November 20, 2013
Nippon CSR Consortium

Draft Version for Public Consultation
November 20 – December 17, 2013
Nippon CSR Consortium, Human Rights Due Diligence Workshop (Tokyo, Japan)
Invitation to Comment on “Human Rights Issues by Sector (draft)”
Human rights are one of the core CSR topics sparking discussions and various activities in recent years,
including in Japan. Since September 2012, the Nippon CSR Consortium has been working to provide aforum in which to identify and discuss negative human rights impacts that may arise as a result of corporate
activities. This work has been conducted in collaboration with companies from various industrial sectors, aswell as NPOs, NGOs and human right experts in academia.
The results of discussions held over the last three months are summarized in the draft “Human Rights
Issues by Sector” document and are hereby disclosed for public consultation.
1.

Subject
Human Rights Issues by Sector (draft)2.

Access to the document
The document is available via the CRT Japan website:
http://www.crt-japan.jp/EN/press/131121_HR_DD_PC(2014)_E.html

3.

Application(1) Consultation Period
Wednesday, November 20 to Tuesday, December 17, 2013
(2) Submission Address
Please send your comments to CRT Japan’s Nippon CSR Consortium secretariat, by e-mail(info@crt-japan.jp) as an attached document in Word format. Please kindly be advised that we areunable to accept comments by other methods (such as by telephone, fax, or post), nor are we able
to accept anonymous submissions.

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1(3) Application Procedure
Address to: Secretariat of the Nippon CSR Consortium (in CRT Japan)
Subject: Comment on “Human Rights Issues by Sector (draft)”
Organization/Affiliation and Name: (Department, Name)
Address, Telephone & Fax Number:Comments:
Please specify the industry sector, page number, and concrete issue that your comment addresses.
If your comment is about a particular product, service, and/or value chain, this should be also
specified.
Furthermore, any comments to the following questions would be appreciated:Does this paper cover the most important human rights issues that the products and servicesof the companies discussed are likely to be involved in?

What kind of activity would be required of the companies in order to address the human rightissues raised in this paper? Is there any case they should refer to?



The final report is scheduled for publication in February 2014. What kind of format and/or
procedure do you consider would be most appropriate for finalizing the report?

(4) Submission and Inquiry
Secretariat of Nippon CSR Consortium (in CRT Japan Office)E-mail: info@crt-japan.jp

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4.

Management and Handling of Comments
The comment to the draft submitted to the Nippon CSR Consortium will be used for the futurereference of the companies that participated in the discussions. Unfortunately we are unable to respondto individual comments. All the comments submitted will be disclosed on the CRT Japan web site,
however names, addresses, telephone and fax numbers, and addresses of the commenter’s will not be
published. If the comments include private information, by which a particular individual can be
identified, or any information deemed to damage a property right of an individual person or a
corporation, pertinent sections of the text will be deleted at the time of publication. Private informationsuch as names and contact address used for sending to the public comment will be properly secured
and not be used except for communication for further clarification and/or confirmation of contents ofthe comments provided.

Hiroshi Ishida
Executive Director, Caux Round Table Japan

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Table of Content

1. Preface .................................................................................................................................... 5
1-1. Purpose of the Human Right Due Diligence Workshop…………………………………….5
1-2. Process of Identifying Human Rights Issues ......................................................................... 6
1-3. Some Points for Consideration. ............................................................................................. 92.

Human Rights Issues by Sector (draft) Updated in 2013 .................................................... 10

2-1. Manufacturing ..................................................................................................................... 10
2-2. Information, Communication and Technology .................................................................. 13
2-3. Logistics............................................................................................................................... 16
2-4. Finance................................................................................................................................. 18

3.

Human Rights Issues by Sector (draft) Reported on April 3rd 2013, not updated ............... 20

3-1. Chemical and Pharmaceuticals .......................................................................................... 20
3-2. Apparel and Textiles ............................................................................................................ 21
3-3. Food and Retail.................................................................................................................... 22
3-4. Paper and Printing ............................................................................................................... 23

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1
1-1.

Preface
Purpose of the Human Right Due Diligence Workshop

The Nippon CSR Consortium was established in September 2012 to raise awareness and promote activities
in the filed of business and human rights by offering a forum in which companies can discuss human rights
issues with NGOs and other companies. The consortium consists of corporate paritcipants, NGOs/NPOs,
human-rights experts and representatives from academia. In 2012 the 68 participants consisted of 39
companies and 11 organizations, and in 2013, the 35 participants were from 15 companies and 12
organizations.
There are some underlying factors that contributed to the establishment of the consortium. Companies
sometimes struggle to address human rights issues with limited budgets and resources. Therefore, evenonce a year, it is useful for the companies to get together to try to be leaders in their field by proactively
seeking to understand and address human rights issues that their industry may be involved in.
The consortium also emphasizes sustainability of activities. As stated above, the companies are committed
to continuous efforts for incremental improvement. In order to respond dynamically to a diverse range ofissues, participant companies seek to stay abreast of changes and issues in the society that potentially link
their activities to human rights impacts.
The Nippon CSR Consortium positions the Human Rights Due Diligence Workshop as an activity that aims
to assist companies in (1) ‘identifying and assessing any actual or potentially adverse human rights impacts’as defined in the UN Guiding Principles1, (2) integrating and acting upon the findings, (3) tracking
responses, and (4) communicating how impacts are addressed with the affected stakeholders, such thatcompanies can use the knowledge acquired to support their human rights due diligence activities.
The ‘Human Rights Issue by Sector (draft)’ represents an outcome of the discussions that began in
September 2012, and is hereby opened for public consultation. We would appreciate candid comments on
the draft from stakeholders. The final report will be issued February 2014.

1

Refer to: Human Rights Council, 2011, Report of the Special Representative of the Secretary-General on the issues ofhuman rights and transnational corporations and other business enterprises, Available at:
http://www.ohchr.org/documents/issues/business/A.HRC.17.31.pdf#search='report+of+the+special+represent
ative+of+the+secretarygeneral+on+the+issue+of+human+rights+and+transnational' (Accessed November 20th,2013).

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1-2.

Process of Identifying Human Rights Issues

The Nippon CSR Consortium, guided by the UN Guiding Principles, has been working on identifying
important potential human rights issues by industry sector. The process used to identify the issues is
explained in the following section. All the comments from participants reflect personal opinions and do not
represent any of the affiliated organizations and companies.
1-2.a

Procedure of 2012 Workshop and Follow-up Action

In the 2012 Human Rights Due Diligence Workshop, important human rights issues by sector wereidentified through dialogue among the participants based on the UNEP FI Human Rights Guidance Tool2(‘Human Rights Guidance Tool’).
1-2.a.iProcedure of the Workshop

Corporate participants were given lectures on business and human rights by members of NGOs/NPOs,
academics and subject experts, to enhance their understanding of the relationship between theirindustrial sectors and potential human rights impacts.

The secretariat of the workshop distributed a list of human rights issues likely to be relevant to thecompanies.



The participants then discussed and selected human rights issues from the list that they believed to beimportant to their own company and discussed related value chains. They also highlighted anddiscussed the basis for their decision to designate certain issues as not relevant to their business. Resultof the discussions was reported to the secretariat.

Responses from the participants were classified by sector, supplemented based on the disclosure
contents described in the Guidance Tool and redistributed to the participants by the Secretariat.



Based on the redistributed documents, the participants discussed (1) the likely significant human rights
issues that concern them, (2) concrete concerns and (3) value chains relevant to the concerns in eachsector (10 sectors), and thereafter reported to academic and expert stakeholders and the secretariat.



The academics and human rights experts provided comprehensive assessment of these reports.

“Human Rights Issues by Sector (draft)” was translated into English, Chinese and Spanish, andopened for public consultation along with the original Japanese draft.



Public comments were collected and summarized in a Consultation Summary Report. To respondspecifically to comments concerning use of prison labour by companies in Japan, ‘Human Right Due
Diligence Comments on Prison Labour’ was published reflecting the contents of discussions on thisissue with the participants.



The final draft of “Hunan Rights Issues by Sector (2013)” reflects public comments, was issued on
April 3rd, 20133.

2

http://www.unepfi.org/humanrightstoolkit/fundamentals.php (Accessed November 1st, 2012)
Refer to: Nippon CSR Consortium, 2013, Human Rights Issues by Sector (2013), [PDF] Available at:
http://www.crt-japan.jp/files/documents/HR_DD_Final%20report_E.pdf (Accessed November 20th, 2013)
3

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1-2.a.ii

Follow-up Action

Following the workshop, human rights-conscious corporate activities at each company have taken place.
Further, the International “Conference on CSR and Risk Management” was convened in September inorder to create an opportunity for the Japanese companies to be exposed to the global developments in thisarea.
A) Promotion of human rights-conscious corporate activities at each company
Activity to identify human rights issues of own company
Based on the “Human Rights Issues by Sector (2013)” document the following participant
companies reviewed their own corporate activities, conducted dialogue on more detailed issues, anddrafted corporate policies on the human rights issues:
Olympus Corporation, Nippon Express Co., Ltd., Nippon Yusen Kaisha Line, FUJIFUILM
Holdings Corporation, Mitsubishi Heavy Industry Ltd. (as of end of October 2013)
Involvement of relevant departments in a company
Some participants facilitated internal workshops involving the CSR department and other related
departments aimed at raising awareness in relation to the relationship between business actions andhuman rights issues.
Fostering sensitivity to human rights issues
Certain participants facilitated E-learning programs and workshops for improving understanding of
the human rights within their companies by utilizing the networks with NPOs/NGOs, academia andhuman rights experts formed through the Human Rights Due Diligence Workshop.
Approach to Top Management and Drafting a Human Rights Policy
Lectures were provided to high-level corporate management in relation to processes for converting
human rights into subjects of risk management. Consequently, the companies drafted human rights
policies to enable them to share and manage the same human rights issues globally.
B) Conveying the Contents of the Workshops to a Global Audience
The Nippon CSR Consortium defines views the Human Rights Due Diligence Workshop as an important
step in supporting companies to align with the UN Guiding Principles. The "UN Working Group on theissue of Human Rights and Transnational Corporations and Other Business Enterprises” commented thatthe workshop served as a “good example that shows how the UN Guiding Principles on Business andHuman Rights are actually used” and sounded the possibility of convening an international conference.
Accordingly CRT Japan jointly hosted the “Conference on CSR and Risk Management” with the UN
Working Group in September 2013. There were over 70 participants in the conference, including theparticipants of the Human Right Due Diligence Workshop. The conference program included workshops
focusing on de facto standardization and rule-making for disseminating human rights due diligence incompanies, facilitated by a member of the Global Corporate Community of Practice, in order to share anddevelop best practices in human rights due diligence and risk management.

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1-2.b

Procedure of Workshop in 2013

1-2.b.iContents“Human Rights Issues by Sector (2013)” was further explored from the perspective of the value chain.
Identifying CSR issues throughout related value chains is an important step for the CSR departments asthey share - and address appropriate solutions - with relevant departments after the workshop.
1-2.b.ii
Procedure of the Workshop

Corporate participants attended ten lectures by human rights experts and representatives from
NGOs/NPOs and academia, covering potential adverse human rights impacts that can arise from
corporate activities.



The participants selected one product and/or one service from their own company, and identified value
chains associated with the product or service, as well as the regions involved.

The participants approached the issue from two angles in order to enhance their understanding: first,
starting with key human rights issues and examining the value chain for potential links to these issues,and second, starting with the value chain and identifying potential human rights issues flowing fromeach stage.

The Secretariat created a matrix of value chains and human rights issues for each sector, reflecting theresults of the participants’ discussions. The contents mapped out on the matrix were assessed
comprehensively by the representatives from NGOs/NPOs, academia and human right experts.



The participants exchanged their different viewpoints, approaches and ideas for remedying andmitigating potential impacts, and sought feedback from the expert stakeholders.



The Secretariat updated the matrix to reflect the comments from the expert stakeholders and “Human
Rights Issues by Sector (draft)” was updated to reflect the learning that came out of the workshop.

The summary of the workshop will be open for public comment from Wednesday, November 20th toTuesday, December 17th 2013.



Final report will be published in February 2014.

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1-3.

Some Points for Consideration

1-3.a

Differing degrees of awareness of human rights issues in

The levels of detail in the feedback provided by the expert stakeholders were not consistent across theindustry sectors, indicating differing study and priority areas amongst the experts.
Similarly, there were gaps in the level of awareness of human rights issues amongst the corporate
participants, reflecting similar gaps between the degree of understanding and engagement with humanrights issues between companies and sectors.
1-3.bValue Chain

Given the breadth of human rights issues that can arise in each sector, several companies reported
struggling with how to commence implementing solutions in response to the feedback received from theNGOs/NPOs. In order to break through this block, subsequent workshop discussions focused on identifying
human rights issues in respect of only one particular product or service provided by each company. (Theproducts and services selected are specified by sector below.)
The purpose of focusing the analysis on particular products and services is to support companies in aligning
the due diligence process closely with their actual business processes, as they exchange opinions with theexpert stakeholders.

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92.

Human Rights Issues by Sector (draft) Updated in 2013

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

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

Subject products and services



Thermal electric power plant



*



Digital camera

Electronic parts*Among various product families in electronic components, ferrite products (parts) were selected forspecifying the value chain.

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10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
 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 (sharing one small
dormitory room with several people) and poor
sanitation (shower, toilet, etc.,) may affect thehealth of the employees.

✓ ✓ ✓ ✓ ✓Discrimination

Duringwork

 Inequality in working conditions, training (jobtraining), and promotion

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
labourDeposits
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.

✓ ✓ ✓ ✓ ✓Freedom of
association andcollective
bargaining 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
Sell

Transport

Manufacture

Buy

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Value Chain

Community

Society and government

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

Use

Sell

Transport

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 to non-state groups
during procurement (e.g. conflict mineral)✓

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]

Use.Discard

Sell

Transport

Manufacture

Buy

Create2-1.d

Human rights issues in manufacturing and relevant value chains other than the specified
products and services.

Core operation/ Supply chain > child labour > minimum age
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 [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]

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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 center, 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

Subject products and services

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

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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✓✓

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

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Value Chain

Community

Discard Environmental friendly energy use at a data
center (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 center. [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

✓

✓

✓

DiscardUse

Sell

ProduceBuyCreateCaux Round Table Japan
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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.bSubject 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
Community 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

Resources

During work

 Inequality according to gender and education in
working conditions, training and promotion.
Foreigner nationals may face discriminatory
treatment in employment and payment, especiallyin coastal areas.

✓

Redundancy
and dismissal

 Requests for permanent employment by part-timeand 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] Potential risk of excess use of force like violence bynational navies dispatched to areas where piracy is
occurring.

Relations withgovernments

Bribery andcorruption

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

✓

✓

✓

✓

Transport

Stateprovision of
security

Buy

Security

CreateSociety and government

Workinghours

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

BuyWorkplaceconditions

Concrete issues

CreateKey human rights issues in logistics
sector 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]

Discard

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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

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

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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
wereCommunity
investment－

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

Buy

CreateCaux Round Table Japan
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3

Human Rights Issues by Sector (draft) Reported on April 3rd 2013, not updated

3-1.

Chemicals and Pharmaceuticals

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 compounds or/and
pharmaceutical products without adequate
protections may endanger the health and safetyof employees.
 During the clinical development stage ofpharmaceutical production, the health and safetyof study participants may not be managed
properly at contract 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－

 Positive impacts on public health such as byrising awareness of diseases and ensuring accessto medicines.

Society andgovernment

Relations withgovernments

Gov’ts withpoor humanrights records

 Company’s support for public health activities
in state/ local community may be misused bygovernment for political purposes such as inpropaganda.

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 andsafety of patients

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3-2.

Apparel and Textiles

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

Working hours

 Long working hours may be caused byproduction schedules that presuppose overtime
work, as well as in attempting to meetdeadlines in the sewing process.

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.

Child labour

Minimum age

 Children under the minimum age may bepermitted to work without confirmation of
their identification papers, or based on forgedpapers.

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

Workplaceconditions

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3-3.

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 thegoods.

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.

Child labour－

 Child labour and forced labour may possibly occur at
suppliers of raw materials, for example agricultural andfishery 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 notpermitted.

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 ecologicalsystems 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 notprovide adequate security to protect citizens’ right tosecurity 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.

Societyandgovernme
nt

Relations withgovernments

Bribery andcorruption

 Bribes may be demanded of a company when it expands
its business and develops a new store, and at the stage ofobtaining approvals and licenses for marketing andmanufacturing.

Consumer

Relations withcustomers

Health andsafety Positive impacts from promoting responsible marketing,especially by giving consideration to consumer health inrespect 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 labeling.

CommunityWorkplaceconditions

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3-4.

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.

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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23

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.

ConsumersWork
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.

END

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24