Sep, 18th, 20142014 CSR and Risk Management Conference
Day One, Sep 4th Exclusive Session and Open Session@Tokyo Conference Center Shinagawa
 Introduction
On 4th and 5th September, 2014 in Tokyo, Caux Round Table Japan and UN
Working Group on the issues of Human Rights and Transnational Corporations and Other
Business Enterprises jointly held the “Conference on CSR and Risk Management”, following
the previous conferences in 2013. On 4th, 47 participants in total took part in Exclusive
Workshop Session in the morning, and learned the importance of taking “business andhuman rights” as CSR risk management and developing measures quickly to prevent humanrights risks. In Open Workshop Session in the afternoon, leaders in the field of global CSR
introduced their up-to-date activities to.77 participants.
 Opening Remarks
Puvan Selvanathan, a member of the UN Working Group on the Issue of Human
Rights and Transnational Corporation and Other Businesses, highlighted the meeting in
Azerbaijan whose objective was to support efforts of the Government, businessenterprises and other stakeholders to prevent and protect human rights. The working
Group would present its final reports and recommendations to the Human Rights
Council in 2015. He expressed his expectation that the exclusive session would help
companies to understand how they can fulfill due diligence responsibilities to respecthuman rights.
 Exclusive Session
Roger D. Branigin, Risk consultant, Co-Founder of the private consulting firm
Acuity Human Rights Advisors, and Executive Director of the Global Corporate
Community of Practice, introduced several methods that firms might use to bring theirbusiness goals and human rights responsibilities into closer alignment, including theapplication of accepted risk management practices to identify, prioritize, and measure
their human rights impacts.
He delivered his presentation entitled “The Unfinished Business of Human
Rights”. At first, he presented brief history of international efforts to regulate corporate
human rights conduct, origins and causes of the current corporate accountability gap
and basic risk management tools.
Then, the groups conducted a hypothetical case study of a company facing humanrights risks in supply chain to consider what actual and potential risks could be
identified and what measures could be taken to prevent and mitigate those risks withavailable tools. The preventing and mitigating measures that the groups presented
contained the unique attributes of Japanese corporate culture and tradition in how they
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dealt with a supplier. One was that the Japanese supplier-partnering relationship, whichis to work together with suppliers to aim for continuous improvement. The other was
self-reflection, which is to re-examine and correct their corporate policies and activities
to suppliers. The best gain of this workshop was that the participants could sort out the
problems in a structured way and acknowledge them through these processes. At theend, Roger stressed the importance of building human rights due diligence process that
identifies, measures and analyzes relevant risks with tools and methods, engages in a
multi-stakeholder dialogue and integrates them into strategic planning anddecision-making.
 Open Session
In the Open Session in the afternoon, initiator from leading global organizationsin the field of business and human rights presented their recent activities.
John Morrison, Executive Director, Institute for Human Rights and Business,brought up the four important points with respect to human rights due diligenceprocess: knowledge on human rights risks, effectiveness of risk mitigation management,a degree of transparency when disclosing information, and ways of establishing an“access to remedy” mechanism. He also mentioned that companies are required torespect human rights, obtain consent from their stakeholders, and implement risk
mitigation management.
Cathrine Bloch Polusen-Hansen, Adviser, The Danish Institute for Human
Rights(DIHR) presented the active involvement of DIHR in private sector throughresearch and tools for protection and promotion of human rights worldwide. She
delivered key messages for business as followed: know your operations and theirimpacts; act early; ensure common understanding/expectations within all the workers;
and engage openly with interested stakeholder (including in rights-holders).
Christopher Schuller, Legal Adviser, German Institute for Human Rights(GIHR) gave the presentation titled, “Implementing the UNGPs in Germany”. Hehighlighted that the development of a National Action Plan (NAP) on business andhuman rights is led by foreign and trade ministries, and moderated by GIHR and key
industry associations. Also, implications of this NAP would be for not only domestic
German economy, but also foreign trade, foreign suppliers and subsidiaries abroad in
Asia. At the end, he mentioned that GIHR would continue to facilitate human rights inbusiness to increase the competitiveness of Germany economy and corporations byhelping the development of NAP.
Amol Mehra, Director, International Corporate Accountability Roundtable,
addressed several important points: companies are increasingly being demanded toshow respect for human rights; laws and policies are making such respect mandatory,
there are risks such as lose of consumer confidence, reputational risk, liability, employee
morale; and there are opportunities to do “good” business which increase consumer
preference, reputational gains, employee morale and market response.
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Roger D. Branigin, Executive Director, The Global Corporate Community ofPractice. Principal(GCOP), Acuity Human Rights Advisors, explained that GCOP is toshare and develop good practices in human rights due diligence for the private sector ina safe space by using or adapting established methods, tools and internal controls of risk
management. In addition, he mentioned the benefits of risk management., which areoffering a common language for business and human rights practitioners, integrating
human rights into other management functions, having capacity to predict problems andreveal hidden relationships and providing evidence-based accountability to measureprogress.
 Panel Discussion
Following panel discussion focused on the precautions to be taken at
implementing UNGPs in Asia. In situations where there are weak governance and rule oflaw, companies are always exposed to unpredictable human rights risks. Thus, in thiscontext, the panel stressed the importance of developing risk-prevention measures morethan risk-mitigation measures. To do so, it is important to understand and capture
human rights related challenges on the ground through having a dialogue with “right”
stakeholders and creating a more effective grievance mechanism. These initiatives canlead to enhanced sensibility on critical issues, reduced risks and gained accountability
from external stakeholders; thus, companies can develop better risk-prevention
measures.
 Presentation by CRT Japan
After the panel discussion, Hiroshi Ishida Executive Director of CRT-Japan
introduced a “Restorative” approach to business and human rights, and activities of
CRT-Japan. He expressed his concerns on whether tightening regulations over corporate
activities would narrow down the options available to companies for tackling underlying
human rights issues. Thus, he stressed the need of a new “Restorative” approach, rather
than “Retributive”, which different parties collaborate with understanding and respectfor differences in opinions and cultures. He introduced “Sustainable Navigation” tailoredby CRT-Japan to support companies in their efforts to implement human rights due
diligence process in a restorative way, and an developing framework of grievancemechanism.
Miho Okada, Director of CRT Japan, presented a developing plan on thethird-version of “Human Rights Issues by Sector” with the objective to raise awareness ofrelation between business and human rights through continuous discussion on humanrights issues with multi-stakeholders.
 Closing Remarks
Vessselin Popovski, Senior Academic Programme Officer, Institute for
Sustainability and Peace at the United Nations University in Tokyo delivered closing
remarks mentioning the importance of conceptualizing human rights in the local context,
gaining local knowledge through a stakeholder dialogue, committing to implementhuman rights due diligence, enhancing quality of business for a long term and creating
an effective “access to remedy" mechanism.
経済人コー円卓会議日本委員会
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Day Two, Sep 5th Open Session, Workshop@Kwansei Gakuin University Tokyo Matunouchi Campus

 Opening Remarks
Hiroshi Ishida, Executive Director of CRT-Japan, gave his opening remarks asfollowed:“Business and human rights involves many different themes and aspects. With whichtheme should company start their initiatives? Although priority could be different between
companies, labour issues could be related to all the companies despite their difference inbusiness activities and operational boundary. As is posing a great challenge to the dignity ofhuman, all the stakeholders should work together for fighting against violation of labour
rights, especially against the issues of child labour and forced labour.
In addition to these common issues, some new perspectives should also be considered.
In today’s society, it should not be ignored that the issues of water, food, and energy, whichhave often been dealt with as an environmental issue, also involve human rights with a rapid
increase in world population. Moreover, there is a growing demand for consideration forhuman rights and sustainability at a mega-sporting event, such as the Olympics Games andFIFA World Cup. As Tokyo will host the 2020 Olympic and Paralympic Games, companies will
face increasing pressure to give consideration to human rights and sustainability in theirprocurement activities.
In this workshop, these 4 themes, Children’s Rights, Forced Labour, Mega-Sporting
Events and Human Rights, and Water, Energy, and Food Security Nexus will be discussedwith the presentations of experts, NGO/NPOs, and companies” through the process of humanrights due diligence.

 Session 1: Children’s Rights
In the session of Children’s Rights, the presentation introduced principles and actual
data related to children’s rights, practical tools allowing companies to identify children’s
rights issues, and ways of how NGO/NPOs and companies tackle them. Based on these inputs,
participants discussed challenges and meaning of protecting children’s rights for companies.
Kevin Grankin, Chief Operating Officer, Maplecroft, was absent at the conference
due to his inconvenience. On behalf of Maplecroft, Miho Okada, Director of CRT-Japan,
introduced Maplecroft as the world’s leading global risk analytics, research and strategic
forecasting company. Its work includes “Maplecroft’s Human Rights Risk Atlas” tailored toallow companies to assess, quantify and compare human rights risk across all countries withscorecards of each country and maps for each theme, and “ Human Rights Due Diligence
Dashboard” that has been taken up by multinational companies to identify and manage thoseareas of their value chain where the risk of human rights violation is highest. She expressed
her expectations that Japanese companies could undertake their own evaluation ofcountry-level risks to identify geographic areas/stakeholders impacting their businesses.
Carmel Giblin, Chief Executive Officer, Sedex, gave a presentation entitled “howsuppliers comply with child labor standards”. She emphasized that child labor is of great
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concern in supply chains, and it is important for companies to take measures that obviate therisk related to child labor forefront.
Yumiko Horie, Advocacy Manager, Save the Children, gave the presentation
covered the historical background and context of “Children’s Rights and Business Principles”.
She explained that in order to address children rights more explicitly, UNICEF, the UN Global
Compact and Save the Children jointly developed “Children’s Rights and Business Principles”
in 2012. “Children’s Rights and Business Principles” encourage companies to incorporate
them into a wide range of corporate activities in the workplace, marketplace and community
to protect, respect and facilitate children’s rights. She also mentioned that companies
committed to supporting children’s rights are to be more sustainable in the long term, andSave the Children can help businesses become more child-friendly and sustainable, using“Children’s Rights and Business Principles” as a framework.
Yuka Iwatsuki, President, ACE, presented a statistical data on child labor and theneed of taking both a supply-side approach and a demand-side approach in order toeradicate child labor. Currently, ACE launches projects to help build a sustained local
community at the supply side as well as programs to stimulate and disseminate ethicalbusiness and consuming practices in Japan at the demand side. Besides, she introduced theview that companies can address the child labor issue from the three perspectives ofsustainability, CSR and risk management. Also, several recent cases of ACR’s work
collaborated with business to solve child labor were introduced such as “One Chocolate for
One Smile” campaign with Morinaga & Company, and a CSR review of Lee Japan and a joint
host of “Ethical Fashion College” with Lee Japan.
Lilian Tseng, Manager, ASICS Corporation, presented ASICS’s approaches topreventing hiring child labor. She elaborated on recruitment procedure taken at a factory byusing a flow chart, and some measures taken to prevent employing child labor. For instance,
verifying the age of applicants by official documents and maintaining comprehends records
indicating the age at which each worker was employed, and factory to pay for schooling if
workers below legal age for education and to continue paying wage during education if childlabour found in the factory. She emphasized that ASICS expects all its business partners toadhere to ASICS’s governing requirements and promote improvements together at theworkplace.
Teresa Fogelberg, Deputy Chief Executive, Global Reporting Initiative by Video
Message, noted that it is the right way for businesses to take CSR as risk management,
incorporate business and human rights into their due diligence processes, and share theirprogress in reports as a means of communication. And, the European Parliament adopted the
directive on July 2014, mandating large companies, including Japanese companies, todisclose combined information on business strategies and CSR (business and human rights).
This will enter into force after 2016. In response to this, UNICEF and GRI jointly developed“Children Right in Sustainability Reporting” with respect to children’s rights that UNGP ishighly concerned of. GRI G4 mentions indicator of child labor in G4-HR5.

経済人コー円卓会議日本委員会
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 Session 2: Forced LaborIn this session, actual data and situation related to forced labour, its relevance toJapanese companies, and some initiatives and measures carried out by global companies
were introduced. Based on these inputs, participants discussed challenges in identifying andaddressed the issues of forced labour, as well as meaning for companies.
Carmel Giblin, Chief Executive Officer, Sedex, mentioned that contemporary forcedlabor is an extremely complex labour rights violation that can take many forms. It wassuggested that companies should map their supply chains to identify places of vulnerable
workers for risk management, assess hiring practices of labour brokers and offer education
programs to labour brokers with whom they do business, to ensure that brokers do notcontribute to forced labor.
Kenichi Kumagai, The Japan Association for Advancement of ILO Actitivies,
delivered a presentation entitled “Abolition of Forced Labor”. He presented definition, trends
and statistics of forced labor, as well as ILO’s policies and measures. Next, he introduced
policies and measures in Japan implemented based on the Japan’s Constitution that prohibits
forced labor. Forced labor was disappeared from major domestic businesses by efforts ofcentral and local governments, trade unions, NPO/NGOs, etc. However, he stressed the pointthat forced labor in Japan still exists in black businesses, in foreign workers in “skill training
systems”, and in global supply chains.
Lydia Long, SeniorPrograms Director, Verité and Daryll Delgado, Program
Manager for Research and Stakeholder Engagement, Verité Southeast Asia,
highlighted key findings drawn from recent Verité research on the relevance of brokers,
migrant workers and forced labor, indicating that the high numbers of migrant workers
systemically remain to be enslaved in a variety of sectors and locales across the globe. They
pointed out that companies are at high risk of being implicated in a human rights abuse,given the high numbers of abused migrant workers at factories that supply to or are ownedby American, Japanese, Korean and other companies. Verité provides companies with avariety of services to protect against abuse and recognize and promote good labor practices
such as “Fair Hiring Toolkit” that offers tools, guidance, and approaches to support the
responsible recruitment of migrant workers in global supply chains and “Conducting
Interviews with Labor Brokers” tool designed to help brands and social auditors to improvetheir own audit protocols by expanding the audit interview process.
Teresa Fogelberg, Deputy Chief Executive, Global Reporting Initiative by Video
Message, expressed her expectations that companies address the issue of forced labor inrisk management, business strategies, and in particular supply chains. GRI pays great
attention on how each company uses indicators and discloses information. She appreciatedthis conference for bringing up this unsolved point to be discussed at this section. GRI G4
mentions indicator of forced labour in G4-HR6.
Question and Answering
The question was asked as follows: what factors make it difficult to solve forced labour,
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though regular audits are conducted by companies? Darlly from Verité responded that anaudit is necessary, yet not an adequate approach in solving the issue of forced labour forvarious reasons. The credibility of the provided documents by suppliers is always of realconcern. In addition, in the process of worker interviews, suppliers may deceive auditorswith the circumstances of interviews. Thus, companies need to review their auditing policies
and procedures to ensure that they understand the real situations on the ground and therisks associated with them, and make improvements where necessary.

 Session 3: Mega-sporting event and Human Rights
In the session of Mega-sporting Event and Human Rights, a leading expert in the field
explained the relevance of the issue to companies. This was followed by a company’spresentation of their activities. Based on these inputs, the way in which the UNGPs could be
used at a mega-sporting event, as well as risks and opportunities for event organizers andcompanies will be discussed.
Carmel Giblin, Chief Executive Officer, Sedex, highlighted that the London
Organizing Committee of the Olympic Games and Paralympic Games (LOCOG) made it
commitment to hosting a “Sustainable Game” by announcing that it became a member of the
Supplier Ethical Trade Audit Data Exchange (SEDEX) of Sedex to achieve a sustainablesourcing. The Sustainable Sourcing Code mandated suppliers and licensees were required tosign up to SEDEX to identify, source and use environmentally and socially responsible
practices. She also mentioned that Rio 2016 has entered into a partnership with Sedex toassist with implementation of the responsible sourcing strategy and develop a positive
legacy for Brazilian companies.
Motoko Aizawa, Managing Director and Chair of IHRB US Board, Institute for
Human Rights and Business, delivered a presentation entitled “Addressing Human Rights
Issues in Mega-Sporting Event Supply Chain: Guidance for Due Diligence”. She elaborated on
key due diligence steps for sponsors, licensees and suppliers which are 1) identifying
potential human rights and sustainability issues in the proposed supply chains at the country,
sector and factory levels, 2) prioritizing material human rights issues as an input to supplierselection and the terms of engagement and 3) monitoring and reporting of supplierperformance including factory identification. As with event organizers, she addressed thatthey need to explicitly advocate and demonstrate the value of sustainability to create anenabling environment for companies. For instance, they can establish codes of conduct,sustainability sourcing commitments, bidding criteria, collective action platforms thatincorporate human rights and sustainability criteria to help level the play field.
John Morrison, Executive Director, Institute for Human Rights and Business,
highlighted that at the London 2012 Olympics and Paralympics, they were called upon totake both environmental measures and especially robust social measures to prevent
infringements of human rights threatening people’s lives. He stressed that it was importantfor event organizers to understand a process of how they tackle material human rights issues
and have multi-stakeholders involved. In addition, he emphasized that companies that use
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grievance mechanisms better can gain opportunities to take measures early to prevent risks
and enhance the credibility from a society by doing so.
Masahiro Sato, Manager, Global CSR Office, Legal Affairs Department,
Mizuno Corporation, presented a brief history of Mizuno on Human Rights and Olympics.
He highlighted that “Play Fair at the Olympics” campaigns by NGOs in the years of 2004 and2012 are an opportunity for Mizuno to learn necessity of supply chain management. In
response to these campaigns, Mizuno took actions as followed: drafting of CSR Procurement
Guideline and Code of Conduct for Supplier; discussion and scheduling for CSR Audit; anddiscussion for establishing a whistle-blowing system for workers. In April 2004 Global CSR
Office was established and CSR audit at OEM factories in China and South East Asia kicked off.
Mizuno carries out audits to factories on a periodic basis and analyzes outcomes of audits,some of whom were introduced in his presentation. At the end, he emphasized that Mizuno
works together with suppliers as an equal partner for facilitating business solutions, the CSR
audit should play the role of a medical examination, helping to detect risks and enabling
appropriate measures to be taken so as to enhance the soundness of management, andMizuno discloses information in public and strived to minimize harms to workers whenproblems are detected.
Teresa Fogelberg, Deputy Chief Executive, Global Reporting Initiative by
VIDEO MESSAGE, expressed her concerns that for sports events a significant number ofworkers are placed at construction sites to build facilities. If problems associated with theenvironment and labour practices occur on sites, this could give a huge adverse impact on
the society. Thus, she pointed out that event organizers should capture pressing issues of
local communities quickly through engagement with stakeholders and recognize the natureof problems by reference of GRI. In addition, they are expected to develop reports on
Sustainability with reference to G4 Sector Disclosures to local communities.

 Session 4: The Water, Energy and Food Security Nexus
In the session of Water, Energy, Food Security Nexus, a company presented their activity inthis area. Based on these inputs, participants discussed risks and opportunities regarding thewater, energy, and food security nexus.
Carmel Giblin, Chief Executive Officer, Sedex, stressed the importance ofunderstanding that a less waste of water and energy, including supply chains leads to costsaving.
Masato Taniguchi, Head of Collaboration Nexus Unit and Future Earth Unit,
Center for Research Development, Research Institute for Humanity andNature by VIDEO MESSAGE, highlighted the importance of building a robust understandingon the situation where the intensive demands for water, energy and food make conflicts andtradeoffs between resources and stakeholders; thus emphasized that optimal solutions forthese social demands are needed for global sustainability. In addition, he mentioned that the
populations that live under natural disasters in Asia and the Pacific face elevated risk and経済人コー円卓会議日本委員会
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potential disaster as negative impacts as well as benefit from positive ecological goods andservices. To cope with this challenging situation, he introduced a regional project“Human-environmental security in the Asia-Pacific Ring of Fire: water-energy-food nexus”
recently launched to maximize human-environmental security (minimize the risk) bychoosing policies and management structures that optimize water-energy-food connectionsin Asia-Pacific region. Themes for this project include conflicts and tradeoffs between
geothermal power generation and the hot spring business (water-energy nexus) andrun-of-river power generation (water-energy-food nexus).
Takenobu Shiina, General Manager, Environmental Sustainability Strategy
Department, Corporate Communication Division, Suntory Holdings Limited, underlinedthat as Suntory uses a great deal of water for business activities, it recognizes realization ofwater sustainability as the most important issue that the company takes. In addition, he
presented a direction of Eco-Strategy to achieve the following targets toward 2020 which are1) preserving and regenerating the natural environment and 2) reducing adverse
environment impact. One of the activities to be introduced was a “Forest of Natural Water”
project, aiming at expanding the area of Natural Water Sanctuaries to 12,000 ha in Japan
which leads to improvement of biodiversity and cultivation of soil. He concluded that
Suntory considers its responsibility to foster the rich forests and cultivate groundwater as its
business uses large amounts of groundwater in every step of the manufacturing process of
its product.


Summary of the Conference on CSR and Risk Management and Appreciation

Caux Round Table Japan would like to thank you very much for your cooperation in
the Conference on CSR and Risk Management in 2014. The conference was a wondrous
success. We truly appreciate those who supported us in many ways for the conference.
Japanese companies face troubles in finding ways of how they tackle business andhuman rights, and it is the same concern to European and US companies. However,
initiators from global CSR organizations who attended this conference highly appreciatedefforts of Japanese companies made to take steps further to business and human rights. They
were also impressed that the Nippon CSR Consortium for which CRT Japan works incooperation with other relevant people established an unique platform of multi-stakeholders
unlike any other in the world, and discussions on human rights issues by sector andprioritization are taken place in it.
As with “Business and Human Rights”, the initiators felt resonated with the“Restorative” view that “Business and Human Rights” largely reflected by Western ideas
need to consider more elements of local Asian values.
However, they mentioned key important points regarding CSR activities of Japanesecompanies.

経済人コー円卓会議日本委員会
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GRI G4 and ISO26000 should be a useful means to facilitate contexts of CSR, and not a goal.
Thus, it is important for companies to have a robust understanding of CSR contexts before
they use GRI G4 and ISO26000.
Taking risk-prevention measures is more important than taking risk-mitigation measureswhen problems occur. To do so, companies should develop a grievance mechanism thathelps them to capture sign of changes through multi-stakeholders.
Last of all, CRT Japan sincerely hope that all the participants could have the firsthandknowledge on the latest global CSR trends and find orientation for how to tackle businessand human rights. Thank you very much. We will greatly appreciate your further guidanceand encouragement.

Caux Round Table Japan, Executive Director
Hiroshi Ishida

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