March 3rd, 2014
Nippon CSR Consortium

Human Rights Issues by Sector v.2
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 on humanrights by sector. The draft version of the “Human Rights Issues by Sector” document was open for public
consultation between November 20th and December 17th, 2013. Valuable comments from two companies
and five organisations have been received at home and abroad. We gratefully acknowledge theircontribution.
Following consideration of these comments, the Nippon CSR Consortium herewith releases “Human
Rights Issues by Sector v.2”. The paper maps human rights issues that are considered likely to be related to
the 10 sectors, following discussions at the Nippon CSR Consortium and on the basis of internationallyrecognized guidance such as the UNEP FI Human Rights by Sector and the UN Guiding Principles. On 4
selected sectors manufacturing, information communication technology (ICT), logistics and finance, thepaper further maps where in their value chain the identified human rights issues could be linked to.
Of course, the paper should not be read as confining a particular issue to a certain sector only, or to theeffect that a particular issue always arises in a given sector. Further identification of sector-specific humanrights issues with in-depth analysis and research, and implementation of appropriate prevention/mitigation
measures as well as measures for “Access to remedy”, which is a core part of the UN Guiding Principles,would be expected hereafter.
The comments were integrated consistently to the format of this document, and the sole responsibility forthe content of this document lies with Caux Round Table Japan, as a platform organizer of Nippon CSR
Consortium.

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Table of Content

1.

Overview of the Public Consultation 2013 ............................................................................ 3

2.

Human Rights Issues by Sector v.2 ....................................................................................... 5

2-1. Manufacturing ....................................................................................................................... 5
2-2. Information, Communication and Technology .................................................................... 9
2-3. Logistics............................................................................................................................... 13
2-4. Finance................................................................................................................................. 16
2-5. Chemical .............................................................................................................................. 19
2-6. Pharmaceuticals ................................................................................................................. 19
2-7. Apparel and Textiles ............................................................................................................ 20
2-8. Food and Retail.................................................................................................................... 21
2-9. Paper and Printing ............................................................................................................... 22

3.

List of Reference Sources .................................................................................................... 24

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1.

Overview of the Public Consultation 2013

During the public consultation period from November 20th to December 17th, 2013, Nippon CSR
Consortium received large numbers of comments from companies and organizations in different sectors
and with different expertise. Most of them are classified under three categories, (i) supplementary
explanation about the human rights issues, (ii) additional reference source, and (iii) focal issues/challenges
towards 2014, and reflected in the individual issues and texts in this paper.
Given many valuable comments, some of them are difficult to reflect in the individual issues, despite theirimportance to address. Therefore, in this chapter, our views on three representative comments will be
explained. The three comments are as follows: Human rights issues should be recognized morecomprehensively; Human rights issues should be understood in the particular context in which they arise;and ‘Business and human rights’ as a subject and CSR should be understood distinctly.


Human rights issues should be recognized more comprehensively
The purpose of this document is to report the discussion results of the Human Rights Due Diligence
Workshop. The workshop was planned in response to the corporate community where there was somuch confusion over ‘where to start’ in relation to a wide range of existing human rights issues. Thus,an objective of the workshop is to understand and reflect concern for highly relevant and criticalhuman rights issues in products and services, or with a sector as a whole. As a result, this paper does
not focus on listing all the issues identified in the workshop and highlights only those more relevant toeach sector, products and services, while discussing the issues in common across the sectors in theworkshop (Appendix 1).
There are also some comments indicating there may not be so much difference in supply chains acrossdifferent sectors in relation to ‘labour and human rights’, such as ‘workplace conditions’,‘discrimination’, ‘child labour’, ‘forced labour’ and ‘freedom of association and collective
bargaining’.
Considering such input, working toward the Workshop 2014, the current four categories ‘Core
operation/Supply chain’, ‘Community’, ‘Society and government’ and ‘Customer’ will be revised andcombined into two, and ‘Labour and human rights’ in the ‘Core operation/Supply chain’ will bepositioned as a common issue across the all sectors. In addition, the potential human rights risks tocustomers and the local communities where business operations take place will be discussed
separately.



Human rights issues should be understood in the particular context in which they arise
We agree that it is critical to understand the reason why a certain human rights issue arises, and to
determine the underlying problems of the issue, in order to address any human rights issues effectively.
For example, in the case of child labour, families may have to depend on cash earned by their children,

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3because of low household income, and simply excluding children from work sites can rather aggravatethe situation.
Therefore in 2014, contextual understanding of the issues will be emphasized, by leveraging tools anddata related to the sector specific and/or region specific risks, while further promoting collaboration
with the ‘business and human rights’ initiative organizations around the country and abroad.
’Business and human rights’ as a subject and CSR should be understood distinctly
Violation of human rights through business operation should be avoided in all respects. If the issues of‘business and human rights’, as ‘what a company should do’, and ‘CSR’, as ‘what a company want to
do voluntarily’, are clearly distinct, then they should be understood separately. Accordingly, the nameof the Nippon CSR Consortium may have to be changed, and that possibility would not be excluded
from our discussion.

The Nippon CSR Consortium will be continuously working on identifying and working to address
important potential human rights issues, through identifying what business operations can violate
whose/which human rights, and from whose perspective, and striving for excellency in facilitating
businesses efforts to address and resolve the identified issues and risks, in collaboration with businesses,
NGOs/NPOs, CSR experts and CSR initiative organizations. We hope this information will be helpful forcompanies during their implementation of ‘Human Rights Due Diligence’.

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2

Human Rights Issues by Sector v.2

2-1.

Manufacturing

Key value chains applicable to the manufacturing sector were classified into seven categories, and concrete
issues were further explored focusing on the products and services specified below.
2-1.a

Key value chains in manufacturing sector

Create: research, development, design
Buy: capital investment, procurement
Manufacture: production, manufacturing
Transport: storage, logistics
Sell: distribution, sales and marketing
Use: consumption, utilization
Discard: disposal, recycling
2-1.b

Discussed products and services



Thermal electric power plant



*



Digital camera

Electronic parts*Among various product families in electronic components, ferrite products (parts) were selected andtheir value chain was focused on.

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2-1.cPotential human rights issues in the specified products and services, and relevant value chains
Value Chain
Discard

Use.Discard

Core operation/ Supply chain

Use

Sell

 Severe incidents causing death or injury especiallywithin research and development, as well as
manufacturing sites. [C/M]

Transport

Health andsafety Long working hours may become the norm inoverseas factories, due to low wages not matching
local standards of living, and piece-rate work.
 Unpaid overtime work in Japan.

Manufacture

Working
hours andwage

*Highly relevant value chains are shown inparentheses [ ]BuyWorkplaceconditions

Concrete issues

CreateKey human rights issues in the
manufacturing sector✓ ✓✓ ✓ ✓ ✓ ✓✓ ✓ ✓ ✓ ✓

 Long working hours may cause health problems,in particular, mental health problems
 Inadequate living conditions (living in a dormitory
within the factory, sharing one small dormitory
room with several people, being locked up forcontrol) and poor sanitation (shower, toilet, etc.,)
may affect the health of the employees.
Discrimination

Duringwork

 Inequality in working conditions, training, andpromotion

Child labour

Minimumage There may be possible risks of child labour andtrafficking through brokers in supply chains acrossdeveloping countries (e.g. subcontracting works).

✓ ✓ ✓ ✓ ✓✓ ✓

 Job applications may be made using fake
identities.
Forced orcompulsory
labourFreedom of
association andcollective
bargaining

Deposits
and papers

 “Mediators” may require foreign workers in Asian
countries to hand over ID (e.g. passport) and/or
pay excessive commission at the time ofrecruitment.

✓

Forcedovertime

 Risk of long working hours may cause forced
overtime, due to excessive quota requirements.

✓ ✓ ✓ ✓ ✓－

 Potential lack of communication/dialogue between
labour representatives and unions.

✓ ✓ ✓ ✓ ✓

 Potential insufficiency in institutionalization andoperation of labour-management consultation
and/or absence of substantive collective
bargaining.
 Potential insufficiency in protecting workers’
rights in union shop, or where trade unions arebanned or not fully implemented.
Sell

Transport

Manufacture

Buy

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6Value Chain

Community

Society and government

Discard

✓ ✓ ✓

Use

Sell

Transport Designing and developing products with low
environmental burdens (less electric consumption,easy to recycle). [C/U/D]

Manufacture

Use ofnaturalresources*Highly relevant value chains are shown inparentheses [ ].

BuyResources

Concrete issues

CreateKey human rights issues in the
manufacturing sector✓ ✓ Abuse and contamination of land and water at afactory or local construction site. [B/M/D]
Security

Non-stategroups andsecurity
payments

 Potential diversion of funds, goods and services1
to non-state groups, and armed groups. (e.g.
conflict minerals2)✓

Relationswithgovernments

Relations tostates withpoor humanrights records

 A new venture (e.g. plant construction) by agovernment may be launched without obtaining
appropriate consent from local communities,
including indigenous people and minorities.

✓ ✓ At time of bidding for a plant construction andoperation, the labour standard presented by a hostgovernment may not comply with the international
standards.
Bribery andcorruption✓

 Potential risk of being involved in bribery andcorruption, such as facility payments, especially attime of obtaining licenses and authorizations. [M]✓Consumer Possible risks of corruption when entering into acontract, as well as of being involved in corrupt
practices when receiving orders from government.
[S]
Relationswithcustomers

Health andsafety✓ ✓ ✓ Potential positive impacts of changing consumer
behaviors (e.g. conducting responsible marketing
considering health and safety of consumers) [S],and contributing to raising consumers’ awarenessof environmental issues. [U/D] Potential risk to the lives or bodies of end

consumers are created due to a defect inspecified products provided through thecustomer/clients.
Use.Discard

Sell

Transport

Manufacture

Buy

Create1

Voluntary Principles on Security and Human Rights to identify benchmarks (http://www.voluntaryprinciples.org)
The law on using conflict minerals is now quite clear, and as part of their due diligence, companies need to takemany measures into account. Refer to The OECD Due Diligence Guideline for Responsible Supply Chain of Minerals from
Conflict-Affected and High-Risk Areas (http://www.oecd.org/corporate/mne/mining.htm) and an example, the Dodd-Frank
Wall Street Reform and Consumer Protection Act (http://www.sec.gov/about/laws/wallstreetreform-cpa.pdf). Conflict2

minerals directly contribute to the maintenance of conflict and are associated with sexual violence against women andgirls, such as that in the North and South Kivus.

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*Human rights issues in the manufacturing sector and the relevant value chains, other than the specified
products and services
Core operation/ Supply chain > child labour > minimum age and Community > resources > others
Products collected in industrialized countries for recycling purpose are shipped to developing
countries and disposed there finally as waste. There is a potential risk of child labour, if children are
involved in collecting recyclable material from the wastes in these countries. If the products/waste ishazardous and toxic and poorly-handled, there is a potential risk of disastrous human rights
consequences for the health and safety of the people in community3. [D]Community > resources > use of natural resources
Protecting traditional knowledge of indigenous people, and sharing with them the profits derived fromthe use of such knowledge. (ABS: Access and Benefit-Sharing) [C/B]

3

Case profile: Tragigura lawsuits in Cote d’Ivoire.
http://www.business-humanrights.org/Categories/Lawlawsuits/Lawsuitsregulatoryaction/LawsuitsSelectedcases/Trafiguralaw
suitsreCtedIvoire

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2-2.

Information, Communication and Technology (ICT)Key value chains applicable to the ICT sector were classified into six categories, and concrete issues were
further explored focusing on the products and services specified below.
2-2.a

Key value chains in ICT sector

Create: research and development
Buy: capital investment for office and data centre, procurement of machine/equipment/raw materials andsoft ware
Produce: information planning, program development, system maintenanceSell: network provider, sharing system, system maintenance & operation service, sales and marketing
Use: shared system operation, data archival
Discard: depreciation/amortization
2-2.b

Discussed products and services

The shared account management system for over-the-counter sales of investment trusts

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92-2.cPotential human rights issues in the specified products and services, and relevant value chains
Value Chain

Core operation/ Supply chain

Discard

✓ ✓ ✓

Use

Sell

 Long working hours (including attendance atweekends) and unpaid work in system development
process (e.g. pre-release period, during system trouble)[C/B/P/U]

Produce

Working
hours*Highly relevant value chains are shown inparentheses [ ].

BuyWorkplaceconditions

Concrete issues

CreateKey human rights issues in ICT
sector✓ Industrial health and safety of workers at overseas
subcontractors (outsource providers) and/or System
Integrators may not be ensured, because political andeconomic factors are different from Japan. [C/P/U]
Healthand safety

 Long working hours may cause health problems,
especially mental health problems✓✓

Discrimination

Duringwork

 Gender (discrimination against female workers) andnationality inequality in training and promotion✓✓

Forced orcompulsory
labourForcedovertime

 Excessive quota requirements may lead to long
working hours and forced overtime.

Freedom of
association andcollective
bargaining

Conflictwith locallaw Freedom of association and collective bargaining may
not be ensured.

✓✓Protection andstorage of
personal data－ Personal information held by the company may beleaked.

✓✓ ✓ ✓DiscardUse

Sell

ProduceBuyCreateCaux Round Table Japan
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10Value Chain

Community

Discard Environmental friendly energy use at a data
centre (e.g. energy saving, responsible powersource management.) [B]Use

Use of natural
resources(water, land,
etc.)

Sell

Resources

Produce*Highly relevant value chains are shown inparentheses [ ].

BuyConcrete issues

CreateKey human rights issues in ICT sector✓ ✓✓ Having a negative impact on the lives ofcommunities, such as through noise and odor
emissions from a data centre. [U] Potential risks of environmental pollution frominappropriately discarded electronic devices. [D]Use ofinfrastructure Having a positive impact on local communities
such as by improving local infrastructure
through the establishment of an ICT network
system. [P/U]

✓

✓

✓

ConsumerSociety and government Users’ asset management may be affected bysuspension of service caused by electricity andtechnical trouble. [U]Community
investment－

 Making a positive impact on local communities
through information provision and ICT services,such as enhancement of local peoples’ lives byreducing the digital divide.

✓

Relations withgovernments

Relations tostates withpoor humanrights record

 Insufficient legal systems in host countries may
cause challenges in controlling forced overtime
work. (e.g. at contracted local company foroffshore development projects) [P]✓ ✓ ✓ Potential violations of land ownership rights oflocal peoples at the time of government purchaseof land for industrial park from of minority
community. [B] Possible risks surrounding demands fromgovernment authorities to provide private
information. [S/U]

Relations withcustomers

Bribery andcorruption

 Potential risks of being involved in bribery andcorruption, notably in offshore market research,and sales and marketing (especially in ICT
service provision for government agencies.)
[C/S]

－

 Potential violation of privacy by information
leakage, especially in system operation

✓

✓

✓

 Big Data services that gather public consumer

data may unintentionally identify personal
data by combining information, and there is apotential risk of misuse the customer personal
data for commercial purposes without priorapproval from users.
DiscardUse

Sell

ProduceBuyCreateCaux Round Table Japan
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*Human rights issues in the ICT sector and the relevant value chain, other than the specified products andservicesSociety and government > Relations with governments > Freedom of expression and Privacy.
Potential violations of freedom of expression when:a company receives direct requests from host governments to censor content and close down networks,
a company operates in countries where the law requires restrictions on the freedom of expression due
to strict social and cultural values, or where repressive regimes do not tolerate dissent,
a company’s technologies and products are misused to repress freedom of opinion, speech andexpression. [B/S]Consumer > Relations with customers
Having a negative impact on children’s rights, arising from child pornography; online solicitation or‘grooming’, and exposure to unsuitable materials. This can cause psychological harm or lead tophysical harm; and harassment and intimidation. Rapid developments in the ICT sector havefacilitated the creation and dissemination of images of the sexual abuse of children, heightening theneed for businesses to exercise due diligence.

2-2.d


Reference Sources

Institute for Human Rights and Business and Shift, ICT Sector Guide on Implementing the UN
Guiding Principles on Business and Human Rights, 2013.
http://www.ihrb.org/publications/reports/human-rights-guides.html (accessed February 25th 2014)



Ericsson, ICT and Human Rights: an ecosystem approach, 2012.
http://www.ericsson.com/res/thecompany/docs/corporate-responsibility/2012/human_rights0521_final_web.pdf (accessed February 25th 2014) *The ICT value chain is described for one sub-sector.

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2-3.

Logistics

Key value chains applicable to the logistic sector were classified into four categories, and concrete issues
were further explored focusing on the products and services specified below.
2-3.a

Key value chains in logistics

Create: research, development
Buy: capital investment, procurement of ships and vehicles
Transport: storage, logistics, transportation
Discard: disposal, recycle
2-3.bDiscussed products and servicesIntermodal freight transport

Maritime transport

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2-3.cPotential human rights issues in the specified products and services, and relevant value chains
Value Chain

Core operation/ Supply chain Long working hours at fields and subcontracting
companies especially in busy seasons.

✓

Health andsafety Workplace accidents could occur due to lack ofsufficient safety instructions at site where heavymachinery and cargos operate, such as terminal andship under operation for marine transportationindustry.

✓ Safety of workers in marine transportation industry
when in waters in which piracy can take place Long working hours may cause mental health risks.
Discrimination

Community

Workinghours

DiscardTransport*Highly relevant value chains are shown inparentheses [ ].

BuyWorkplaceconditions

Concrete issues

CreateKey human rights issues in logistics
sectorResources

During work

 Inequality according to gender and education in
working conditions, training and promotion.
Foreigner nationals especially in port services may
face discriminatory treatment in employment andpayment.

✓

Redundancy
and dismissal Potential risks of hiring temporary workers to
replace full-time workers or to avoid employment
protection4 and requests for permanent
employment by part-time and contract workers may
not be duly considered.

✓

Use ofnaturalresources Potential risks of causing or contributing toenvironmental contamination, air pollution, water
quality degradation or destruction of natural
habitats at the site of oil extraction. [B]✓✓ Exhaust gas from vehicles operating frequently
along the same route may cause or contribute to
local air pollution. [T]SecurityState
provision of
security Potential risk of excess use of force like violence bynational navies dispatched to areas where piracy is
occurring or by armed guard on-board ships tomariners and piracy.

✓ A potential risk to navies, piracy may abuse therights of local communities such as fishermen.

4Companies should provide appropriate employment with supporting employment contracts. Please see the guidance on
employment and recruitment agencies here for further elaboration:(http://www.ihrb.org/publications/reports/human-rights-guides.html)

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Society and government

Relations withgovernments

OthersTrafficking

Bribery andcorruption

 Possible risk of being involved in bribery andcorruption such as by way of facilitation payment.
[T]

✓

✓

✓

 Potential risk of being involved in collusion, bribery
and corruption at the time of negotiating
investments and route development withgovernments and legislative authorities. [C/B]

Trafficking inhuman Potential risk of direct association with trafficking
through the transportation of trafficking victims (viainternational airlines and shipping companies).

✓

DiscardTransport

Buy

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2-4.

Finance

Key value chains applicable to the finance sector were classified into five categories, and concrete issues
were further explored focusing on the products and services specified below.
2-4.a

Key value chains in Finance Sector

Create: financial commodity planning, research, development
Buy: capital investment for office and data centre, financing
Produce: establishing fund
Sell: manage, review, loan, selling financial products, money transfer network/system, sales andmarketingUse: fund management and account maintenance
2-4.bDiscussed products and services



Investment trust fund

Mutual fund (loan)Mid-term & long-term domestic lending

2-4.cPotential human rights issues in the specified products and services, and relevant value chains
Value Chain

Core operation/ Supply chain✓

Health and safety

 Long working hours may lead toillness including mental health risks✓✓

During work Possible gender discrimination intraining and promotion

✓

✓

Use

Sell

ProduceBuyCreateCaux Round Table Japan
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Use

✓

Sell

 Risk inherent in working long hours as
customer’s needs and operations
diversify and due to increases in
non-routine work.

Produce

Discrimination

Working hours

Buy

Workplaceconditions

Concrete issues*Highly relevant value chains are shownin parentheses [ ].

CreateKey human rights issues in finance sector

16Value Chain

Community

Use

✓

Sell

 Lack of regulations for protecting landownership, such as hypothecate in regards tofinancial transactions, may lead to infringementof human rights.

Produce

Title to land*Highly relevant value chains are shown in
the parenthesis [ ].

BuyAccess toland

Concrete issues

CreateKey human rights issues in financesector✓ ✓ Potential risks of being held lender’s
responsibilities concerning credit mortgages
Community
investment－

 Positive impacts on job creation and access to
education through microfinance. [C]✓ Positive impacts by dealing in financial products
designed to support infrastructure improvement
in developing countries. [C]Society and government Potential risk of facilitating money laundering offunds acquired through, e.g. trading
questionable assets, illegal drugs or gambling.
[B/S]

Investments,
loans, andindividual
investors－

 Human rights are not fully considered when
conducting screening and audits in regard tofunds and investment. Compliance with the
Equator Principles is desirable [S/U]

✓

✓

✓

✓ ✓

✓

Use

Money
launderingandtransparency

Produce

Relationswith society

Customer On the infrastructure improvement anddevelopment, there is a potential risks of adverse
consequences for human rights, if the landacquisition has been undertaken without freeand prior informed consent, or if force has been
used, poor resettlement, environmental and othersocial impacts.

 Respect for land ownership rights of indigenous
people; need for sharing of benefits obtained
from indigenous knowledge, such as in relation
to raw materials. [C/S] Risk of involvement in human rights impacts
through business relationships, by including
companies involved such impacts in a portfolio.
[P] Possible risk of excessive debt/credit extended
to consumers who are in no position to repay,
and the possible use of extortion by outsourced
collection agencies.
Sell

Buy

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2-4.dReference sources

Thun Group of Banks, Discussion Paper for Banks on the Implementation of the UN Guiding
Principles on Business and Human Rights 16-21, October 2013
http://www.business-humanrights.org/media/documents/thun-group-discussion-paper-final-2-oct-2013.pdf (accessed February 25th 2014)
Institute for Human Rights and Business, Investing the Rights Way: A Guide for Investors on Businessand Human Rights, 2013.
http://www.ihrb.org/pdf/Investing-the-Rights-Way/Investing-the-Rights-Way.pdf (accessed February
25th 2014)
2-4.e

Focal Issues/Challenges towards 2014

Many financial institutions have close relationships through lending, investment and underwriting withall the industrial sectors and businesses they support. This means that the finance institutions are
exposed to human rights issues/risks inevitably, through the activities of their clients, as participationin or association with human rights violations, even indirectly, may negatively affect a company’s
profitability or reputation. Through putting in place human rights due diligence mechanisms, not only
do finance institutions address their own risks, but also affect the way in which companies in theirsphere of influence tackle human rights, This facilitates mitigating and addressing potential risks, aswell as leading to a more human rights-aware business community at large.
To separate out the impacts of the financial institution itself and those to which the financial
institution is directly linked through its business relationships.

Wider collaboration including representatives from the banking, investing and insurance sectors inthis platform of discussion would be needed, in order to make the current paper and any related
follow-up work as relevant as possible for the finance industry.

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18

Human Rights Issues by Sector v.2 without Value Chain Discussion
2-5.

Chemicals

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.

2-6.

Pharmaceuticals

Key human rights issues in pharmaceuticalsectorConcrete issuesCore
operation/
Supplychain

Workconditions andothersHealth andsafety The use of chemical compounds or/and
pharmaceutical products without adequate
protections may 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 contract research organizations.
Moreover, there may be fraud in clinical trials anddata.

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 ofcommunity through a patent monopoly forcompound made from medicinal plants which
historically diffuse within a local community)

Community
investment－

 Positive impacts on public health such as by risingawareness of diseases and ensuring access to
medicines.

Relations withgovernments

Gov’ts withpoor humanrights records

 Company’s support for public health activities instate/ local community may be misused bygovernment and those who have a political agenda
for political purposes such as in propaganda.
 Risk to governments or health-care providers
restricting access to facilities to minority groups
or other disadvantaged groups.

Society andgovernment

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19

Consumer

Relations withpatients

Health andsafety Taking positive actions towards the fight against
counterfeit medicines Delay in reporting adverse drug reactions and in
conducting recalls may endanger health and safetyof patients
 Risk of testing drugs without prior informed
consent of patients.

Reference Source for Pharmaceutical Sector:
Access to Medicines Index. http://www.accesstomedicineindex.org/ (accessed February 25th 2014)
2-7.

Apparel and Textiles

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

Working hours

 Long working hours may be caused by (a)production schedules that presuppose overtime
work, as well as in attempting to meet deadlines inthe sewing process, (b) low wages not matching
local standards of living, and (c) piece-rate work.

Wages

 Pressure from buyers for cost reductions may
result in infringement of minimum wage
legislation.

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

Discrimination-

 Gender inequality (discrimination against female
workers) in working conditions, training andpromotion.

Child labour

Minimum age

 Children under the minimum age may bepermitted to work without confirmation of theiridentification papers, or based 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 from leather
tanneries and dye houses may pollute rivers, andmay damage local people’s health.

Consumer

Relations withcustomers

Health andsafety Positive impact from changing consumer
preferences (e.g. promoting fair trade), andengaging in ethical marketing

Workplaceconditions

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2-8.

Food and RetailKey human rights issues in food and retailsectorConcrete issuesCore
operation/
Supplychain

Workinghours

・ Long working hours may be a burden at
manufacturing factories (i.e. suppliers) where private
brand products are made and within logistics
networks that distribute the goods due to low wages
not matching local standards of living, and piece-rate
work.

Health andsafety・ Risk of fatal and non-fatal accidents in production
process including handling sourcing material, and inhanding chemical substances in supply chain

Discrimination

During work Foreign workers may not be ensured access to safety
education because of language barriers.
 Informal workers and seasonal workers may be
involved in precarious employment.

Child labour－

 Child labour and forced labour may possibly occur at
suppliers of raw materials, for example agriculturaland fishery products

Forced orcompulsory
labour－ Production is often concentrated in particular time
periods, due to seasonality of products in our sectors.
Forced overtime work may be observed in the busiest
periods.

Freedom of
association andcollective
bargaining

Conflict withlocal law

 Freedom of association and the rights of collective
bargaining under international human rights law may
not be fully ensured in countries in which unions are
not permitted, or unions are permitted but poorly
implemented.

Resources

Use of natural
resources Large-scale commercial agriculture and fishing candecrease agricultural production and fish hauls ofsmall-scale community operations, adversely
impacting livelihoods. Also risks of damage to local
ecological systems
 Large-scale commercial agriculture may also
adversely impact on access to water for thecommunity.
 Culturally/ historically/ religiously important sites for
local communities or indigenous people may bedamaged.

SecurityState
provision of
security Risks of excessive use of force by state or state may
not provide adequate security to protect citizens’ rightto security of person.

Access to land

Title to land

 Titles to the land of local people or indigenous groups
may be ignored, especially when constructing large
stores.
 Increased demands for alternative energy sources(e.g. bio-fuels) may diminish the land available forlivelihoods and agricultural cultivation.

CommunityWorkplaceconditions

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21Society
andgovernme
nt

Relations withgovernments

Bribery andcorruption

 Bribes may be demanded of a company when it
expands its business and develops a new store at thestage of obtaining approvals and licenses for landacquisition, marketing and manufacturing.

Consumer

Relations withcustomers

Health andsafety Positive impacts from promoting responsible
marketing, especially by giving consideration to
consumer health in respect of alcohol and tobacco
sales, and to consumer safety in respect of electric
devices and toys.
 Risks to consumer heath from low quality or
addictive substances, as well as from inadequate
labelling.

Reference Source for Food and Retail Sector:
Access to Nutrition Index. http://www.accesstonutrition.org/ (accessed February 25th 2014)
2-9.

Paper and Printing

Key human rights issues in paper sector

Concrete issuesCore
operation/
Supplychain

Workplaceconditions

Health andsafety Potential risks in relation to workplace
accidents when employees are engaged in
logging or operating heavy machinery

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.
 Forest biodiversity may not be fully
considered.

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.

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22Key human rights issues in printing sector

Concrete issuesCore
operation/
Supplychain

Working hours

 Risks around working long hours in sales andmarketing, in the factory, at suppliers andsubcontractors.

Health andsafety Potential cancer risks caused by usingchemical materials in enclosed spaces withinadequate ventilation, 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 labour (known as “keimusagyo”(“prison industry”) in Japanese) may be used
and workers may not receive adequate
payment (*).

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.

ConsumerWork
conditions* The use of prison labour is facilitated by national policy in Japan. This means that the issue is not limited
to the printing sector, and could potentially relate to all sectors.

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23

3.

List of Reference Sources

Access to Nutrition Index. http://www.accesstonutrition.org/ (accessed February 25th 2014)
Access to Medicines Index. http://www.accesstomedicineindex.org/ (accessed February 25th 2014)
Business & Human Rights Resource Centre, Trafigura lawsuits.
http://www.business-humanrights.org/Categories/Lawlawsuits/Lawsuitsregulatoryaction/LawsuitsSelectedc
ases/TrafiguralawsuitsreCtedIvoire(accessed February 25th 2014)
Institute for Human Rights and Business, Investing the Rights Way: A Guide for Investors on Business andHuman Rights, 2013. http://www.ihrb.org/pdf/Investing-the-Rights-Way/Investing-the-Rights-Way.pdf(accessed February 25th 2014)
Organisation for Economic Co-operation and Development (OECD), The OECD Due Diligence Guideline
for Responsible Supply Chain of Minerals from Conflict-Affected and High-Risk Areas 2nd Edition, 2013.
http://www.oecd.org/daf/inv/mne/GuidanceEdition2.pdf (accessed February 25th 2014)
The Dodd-Frank Wall Street Reform and Consumer Protection Act, United States of America, 2010.
http://www.sec.gov/about/laws/wallstreetreform-cpa.pdf (accessed February 25th 2014)
Thun Group of Banks, Discussion Paper for Banks on the Implementation of the UN Guiding Principles on
Business and Human Rights 16-21, October 2013
http://www.business-humanrights.org/media/documents/thun-group-discussion-paper-final-2-oct-2013.pdf(accessed February 25th 2014)
Voluntary Principles, Voluntary Principles on Security and Human Rights, September 2013.
http://www.voluntaryprinciples.org/files/VPs_IGT_Final_13-09-11.pdf (accessed February 25th 2014)

END

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24Appendix 1
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©Caux Round Table Japan

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 ▲1/2

Appendix 1
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.

©Caux Round Table Japan

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 issues, 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 ▲2/2