Attachment 2

Caux Round Table

Stakeholder Engagement Program in Asia and Japan
As Nippon CSR Consortium, whose secretariat is Caux Round Table Japan, organized the
Stakeholder Engagement Program in Japan, it was seeking for possibility to hold the program in
the Asian countries for Japanese companies. In 2016, the Consortium had the first Stakeholder
Engagement Program in Thailand. In 2017, it successfully had the Programs in Thailand,
Malaysia, and Myanmar. Also, it had a dialogue with small-scale palm oil farmer.
Please see the process and content of each program in below.
Nippon CSR Consortium recognizes the importance of cooperation between companies andNGOs/NPOs. For this reason, the Consortium held the following programs in cooperation with
our partners.
Second Stakeholder Engagement Program in Thailand
Host: Caux Round Table Japan
Support: Marimo 5, The Embassy of Japan in Thailand, Thai Health Promotion Foundation

First Stakeholder Engagement Program in Malaysia
Host: Caux Round Table Japan, UN Global Compact (UNGC) Malaysia

First Dialogue with Small Scale Palm Oil Farmers in Malaysia
Host: Caux Round Table Japan
Support: UN Global Compact (UNGC) Malaysia

First Myanmar Stakeholder Engagement Program
Host: Caux Round Table Japan, Myanmar Centre for Responsible Business

Stakeholder Engagement Workshop:
Towards a Responsible Supply Chain
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Japan-Thai Co-creation Seminar Series
23 May 2017, Bangkok

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Caux Round Table (CRT) Japan and Marimo5 co-hosted a stakeholder engagement workshop as
supported by The Embassy of japan in Thailand and Thai Health Promotion Foundation in
Bangkok, on 23 May 2017. The workshop was attended by 52 persons, from sixteen companies(both Thai and Japanese) and seven NGOs and other stakeholder organizations.
1. Opening: Saul J. Takahashi, CRT Japan
Only through fulfilling their responsibility to respect human rights can companies be confident of
having a response supply chain. A vital component of this responsibility is stakeholder
engagement: not only can companies detect negative human rights impacts at an early stage, but
engagement serves as a way for companies to forge partnerships with stakeholders, and deal withany problem in collaboration with each other. There is no perfect company in terms of humanrights: what is important is to be open about any failings and measures taken to address them.
2. Keynote speech: Kazuma Takago, First Secretary, The Embassy of Japan in Thailand
Companies are no longer able to operate without giving due consideration to human rights. Thisis particularly true given that we are in the age of social media, where information spreads in theblink of an eye. Companies and NGOs should work together, as opposed to in opposition to eachother, to solve human rights issues. Japan has an ancient tradition of consultation and speaking
openly with all stakeholders – this spirit of mutual respect and consultation will prove vital inrespecting human rights.
3. Issues raised by NGOs and other experts
Toshiyuki DoiSenior Advisor, Mekong Watch
The importance of ensuring adequate grievance procedures can not be overstated. No matter how
much effort companies may make, there will always be human rights problems – the point is howthat company deals with them when they arise. Grievance procedures are outlined in the UN
Guiding Principles for Business and Human Rights.
Somporn Srakaew (Labour Rights Promotion Network Foundation)
Respect for human rights must be incorporated throughout the supply chain. The issues are
particularly salient in Thailand, and there is a need for manufacturers and trading companies tocome together and create high standards and best practices. Companies need to listen to NGOs anddeal with problems at an early stage, before the situation deteriorates into lawsuits and the like.
There are similarly serious situations in Cambodia and Myanmar.
Natalie BergmanCross Cultural Foundation
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

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Many indigenous communities are not recognized in Thailand, resulting in members of those

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communities not being able to register with the authorities and living without any papers, in an
extremely vulnerable situation. Migrant labourers in Thailand are also in a precarious situation:
though a system for legal migrant labour does exist, most migrant labourers (from Myanmar, Laos,and Cambodia) are working in the country without authorization, and are vulnerable to abuse.
There is a worrying trend of NGOs providing assistance to migrant labourers are subject to lawsuitsby companies. Measures must be taken to ensure that the concerns of migrant labourers arereflected by management.
Edward Miller (Building and Wood Workers International)
The most serious problem in Thailand is that the right to association, i.e. the right to form labour
unions, is not adequately protected. Legislation provides for many restrictions on unions, resulting
in only 20 percent of them being able to engage in collective bargaining. The increase in temporary
employment is another factor in the weakening of unions.
Though the plight of migrant labourers in the shrimp industry is well known, violations of therights of the many migrant labourers in Thailand are widespread. Adding to the situation is thecurrent political instability, and the various restrictions on public assembly maintained by the
military government. These issues negatively affect labour unions in the country.
Suthila Luenkam (Arom Phongpangan Foundation)
The increase in temporary employment over recent years has caused widespread exploitation
throughout the country. Though companies are legally barred from assigning temporary employees
to core work, this requirement is widely flouted. The situation of women temporary employees isparticularly problematic, and many are subject to various forms of exploitation and discrimination,
including in promotion. Women are also under-represented in union leadership, adding to the
problem.
Wattana Sunsa (YMP Labour Union)
YMP Labour Union operates in the Amata Nakorn Industrial Estate, where many factories
manufacture auto parts for Japanese cars. Unions used to be politicized, and would engage infrequent strikes and road closures: however, they have now switched to a more collaborative
stance. YMP has monthly meetings with management to discuss staff benefits, and has succeededin helping management reduce costs and channel those savings to the workers.
4. Breakout group discussion
The participants worked in breakout groups to identify the three main points they would take awayfrom today’s workshop. The following issues were identified:

経済人コー円卓会議日本委員会〒150-0031 東京都渋谷区桜丘町 29-33 渋谷三信マンション 505 号室
電話: 03-5728-6365 FAX: 03-5728-6366 http://www.crt-japan.jp3

●The importance of building a trust relationship between workers and management. There

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have been instances of outside persons stirring up trouble in factories. Mechanisms need tobe created to ensure that the legitimate views of workers are reflected.
A family-like method of management is required. Instead of demonstrations and strikes,
workers and management need to talk through difficulties.
Companies need to create effective mechanisms for communication, in this age of social
media.
The importance of education. Non Thai nationals also have the right to education in Thailand,but in reality they face many obstacles.
Not having access to education means not having access to stable employment, resulting in a

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negative spiral of poverty.
Welfare and benefits remain an issue. Many persons do not have health insurance, and can
only find work providing for inadequate wages.
Thailand requires comprehensive development, in accordance with the SDGs.
Participation needs to be ensured throughout all strata of society, including persons in
disadvantaged positions.
Access to healthcare after retirement.
Stakeholder engagement should include all affected persons. Human resources departments
in companies need to create mechanisms for including labour unions, communities, anduniversities.
Western companies include negative comments in their CSR reports, together with theircounter arguments. Japanese companies seem hesitant of doing this, and fail to include any
negative comments. This should change.
Respect for human rights and CSR leads to a positive brand image. The Japanese Ministry ofTrade has certifications, and the Japanese GPIF also has guidelines in this area.
Most Japanese are ignorant of the human rights violations that take place in Thailand, and areshocked by such information.
Employers need to confirm that migrant labourers have legal permits to work. The Thai labour
market is very closed, and even migrant labourers with permits often are subject to abuse.

5. Closing: Shigeru Yamato, CEO, Marimo5 Co.,Ltd.
Respecting the human rights of workers is a large issue in Thailand, and is beyond the reach ofjust one company. That makes workshops such as these, where businesses can discuss issues withstakeholders in a non-confrontational forum, ever the more important. Marimo5 focuses on thehealth of workers and believes that if we take care of the employees’ health, it can be a very good
way to avoid the risk of human rights violation.

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Malaysia Stakeholder Engagement Workshop
24 May 2017, Kuala Lumpur

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Caux Round Table (CRT) Japan and the UN Global Compact (UNGC) Malaysia co-hosted astakeholder engagement workshop for Japanese and Malaysia businesses in Kuala Lumpur, on 24
May 2017. The workshop was attended by 26 persons, from nine companies (both Malaysian andJapanese) and nine NGOs and other stakeholder organizations.
1. Opening: Saul J. Takahashi, CRT Japan
Only through fulfilling their responsibility to respect human rights can companies be confident of
having a response supply chain. A vital component of this responsibility is stakeholder
engagement: not only can companies detect negative human rights impacts at an early stage, but
engagement serves as a way for companies to forge partnerships with stakeholders, and deal withany problem in collaboration with each other. There is no perfect company in terms of humanrights: what is important is to be open about any failings and measures taken to address them.
2. Keynote speech: Prof. Dato’ Dr Aishah Bidin, Human Rights Commission of Malaysia(Suhakan)
Businesses can cause a wide range of negative human rights impact through their operations,
including discrimination in employment and promotion, violations of freedom of association (theright to form labour unions) and of indigenous rights are only some examples. In accordance with
the UN Guiding Principles on Business and Human Rights, businesses must respect human rights:
they should adopt a human rights policy, conduct adequate due diligence, and provide for effective
grievance procedures. Suhakan, the national human rights institution of Malaysia, dealt with manycases of violations by businesses, and had recently created a framework for a Malaysian National
Action Plan on Business and Human Rights, to be presented to the government.
3. Presentations by stakeholders
Marja Paavilainen, Technical Officer / Project Manager, International Labour
Organisation
There are two million migrant labourers working legally in Malaysia, and an estimated two to
three million additional labourers working without authorization. Violations of the rights of
migrant labourers in the country is widespread: many fall prey to illegall brokers in their homecountries, come to Malaysia already with large amounts of debt, and are forced to work in
conditions of debt bondage. There are official remedy procedures but it is difficult for many
migrant labourers to access them, and the procedures were slow and ineffective compared e.g. withThailand. Recently, ILO has supported a bilateral agreement between Malaysia and Bangladesh,
excluding brokers from the process and cutting recruitment costs – a win-win situation.

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Edward Miller, Building and Wood Workers International

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Timber is a major industry in Malaysia, with Japan being the biggest importer. An estimated 75
percent of the workers in the timber industry are migrant labourers, and human rights violations
such as insufficient (i.e. under the minimum wage) wages, unsafe working conditions, andviolations of the right to form unions are widespread. Malaysian legislation on labour unions wascreated during the immediate post-war state of emergency, and essentially has remained the same,with many restrictions. Migrant labourers (many of whom are Indonesian) are allowed to joinunions but bared from leadership positions. The Tokyo Olympics Timber Sourcing Code isinadequate in terms of human rights, and should be revised as a matter of urgency.
Terima Kasih, The Forest Trust (TFT)
TFT is an international NGO providing support and assistance to companies in managing asustainable supply chain. In particular TFT supports small scale palm oil farmers in Malaysia,
assisting in ensuring sustainable procurement of that product. Rather than conducting inspections,
TFT sees the process as one of mutual learning between member businesses and small scale
farmers, with TFT as a facilitator. The working conditions of many migrant labourers in Malaysia
remains serious, with much needed to be done.
Sharyn Shufiyan, Wild Asia
There are common human rights issues in both the timber and palm oil industries, including issues
surrounding the livelihoods of residents and land rights, as well as violations of labour rights.
Women and children are in a particularly vulnerable situation, with many instances of forced labour.
Such problems ware widespread in small scale palm oil farmers, with widespread violations suchas insufficient wages, horrendous living conditions, and other forms of exploitation of migrantlabour.
Andrew Khoo, Co-chair, Human Rights Committee, Bar Council Malaysia
Human rights is a veritable “alphabet soup” full of acronyms that are difficult to understand, andcompanies are used to thinking only about the bottom line. What is needed is a joint movement by
NGOs and government to encourage a culture of sustainability, including human rights.
Government has a crucial role to play, through legal rules and regulations that would impose
obligations on companies. At the same time, issues remain regarding ensuring profit: this is thestumbling block.
Elisa Tsakiri, Chief of Mission, International Organisation for Migration
IOM provides support to governments in managing migration in an effective and rights-respecting
manner. One of the main problems faced by many migrant labourers is the debt burden placed onthem by many brokers that operate in their home countries. IOM is working with governments andother stakeholders to build a system that would address this.

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

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4. Breakout group discussion

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The participants worked in breakout groups to identify the three main points they would take awayfrom today’s workshop. The following issues were identified:
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Traceability remains the key problem for small scale farmers in Malaysia. Technology should
be utilized to address this, e.g. through the Bluenumber.
Companies should adopt specific policies on sustainable palm oil sourcing.
Civil society must be strengthened, and allowed access to workers. At the same time, civilsociety should endeavor to work in collaboration with companies.
There needs to be a change in culture amongst farmers, to allow for better respect for humanrights.
Employers and employees often have a different understanding of “human rights”. In
particular, speaking out against labour rights violations is difficult in many Asian cultures.
Both Japan and Malaysia need to adopt a National Action Plan on Business and Human Rights
as a matter of urgency. OSCE National Contact Points could play a key role in these plans.
Japan and Malaysia should share views and solutions on common problems, aiming towards
putting forward an Asian conception of human rights.

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Myanmar Stakeholder Consultation
23 June 2017, Yangon

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The Myanmar Centre for Responsible Business hosted a consultation between Caux Round Table
Japan (CRT Japan) and several stakeholder organizations working on labour rights and other issues
related to business and human rights. The organizations present were Action Labour Rights (ALR),
Labour Rights Defenders and Promoters LRDP), Solidarity Centre, Business & Human Rights
Resource Centre BHRRC), and Earth Rights International (ERI) as well as several labour activists.
Two lawyers from Japan working on business and human rights issues also attended.
Hiroshi Ishida, Executive Director of CRT Japan, first introduced the organization and the work it
does in Japan and abroad. CRT has been holding annual stakeholder workshops for Japanesebusinesses and NGOs in Tokyo since 2012, and has been expanding since 2016 to hold stakeholder
engagement programmes in Thailand (2016 and 2017) and Malaysia (2017). It hoped to hold one
in Myanmar in the future, and, as an initial step towards that goal, would convey the messages
from this consultation to Japanese businesses in Tokyo.
The participants noted that Japanese companies often failed to comply not only with international
standards, but even with the standards of labour law in Myanmar. In particular, the right to form
labour unions without hindrance was established clearly in Myanmar labour law. Nevertheless,there were instances where companies had fired employees for unionizing (in those instances thecompanies tended to find some legally legitimate reason for termination). Unions that stood up for
their workers were increasingly being sidelined, and replaced by “new” unions which werecompliant with the wishes of management.
Complicating the matter was the fact that there were three union federations in Myanmar. For
mainly historical reasons, one (Confederation of Trade Unions of Myanmar, CTUM) had
essentially monopolized contacts with international federations and other international actors.
Many Japanese companies were lured into a false sense of complacency, thinking it was sufficient
to deal with that one federation. Japanese companies needed to understand that there were other
legitimate unions.
Besides the right to form unions, which was stipulated clearly in Myanmar law, participants notedthat Japanese businesses often exploited the lack of clarity in national legislation regarding otherissues, such as working hours, overtime pay, and maternity leave. Though there was room fordiffering interpretations with regard to those issues, the participants stressed the need for Japanesebusinesses to adhere to international best practices.

LRDP noted the difficulties it had in conducting labour rights training sessions for both workers
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

8and middle managers (who were generally Myanmar nationals) in Japanese run factories. Lack ofawareness of Myanmar law also contributed to lack of compliance.

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Some participants noted that Kirin, the Japanese beverage manufacturer, had recently entered intoa joint venture with a factory that was owned by the Myanmar military. Participants warned of therisks inherent in this.
Issues were also raised regarding a lack of transparency on the part of Japanese companies.
Examples were given of environmental impact assessments that were never even published, orwere left in English language hardcopy in the village centre of the potentially affected community(where almost nobody could read English).
ERI raised concerns surrounding the Thilawa Special Economic Zone (SEZ). The developer(Myanmar Japan Thilawa Development, MJTD) appeared “dismissive” of international humanrights standards despite the fact that the Myanmar government has stressed that Thilawa was to bea model of international best practices. Many of the companies in the SEZ appeared unaware of or
unconcerned by the situation of relocated communities who had been deprived in many cases of
their livelihoods. Though ERI understood that there was an ongoing dialogues between MJTD andsome communities, this dialogue was not open to other stakeholders such as NGOs. Nor did there
appear to be a forum for MJTD to discuss ESG issues with the companies in the SEZ. Most
communities in Myanmar were not against relocation for economic development: however, if thiswas done without restoration and ideally improvement of livelihoods (as was the in Thilawa),
opposition to projects would quickly emerge.
The main messages to Japanese companies were summarized as follows: Transparency: provide and publish more information, in a timely, accessible, and meaningfulmanner; and Compliance: comply fully with Myanmar labour legislation, in particular regarding the rightof workers to form unions. Abide by international standards and best practices regarding thoseareas where Myanmar legislation is not clear.

At the end of the session, CRT Japan presented the Bluenumber, an online traceability system thatthe organization is promoting for use by Japanese companies.

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

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