April 3rd, 2013

Caux Round Table

Nippon CSR Consortium

Human Rights Issues by Sector (2013)

The members of the Nippon CSR Consortium, made up of companies, NGO/ NPOs, academics andrelated institutions, have been working to identify the potential negative impacts of corporate activities
on human rights by sector. The draft version of the “Human Rights Issues by Sector” document was
open for public consultation between January 10th and 31st 2013. Valuable comments have been
received from different organisations at home and abroad.
Following consideration of these comments, the Nippon CSR Consortium herewith issues “Human
Rights Issues by Sector (2013)”. The paper maps human rights issues that are considered likely to berelated to the 10 sectors following discussions at the Nippon CSR Consortium and on the basis ofinternationally recognised guidance such as the UNEP FI Human Rights by Sector and the UN Guiding
Principles. Of course, the paper should not be read as confining a particular issue to a certain sector only,
or to the effect that a particular issue always arises in a given sector. Further identification of
sector-specific human rights issues and implementation of appropriate prevention/mitigation measureswould be expected hereafter.
Please refer to “Human Rights Issues by Sector (draft) Consultation Summary Report” for details of the
public consultation.

Table of Contents

1. Manufacturing .................................................................................................................................2
2. Chemicals and Pharmaceuticals ......................................................................................................3
3. Information, Communication and Technology ...............................................................................4
4. Logistics ..........................................................................................................................................4
5. Apparel and Textiles .......................................................................................................................5
6. Food and Retail ...............................................................................................................................6
7. Paper and Printing ...........................................................................................................................7
8. Finance ............................................................................................................................................8

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1．Manufacturing
Concrete issuesCore
operation/
Supplychain

Working hours

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

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

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

Redundancy
and dismissal

 Foreign workers may possibly be dismissed
without due cause.

Child labour

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

Forced orcompulsory
labourForcedovertime

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

Freedom of
association andcollective
bargaining－

Resources

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

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

Caux Round Table

Key human rights issues in the manufacturingsectorCommunity

Society andgovernment

Consumer

Workplaceconditions

Discrimination

Security

Relations withgovernments

Relations with

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

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

customers

safetyconsumer behaviours (e.g. conducting
responsible marketing).

Caux Round Table

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

Community

Resources

Use of natural
resources

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

Community
investment－

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

Society andgovernment

Relations withgovernments

Relationswith poor
human rights
record Support for public health in state/ local
community may be misused for their political
purposes such as propaganda

Consumer

Relations withpatients

Health andsafety Taking positive actions towards the fight against
counterfeit medicines

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

3Caux Round Table Report delay on adverse drug reactions anddelay in recall may endanger health and safetyof patients

3．Information, Communication and Technology
Key human rights issues in ICT sector

Concrete issuesCore
operation/
Supplychain

Working hours

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

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

Discrimination

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

Freedom of
association andcollective
bargaining

Conflict withlocal law

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

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

Resources

Use ofinfrastructure

Community
investment－

Society andgovernment

Relations withgovernments

Bribery andcorruption

Consumer

Relations withcustomers－

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

Community

Workplaceconditions

4．Logistics
Key human rights issues in logistics sector

Concrete issuesCore
operation/
SupplyWorking hours

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

Health and Workplace accidents could possibly occur at

Workplaceconditions

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

4

chainCaux Round Table

Community

Society andgovernment

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

Redundancy
and dismissal

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

Resources

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

Security

State provisionof security

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

Relations withgovernments

Bribery andcorruption

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

Discrimination

5．Apparel and Textiles
Key human rights issues in apparel and textiles
sectorConcrete issuesCore
operation/
Supplychain

Working hours

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

Wages

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

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

Child labour

Minimum age

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

Forced orcompulsory

Forcedovertime

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

Workplaceconditions

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

5

labourwork.

Resources

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

Consumer

Relations withcustomers

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

Caux Round Table

Community

6．Food and RetailKey human rights issues in food and retail sector

Concrete issuesCore
operation/
Supplychain

Working hours

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

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

Discrimination

During work Foreign workers may not be ensured access tosafety education because of language barriers.

Child labour－

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

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

Freedom of
association andcollective
bargaining

Conflict withlocal law

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

Resources

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

Security

State provisionof security

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

Community

Workplaceconditions

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

6Title to land

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

Society andgovernment

Relations withgovernments

Bribery andcorruption

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

Consumer

Relations withcustomers

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

Caux Round Table

Access to land

7．Paper and Printing
Key human rights issues in paper sector

Concrete issuesCore
operation/
Supplychain

Workplaceconditions

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

Discrimination

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

Community

Resources

Use of natural
resources

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

Access to land

Title to land

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

Key human rights issues in printing sector

Concrete issuesCore
operation/
Supplychain

Working hours

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

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

During work Foreign workers may be subject to lack ofhealth and safety education due to languageWork
conditions

Discrimination

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

7

barriers.

Caux Round Table

Consumers

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 andworkers 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.

* 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.

8．Finance
Key human rights issues in the financial sector

Concrete issuesCore
operation/
Supplychain

Working hours

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

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

Discrimination

During work Possible gender discrimination in training andpromotion

Access to land

Title to land

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

Community
investment－

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

Relations toinvestments,
loans, andindividual
investors－

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

Community

Customer

WorkplaceconditionsEnd

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.jp8