April 22nd, 2013

Caux Round Table

Caux Round Table Japan

Human Rights Issues by Sector (draft) Consultation Summary Report

This report aims to provide a summary of the stakeholder responses to “Human Rights Issues by Sector(draft)”, and explains how Caux Round Table Japan (CRT-Japan) has taken into account thosecomments in subsequent amendment of the document. “Human Rights Issues by Sector (2013)” will beissued as the final by reflecting the discussion. Thank you to those who have sent comments during thepublic consultation period.

I. Summary of the Public Consultation
I-1．SummaryTitle

Public Consultation on “Human Rights Issues by Sector (draft)”

Period10th - 30th January 2013

Number of responses

4How CRT-Japan has

Amendment

Amendment to draft

1

taken into account theReference

Taken comment into account for future2

responses whenreferenceamending

Other

Noted opinion

1I-2. Comments on the draft version of “Human Rights Issues by Sector”
5 comments on the draft version of “Human Rights Issues by Sector” were submitted in the freeformat. The categories of comments received are as follows.

On the content of the draft

On human rights due diligence workshop① Need for further discussion

1② Request for amendment

1③ Other

1④ Evaluation of the workshop and its

2activities

Summary of the comments:i.

On the content of the draft: Need for further discussion
There is a grey zone that needs further discussion, especially in the financial and textile andapparel sectors.

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
電話: 03-5728-6365 FAX: 03-5728-6366 http://www.crt-japan.jp

1

ii.

On the content of the draft: The request for amendment

Caux Round Table

The description of prison labour in the printing sector may lead readers to misunderstand that
only this sector uses such labor. In Japan, the national government facilitates the placing oforders by companies with prisons. Therefore, it should be treated as an issue that could
potentially be related to all the sectors.

iii.

On the content of the draft: Other
Explanation of China’s current human rights situation

iv. On human rights due diligence workshop: Evaluation of the workshop and its activities This is a good example illustrating how the UN Guiding Principles on Business and HumanRights are actually used.
 It is a good effort, which assures openness and transparency.

I-3．The way in which CRT-Japan has deal with the comments
The following sets out how CRT-Japan has taken into account those comments presented above.
i.

On the content of the draft: Need for further discussion
The grey zone pointed out here will be discussed further in the next series of humanrights due diligence workshops.

ii.

On the content of the draft: The request for amendment
Since the description in the draft may lead readers to misunderstand that prison labor isonly used in the printing sector, the description will be amended appropriately.

iii.

On the content of the draft: Others
The human rights issues in China highlighted in the comments could relate to Japanesecompanies as many of them run businesses in that country. The comments will be used asa reference for discussions in the next series of human rights due diligence workshops.

iv.

On human rights due diligence workshop: Evaluation of the workshop and its activities
The comment has been noted.

I-4．Summary
CRT-Japan has determined to amend the description in relation to the use of prison labour in theprinting sector as the result of the public consultation. Other comments will be used as a referencein the next series of human rights due diligence workshops. For the details of the responses, pleaserefer to diagram 1.

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
電話: 03-5728-6365 FAX: 03-5728-6366 http://www.crt-japan.jp

2

Caux Round Table

II. Future possibility of collaboration
The public consultation on the draft version of “Human Rights Issues by Sector” was undertaken inorder to receive stakeholder opinions. During the one-month consultation period, some stakeholders
offered suggestions in respect of long-term, rather than temporary, collaboration. Although not a directcomment on the content of the draft, these suggestions illustrate the recognition by global CSR
initiatives of the Human Rights Due Diligence Workshop at the Nippon CSR Consortium. Please referto diagram 2, which lists the suggestions for future collaboration received as well as responses thereto
from CRT-Japan.

END

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
電話: 03-5728-6365 FAX: 03-5728-6366 http://www.crt-japan.jp3

Diagram 1. The way in which CRT-Japan has deal with the comments
Organisation nameOfficevenue

Person incharge

via

Summary of comments

How CRT-Japan has taken into the comments

E-mail・It is a good example that shows how UN Guiding Principles on Business and Human Rights are actually used.
・There are grey areas which would benefit from some greater resolution and discussion-particularly in the Finance sector, andmore 'traditional' areas where Business and Human Rights aspects must be addressed, such as the 'Apparel & Textiles' sector.

The grey zone pointed out here will be discussed
further in the next series of human rights due
diligence workshops.

E-mailSkype

It is a good effort, which assures openness and transparency.

The comment has been received as an evaluation.

UN Working Group on the Issue of
Human Rights and Transnational
Corporations and Other Business

GenevaDr. Puvan
SelvanathanEnterprises

Corporate Accountability Round
Table

D.C.

Amol Mehra
esq.

This comment Introduced China's current situation as regards labour rights based on their rich experiences of investigation in
China in various sectors, including electrics, retail, toys, apparel and textiles.
1. Working hours: This is one of the most serious violations seen in factories. Workers have to do excessive overtime. Workers inChina do overtime because they are paid too little and in this sense, they are “forced” to work overtime. And even if they do a lot ofovertime, they can barely make ends meet. Additionally, the production model of certain companies is based on workers' overtime.
2. Discrimination: Discrimination does not only exist during work. Depending on the type of factory, management often restricthiring to male or female workers, but they almost always restrict hiring to young workers, who are more likely to be able to handle
intense workloads.
China Labour Watch

N.Y.

Mr. Leo Liu

E-mailThe human rights issues in China highlighted in
the comments could relate to Japanesecompanies as many of them run businesses in thatcountry. The comments will be used as a
3. Forced labour: In Chine, forced labour is not limited to situations in which workers are required to work overtime. When workers
reference for discussion in the next series ofwant to resign due to various reasons, including but not limited to work being too physically intense, their resignation may behuman rights due diligence workshops.
denied or unreasonably delayed. They can walk off, but at the cost of losing their earned but unpaid salary.
4. Bribery and corruption. Audit bribery is also a serious problem. Audits in supplier factories are supposed to serve as a check on
the performance of the factories, which includes worker conditions. However, audit bribery is compromising such goals andfundamentally devaluing the audit process.
5. In addition to those key issues identified in relation to the manufacturing sector, we find that the lack of communication channels
between workers and factories also requires immediate attention.

Japan Federation of Printing
Industries

Tokyo-The description of prison labour in the printing sector may lead readers to misunderstand that only the printing sector uses such
E-maillabor. In Japan, the national government facilitates the placing of orders by companies with prisons. Therefore, it should beInterview
treated as an issue that could potentially be related to all the sectors.

Since the description in the draft may lead readers
to misunderstand that prison labor is only used inthe printing sector, the description will be amended
appropriately.

Diagram 2. Future possibility of collaboration
Organisation nameOffice venue

Person incharge

Human Rights and Transnational

GenevaDr. Margret
JungkEnterprises

Professor.

UN University

Tokyo

Vesselin
PopovskiUN Global Compact

N.Y.

CSR Europe

Brussels

Corporate Accountability RoundTable

CRT-Japan's responses to the suggestions

・Ms. Ashleigh Owens has already begun to work as a researcher at CRT-UN Working Group on the Issue ofCorporations and Other Business

Suggestion

D.C.

・Sending a researcher to CRT-Japan to support its activities concerning human rights due diligence.
Japan (since the beginning of March 2013)
・Conducting workshop in conjunction with the members of the Nippon CSR Consortium in relation to the ・Since it is crucial to share expertise and challenges that companies havegoals of the research.
learnt through human rights due diligence process, CRTJapan will look forJapanese companies that could participate in the workshop.

・Exploring publication of a book together (including the activities at CRT-Japan concerning human rights
due diligence and CSR Consortium).
・CRT Japan is positive about both publication and international conference.
・Setting up an international conference on human rights due diligence at the United Nations University inAoyama.

・Noted his interested in the activities of Nippon CSR Consortium and offering:・support for global communication.
Dr. Puvan ・to jointly organise, with CRT-Japan, a “Regional Conference & Workshop for East Asia" with the UN,Selvanathan where companies and NGOs from China, Korea, and Japan will gather and hold discussion.
・some member companies of Nippon CSR Consortium will come and introduce their activities at theHuman Rights and Business Forum held in December at Geneva.

Ms. Lia
Talarico

What Nippon CSR Consortium has been doing is interesting. We will look at possibility of futurecollaboration.

・CRT Japan is positive about both offers, regional conference and Human
Rights and Business Forum.

CRT Japan is positive about the future collaboration.

・CRTJapan is positive about future collaboration.
・The process is very open and transparent. I would like to learn more about that. It would be nice if you
・Hiroshi Ishida, Executive Director of the CRTJapan, has had a brief
could come and introduce the activities of the consortium at the international conference organised by ourdiscussion about remediation with a person in charge at the Japan Federation
Amol Mehra
organisation.
Esq.
of Bar Associations. Since remediation is sometimes beyond the control of a・Our organisation is seeking to work with Japan Federation of Bar Associations. We hope to maintain acompany, we will also look for corporation to have a positive impact on public
good relationship.
policy.