2019
Human Rights Due Diligence Workshop(Stakeholder Engagement Programme)

Supported by / Cooperated by

1
Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho, Shibuya-ku, Tokyo, 150-0031, JAPANTEL: +81-3-5728-6365 FAX: +81-3-5728-6366
http://crt-japan.jp/en/

16th December, 2019

“Human Rights Issues by Sector v.8”
In September 2012, Caux Round Table Japan (CRT Japan) established the Nippon CSR Consortium as aplatform for multi-stakeholders in cooperation with companies, NGOs/NPOs and academic experts. The
Consortium organizes a yearly Human Rights Due Diligence Workshop where multi-stakeholders cometogether to discuss the relationship between business activities and human rights.
The 2019 Human Rights Due Diligence Workshop was held for the eighth year, over six sessions, in the
period from 20th May to 18th July. In the workshop, the participants identified sector specific human rights
issues with the use of Human Rights Guidance Tool developed by UNEP FI. The secretariat of the Consortium
conducted public consultation on them from 29th October to 29th November. Following consideration of thereceived comments, the Consortium hereby releases “Human Rights Issues by Sector v.8”. The Consortium
hopes that this document will be a useful tool for companies in promoting their human rights activities.
This workshop applies the Chatham House Rule. The participants were free to express their views as
individuals, not representatives of companies or organizations that they belonged to. The sole responsibility
for the content of this document lies with CRT Japan, as an organizer of Nippon CSR Consortium.
We would like to offer our great gratitude for the participants from NGO/NPO, and companies, and those
who gave public comments.
Caux Round Table Japan
Nippon CSR Consortium
Minoru Matsuzaki
Hiroki Wada

2
Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho, Shibuya-ku, Tokyo, 150-0031, JAPANTEL: +81-3-5728-6365 FAX: +81-3-5728-6366
http://crt-japan.jp/en/

Table of Content

1.

Preface .............................................................................................................................................................4

1-1.

Purpose of Human Rights Due Diligence Workshop ...........................................................................4

1-2.

An overview of the Workshops for Identifying Human Rights Issues ...............................................5

1-3.

Implementation Steps of the 2019 Workshop ......................................................................................8

1-4.

Notes for this document .......................................................................................................................92.

CRT Japan's viewpoint as the Secretariat of Nippon CSR Consortium......................................................... 10

3.

Human Rights Issues by Sector v.8

3-1.

Manufacturing…………………………………………………………………...……………..….12

3-2.

Chemical and Building Materials……………..…………………………………………...……….14

3-3.

Consumer Goods (Cosmetics and Daily Goods)..........…………………………………………… 16

3-4.

Food…………………………….……………..…………………………………………………...18

3-5.

Pharmaceuticals…………………………………………………………………………...………20

3-6.

Logistics and Transport………………………....……………………..........................................23

3-7.

Consulting……………………………………....……………………..........................................25

List of Participants of 2019 Human Right Due Diligence Workshop … ............................................................... 27
Appendix 1: Relevance between the UNEP FI and NGO/NPO and subject experts by Sector

3
Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho, Shibuya-ku, Tokyo, 150-0031, JAPANTEL: +81-3-5728-6365 FAX: +81-3-5728-6366
http://crt-japan.jp/en/Preface1
1-1.

Purpose of Human Rights Due Diligence Workshop

The Human Rights Due Diligence Workshop provides an opportunity for companies, NGOs/NPOs, andacademic experts to conduct discussions for human rights due diligence 1 set out in the United Nations
Guiding Principles on Business and Human Rights2.
In July 2011, the UN Guiding Principles on Business and Human Rights were unanimously endorsed by the
UN Human Rights Council. The Guiding Principles explicitly and clearly set out that all business enterprises
have the responsibility to respect human rights. In order to fulfil the responsibility, the Guiding Principles
require them to carry out human rights due diligence that comprises process for identifying, preventing,mitigating and accounting for how they address their adverse human rights impacts. In response to theendorsement in 2011, in cooperation with companies, NGOs/NPOs and academic experts, CRT Japanestablished the Nippon CSR Consortium* in 2012 as a platform for multi-stakeholders. The Consortium
organizes the yearly Human Rights Due Diligence Workshop (Stakeholder Engagement Programme).
Through a series of dialogues with companies, NGOs/NPOs, and academic experts, participants can deepen
understanding of the specific contexts in which human rights violations can arise, of the relationship between
business activities and human rights, of important human rights issues, and of the importance of promoting
business operations with due consideration given to human rights. We regard that this document, whichcontains the content of the discussion in the workshop and the identified sector-specific human rights issues,
will be the foundation for companies to facilitate their efforts of human rights due diligence in the future.
2012

2013

2014

2015

2016

Companies

39

15

34

48

40

NGOs/NPOs

11

12

17

17

14

Participants

68 persons

35 persons

68 persons

98 persons

73 persons

2017

2018

2019

Companies

23

17

24

NGOs/NPOs

17

14

13

Participants

67 persons

60 persons

80 persons

Human rights due diligence encompasses process for (1) identifying and assessing any actual or potential adverse humanrights impacts, (2) integrating the findings from their impact assessments and take appropriate action, (3) tracking theeffectiveness of their response, and (4) communicating how they address their human rights impacts.
2 Refer to: Human Rights Council, 2011, Report of the Special Representative of the Secretary-General on the issue 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+representative+of+the+se
cretarygeneral+on+the+issue+of+human+rights+and+transnational (Accessed Nov 10th, 2014).
1

4
Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho, Shibuya-ku, Tokyo, 150-0031, JAPANTEL: +81-3-5728-6365 FAX: +81-3-5728-6366
http://crt-japan.jp/en/

1-2.

An overview of the Workshops for Identifying Human Rights Issues

In order to assist companies in implementing human rights due diligence in line with the UN Guiding
Principles, the Consortium conducts discussions to identify sector specific human rights issues. An overview
of the past workshops is explained below.
In 2012, sector specific human rights issues were identified based on UNEP FI Human Rights GuidanceTool3. The final report “Human Rights Issues by Sector (2013)” was released.
In 2013, the workshop explored sector specific human rights issues from the perspective of value chain. The
workshop was very useful for the participants in understanding how each human rights issue was linked toactivities of different departments throughout value chain. The final report “Human Rights Issues by Sector(v.2)” was released in 2013.
In 2014, the workshop was planned and conducted in order to respond to public comments received in 2013indicating that “companies need to understand the particular context in which human rights issues arise”.
First, the participants examined 31 Global Risks outlined in the World Economic Forum Report4 and thenidentified 16 Global Risks which were considered to give the greatest influence on the sectors they belonged
to. Followed after this process, they explored and identified the interconnectivities between global risks andhuman rights. This identification was useful for them in understanding how social and environmental issues
were dynamically interconnected, and in understanding the particular contexts in which human rights issues
arose. The final report “Human Rights Issues by Sector (v.3)” was released.
In 2015, the workshop consisted of the two sessions. In the first session, the participants reviewed any points
for addition and modification on “Human Rights Issues by Sector (v.2)” using the Human Rights Guidance
Tool5 (2014 revision) developed by UNEP FI. As the main feature of the 2015 workshop, NGOs/NPOs andsubject experts addressed emerging human rights issues in Japan covering sexual minorities, theempowerment of women and technical intern trainees. In addition, the workshop was scaled up from 9 sectors
in 2014 to 11 sectors in 2015, discussing and identifying sector specific human rights issues accordingly. The
final report “Human Rights Issues by Sector (v.4)” was released. In the second session, a draft “Food Vision”
for the 2020 Tokyo Olympics and Paralympics6 was released on the basis of a series of workshops thatbrought together companies mainly from the Food sector, NGOs and other stakeholders.

http://www.unepfi.org/humanrightstoolkit/fundamentals.php (Accessed on Nov 10th, 2014).
http://www3.weforum.org/docs/WEF_GlobalRisks_Report_2014.pdf (Accessed on August, 08, 2014)
5 http://www.unepfi.org/humanrightstoolkit/ (Accessed on July 10th, 2015)
6 http://crt-japan.jp/files2014/2-4-0olympic2020/pdf/Food%20Vision%20for%20the%20Tokyo%202020%20Olympic%20Games.pdf (Japanese only),(Accessed on November 7th, 2017)
3
4

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Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho, Shibuya-ku, Tokyo, 150-0031, JAPANTEL: +81-3-5728-6365 FAX: +81-3-5728-6366
http://crt-japan.jp/en/In 2016, the workshop addressed the relevance between the SDGs and human rights issues. The year of 2015
marked the following four significant events: Firstly, at the G7 Summit in Schloss Elmau Germany, G7
leaders pledged to promote responsible supply chains, and strongly supported the UN Guiding Principles on
Business and Human Rights. They also stressed the need to develop substantive National Action Plans andstrengthen grievance mechanisms. Secondly, at a Session of the United Nations General Assembly in
September, the SDGs were adopted. Thirdly, In the UK, the Modern Slavery Act was adopted. And finally,at the UN Climate Conference in Paris COP 21 in December, the Paris Agreement was adopted which will
come into effect in 2020. Considering all of these events, the participants identified sector specific humanrights issues with the use of Human Rights Guidance Tool developed by UNEP FI, and they identified
priorities on the SDGs by sector with the use of the SDG Compass 7 whilst considering the SDGs andproposals for the SDGs submitted by NGOs/NPOs at the G7 Ise-Shima Summit. The final report “Human
Rights Issues by Sector (v.5)” and “Priorities on the SDGs by sector” was released.
In 2017, the participants reviewed any points for addition and modification on “Human Rights Issues by
Sector (v.5)” using the Human Rights Guidance Tool8 (2014 revision) developed by UNEP FI. This year's
workshop was implemented to help companies recognize human rights issues particular to Japan, humanrights issues in supply chains in Asia, and trends of institutional investors in Japan. Compared to thecomposition of corporate participants last year, there were more corporate participants from the consumer
goods sector and food sector, whereas there were less corporate participants from the manufacturing sector
and infrastructure sector. Also, there were more participants from the human resource department andprocurement department. Lastly, over 70% of the participants were new to the workshop. The final report“Human Rights Issues by Sector (v.6)” was released.
In 2018, given the raised concerns from NGOs/NPOs, the participants reviewed any points for addition andmodification on “Human Rights Issues by Sector ” formulated by the CSR Consortium last year, using the
Human Rights Guidance Tool 9 (2014 revision) developed by UNEP FI. As a feature of the workshop,
NGOs/NPOs raised globally increasing concerns such as marine plastic pollution, SOGI (sexual
orientation/gender identification), and the Technical Intern Training Program in Japan. Also, the subject
experts shared the trends of Japanese institutional investors. In regard to the composition of the corporate
participants, the participation from the chemical and building materials sector, consumer goods sector, andfood sector increased significantly from the previous year. In addition, the companies in the pharmaceutical,
printing and consulting sectors, which did not identify sector specific human rights issues in the previous
year, participated in the workshop. On the other hand, the companies from the manufacturing and transport
sectors did not participant in the workshop this year.
In 2019, given the raised concerns from NGOs/NPOs, the participants reviewed any points for addition andmodification on “Human Rights Issues by Sector ” formulated by the CSR Consortium last year, using the
http://sdgcompass.org/ (Accessed on August 15th, 2016)
http://www.unepfi.org/humanrightstoolkit/ (Accessed on July 10th, 2015)
9 http://www.unepfi.org/humanrightstoolkit/ (Accessed on July 10th, 2015)
7
8

6
Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho, Shibuya-ku, Tokyo, 150-0031, JAPANTEL: +81-3-5728-6365 FAX: +81-3-5728-6366
http://crt-japan.jp/en/

Human Rights Guidance Tool 10 (2014 revision) developed by UNEP FI. As a feature of the workshop,
NGOs/NPOs raised globally increasing concerns such as AI and human rights, AI and privacy, relationships
between climate change and human rights, foreign workers in Japan, grievance mechanism, and SDGs andhuman rights. In regard to the composition of the corporate participants, the participation from the chemicaland building materials sector, consumer goods sector, and food sector increased significantly from theprevious year.
As the outcomes of the workshop this year, "Human Rights Issues (Draft) by Sector" and "Relevance between
the UNEP FI and NGO/NPO and subject experts by Sector” (attachment 1) were formulated.
In parallel with this workshop in Japan, at the same time, Caux Round Table Japan initiated the Stakeholder
Engagement Programs in Thailand and Indonesia.

10

http://www.unepfi.org/humanrightstoolkit/ (Accessed on July 10th, 2015)

7
Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho, Shibuya-ku, Tokyo, 150-0031, JAPANTEL: +81-3-5728-6365 FAX: +81-3-5728-6366
http://crt-japan.jp/en/

1-3.

Implementation Steps of the 2019 Workshop

The Workshop consists of the following four steps.

Step 1: Understanding the context in which human rights issues arise⚫

A total of 13 organizations including NGO/NPO explained the backgrounds of the human rights issues
and the human rights issues that may be abused through corporate activities. After that, the corporate
participants and the speakers sat together at the table for each topic and discussed the given topics further.

Step 2: Reviewing and identifying adverse human rights impacts arising from corporate activities⚫

The participants reviewed any points for addition and modification on “Human Rights Issues by Sector(v.7)” by using the Human Rights Guidance Tool (2014 revision) developed by UNEP FI.

Step 3: Integrating perspectives from both corporations and stakeholders⚫

The participants had a dialogue with NGO/NPO and the subject experts on their work at Step 2. Afterthe dialogue, the participants reviewed the received comments, and developed the final version of theirwork by sector. Then, the Secretariat developed “Human Rights Issues by Sector (draft)”.

Step 4: Collecting Public Comments and finalizing our report⚫

The Secretariat conducted public consultation on “Human Rights Issues by Sector (draft)” from 29th
October 2019 to 29th November 2019. Following consideration of the received comments anddiscussion contents among the participants and experts, the secretariat released “Human Rights Issues
by Sector v.8”.

1-4.

Notes for this document
8
Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho, Shibuya-ku, Tokyo, 150-0031, JAPANTEL: +81-3-5728-6365 FAX: +81-3-5728-6366
http://crt-japan.jp/en/

1-4.aRelevance between business operations and human rights

In the beginning of this workshop in 2012, NGOs/NPOs did not have full understanding on how their socialand environmental concerns were relevant to business and human rights. Also, corporate participants did notunderstand how their business operations and human rights were relevant. However, through this workshop,
they have started recognizing that social and environmental issues are business and human rights, andbusiness operations and human rights are relevant.
1-4.b

Scope of Study and Analysis

The workshop of this year does not include the following study and analysis.
The interconnection map of WEF Global Risks illustrated in “Human Rights Issues by Sector (v.3)” is
not discussed or in the scope of analysis.

“Priorities on the SDGs by Sector” discussed at the fifth workshop is not discussed or in the scope ofanalysis.

9
Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho, Shibuya-ku, Tokyo, 150-0031, JAPANTEL: +81-3-5728-6365 FAX: +81-3-5728-6366
http://crt-japan.jp/en/

2

CRT Japan's viewpoint as the Secretariat of Nippon CSR Consortium

In recent years, the environment surrounding companies in “Business and Human Rights” has changed
significantly. Since the adoption of the “United Nations: Guiding Principles on Business and Human Rights”
in 2011, there has been a rapid progress of development of the National Action Plan (NAP) on business andhuman rights and development of laws and regulations, mainly in Western countries and Asia. The Guiding
Principles of soft law has been put into the form of hard law in each country, and companies are now in asituation where they must tackle human rights in their own and supply chains in terms of responding to legal
requirements. On the other hand, in the corporate investment, ESG investment is rapidly increasing.
Corporate Human Rights Benchmark (CHRB) was developed in 2018, in which institutional investors, rating
agencies, and NGOs collaborate to evaluate corporate efforts to human rights and publicize rankings. This
year, 18 Japanese companies were assessed (198 companies in total). In Japan, the Tokyo Olympic andParalympic Games Organizing Committee has formulated a “Sustainable Procurement Code” that includes
standards related to human rights and labour, and requires licensees and suppliers to comply with the code.
In recent years, NGOs have been active for specific issues. For example, NGOs have identified abuses ofhuman rights and labour issues such as forced labour, child labour, and low wages at sites such as palm oil,timber, and minerals, and conducted “Naming and Shaming” campaigned for global companies. Aninternational NGO also went undercover at a subcontract factory of a major Japanese apparel company, andpointed out poor labour conditions that could not be seen in an audit.
Under these circumstances, it is essential that companies develop human rights policies that clearly
demonstrate their respect for human rights, and conduct human rights due diligence that includes a processof identifying and evaluating how their businesses negatively affect human rights throughout the value chain,and explaining how to address human rights isues. However, through this workshop, we recognize thatJapanese companies have been facing challenges in tackling “business and human rights”. The first is thelimit of the certification system. Companies understand that purchasing raw materials from certified suppliers
can ensure sustainability. However, reports by NGOs point out environmental and labour problems andabuses of human rights at sites of those suppliers. The credibility of the certification system has begun toundermine. Companies are required to focus on people whose human rights are actually violated beyond theframework of certification. Next, there is poor understanding and awareness of human rights throughout thecompany. In Japan, human rights are still often understood in the context of discriminated community of nonJapanese, sexual harassment, and power harassment, and there is a gap in recognition with human rights
between Japan and globally. It is necessary to understand what the Guiding Principles require companies torespect human rights, to make it aware throughout the company, and to incorporate them into their
management strategies and business activities. The key principle of the SDGs is “no one will be left behind”,
and all of the goals are closely linked to the realization of a society where human rights are respected.
Companies are expected to maximize their positive impacts and minimize their negative impacts. Companies
from all sectors have begun working on the SDGs, but most of them often implement and disclose positive
impacts, and there is little debate about how to identify and minimize the negative impacts of business. It is
important to understand that negative effects are not offset by other positive effects. Unless companies
10
Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho, Shibuya-ku, Tokyo, 150-0031, JAPANTEL: +81-3-5728-6365 FAX: +81-3-5728-6366
http://crt-japan.jp/en/

address positive and negative impacts, the realization of a sustainable society will not be achieved, and“people left behind” will be left forever. The centre of economic activity is a company, and its activities are
expected to resolve the gap. For this purpose, dialogue with affected stakeholders is essential, but it is difficult
to say that the dialogue is being carried out by companies. An essential process in fulfilling the responsibilityof respecting human rights is to conduct dialogues with rights-holders that are actually / potentially affectedby companies. Unless companies conduct and disclose such a dialogue process, they are not conducting
human rights due diligence based on the Guiding Principles, and it may be regarded as a self-satisfying
activity of the company. Human rights risks are not a risk from a corporate perspective, but a risk for people
affected by business activities. In reality, many Japanese companies do business globally, but only a few
companies make an effort to understand the entire supply chain.
This program is implemented to understand human rights issues in Asian supply chains that Japanesecompanies should recognize, human rights issues peculiar to Japan, and trends in institutional investors as"expectations and requirements from society". It also helps Japanese companies to implement human rights
due diligence required by the Guiding Principles. The lessons learned are that as it is difficult for one
company to tackle human rights issues alone, it is important to work together with the entire industry and use
leverage to their suppliers. In recent years, discussions have been focused on issues such as marine plastics
issues, diversity (foreign technical intern trainee issues and SOGI), AI and human rights, and gender. It is
important to communicate with a wide range of stakeholders and understand how human rights are relevant
to business and how companies can respond to human rights issues. Finally, it is development of grievancemechanism and legitimacy of its effectiveness. Many Japanese companies have set up contact points for
employees in Japan, but contact points have not been established for domestic and overseas suppliers andlocal communities that are prone to abuses of human rights. It is necessary to respond in cooperation withthe company's related departments, competitors, and third parties.
The lesson from the past workshops is that when companies address human rights related risks, they should
conduct dialogues with the people with human rights abuses and NGOs/NPOs to recognize their human rights
issues. This program is to help companies to take an initial step to conduct human rights due diligence. Afterthey identify the issues, they should address them by utilizing their high expertise and strategies incooperation with NGOs/NPOs. And at the same time, they should be held accountable for any harm theycause and outcomes of their actions, as well as should enhance their transparency by disclosing informationin order to ensure legitimacy of their business operations. By doing so, companies can earn “License to
Operate” and trust from stakeholders which becomes a backbone for corporate sustainable competitivenessin the long run.

11
Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho, Shibuya-ku, Tokyo, 150-0031, JAPANTEL: +81-3-5728-6365 FAX: +81-3-5728-6366
http://crt-japan.jp/en/

3. “Human Rights Issues by Sector”
3.1 Manufacturing Sector
Key value chains in manufacturing sector
Create: research, development, design Buy: capital investment, procurement Manufacture: production, manufacturing
Transport: storage, logistics Sell: sales and marketing Use: consumption, utilization, maintenance Disposal: disposal, recycling
Value Chain
Use

DisposeSell

Transport

Buy・ In Global
1: Risks of long working hours, because the minimum wage does not meet the standard of living in the community
2: Excess labor risks due to production adjustment (priority delivery)
3: Proper working time management may not be practiced
4: Proper compensation (wage) for labor may not be paid
Working time is not recorded → Payment can not be madeManufacture

Working hours and wage

Concrete issues

CreateKey human rights issues in the manufacturing sector

レ レ レ レ レ レ レ・ Unpaid overtime work especially in Japan, long working hours.
・ Discretionary labor system ・Inappropriate operation by nominal managers
・ Different work conditions and wage disparity among group companies. Equal pay for equal value of work

Workplaceconditions
Health and safety
1: Physical, hard
2: Mental side
3: Health
4: Education

1: Severe incidents causing death or injury especially within research and development, as well as manufacturing sites. [C/M]
2: Long working hours may cause health problems, in particular mental health problems.
3: Progression of diseases by lack of health checkups.
1: Inadequate living conditions such as sharing one small dormitory room with several people, poor sanitation (shower, toilet,etc), building a dormitory on the factory premises, and being locked up to control may affect the health of the employees.
レ レ レ レ レ
3: Lack of protective equipment such as finger sacks, gloves, masks, eye-plugs or the spread of occupational diseases due to
not wearing protective equipment.
1: Health and safety standards in Japan do not conform to global standards. (emergency exit and evacuation drills)
4: Treatment of foreign workers in Japan (Especially awareness and training on health and safety, language barriers)

レ

Discrimination

During employment and work

・ Risk of receiving inequal treatment in working conditions, training, and promotion.
・ Discrimination against female workers and sexual minorities.
・ Harassment (Sexual and power harassment).
・ Addressing LGBT issues.
・ Discrimination against nationalities, races and religions.

レ レ レ レ レレChild labour

1: Minimum age
2: Addressing young workers

1: There may be possible risks of child labour and child trafficking through brokers in supply chains across developing
countries (e.g. subcontracting works).
1: Workers in Asian countries may apply for recruitment by falsifying their age.
2: Risk of engaging in night work or dangerous work

レ レ レ レレ

Deposits and papers

・ When recruiting foreign workers in Asian countries, recruiters may force them to hand over their ID (e.g. passport) and/or
to pay excessive commission fees.

レ レレForced overtime

・ Long working hours due to excessive quota requirements may cause forced overtime.

Core
operation/
Supplychain

Forced orcompulsory
labour©Caux Round Table Japanレ レ レ レ レ
12Key value chains in manufacturing sector
Create: research, development, design Buy: capital investment, procurement Manufacture: production, manufacturing
Transport: storage, logistics Sell: sales and marketing Use: consumption, utilization, maintenance Disposal: disposal, recycling
Value Chain
Use

DisposeSell

Transport

Buy

ManufactureCore
operation/
Supplychain

Concrete issues

CreateKey human rights issues in the manufacturing sector

Freedom of
association

・ Communication and dialogue with labour representatives and labour unions may be insufficient.
・ Institutionalization and operation of labour-management consultation and collective bargaining may not be practiced
sufficiently. In addition, although the right to collective bargaining is permitted, negotiation may not actually conducted.
・ Workers’ rights in union shop may not sufficiently secured.
・ The rights of workers may not be sufficiently secured in the countries and regions where the composition and activities oflabor unions are prohibited (including cases where trade unions are banned).

レ レ レ レ レ

Resources/local
Use of natural resources
community

・ Risk of excessive resource extraction due to logistics, sales, product development and product design with highenvironmental impact (high electricity usage, hard to recycle) (upstream supply chain)・ Risk of harming lives and health of local residents around production sites, and abuse and contamination of land and waterat a factory or local construction site. [B/M/D]

レ レ レ レ レ レ レ

Security

・ Potential diversion of funds, goods and services to non-state groups and armed groups during procurement of raw materials
and disposal of products

レ・ Risk of forced migration of local residents when acquiring business land

レ レCommunity
Payment to non-state groups

Access to Land Land ownershipレレ

Bribery and corruption

・ Potential risk of being involved in bribery and corruption, such as facility payments, especially at the time of obtaining
licenses and authorizations.
・ Possible risk of bribery at the time of contract, customs in the industry, collusion (in the form of transactions / operations),risk of conspiracy to fraud at the time of government-related business orders

レ レ レ レ レ レ レ

Relations to states with poor
human rights records

・ Risk of being involved in human rights abuses when doing business in the country or region where there is a gap between
local laws/customs and international standards

レ レ レ レ レ レ レ

Relations withcustomers

Health and safety andprotection of personal
information

・ Risk to damage consumer's life and health due to defects in products/services provided to customers and inappropriate
marketing activities.
・ Risks of abuses of individual human rights if personal information obtained through business processes is not properly
managed.

レ

RemedyDevelopment of Access toRemedy・ Human rights abuses may not be addressed if remedy contacts and process are inadequate.

レ レ レ レ レ レ レ

Society and Relations withgovernment governments

Others©Caux Round Table Japan

レ

レ レ レ

13

3.2 Chemical and Building Materials Sector

This table summarizes the value chains that are considered common in the industry.
Incidents related to specific products and services at an individual company need to be reviewed by individual company.
Value Chain

レ レ レ レ レ レ

Wage

・ Possible in supply chain and contractor.
・ The proper wage corresponding to working hours may not be paid.
・ Wages paid to foreign technical intern trainees may not be understood.

During work・ Cases of harassment issues which are raised as social problems differ depending on region and time (for instance,
discrimination against sexual minorities in 2015, and power harassment in 2019). Elimination of discrimination during work
globally remains unsolved (one’s company and supply chain).
・ A delay in improvement of the working environment for people with disabilities may lead to human rights problems (one’s レ レ レ レ レ レ
company and supply chain).
・While the EU General Data Protection Regulation is being strengthened even in Japan, full measures may not be taken to
respect the privacy of employees and protect personal information (one`s company and supply chain).

Redundancy anddismissal

・ Illness and pregnancy may be a judgment factor without specifying objective standards, and implementation based on
sufficient communication may not be made (one’s company and supply chain).

Dangerous work andemployment

・ Possibility in supply chain and contractors

Minimum age
Working hours andworking conditions
Employment of young
workersレ

DisposeDisciplinary measures

・ Because the customs of disciplinary measures differ largely according to each country or area, the disciplinary policies
may not conform to the country or area (one’s company).
・ Placement of grievance mechanisms available for disciplined persons may be insufficient (one’s company).
・ The customs of disciplinary measures differ largely according to each country or area, it becomes difficult to grasp theactual practices of disciplinary measures at suppliers`s sites (supply chain).

Subcontractor
Onsite Subcontractor

レ レ レ

Reuse and recycling

Sell

Health and safety

・ There are relatively many sources of risks in the working place environment, as manufacturers that use hazardous
substances (chemical substances) and large scale facilities (one’s company and supply chain).
・ Insufficient information on chemical substances from suppliers may cause health damage to employees in one`s company
and final consumers (one’s company and supply chain).
・ If we outsource companies with poor ethical values to conduct safety tests or functionality tests through people, humanrights issues may arise (supply chain).

Use

Transport

ProcureProduce©Caux Round Table Japan

Development

Working hours

Discrimination

Child Labour

Concrete issues

・ As a feature of B to B companies, there may be overtime work as they receive orders without due consideration of
resources (one’s company and supply chain).
レ レ
レ
レ レ
レ
レ レ
レ
・ There is not enough understanding on the degree of working hours management according to different working conditions
depending on country/areas (supply chain).

WorkplaceconditionCore
operation/
Supply chain

Research

Key human rights issues in chemical and building
materials sectors

レレレ
レ レ レ レ レ レレ
レ

レ

レ レ

レ レ

レ

レ レ

レ

レ

レ

レ

・ Possibility in supply chain and contractors

レ

レ

レ

・ Possibility in supply chain and contractors

レ

レ

レ

・ Possibility in supply chain and contractors

レ

レ

レ

レ レ レ レ レ レレ

A double-check status (レレ) shows greater risks. 14

Value Chain

DisposeSubcontractor
Onsite Subcontractor

・ The presence or absence of migrant workers globally and the actual situation of foreign technical intern trainees are notcomprehensively identified. When forced labour occurs, companies may face great reputational risks (supply chain).

Reuse and recycling

Human trafficking

Sell・ As a festure of B to B companies, forced overwork is demanded to workers when companies receive orders without due
consideration of resources (volunteer overtime work is regarded as overtime work) (one’s company and supply chain).

Use

Forced overtime

Transport

・ The presence or absence of migrant workers globally and the actual situation of foreign technical intern trainees are notcomprehensively identified. When forced labour occurs, companies may face great reputational risks (supply chain).

ProcureDeposits and papers

Produce

Concrete issues

Development

Research

Key human rights issues in chemical and building
materials sectors

レ

レ

レ

レ レ
レ
レ
レ レ
レ

レ

レレ

レ

レ

Forced LabourCore
operation/
Supply chain

Freedom of
association

レ レ レ レ レ レ

レ レ

レ・ Employees may not have a means to discuss issues related to labour without interference of companies. (one’s company
and supply chain)レ レ レ レ レ レ

レ レ

レ

As a chemical company, we are working on reduction of environmental impact and proper management of chemical
substances, but the following points are listed as potential human rights issues.
・ Concerns regarding inappropriate use and disposal by customers (value chain) (eg marine plastics)
・ The industry may give a huge impact to local communities, as it uses a relatively large amount of resources. Also, it may
Use of natural resources
cause pollution damage to the communities by outflows of hazardous materials and and exposure to them. (one’s company(water and land)and supply chain)・ Possible risks of water depletion due to excessive use of water and deforestation by construction of factories. (supply
chain)・ Impact may be given to local communities due to the depletion of natural resources. (supply chain)

レ レ
レ レ

・ If land acquisition is required for establishment of factory or sales (licensing), bribes are required, and the land acquisition
as a result may force the local residents to change their living environment.
・ Because of being involved in corruption, companies may be given a payment order for surcharge regarding violations andan order to stop operations. Also, damaging on reputation is considered, and as a result, the employment of employees may
be indirectly affected.

レ
レ

Bribery and corruption
Society and Relations withgovernment governments

・ Acquisition of permits and licenses, and operations in countries with low human rights awareness, and procurement from
Gov'ts with poor humansuch countries (such as conflict minerals) may indirectly get companies be involved in occurrence of the negative impact onrights awarenesshuman rights. (one’s company and supply chain).

Remedy©Caux Round Table Japanレ レ

・ Labour-management negotiations may not be properly conducted (one`s company and supply chain).
Freedom of association
・ Employees may not have a means to discuss issues related to labour without interference of companies (one`s company
and collective bargaining
and supply chain).
Conflict with local law

Community Resources

レ レ

Because we have a wide range of value chains, we may not be able to respond to the following matters in a timely andappropriate manner
・ Establish a consultation system and set up a contact point in consideration of the local language, reception hours, legal
system, and culture.
・ Provide well-known information on how to access grievance mechanisms, and on the expected handling method andperiod.

レ

レ

レ
レ

レ レ

レ
レ レ レ レ レ レ レレ
レ

レ レ レ レ レ レ レ レ レレ

A double-check status (レレ) shows greater risks. 15

3.3 Consumer Goods (Cosmetics and daily goods) Sector
Value Chainレ

レ レ レ レ レ

Health and safety• Education on health and safety, disaster drills, first-aid drills, and handling instructions on toxic chemical
substances may not be thoroughly conducted.
• Health hazard may occur due to insufficient efforts to improve a harmful working environment to workers’
health (loud noise, vibrations, illuminance, room temperature, ventilation and exhaust).
• Risks of having pregnant women and young people engage in dangerous or injurious work.
• Workers may be exposed to danger due to aging buildings, illegal constructions, insufficient emergency exits
and evacuation passages.

レ

レ レ レ

Harassment• Workers may be exposed to physical, sexual, mental or verbal harassment and abuse.

レ

レ レ レ レ レ

Disciplinary measures• Improper content of employment rules may cause improper disciplinary measures and treatments.

レ

レ レ レ

During employment
Discrimination During work
During use• Unequal recruitment/recruitment may be conducted based on disability, LGBT, religion, race, age and gender.
• Unequal treatment in opportunities for promotion, training and working conditions may be practiced based on
disability, LGBT, religion, race, age and gender.
• Unequal treatment in use may be practiced based on disability, LGBT, religion, race, age and gender.

レ

レ レ レ レ レ レChild labour• Children under the minimum age may be working without verification of their identify, or based on
counterfeit identification.
• Children under the minimum age may be exposed to child labour due to poverty.
• Children may be exposed to child labour in places such as plantations.

Working
ConditionsCore
operation /supplychain

Working
Conditions©Caux Round Table Japan

Minimum age

レ レ

DisposeWages• Pressure of cost reduction from buyers may lead to non-compliance with minimum wages.
• Frequent revisions of minimum wages in some countries may lead to non-compliance with minimum wages.
• Proper rewards for overtime hours may not be paid due to poor compliance with laws/regulations andinadequate labour management.
• Equal pay for work of equal value may not be practiced.
• Fair compensation according to productivity may not be paid.

Use

レ レ レ レ レ

Sell
AdvertiseTransport

Procureレ

Concrete issues

ProduceResearch
Development

Working hours• Long working hours may be caused by (a) production schedules that presuppose overtime work, as well as
attempts to catch up to delays in production schedules in upstream supply chain, (b) low wages that do notmatch local standards of living, (c) piece-rate work, and (d) repair work of a large volume of defective products
or products which need adjustments.
• Long hours of work may occur due to excessive response for customers and increase of man-power by
ambiguous targets.
• There is a possibility that labor management may be inadequate, or rest days required by law may not be
intentionally given, and limits of overtime hours may not be upheld.

Key human rights issues in consumer goods sector

レ

レ

16

Forced orcompulsory
labourForced overtime
Human trafficking• Workers may be forced to work by violence, the threat of violence, or any other form of coercion.
• Labor contracts (employment contracts) are not explicitly stated in the document, and workers may be forced
to work under unfavorable working conditions.
• Vulnerable immigrants, refugees, technical interns may be exposed to forced labour.
• The formation of labour unions and collective bargaining may be refused without any legitimate reason. Poor
treatment or dismissal to union members may be practiced.
• Workers may get fired due to participation in strikes.

Freedom of
association

レ レ レ

レ

レ レ レ レ レ

Water stress• Use of a large amount of water and pollution of rivers by the inflow of toxic chemical materials may cause an
adverse impact on the local environment and health of local residents living in affected areas.

Terrestrial resources• Manufacturing products may cause an adverse impact on the protection of forest eco-systems.

レMarine resources• Manufacturing plastic products may cause an adverse impact on the protection of marine eco-systems.

レ

Waste disposal• Leaving waste and dumping waste illegally may be practiced due to not using proper agents.
• Failure to tackle waste reduction may adversely affect the environment.

レ

レ レ レ

レ レ レ

レ

レ レ レ

レ

レ レ
レ レ レ

Community Resources

Bribery and corruption • Bribery may be demanded when acquiring license at each stage of the value chain.
Society and Relations withgovernment governments
Relations to states with
• Reputational risks and human rights risks are present due to approach to a country with low human rights
poor human rights
awareness
records

Health and Safety

Consumer

Relations with
consumers

Grievance mechanism©Caux Round Table Japanレ• Responding to changes in consumer consciousness, developing an ethical market, creating positive action topromote a fair trade may be inadequate.

レ• Inadequate efforts to increase the quality and safety of goods, and to mitigate risks for consumers.

レ• If correct information is not communicated, the correct usage is not followed. This will bring both theconsumer and the manufacturer disadvantageous.
• Inadequate efforts to improve the traceability of materials and products.
• Insufficient efforts to solve consumer issues through innovation.

Privacy• Personal information such as privacy information and delivery address contained in customer charts andmonitor data may be leaked and misused.

Health and Safety ofChildren• Advertisements and promotions may violate children's rights, impair healthy development, or threaten safety
and health.

Harassment anddiscrimination• Advertisements or promotions may be associated with discrimination or bullying. And, these seems accepting
and encouraging discrimination or bullying.
• Grievance mechanism may not be developed.

レ レ

レ レ レ
レ レ レ レ レ レ レ
レ レ レ レ レ

レ
レ

レ レ レ レ レ レ レ

レ

レ レ レ
レ
レ

レ

レ レ レ レ レ レ レ

17

3.4 Food Sector
Value Chain

Dispose

Sell

Consume

Produce

Transport

global・ Long working hours may occur at all work in own manufacturing factories including those of suppliers, and in logistics drivers.
・ When production such as seasonal items concentrates, forced labour may occur to keep the delivery date.

global・ Wage levels do not match the local standard of living.
・ Proper wages are not paid to workers due to the application of piece-rate work in palm farms and fishing grounds.
・ Introducing efforts like fair trade effectively to the society enables to increase consumer`s safety and corporate value, as well as pay
レ レ レ レ レ
appropriate wages to local workers.
・ The wages of foreign workers may not meet the minimum standard of living. Housing for them may not be well taken care.

Japan・Unfair low wages in the Technical Intern Training Program in Japan.

Health and safety

global・ The health and safety of employees and workers may be threatened due to excessive work, inadequate measures against workrelated accidents, handling of chemical substances including agrichemicals, and dangerous work in a process of manufacturing
products including raw material suppliers and a process of research and development (Employee = Perspective of Persons with
Disabilities).
・ In order to reduce risks, it is important to consider and address cultural differences and diversity such as color barrier-free(consideration of coloring) and direction of opening and closing the door, display of their own language for foreign workers, andsupport for heavy-duty work by using supporting tools.
・ The physical burden on logistics drivers is heavy (unloading containers and freezer operations), and health considerations may belacking.

レ レ レ レ レ

レ

Employment

global・ Discrimination may occur during the recruitment process, based on race, gender, religion, origins including overseas, sexual
orientation, sexual recognition, disabilities, ethnicity and beliefs.
・ Debt labour occurs through recruitment fees to sending organizations and payments to foreign language education institutions.
There is also a domestic problem of employing workers without being aware of the background.

レ レ レ レ レ

レ

global・ Safety education may be fully given to workers including foreign employees, disabled persons and temporary workers. Also, they
may receive unequal treatment in safety education.
・ Workers may be forced to have unstable employment form.
・ Sexual, power, maternity, SOGI harassment.

レ レ レ レ レレ

レ レ レ レ レ

レWorking hours

Wages

Workplace conditionsCore
operation /Supply chain
Discrimination

Concrete issues

Area of risk occurrence

ProcureResearch
Developme

Key human rights issues in food sector

During work

レ レ レ レ レ

レ

レ

Japan

・ Manuals that support multiple languages, multiple religions, and consideration of the work environment are necessary.
Discrimination may occur due to differences in nationality and religion.

global・ Discrimination may occur in assessment and treatment based on race, gender, religion, origins, LGBT, SOGI, disability, ethnicity,
beliefs, medical history (HIV etc), care for family members, and Infertility treatment.
・ It is necessary to support life for foreign workers and their families, and to prevent isolation in the community.

Japan・ Female managers in Japan are still few. Delays in barrier-free. The purpose of life of the disabled may be harmed.

Child labour(elementary students)

global・ Child labour under the minimum labour age may occur.
・ Children may lose the right to education.  Children may suffer from mental and health problems.

レ レ レ レ レ

レ

Employment under
18 years of age

global Involvement in night labour and dangerous labour

レ レ レ レ レ

レ

global・ Forced labour against immigrant workers may occur.
・ Illegal immigrants may receive inhumane treatment.
・ Slave labour in procurement process of agriculture, forestry and fisheries may occur (Working environment at the fishery workingsite).
 Long working hours may occur due to excessive requests from business partners.

レ レ レ レレAssessment, Treatment,
Dismissal

Forced or compulsory
labourJapan

・ Exploitation of technical intern trainees (eg taking a passport away), engagement in dangerous labor.
・ Slave labour in procurement process of agriculture, forestry and fisheries (working environment in domestic livestock sites)
18

Freedom of
association andcollective bargaining

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

レ

レ レ レ レJapan・ It is necessary to address grievances throughout the value chain. Concerning consumption, it is necessary to provide customer
support and multilingual printing.

レ

レ レ レ レ レ レ

Japan・ There is a risk of privacy infringement, such as the placement of surveillance cameras for food defense.

Use of natural resources

global・ Due to large-scale agriculture, fishery and forestry at suppliers of raw materials, communities may face a decrease in agricultural
production and catches of fish.
・ Impact may be given on access to water, local ecological systems, and lives and traditions of local and Indigenous people.
・ A single crop production (switch to cash crops) may cause the loss of a self-sufficient food system.
・ Due to construction of factories, local people may lose the access right to water.

Title to land

global・ Titles to the land of local people or indigenous groups may be ignored, especially when constructing such as fields, ponds,
factories/manufacturing sites, and waste treatment plants.
 Deprivation of the rights of local people may occur due to the enclosure of agricultural lands.

Investment tocommunity

global The withdrawal of local factories and projects may reduce employment in the surrounding area, as a result and the market may
decline.

レ レ レ レ レ レ レ

Access to remedy

Japan・ Attention on not only foreign workers at work, but also ctheir home environment is required. Also, grievance should be addressed.

レ レ レ レ レ レ レ

global・ In establishing factories and gaining marketing rights (marketing license), companies may be demanded for bribes to acquire lands
and permissions.

レ レレ

global Human rights violations may be caused by adhesion between the sending agency and the relevant government.

レ レレglobal・ Incorrect food labeling may cause health hazard to consumers.
・ Incorrect understanding may be created by not informing consumers of the right knowledge on food.
・ Provision of information that does not depend on language has not been realised, because "Food Pictogram" that Japandisseminates to the world is used.

Responsible marketing

global・ Improper marketing may lead consumers (especially minors) to develop poor eating habits. (Occurrence of health hazards such as
obesity due to sales of foods high in sugar)
・ Appropriate nutritional guidance and support for local children can be realized.
 Inappropriate advertising and PR may cause more discrimination.

レ レQuality control

global・ Inadequate quality control may harm consumers' health.
・ Intentional quality obstruction (food defense).

レ レ レ レ レ レ

Responsible disposal

global・ Waste plastic problem. Human rights of local people are violated by exporting plastic waste to other countries.
・ Consumers require companies to reduce plastics in stages of business activities at product development, procurement andmanufacturing.

レ

global・ Risks of leaking personal information gained through consumer campaigns, mail order sales, and member registration.
(contractor is also considered) Addressing the EU General Data Protection Regulation.

Conflict with local law

Coreoperation /Supply chain Access to Remedy

Protection of Privacy

Resources

Community Access to land

Relations withSociety and governments
government
Investment tocommunity

Bribery and corruption

Provision ofproper information

Health and safety
ConsumerPrivacy Protection©Caux Rount Table Japan

レ

レ レ

レ

レ レ レ

レ レ

レ

レ レ

レ レ

レ レ レ レ レ レ

レ レ レ
19

3.5 Pharmaceutical Sector
Value Chain

DisposeConsume

Procureレ

Wage

・Wage standards may not conform to living standards in the area.
・Proper wages for overtime work may not be paid due to non-compliance with labor laws of eachcountry / region.
・There may be unfair treatment (assessment, low wages) in foreign technical internship program

レ レ レ レ レ レ

レ

Health and safety

・Employees' health and safety may be harmed due to dangerous work at research and development
sites, handling of animals, cells, compounds or pharmaceuticals, and inadequate occupational safety
and health (defective armor, insufficient education, etc.)
・Health and mental damage may occur due to long working hours.

レ レ レ レ レ レ

レ

Health and safety

・During the clinical development stage of pharmaceutical production, the health and safety ofsubjects may not be managed properly due to poor ethics of contract research organizations.
Moreover, improper involvement in clinical data may occur.

Disciplinary actions

・Unfair disciplinary actions may be executed by companies.
・Unfair disciplinary actions may be executed due to the fact that no whistle-blower system has been レ レ レ レ レ レ
established.

During work

Redundancy and dismissal©Caux Round Table Japan

Sell
Transport
Produceレ レ レ レ レ レ

Employment

Discrimination

Develop

Working hours

・Long working hours may occur due to concentration of clinical trial on developed products,
concentration of production due to approval of new products, increased production due to pandemic
occurrence, and product recall.
・Long working hours may occur due to excessive customer support.
・Long working hours may occur due to insufficient labor management based on labor laws of eachcountry / region.

Working
conditionsCore
operation/
Supplychain

Concrete Issues

Research

Key human rights issues in pharmaceutical sector

・Discrimination may occur based on sex, age, race, religion, SOGI, presence or absence ofdisability.
・Harassment (sexual harassment, power harassment, maternity harassment, SOGI harassment)
・Discrimination in employment form may occur based on gender, age, race, religion, SOGI,
presence of disability.
・Unstable employment form may be forced.
・Organized dismissal may occur based on sex, age, race, religion, SOGI, presence of disability.
・Unfair pressure may be given based on differences in employment form.

レレ

レ レ レ レ レ レ

レ

レ レ レ レ レ レ

レ

レ レ レ レ レ レレ20

Value Chain

DisposeConsume

ProcureSell
Transport
Produce

DevelopCore
operation/
Supplychain

Concrete Issues

Research

Key human rights issues in pharmaceutical sector

Child labour

Legal compliance toemployment age
Employment anddangerous work under 18
years of age

・Child labor under the minimum age of each country may occur.
・The following problems may arise if young workers are hired under the age of 18.
- Loss of educational opportunities- Exploitation- Mental and physical damage

レ レ レ レ レ レ

レForced orcompulsory
labourForced or compulsory
labour・Immigrants, refugees, foreign technical intern trainees may be exposed to forced labour by being
taken disadvantage of their vulnerable positions.

レ レ レ レ レ レ

レ・ Participation in labor unions and similar organizations may be obstructed due to retaliation,
Freedom of association andintimidation or harassment from business people.The opportunity for labor-management consultationcollective bargaining
is not substantially secured.

レ レ レ レ レ レ

レ・ Freedom of association and collective bargaining rights (in accordance with international law) may
Measures not permitted by
not be ensured in countries where trade unions and similar organizations are not recognized or
domestic law
recognized but not applied in practice.

レ レ レ レ レ レ

レFreedom of
association andcollective
bargaining

Resources
Community Environmental
impact ofpharmaceuticalproducts

Use of natural resources

・Bio-piracy may occur in sourcing natural compounds that are essential for drug development.

Health and safety

・The environment may be polluted by a leakage of animals, cells, pharmaceutical products andchemical compounds to nature.
レ・The health of residents may be harmed due to the environmental pollution. And, the environmental
pollution may spread to animals and plants that residents live on.

Operations in preand post conflict Product supply risk
countries
Entry post
conflict
Product supply risk
countries

Relationswithgovernment Bribery andcorruption
s

レ

レ レ

・Products may not be provided to people in needed due to unstable social situations.

レ・Products may not be provided to people in needed due to unstable social situations.

レ

Relations with authorities

・Illegal acts may be conducted for authorities (central governments and local governments) to makea smooth approval for manufacturing and selling.

レ

Relations with medical
persons

・Falsified data on clinical trials and prescription. Illegal acts may be conducted to request to create
data that gives advantage in sales and promotion.

レ レGovernments
Relations with publicwith poor humanpoliciesrights awareness©Caux Round Table Japan

レ・Company’s support for national / local public health measures may be used for propaganda byauthorities with poor human rights awareness, and for individuals with political beliefs.
・Improper treatments may be given due to insufficient governmental counter measures against
counterfeit medicines.

レ レ

レ レ
レ

レ

レ

21

Value Chainレ

Grievance
レ レ レ レ レ レ

・Insufficient measures may be taken for elimination of counterfeit medicines.

レ レ・Health hazard may occur due to delay of report on side effects.

レ レ
レ レ

・Investigational new products and therapeutic products to the patient may be given without priorinformed consent.
Relations withpatients

Health and safety

Response to rare diseases

Public health

Actions to pandemic

Othersレ©Caux Round Table Japan

Management of healthinformation of individuals

レ レ・Side effects due to medication or incorrect medication may cause health hazard to the patient.

レ・Damage to the environment may be caused by inappropriate disposal of medicines that the patient
can not use (It becomes a problem in the United States that medicines are disposed in toilets).

レ レ・Inappropriate prescription / treatment may be given due to exaggerated PR of product information.

レ レ・Decline in medical access in depopulated areas may result in failure to properly provide drugs in atimely manner.

レ レ・Treatment for rare diseases may not be given due to shortage of medicines.
・New pandemic virus may endanger lives of people and deteriorate the public health ofcommunities.
・Social unrest and security deterioration caused by pandemic may hinder business activities andmake it difficult for drugs to be supplied.

レ

レ

レ

レ
レ レ レ レ・Supply of therapeutic products may be delayed when new strains of pandemic influenza breaks out.
Personal
informationレ
レ レ

・Injury may occur due to product failure (including doctors, nurses, pharmacists, etc.)

Consumers

Dispose・Appropriate remedy may not be provided due to insufficient or undeveloped systems.

レConsume

Employee and Supply
Chain

Procure・Appropriate remedy may not be provided due to insufficient or undeveloped systems.

Sell
Transport
Produce

Relationship with patientsand study subjects

Develop

Access to
RemedyConcrete Issues

Research

Key human rights issues in pharmaceutical sector

・When personal information and privacy such as genetic information may be lost, individuals may
be identified. Also, personal data may be used illegally.

レ レ レ レレ レ

レ
22

3.6 Logistics and Transport Sector
Key value chains in logistics
Create: research, development Buy: capital investment, procurement of ships, vehicles, aircrafts, and fuelTransport: operation (storage, logistics, transportation) Dispose: disposal, recycle

Sell: promotion, sales
Value Chain
DisposeTransport©Caux Round Table Japan

Sell

Discrimination

Buy

Working hours

Logistics and transport industries are a labour-intensive industry. Though it is anticipated that mechanization will be further
advanced in the future, laborious work of human beings will still remain.
・ Due to the volume of orders, long-term employment can not be made and employees may be exposed to unstable
employment forms.
・ Long working hours at sites and subcontracting companies may occur, especially in busy seasons.
・ Long working hours may occur due to work at late night and early morning to cope with time difference with othercountries.
・ Because this industry has a high public nature, unexpected long working hours may occur when disasters occur.

レ レ レ レLow wages

・ Wages may be lower than the level necessary for workers and their families to live.
・ Working hours may get longer due to expansion of mail-order markets, wages per unit of time may decrease.
・ Changes in distribution volume may affect business volume, resulting in failure to obtain stable income.

レ レ レ レ

Health and safety

At the site of the logistics and transport industry, there is always dangerous work such as loading and unloading heavy objects,
transportation, the use of large machinery/vehicles, and working in proximity to trains, aircrafts and ships. It is important tomake daily efforts to prevent risks from occurring, in order to keep workplaces safe.
・ Occupational accidents may occur when handling heavy machinery or heavy cargoes at shipping vessels, terminals, airplanes
and airports.
・ Securing workers' safety in areas of piracy occurrence and regions with geopolitical risks, such as the Straits of Holmes.
[shipping business]
・ As this industry has a high public nature, there is a possibility of secondary damage of occupational accidents when disasteroccurs・ Long working hours may cause mental health risks.
・ Potential risks of causing forced and child labour, and threatening the health and safety (other than employees) in supply
chains.

レ レ レ レ

Employment
Environment andRequirement

In anticipation of the shortage of human resources due to the declining population, in recent years, human resources and formsof employment have been diversified such as employment of temporary staff, senior employees, foreign employees, thedisabled, full employment of contract employees, and implementation of short work and teleworking.
・ There may be unequal treatment in working conditions, training and promotion as various types of human resources are
employed under various types of employment.
・ Foreigners may be treated unfairly in employment and treatment.
・ There may be uniform treatment to workers without due concern for diversity (SOGI).

レ レ

WorkplaceconditionsCore
operation/
Supplychain

Concrete issues

CreateKey human rights issues in logistics and transport
sector23

Value Chain

Security

・ Possibility to contribute to neighbors by cooperating in the operation of emergency relief supplies sites and transportation of
emergency relief supplies and support supplies to evacuation centers during occurrence of disasters. (positive impact)
レ・ Possibility to contribute to industrial revitalization, tourism promotion, job creation, culture promotion and maintenance ofthe local livelihood base by connecting people and goods and by long-term commitment. (positive impact)

Community
Investment

Society and Relations withgovernment governments

Bribery andcorruption

Illegal dealing,
Trafficking

Trafficking
in human

OthersCustomers

Digitization
Access to
remedy©Caux Round Table Japan・ Potential risk of being involved in bribery and corruption for example by way of a facilitation payment. [T]・ Potential risk of being involved in collusion, bribery and corruption when negotiating capital investment and routedevelopment with governments and administrations. [C/B]
・ Potential risk of being directly involved in transportation of victims of human trafficking.
・ Potential risk of transporting banned goods.
・ Risk of unintentional and indirect involvement in transport of persons involved in child prostitution and organ sales.
[Airline]
・ Unnecessary stress may be caused when various customers use public transportation [Airline]
・ Personal information / privacy leaked from customers may be leaked.

DisposeUse ofinfrastructure

Transport

Community

In addition to fossil fuels, diversification of energy sources makes a progress including non-conventional natural gas resources
and power generation by natural energy.
・ There may be environmental pollution such as air pollution, water quality deterioration and destruction of habitats at
suppliers of fuel oils.[B]・ Air pollution may be caused by gas discharged from many transportation vehicles passing through the transportation route.
[T]・ Oil spill accidents may cause marine environmental destruction.
レ・ Environmental destruction such as soil contamination, water quality degradation and air pollution may occur due toconstruction and use of transportation infrastructure such as a factory, distribution center, road, railway, port and airport.
・ The procurement and use of fossil fuels, and an inefficient use of resources may cause climate change and give a negative
impact on people’s lives.
・ Potential for contributing to sustainable development by efficient use of natural resources (positive impact)・ In the procurement stage of ingredients necessary for operations, human rights may be threatened in water and sanitation in
the area of procurement. [Aircraft]
・ Vehicles, ships, and aircrafts operated by companies may cause damage to the roads, harbors and airports where they
operate.
・ Disasters may damage infrastructure and disrupt logistics.
レ レ・ Efforts to promptly recover infrastructure such as roads and logistic centers after disasters, and maintain basic infrastructure
for local daily life (positive impact).
・ Accidents may cause an adverse affect on health and safety of customers, citizens, and other stakeholders.
・ There may be exercise of excessive use of force by national navies dispatched to the pirate occurrence area and regions withgeopolitical risks or by armed guards hired by a company to protect logistic centers with poor security.
・ Armed security guards on board may exercise excessive force against seafarers, crewmembers, and pirates (Shipping
industry).
・ Navy and pirates may violate the rights of local residents such as fishermen (Shipping industry).

Sell

Resources

Buy

Use of natural
resources

Concrete issues

CreateKey human rights issues in logistics and transport
sector

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・ Technological evolution (AI, IoT, etc.) may cause unforeseen privacy / human rights issues, and cyber terrorism.

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・ Remedy may not be provided if human rights issues in general occur

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24

3.7 Consulting Sector
Key human rights issues in business operationsof one’s company in consulting sector

5.11.1 Value Chain
Develop : R&D, survey, planning of audit
Procure : office space, equipment, supplies, procurement of materials, procurement of IT (hardware, software and indirect materials such as date center site, materials,
electricity, fuel and water), transportation service(train, taxi, airlines, hotel), intellectual assets (books, paid reports, etc.), events / training space, various online services, etc.
Outsource : outsourcing to partner companies
Provide : planning, proposal, research report, audit plan / preparation, sales / proposal / contract (face to face / net), consulting · providing audit services
Use : use of the provided service (including service) at the client side

one company=develop, procure, provide
Value Chain
ProcureProvideDevelop

Working hours

 Risks of exposing employees to excessive work under the name of offering services to clients.
 Work has the self-contained nature. Thus, employees with high aspiration may overwork to complete tasks
which do not involve instructions of companies and supervisors.

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Wages

 Proper overtime wages to excessive work may not be paid.

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Health and safety Mental health may be impaired due to excessive stress due to long working hours and particular work.
 Disease progression may occur due to lack of medical examination.
 Because there are many opportunities to engage in work in low-transparency places such as the client's
workplace, there is a risk of damaging physical and mental health due to violence and harassment from theclient, and forced overwork.
 Health may be damaged by engaging in work at a client's workplace or accommodation where safety andhealth are not considered.

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Employment

 Possibility of discrimination based on race, nationality, gender, sexual orientation, gender identity, disability,
レ レ
creed. (common to other industries)

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During work There are risks of discrimination or unfair treatment in training, assignment, assessment and promotion basedon race, gender, sexual orientation, sexual recognition, religion, and culture, because a project team consists ofmulti-national members. There may be no multilingual hotline, and access to remedy may not be fully
guaranteed.
 Female workers may face discrimination or unfair treatment in training, assignment, assessment andレ レpromotion when they get pregnant or married.
 Project members may receive unfair treatment from clients based on race, gender, sexual orientation, gender
identity, religion, etc. (eg, women are not allowed as project members). In addition, remedies for human rights
abuses incurred in external spaces such as client workplaces may not function effectively.
 Temporary employees may be forced to do a non-contractual work.(common to other industries)

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Redundancy anddismissal

 Unreasonable pressure aiming for redundancy may be given to temporary employees. (common to otherindustries)

レ レレCommunity Resources

Use of natural
resources

 Risks of using papers in a business workplace, made from raw materials illegal logged or certified materials
with environmental, human rights and corruption risks.

レ レレSociety and
Relations with
Governmen
governmentstBribery andcorruption

 Brides may be used when making a contract.
 Risk of making unfair proposals and investigations due to all sorts of corruption acts, including not only
bribery but abuse of authority

レ レレKey human rights issues in consulting sector

WorkplaceconditionsCore
operation/
Supplychain

Discrimination©Caux Round Table Japan

Concrete issues*at client side25

*at client side
Key human rights issues in value chain in consulting sector

outsourcing company, client=outsource, use, dispose
Value Chain

Forced Labour

Resources
Community
Title to landSociety and Relations withgovernment governments

During work
Dangerous work andemployment
Deposits and papers

Use of natural
resources (water andlands)
 When the case occurs in supply chain of client company, we may contribute to the case indirectly by
Voluntary relocation- providing them with services.
consultation andcompensation

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DisposeCore
Discrimination
operation/
SupplyChild Labourchain

・ Outsourcing company:-Risk of forced long working hours.
-Risk of discrimination based on race, nationality, gender, sexual orientation, gender identity, disability, creed.
-Unconscious discrimination may occur against foreign contractors due to cultural differences.
・ Client:
Human rights abuses may be caused by companies, as they make proposals that may cause human rights
abuses and discrimination.
(Example: Privacy infringement or human rights infringement by collecting data using AI or big data)
・ When the case occurs in supply chain of client company, we may contribute to the case indirectly byproviding them with service.

Use

Treatment in the
Health and safety
workplace

Concrete issues

Outsource

Key human rights issues in consulting sector

Bribery andcorruption

 When the case occurs in supply chain of client company, we may contribute to the case indirectly byproviding them with services.

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Relations to stateswith poor humanrights awareness Some countries where client companies are operating or companies consider entering their domestic markets
may have poor understanding of human rights. If we provide our services to the client companies, they may
contribute to those countries through investment, sales of goods and services, and taxes.

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26

List of Participants of 2019 Human Rights Due Diligence Workshop■ Corporate Participants (24 Companies, 67 Participants)
Maki Goda

Youzou Nakao
Shigeru Sugimoto
Hiroyuki Ohashi
Ayaka Hirai
Rena Kurihara
Junko Tomaru
Mayuko Ushioda
Keiichi Ogawa
Tamao Taneda
Yasuko Okada
Yumi Namba
Junji Kokubo

Mayuko Maeda

Kazuya Doi
Hidemi Shintaku
Megumi Noda
Manabu Okubo
Keiichi Shimada
Natsumi Terawaki

AJINOMOTO CO., INC.
Associate General Manager, Global Strategy & Planning Group,Group Procurement Center
AJINOMOTO CO., INC.
Talent Development Group, Human Resources Dept
ANA HOLDINGS INC.
Manager, CSR Promotion
ANA HOLDINGS INC.
CSR Promotion
QUICK Corp. ESG Research Center
AnalystQUICK Corp. ESG Research Center
AnalystKOSÉ Corporation
Manager of Public Relations Section
KOSÉ Corporation
Public Relations Section
KOSÉ Corporation
Public Relations Section
KOSÉ Corporation
Public Relations Section
Cuore C Cube Co., Ltd.
Chairman and Chief Executive Officer
Cuore C Cube Co., Ltd.
Executive Officer, Business Development Director
SHISEIDO CO., LTD
Group Manager, Environment Group, Sustainable Environment Department,
Social Value Creation Division
SHISEIDO CO., LTD
Environment Group, Sustainable Environment Department,
Social Value Creation Division
SUMITOMO CHEMICAL CO., LTD.
Legal Dept.
SUMITOMO CHEMICAL CO., LTD.
Assistant General Counsel, Legal Dept.
SUMITOMO CHEMICAL CO., LTD.
CSR Dept.
SEKISUI CHEMICAL CO., LTD.
Senior Manager, ESG Management Department
SEKISUI CHEMICAL CO., LTD.
Manager, ESG Management Department
SEKISUI CHEMICAL CO., LTD.
ESG Management Department

27

Koichi Kawahara
Emiko Mori

Yasushi Kato
Shuji Sonezaki

Eriko Takahashi

Motoharu Miyazaki
Toshihide Ieki
Satoshi Nakatani
Masano Imohara
Yoshinori Okada
Isamu Kibe
Noriya Akinobu
Masako Ishimori
Shimpei Yamazaki
Mayako Watanabe
Mihoko Nagai
Miwa Keiichi
Akiyo Okuda
Manae Oki
Hitomi Meisaku
Etsuko Tanaka
Eiichiro Ono

Chugai Pharmaceutical Co., LTD.
Manager, Business Ethics Group, Sustainability Dept.
Chugai Pharmaceutical Co., LTD.
Senior Specialist, Business Ethics Group,
Sustainability Dept.
Chugai Pharmaceutical Co., LTD.
Business Ethics Group, Sustainability Dept.
TOTO LTD.
Chief Senior Planner
ESG Promotion Section, ESG Promotion Department,
Management Planning Division
TOTO LTD.
ESG Promotion Section, ESG Promotion Department,
Management Planning Division
Toyo Seikan Group Holdings, Ltd.
General Manager, CSR Communication Group, CSR Department
Toyo Seikan Group Holdings, Ltd.
Assistant Manager, CSR Communication Group, CSR Department
NAXIS CO., LTD.
Director, Sustainable Project Division
NICHIREI CORPORATIONGroup Leader, CSR Promotion, Group Communication
NICHIREI CORPORATION
Professional CSR Promotion & Public Relations Group Communication
NICHIREI FOODS INC.
Manager, Strategic Planning Group, Strategic Planning Department
NISSHIN SEIFUN GROUP INC.
General Affairs Department, General Administration Division
NISSHIN SEIFUN GROUP INC.
General Affairs Department, General Administration Division
NISSHIN SEIFUN GROUP INC.
General Affairs Department, General Administration Division
NISSHIN SEIFUN GROUP INC.
General Affairs Department, General Administration Division
NISSHIN SEIFUN GROUP INC.
Public Communications Department, General Administration Division
NISSHIN SEIFUN GROUP INC.
Consumer Relations Office
NISSHIN SEIFUN GROUP INC.
Consumer Relations Office
NISSHIN SEIFUN GROUP INC.
Consumer Relations Office
NISSHIN SEIFUN GROUP INC.
Environmental Management Group, Technology & Engineering Division
NH Foods Ltd.
General Manager, Corporate Social Responsibility Department
NH Foods Ltd.
Assistant General Manager, Corporate Social Responsibility Department

28

Yoshiaki Sakurai
Misa Sano
Rie Adachi
Kenji Honda
Noriko Sato
Mari Kojima
Yuko Araki
Toshihiko Hoshino
Takeshi Aoki
Nobuko Sakurai
Satoshi Murota
Satoshi Arita
Naoki Usui
Maiko Tsutsui
Midori Abo
Yoshiyuki Itoh
Noriko Minamizaki
Jun Okumura
Watanabe Noboru
Yasushi Sekiguchi

Koji Hashimoto

Rina Kitayama

NYK Line
Manager, CSR Team, IR Group
NYK Line
CSR Team, IR Group
NYK Line
GHR Coordination Team, Human Resources Group
Nomura Research Institute, Ltd.
Manager, Sustainability & Responsibility Group
Nomura Research Institute, Ltd.
Senior Consultant, Corporate Innovation Consulting Department
FUJIFILM Holdings Corporation
Manager, ESG Div.
FUJIFILM Holdings Corporation
Manager, ESG Div.
FUJIFILM Holdings Corporation
ESG Div.
Bridgestone Corporation
General Manager, Organization Planning Dept.
Bridgestone Corporation
Manager, Diversity Promotion Unit, Organization Planning Department
Bridgestone Corporation
Diversity Promotion Unit, Organization Planning Department
POLA ORBIS HOLDINGS INC.
Manager, Corporate Communications Div., Corporate Social Responsibility
POLA ORBIS HOLDINGS INC.
Corporate Communications Div., Corporate Social Responsibility
POLA ORBIS HOLDINGS INC.
Corporate Communications Div., Corporate Social Responsibility
POLA ORBIS HOLDINGS INC.
Corporate Communications Div., Corporate Social Responsibility
MITSUI CHEMICALS, INC.
Manager, Corporate Sustainability Div.
MITSUI CHEMICALS, INC.
Manager, Corporate Sustainability Div.
Mitsubishi Chemical Holdings Corporation
Group Manager, KAITEKI Promotion Office, Corporate Strategy Division
Mitsubishi Chemical Holdings Corporation
Manager, KAITEKI Promotion Office, Corporate Strategy Division
MORINAGA MILK INDUSTRY CO., LTD.
Manger, Diary Sustainability Group, Diary Farm Services Department
Manufacturing Division
MORINAGA MILK INDUSTRY CO., LTD.
Manager, Environmental Affairs Group, CSR Promotion Department
Corporate Communication Division
MORINAGA MILK INDUSTRY CO., LTD.
Assistant Leader, Environmental Affairs Group, CSR Promotion Department
Corporate Communication Division29

Mamiko Nakamura

Hiroyasu Abe
Kaoru Yoshioka

MORINAGA MILK INDUSTRY CO., LTD.
Competent, Social Contribution Promotion Group,
CSR Promotion Department, Corporate Communication Division
YAMAHA CORPORATION
Leader, Sustainability Group, General Administration Division
YAMAHA CORPORATIONManager, Sustainability Group, General Administration Division■ Organizations that Raised Issues (13 Organizations, 13 Participants)
Hiroaki Kawate
Bureau Veritas Japan Co., Ltd.
Social & RBA Audit, Systems Certification Division (CER)
Kaoru Takahashi
WaterAid Japan
Executive Director
Chiaki Furusawa
WWF Japan
Forest Programme
Yuichi Kamiya
Japan Alliance for Legislation to Remove Social Barriers based on Sexual
Orientation and Gender Identity (Japan Alliance for LGBT Legislation, JALL)
Executive Director
Hideaki L Nakagawa
Amnesty International Japan
Executive Director
Hiroaki Odachi
GreenPeace Japan
Public Engagement Offline Engagement Coordinator
Junichi Mishiba
Friends of the Earth Japan
Forest Program Coordinator
Mitsuo Wakameda
The Japan Research Institute, Limited
Research & Consulting Division, Executive Senior Consultant
Yukiko Furuya
Consumer Conference for Sustainability (CCFS)
Representative, Consumer Affairs Specialist
Machiko Kaida
Japan International Center for the Rights of the Child (C-Rights)
Executive Director
Akira Hatate
Japan Civil Liberties Union
Director
Mariko Yamaoka
Citizens’ Network to Build a Sustainable Society through Responsible
Consumption (SSRC) Co-Director
NOT FOR SALE JAPANDirector
Akiko Sato
Kotonoha Law
Attorney-at-Law■ Organizer
Caux Round Table Japan, Nippon CSR Consortium30