decreased by 0.07. The
scores at the Phase 2 and Phase 1 were 2.76 (36 responses) and 2.69 (29 responses) respectively. As thediagram shows, while scores 1, 2, and 5 lessened slightly, scores 3 (Identify human rights issues) and 4(Prioritse) considerably increased. This suggests that participant’s understanding of human rights issues(2) has enhanced, and their interest moved to “Identify (3)” and “Prioritise (4)” issues. The participant’scomments also demonstrated their interest in how to apply what they “understood (2)” and “identified(3)” in the workshop to business operations as well as how to prioritise issues.

IV.4.2*Lower score was adapted in case of multiple answers.

Participant’s comments

Some comments on understandings of human rights
 Existing processes need to be critically examined (2).
 Human rights issues exist in core business operations. I will revise our activities from this point ofview (2).

 My understanding of human rights issues goes back and forth (2).
 My understanding is narrow. I need to enhance it (2).
 I probably came to be able to identify human rights risks (2) I really felt how narrow my understanding was (3).
 I deepened my understanding of complicity (2).
 I realized the need to identify human rights risks not only at individual companies, but also at a sector
level as a whole (3).

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23 Through discussion by sector, we could identify risks within our sector as well as in other sectors. I

Caux Round Table

think we could prioritise the issues to some extent (4).

 Regrettably, the score is 1 when evaluating the level at the entire company. The process from 2 to 5
may be repeated in the PDCA cycle (1).

Some comments on future challenges.
 I cannot build up a detailed picture of human rights due diligence (No self-evaluation)
 I reaffirmed the significance of making top management understand human rights (2).
 Value chains are not managed entirely (3).
 Needs to raise awareness on human rights issues at individual companies (2).
 Effective collaboration in which companies can actually work together (5).

Some comments on association between human rights issues and business operations.
 I understood risks concerning human rights, but I am not quite sure how they could be integrated intobusiness operations (2).

 How to integrate it into business operations (3).
 I could identify risks concerning human rights and its prioritization. The future challenge will be its
integration into business operations (3).

 It is difficult to integrate human rights issues into the business process. Please raise it as the next
topic! (2) I broadly identify risks, but I still have a question on how to integrate them into the business process(2).

Some comments on the prioritization of issues.
 I identified possible risks, so I would like to move into prioritization as the next step (3).
 We need to step forward prioritising issues (4).
 Prioritisation should be done with stakeholders (4).

Some comments on identification of human rights issues in the supply chain.
 Identification of human rights issues in the supply chain (3).
 Working on supply chain (5)V

Closing Comments from Hiroshi Ishida, Caux Round Table Japan

I would like to express my thanks to all the participants contributing to successful accomplishment of
the Phase 2 workshop. Identification and prioritization of human rights issues by 10 sectors throughdialogue between members from companies, NGOs and experts, which we have done through theworkshop, are not only an unique attempt but also could be a great advance towards integration of

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24human rights due diligence among Japanese companies.

Caux Round Table

What is the most striking for me was that members from companies, NGOs, and experts gained new
insights from each other by exchanging their own points of view with integrity. The members fromcompanies learned what actually happen at the site from NGOs and experts, while NGOs and experts
also learned the potential risks that concern those members in their business, and how business
operations are carried out in practice. This is exactly what the human rights due diligence workshop
aims for - in other words, building up common understandings the points in which gaps exist throughvital discussion and mutual learning based on the basic philosophy that “we emphasize putting one’s
own house in order, and on seeking to establish what is right rather than who is right”.

I hope to carry the momentum to the next step in order to address human rights issues in business not asa pie in the sky notion but as actual practice. The next step will involve more concrete activities atindividual companies.

Picture of the participants at the forth workshop

Hiroshi Ishida
Executive Director, Caux Round Table Japan

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25Appendix 1
List of Participants in Human Rights Due Diligence Workshops (Phase 2)(in alphabetical order)

Participants from Companies
Ayami Kosugi
David Kwok

Legal Coordinator, General Affairs & Human Resources Department, TaylorMade Golf Co., Ltd.
Manager, Corporate Responsibility Asia, Burberry Asia Limited

Hidemi Tomita

Manager, CSR, Sustainability Team, CSR Sustainability Department, Global Legal & Compliance Division, ASICS
Corporation
General Manager, Corporate Social Responsibility Department, Sony corporation

Hirohisa Minakawa
Kazuaki Shibao

Assistant Group General Manager, Environment & Social Contributions Division, Nippon Express Co., Ltd.
Senior Manager, Human Resources Development Division, NEC Corporation

Kazuki Ohara
Keiichi Ushijima
Kenichi Nakamura

Nomura Research Institute, Ltd.
Manager, CSR Promotion Devision, Hitachi, Ltd.
General Manager, CSR Dept., Sumitomo Mitsui Banking Corporation

Kenji Osawa
Kiichiro Yokoyama

NTT Data Corporation
Manager, Corporate Communications Department, Nomura Research Institute, Ltd.

Madoka Ohshima
Masaki Wada
Masami Yamamoto

Manager, Corporate Citizenship International Labor Standards, The Walt Disney Company (Japan) Ltd.
Ethical Trading Japan Manager, Burberry Japan K.K.
Toppan Printing Co., Ltd.

Minoru Matsuzaki
Motoko Kawasaki

Manager, CSR Department, Group Compliance Division, Corporate Governance Office, Olympus Corporation
Operations Manager, CSR Group, Corporate General Administration Division, Fujifilm Holdings Corporation

George Yoshimoto

Naoko Morizane

CSR Strategy Group, Corporate Social Responsibility Department, Presidential Administration Office, Mitsubishi Heavy
Industries, Ltd.
NEC Corporation

Noriko Kimura
Satoshi Maeda

SA8000 Group, AEON Supplier CoC Secretariat, Group Corporate Citizenship Dept., AEON Co., Ltd.
Managing Director, Human Rights Education Department, Nomura Securities Co., Ltd.

Shigeru Sergio Machii

Youzou Nakao

First Division Fourth Business Unit, Mitsui Bussan Inter-fashion Ltd.
Manager, Quality Management Group
Environment & Quality Division, Konica Minolta Holdings, Inc.
Head, CSR, Public Affairs, Sanofi K.K.
Manager, Corporate Social Responsibility Department, Corporate Social Responsibility Division, Nippon Paper Group, Inc.
Senior Vice President, Environmental Initiative & Corporate Social Responsibility Support Department, Development Bankof Japan Inc.
Corporate Responsibility Officer, Buberry Japan K.K.
Assistant Manager, CSR, Corporate Communication & Branding Division, CSR Promotion Department, Konica Minolta
Holdings, Inc.
Ricoh Company, Ltd.
Operations Manager, CSR Group, Corporate General Administration Division, Fujifilm Holdings Corporation
CSR Officer, Corporate Social Responsibility Department, Seven & i Holdings Co., Ltd.
Senior Specialist, CSR Division, Ricoh Company, Ltd.
Manager, GHR Team, Japan Regional HR Team, Human Resources Group, General Affairs/CSR Headquarters, Nippon
Yusen Kabushiki Kaisha (NYK LINE)
Associate General Manager, CSR Department, Aijinomoto Co., Inc.

Yuka Yokoyama
Yukihiro Araki
Yukiko Nakagawa

NTT Data Corporation
Director, FUJITSU Way Unit, Fujitsu Limited
FUJITSU Way Unit, Fujitsu Limited

Yuko Deguchi

Corporate Citizenship Department, Nomura Holdings, Inc.
Deputy General Manager, CSR Coordination Team, CSR Coordination Group, General Affairs/CSR Headquarters, Nippon
Yusen Kabushiki Kaisha (NYK LINE)

Nanami Koseki

Shinji Fukumoto
Sohei Motoyama
Takashi Sasama
Takateru Oi
Tomoko Nakamura
Tomoko Suwa
Toru Noritomo
Toshihiko Hoshino
Toshihiko Itoh
Yasuhiro Matsuda
Yasuhito Yazama

Yuko Tsutsui

Participants from Governmental agency, NGO/NPOs, Academic institutions and others
Ai Aonuma
Kaori Kuroda

President, ek sathe
Executive Director, CSO Network Japan

Kenichi Kumagai
Makoto Teranaka

The Japan Association for Advancement of ILO Activities
Visiting Professor, Faculty of Contemporary Law, Tokyo Keizai University

Osamu Shiraishi
Toshihiko Fujii

Director, Asia-Pacific Human Rights Information Center
The Research Institute of Economy, Trade and Industry (RIETI)Collaborated with;
Hidenori Imazu

Toppan Editorial Communications Co., Ltd.

Hiro Motoki
Satoko Fujiki
Takao Hiraishi

Chief Executive, E-Square Inc.
Key Account Manager, Consumer Testing Service, Social Responsibility Solutions, SGS Japan Inc.
Managing Director, Brain Center Inc.

Yoshihiko Yamabuki

General Manager, Cetus & General Press Inc.

© Caux Round Table Japan

Appendix 2
Worksheet A
1. Please select issues which have significance to your sector and mark ●. Please also identify issues which have no relevance or less relevance to your sector and mark ▲ in the "Selected Issues ● or ▲" column.
Three issues of ● and three of ▲ from Section Ⅰ: Core Operation / Supplly Chain, and also three issues from each of Section Ⅱ: COMMUNITIES and Ⅲ: SOCIETY AND GOVERNMENTS. A total of 12 issues should be selected.
2. Regarding the issues you marked ●, please select the related value chain and mark ●. Multiple marks are allowed.
3. Please write concrete points for significant issues (●) with each issue number, while also stating the reasons for marking ▲ with each issue number.
These human rights issues are based on the “Identifying the human rights issues and expectations relevant to business (based on internationally recognised standards and voluntary initiatives)” in the Guidance Tool issued by the UNEP FI in 2011.

Ⅰ. CORE OPERATION / SUPPLY CHAIN
事業 / サプライチェーン

1. Workplace conditions
職場における待遇

2. Discrimination
差別3. Child labour
児童労働aWorking hours
労働時間

b

Wages
賃金

c

Health and Safety
健康および安全dDisciplinary practices
懲戒処分e

Recruitment
採用f

During work
従業時gRedundancy and dismissal
整理解雇、解職

hRisks to children
危険な作業や雇用i

Minimum age
最低年齢

jWorking hours and conditions of employment
労働時間と労働条件kl

4. Forced or compulsory labour
強制労働

5. Freedom of association and collective
bargaining
結社の自由と団体交渉権

2. Only for the significant issues, select the related value chain and mark ● (multiple marks allowed)
Funding

Facility
Construction

Research

Development

Procurement

Production

StorageTranspor Sales andtationMarketingConsume/Use

Disposal

OthersWorst forms of child labour
最悪の形態の児童労働
Employment of young workers
18歳未満の若年労働者の雇用mPrison labour
囚人の作業もしくは役務

nDeposits and papers
雇用にあたり保証金や文書の提出を求める搾取oForced overtime
強制的な残業p

Trafficking of workers
人身売買q

Freedom to associate and to bargain collectively
結社の自由と団体交渉権r

Conflict with local law
国内法で認められていない場合の措置

3. Which are significant issues to your sectors? Please select three issues from section Ⅰ, and fill in theissue number and concrete points related to each issue below.
● Issue No.

1. Select
Issues● or ▲

Concrete points

3. Which issues are not relevant or less relevant to your sector? Please select three issues from section Ⅰ, and fill in the issue number
and the reason below.
▲ Issue No.

The reason you marked ▲Appendix 2
Worksheet A
1. Please select issues which have significance to your sector and mark ●. Please also identify issues which have no relevance or less relevance to your sector and mark ▲ in the "Selected Issues ● or ▲" column.
Three issues of ● and three of ▲ from Section Ⅰ: Core Operation / Supplly Chain, and also three issues from each of Section Ⅱ: COMMUNITIES and Ⅲ: SOCIETY AND GOVERNMENTS. A total of 12 issues should be selected.
2. Regarding the issues you marked ●, please select the related value chain and mark ●. Multiple marks are allowed.
3. Please write concrete points for significant issues (●) with each issue number, while also stating the reasons for marking ▲ with each issue number.
These human rights issues are based on the “Identifying the human rights issues and expectations relevant to business (based on internationally recognised standards and voluntary initiatives)” in the Guidance Tool issued by the UNEP FI in 2011.

Ⅱ. COMMUNITIES
コミュニティ

1. Resources
資源

2. Security
治安

3. Access to Land
土地へのアクセス

4. Community investment
コミュニティへの投資

a

Use of natural resources
天然資源（水や土地等）の利用b

Use of infrastructure
インフラ（道路、電気、上下水道等）の利用

c

State provision of security
国家による警備の提供

dNon-state groups and security payments
非政府勢力への支払い

eDetainment
拘束f

Title to land
土地の所有権g

Voluntary relocation - consultation and compensation
自主的な土地移転を促す協議と補償

hForced relocation
強制移住aOperations in countries in conflict
紛争国における事業b

Entry (pre and post conflict)
紛争前および紛争後の国への進出

c

Relations to states with poor human rights records
人権に対する認識が低い国との関係

dMoney laundering and transparency
マネーロンダリングと透明性

eBribery and corruption
賄賂と腐敗

3. Which are significant issues to your sectors? Please select three issues from section Ⅱ&Ⅲ, and fill in
the issue number and concrete points related to each issue below.
● Issue No.

2. Only for the significant issues, select the related value chain and mark ● (multiple marks allowed)

1. Select
Issues● or ▲

2. Only for the significant isues, select the related value chain and mark ● (multiple marks allowed)

Funding

Facility
Construction

Research

Develop Procurem
Production
ment
ent

StorageTransport Sales and Consume/
Disposalation
Marketing
Use

Others－ －Ⅲ. SOCIETY AND GOVERNMENT
社会と政府

Relations with Governments
政府との関係

1. Select
Issues● or ▲

Concrete points

Funding

Facility
Construction

Research

Develop Procurem
Production
ment
ent

StorageTransport Sales and Consume/
Disposalation
Marketing
Use

Others3. Which issues are not relevant or less relevant to your sector? Please select three issues from section Ⅱ&Ⅲ, and fill in the issue number
and the reason below.
▲ Issue No.

The reason you marked ▲