10th August, 2017
Nippon CSR Consortium

Version for Public Consultation
10th August – 22th September, 20172017 Human Rights Due Diligence Workshop (Tokyo, Japan)
Invitation to Comment on “Human Rights Issues by Sector (draft)”
Since September 2012, the Nippon CSR Consortium has been working to provide a forum in which toidentify and discuss negative human rights impacts that may arise as a result of corporate activities. This
work has been conducted in collaboration with companies from various industrial sectors, as well as NPOs,
NGOs and human rights experts in academia.
The 2017 Human Rights Due Diligence Workshop was held for the sixth year, in the period from the 15th ofJune to the 13th of July. The participants identified sector specific human rights issues with the use of
Human Rights Guidance Tool developed by UNEP FI.
To facilitate the free and deep discussion, this workshop adopts Chatham House Rule. Remarks in thediscussion express views of individual participants, not views of representative that belong to companies ororganizations. The sole responsibility for the content of this document lies with CRT Japan, as an organizerof Nippon CSR Consortium.
This paper is the result of a series of discussion in the workshop. The Consortium hereby releases “Human
Rights Issues by Sector (draft)”1.

Subject
Human Rights Issues by Sector (draft)2.

Application(1) Consultation Period
Thursday 10th August to Friday 22th September, 2017 (Japan Time)(2) Submission Address
Please send your comments to CRT Japan’s Nippon CSR Consortium secretariat, by e-mail(yourcomments@crt-japan.jp) as an attached document in Word format. Please kindly be advisedthat we are unable to accept comments through other methods (such as by telephone, fax, or post),
nor are we able to accept anonymous submissions.

1(3) Application Procedure
Address to: Secretariat of the Nippon CSR Consortium (in CRT Japan)
Subject: Comment on “Human Rights Issues”
Organization/Affiliation and Name: (Department, Name)
Email and Telephone :(4) Comments:
We invite public comments on the following questions. In the description of your comments,
please specify the industry sector, page number, and concrete issue that your comment addresses.
Depending on your needs, please enter your comments on the Public Comments sheet (Appendix
3).
1.

Please share any comments on the concept and procedure of this workshop

2.

Please freely respond with any comments on “Human Rights Issues by Sector (draft)”

3.

The final report is scheduled for publication in October 2017. What kind of format and/or
procedure do you consider would be most appropriate for finalizing the report?

(5) Submission and Inquiry
Secretariat of Nippon CSR Consortium (in CRT Japan Office)E-mail: yourcomments@crt-japan.jp
3.

Management and Handling of Comments
The comments on the draft submitted to the Nippon CSR Consortium will be used for the futurereference of participants in the discussions. Please note that we are unable to respond to individualcomments. All the comments, personal names and/or corporate and organizational names submitted
may be disclosed on the CRT Japan website, however addresses, telephone and fax numbers, andaddresses of the commenter’s will not be published. If the comments include private information, bywhich a particular individual can be identified, or any information deemed to damage a property rightof an individual person or a corporation, pertinent sections of the text will be deleted at the time of
publication.

Hiroshi Ishida
Executive Director, Caux Round Table Japan2

Table of Content

1.

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

1-1.

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

1-2.

Programme for Identifying Human Rights Issues ................................................................................5

1-3.

Procedure of the Workshop in 2017 .....................................................................................................7

1-4.

Points for Consideration .......................................................................................................................82.

Points for collecting Public Comments ...........................................................................................................93.

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

4.

Human Rights Issues by Sector (draft)

4-1.

Manufacturing (Medical Electronic Equipment and Semiconductor)…………...……………..….12

4-2.

Information, Communication, and Technology…………………………………………...……….14

4-3.

Transport and Logistics……………...…………………………………………………………… 17

4-4.

Chemical and Building Materials……………..…………………………………………………...19

4-5.

Food………...……………………………………………………………………………...………21

4-6.

Consumer Goods (Cosmetics and Daily Goods)....……………………..........................................23

Appendix 1: Relevance between the UNEP FI and NGO/NPO and subject experts by Sector
Appendix 2: Report of Stakeholder Engagement Program in Asia
Appendix 3: Public Comments Sheet3

1

Preface

1-1.

Purpose of the Human Rights Due Diligence Workshop

The Nippon CSR Consortium was established in September 2012 to raise awareness and promote activities
in the fields of business and human rights by offering a forum in which companies can discuss humanrights issues with NGOs/NPOs and human rights experts. Since 2012, the Consortium has held the Human
Rights Due Diligence Workshop. In 2012 the 68 participants consisted of 39 companies and 11
organizations, in 2013 the 35 participants were from 15 companies and 12 organizations, and in 2014 the68 participants were from 34 companies, 17 organizations and others, in 2015 the 98 participants in the firstsection of the workshop were from 48 companies and 17 organizations. In 2016, the 73 participants werefrom 40 companies and 14 organizations. In 2017, the 67 participants were from 23 companies and 17
organizations.
There are some underlying factors that contributed to the establishment of the consortium. Companies facedifficulty in responding to various demands and expectations from a broad range of their stakeholders.
Therefore, it is effective and useful for companies to join this consortium, discuss and identify what humanrights issues they need to address with NGOs/NPOs, and plan to carry out their human rights activities intheir companies. The consortium also emphasizes sustainability of activities. It is important for companies
to be committed to continuous efforts for incremental improvement. In order to respond dynamically to adiverse range of issues, it is also important for companies to stay abreast of changes and issues in thesociety that potentially link their activities to human rights impacts.
The Nippon CSR Consortium positions the workshop as an activity that aims to assist companies in (1)identifying and assessing any actual or potentially adverse human rights impacts as defined in the UN
Guiding Principles1, which are connected to their activities, and (2) integrating and acting upon the findings,(3) reporting, and (4) tracking improvement continuously. We hope participants’ companies can use theknowledge acquired at this programme to support their human rights due diligence activities at theircompanies.
The “Human Rights Issue by Sector (draft)” represents the outcome of the discussions started in June andended in July 2017, and is hereby opened for public consultation. We would appreciate candid commentson the drafts from stakeholders. The final documents will be issued in October 2017.

Refer to: Human Rights Council, 2011, Report of the Special Representative of the Secretary-General on theissue of human 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+representativ
e+of+the+secretarygeneral+on+the+issue+of+human+rights+and+transnational (Accessed Nov 10th, 2014).

4

1-2.

Programme for Identifying Human Rights Issues

In order to assist companies in implementing human rights due diligence, the Consortium conducts
discussions on relationships between business activities and human rights. An overview of the past
Workshops is explained below.
In the 2012 Workshop, sector specific human rights issues were identified based on UNEP FI Human
Rights Guidance Tool2. The final report “Human Rights Issues by Sector (2013)” was released.
In 2013, the Workshop further explored “Human Rights Issues by Sector (2013)” from the perspective of
the value chain. It was very useful to identify human rights issues throughout the value chain, in order tounderstand what human rights issue may be arisen by the activities of different departments. 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 in2013 indicating 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 Report3
and they then identified 16 Global Risks which were considered to give the greatest influence on the sectors
they belonged to. Then, they explored and identified the interconnectivities between global risks andhuman rights. This identification was useful for them to understand how social and environmental issues
were dynamically interconnected, and to understand the particular contexts in which human rights issues
arose. The final report “Human Rights Issues by Sector (v.3)” was issued.
In 2015, the participants examined the points which should be either added, removed or modified in“Human Rights Issues by Sector (v.2)” using the Human Rights Guidance Tool4 (2014 revision) developed
by UNEP FI. As the main feature of the 2015 Workshop, NGOs/NPOs and subject experts addressed
emerging human rights issues in Japan, covering sexual minorities, the empowerment of womenand technical intern trainees. In addition, the Workshop was scaled up from 9 sectors in 2014 to 11 sectors
in 2015, examining and identifying sector specific human rights issues. The final report “Human Rights
Issues by Sector (v.4)” was issued.
The other workshop was held to discuss how to facilitate food procurement in consideration forsustainability at the Tokyo Olympic and Plaralympic Games, and issued a draft “Food Vision” 5for the2020 Tokyo Olympics and Paralympics.
The 2016 Workshop addressed the relevance between the SDGs and human rights issues. The year of 20152

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)
4 http://www.unepfi.org/humanrightstoolkit/ (Accessed on July 10th, 2015)5http://crt-japan.jp/files2014/2-4-0-olympic2020/pdf/Food%20Vision%20for%20the%20Tokyo%202020%20Olympic%20Ga
mes.pdf (Accessed on August 8th, 2017)3

5

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
and strengthen 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 Compass6 whilst considering the SDGs and the
proposals 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 issued.
This year (2017), as in the same as the last year, given the raised concerns from NGOs/NPOs, theparticipants reviewed the sector specific human rights issues formulated by the CSR Consortium last year
as to whether there were any additions/deletions/correction points. This year's workshop was implemented
to help companies recognize human rights issues particular to Japan, human rights issues in supply chainsin Asia, and trends of institutional investors in Japan. Compared to the composition of corporate
participants last year, there were more corporate participants from the consumer goods sector and foodsector, whereas there were less corporate participants from the manufacturing sector and infrastructure
sector. Also, there were more participants from the human resource department and procurement
department. Lastly, over 70% of the participants were new to the workshop.
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 the stakeholder engagement held in Japan, at the same time, Caux Round Table Japan
initiated the Stakeholder Engagement Programs in Thailand, Malaysia, and Myanmar. The report of
Stakeholder Engagement Program in Asia (attachment 2) was formulated.

6

http://sdgcompass.org/ (Accessed on August 15th, 2016)

6

1-3.

Procedure of the Workshop in 2017

The programme consists of the following four steps.

Step1: Understanding the context in which human rights issues ariseCorporate participants were given a lecture on the particular context in which human rights issues
arise by members of NGOs/NPOs and subject experts. After the lecture, the participants from thecompany, NGO/NPO, and subject experts sat together by the given topics and discussed further.

Step2: Reviewing and identifying adverse human rights impacts arising from corporate activities


The participants reviewed the sector specific human rights issues formulated by the CSR Consortium
last year as to whether there were any additions/deletions/correction points, using the Human Rights
Guidance Tool (2014 revision).

Step3: Integrating perspectives from both corporations and stakeholders


The corporate participants summarised discussion contents and exchanged their views with
NGOs/NPOs and subject experts. After receiving feedback from the NGOs/NPOs and subject experts,
the corporate participants finalized their discussion contents by sector. The Secretariat then compiled
their work and developed “Human Rights Issues by Sector (draft)”.

Step4: Collecting Public Comments and finalizing our report

The Secretariat invites public comments on this paper from 10th August 2017 to 22 September 2017.
Following consideration of the received comments, the secretariat will release “Human Rights Issues
by Sector v.6 ” on October 2017

7

1-4.

Points for Consideration

1-4.a

Differing degrees of awareness of human rights issues

The level of detail in the feedback provided by NGO and expert stakeholders was not consistent, due todiffering study and priority areas. Similarly, there were gaps in the level of awareness of human rights
issues amongst the corporate participants, reflecting differing levels of engagement with human rights
issues. Each company and sector is in a different situation, and the level of outside scrutiny on humanrights may differ according to the company’s size and sector.
1-4.b

Scope of Study and Analysis

The workshop in 2017 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” is not discussed or in the scope of analysis.

The manufacturing (Infrastructure) in the “Human Rights Issues by Sector (v.5)” is not discussed thisyear, as companies in that sector did not participant in the workshop.

8

2

Points for collecting Public Comments

We invite public comments on the following three points, 1-3. In the description of your comments, please
specify the industry sector, page number, and concrete issue that your comment addresses, and thebackground and reason for your comments. You may use the Public Comments Sheet (Appendix 3) tosubmit your comments, if you prefer.

1.

Please share any comments on the concept and procedure of this workshop.

2.

Please freely respond with any comments on “Human Rights Issues by Sector (draft)”.

3.

Comments on the format and procedure of the final report

9

3

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

In international CSR movement, there is a growing demand to address and report human rights issues
within companies and in supply chain. Laws and regulations to facilitate transparency and improvement of
supply chains continues to progress rapidly. For instance, there are California Transparency in Supply
Chains Act, UK Modern Slavery Act, and Trade Facilitation and Trade Enforcement Act of 2015. 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. The 2017 Corporate Human Rights
Benchmark assesses the companies from industries - Agricultural Products, Apparel, and Extractives, andshowed the 2017 result of their human rights performance.
Under these circumstances, many Japanese companies are unable to grasp human rights issues including
their own company and supply chain, and manage and respond them. This could lead to a loss ofrelationship with stakeholders, boycotts, and in extreme cases, a risk of business continuity. It is necessary
for Japanese companies not only to develop a framework, but to take an effective action.
Also, in Japan, the Government Pension Investment Fund(GPIF) signed the Principles for Responsible
Investment(PRI), and PRI elected GPIF’s Executive Managing Director and CIO, as a board member in
2016. GPIF launched the roadmap, requiring companies to consider ESG issues in their investment anddecision-making processes. At the same time, in preparation for hosting the Tokyo Olympics andParalympic Games in 2020, the media began to put more spotlight on human rights issues in supply chain.
The concerns that Japanese companies have in the supply chain have been shifted from the conflictminerals issue in the electrical, automotive and precision sectors, to the palm oil and timber issues in the
consumer goods sector and food sector.
While companies in Japan have started to undertake their efforts for the United Nations SDGs, most ofthem still focus on their positive impacts they produce. There are a few companies to conduct a humanrights due diligence, including addressing potential negative impacts that their business activities produce.
In order for Japanese companies to help to respond to the above-mentioned human rights laws andregulations, the workshop was designed and implemented for the purpose of understanding human rights
issues in supply chain in Asia, human rights issues particular to Japan, and trends of institutional investors
in Japan as social demands. Through this workshop, it is recognized that efforts to "LGBT7" and"promotion of women`s participation and advancement" in Japan are behind globally. In addition, thecorporate participants were able to recognize the actual conditions of human rights violations such as
forced labor, child labor at the upstream of supply chains, and that these could be great risk for them.

7

It should be written as “SOGI”. But, as “SOGI” is not the common term, we use LGBT.

10

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 humanrights issues. After they identify the issues, they should address them by utilizing their high expertise andstrategies in cooperation with NGOs/NPOs. And at the same time, they should be held accountable for any
harm they cause and outcomes of their actions, as well as should enhance their transparency by disclosing
information in 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
competitiveness in the long run.

Caux Round Table Japan
Nippon CSR Consortium
Minoru Matsuzaki
Hiroki Wada

11

4. “Human Rights Issues by Sector (draft)”
4.1 Manufacturing Sector (Medical Electronic Equipment and Semiconductor)*The reviewed points by the discussion are showen in red.
Value Chain

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

レ レ レ レ レ

Discard・ Long working hours may become the norm in overseas factories due to low wages not matching local
standards of living and piece-rate work.

Use

Sell

Core
operation/
Supplychain

Transport

Health and safety

Manufacture

Workplaceconditions

Buy

Working hours and wage

Concrete issues

CreateKey human rights issues in the manufacturing sector

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

Discrimination During work

・Inequality in working conditions, training, and promotion, discrimination against female workers and sexual
minorities, sexual and power harassment.
・Measures to LGBTレ レ レ レ レレChild labour

Minimum age

・ There may be possible risks of child labour and trafficking through brokers in supply chains across developing
countries (e.g. subcontracting works). Job applications may be made using a false age.

レ レ レ レレ

Forced orcompulsory
labourDeposits and papers

・ "Mediators" may require foreign workers in Asian countries to hand over their ID (e.g. passport) and/or to pay
excessive commission at the time of recruitment.

レ レ

レForced overtime

・ Risk of long working hours may cause forced overtime due to excessive quota requirements.

©Caux Round Table Japanレ レ レ レ レ
12

Value Chain
DiscardUse

Sell

・ Potential lack of communication/dialogue between labour representatives and unions.
・ Potential insufficient institutionalization and operation of labour-management consultation and/or absence of
substantive collective bargaining.
・ Potential insufficient protection of workers’ rights in union shop.
・ Potential insufficiency in protecting worker’s rights, where trade unions are banned or not fully implemented(including real cases where trade unions are banned).

レ レ レ レ レ・Through audits by global companies, it is pointed out that the labour and human rights standards do not
comform to the global standards.
(Safety and health, working hours, disciplinary system, union shops, margins to workers intermediaries, etc.)

レ レ レ レ レ・Differences in such as awareness of compliance with laws and regulations among the mergered companies
with different corporate culture.

レ レ レ レ レ

レ レ レ レ レ レ レ

Resources

Use of natural resources

・ Designing and developing products, transport and sale with low environmental burdens (less electric
consumption, easy to recycle). [C/U/D/T/U]・ Abuse and contamination of land and water at a factory or local construction site. [B/M/D]

Security

Non-state groups andsecurity payments

・ Potential diversion of funds, goods and services to non-state groups, and armed groups (e.g. conflict minerals).

Bribery and corruption

・ Potential risk of being involved in bribery and corruption, such as facility payments, especially at the time ofobtaining licenses and authorizations. [M]・ Possible risks of corruption when entering into a contract, customs of the manufacturing industry, friendships
when contracting and operating, as well as of being involved in corrupt practices when receiving orders fromgovernment. [S]レ レ レ レ レ レ レ

・ A new venture (e.g. plant construction) by a government may be launched without obtaining appropriate
consent from local communities, including indigenous people and minorities.
Relations to states with・ At time of bidding for a plant construction and operation, the labour standard presented by a host government
poor human rights records
may not comply with the international standards.
・ Offshore development[C], road infrastructures [T], waste disposal[D].

レ レ レ レ レ レ レ

Community

Society and Relations withgovernment governments

ConsumerTransport

Whole

Manufacture

OthersBuy

Core
operation/
Supplychain

Freedom of
associationand collective
bargaining

Concrete issues

CreateKey human rights issues in the manufacturing sector

Relations with
Health and safety
customers©Caux Round Table Japan・ Potential positive impacts of changing consumer behaviours (e.g. conducting responsible marketing
considering health and safety of consumers) [S], and contributing to raising consumers’ awareness ofenvironmental issues. [U/D]・ Potential risk to the lives or wellbeing of end consumers are created due to a defect in specified products
provided through the customer/clients. [C/M]

レ

レ

レ

レ レ レ

13

4.2 Information, Communication and Technology Sector (ICT)*The reviewed points by the discussion are showen in red.
Value Chain
CreateProduce

Sell

Discard

R&D

Build

Sales (businesssales, agent
sales), providing,maintenance andoperation

Discard

Stakeholder

Employee
Supplier (Procure)Business partner（order destination）
Community（local community and residents）
Customers

ProcureConcrete issues

Buy

Key human rights issues in the ICT sector

●
●
●
●

●

●

●

●

●
●

●
●

●
●

●
●
●

Working hours andwage

・ During pre-release of service period and system trouble period in a series of value chain,long working hours (including attendance at weekends) and unpaid work due to urgent dlivery
and recovery.
・ Possible excessive workload or long working hours due to overcrowded schedule may resultin virtual forced labor [buy / create / produce / sell]・ The possibility of forced labor at the supplier of equipment [buy]

レ

レ

レ

レ

レ

Health and safety

・ Due to political and economic factors different from Japan, occupational health and safetyof overseas suppliers and business partners may not be adequately secured.[buy / create /produce / sell]・ Long working hours may cause health problems, especially mental health problems.
・ Possible risks to health and safety due to maintenance and operation work at network
facilities.

レ

レ

レ

レ

レ

Employment, during
Discrimination
work, dismissal

・Discrimination in gender during work at office [buy/create/produce/sell/discard]
・Occurrence of harressment during work [buy/create/produce/sell/discard]
・Discrimination in treatment dur to difference in employment forms[buy/create/produce/sell/discard]

レ

レ

レ

レ

レ

Forced orcompulsory
labour・Freedom of association and collective bargaining may not beensured.[buy/create/produce/sell/discard]

レ

レ

レ

レ

レ

WorkplaceconditionsCore
operation/
Supply chain©Caux Round Table Japan

Conflict with locallaw

14

Value Chain
CreateProduce

Sell

Discard

R&D

Build

Sales (businesssales, agent
sales), providing,maintenance andoperation

Discard

Stakeholder

Employee
Supplier (Procure)Business partner（order destination）
Community（local community and residents）
Customers

ProcureConcrete issues

Buy

Key human rights issues in the ICT sector

●
●
●
●

●

●

●

●

Resourcesレ

Security

・Payments to non-state groups [buy/create/produce/sell]
Non-state groups and・Violence against local residents by the armed private security guards at business facilities
security payments
such as data center and business site [create/produce]

レAccess to land

Title of land
Forced migration

・Forced migrating at the time of purchasing land for construction of business site and data
center [create/produce]

Community investment

・Positive impact on correction of information disparity, improvement of people`s living,
improvement of the environment by providing IT service and information[buy/create/produce/sell]・Positive impact on improvement of the local infrastructure through the establishment of an
ICT network system [buy/create/produce/sell]・Users’ social lives may be threated by suspension of service caused by electrical andtechnical troubles. [sell]
・Provision of social infrastructure including communication services [buy / create / produce /sell]・Realization of universal access and design (all people can use information or information
communication system regardless of social, hierarchical, regional differences) [buy / create /produce / sell]

Health and safety

・Health hazard at the time of equipment disposal [discard]©Caux Round Table Japan

●
●

●

●
●
●

●

・Environmental friendly energy use at data centre and business site (e.g. energy saving,
responsible power source management) and water use. [produce]
Use of natural
・Negative impact on the lives of communities, such as through noise and odour emissions
resources (water etc.)from data centre and business site. [produce]
・Potential risks of environmental pollution from inappropriately discarded electronic devices.
[Discard]
・Conflict minerals may be used in the procured equipments.[procure]

Community

●
●

レ

レ

レ

レ

レ

レ

レ

レ

レ

レ

レ

レ

15

Value Chain
Sell

Discard

Build

Sales (businesssales, agent
sales), providing,maintenance andoperation

Discard

●

●

●

●

●
●

●
●

●
●

●
●
●

レ

レ

レ

レ

レ

Bribery andcorruption

・ Potential risks of being involved in bribery and corruption in value chain (especially in ICT
service provision for government agencies.) [buy/create/sell]

レ

レ

レ

レ

Business in conflictcountries

・Purchase of conflict minerals through procurement from conflict countries [buy]・Involvement in violation of human rights by developing such as maintenance and operation
business in conflict countries [selling]レレ・Potential risks of being complicit in activities of terrorist and criminal groups through the useof current and future digital technology [sell]・Potential risks of being complicit in crime and human rights violations through theunintended use of current and future digital technology [sell]・Leakage of personal information/privacy [produce/sell/discard]
・Personal information/privacy is collected and used without gaining individual consent[create/sell]
・Proper education is not fully conducted to personnel who manages personal
information/privacy. As a result, they do not have high awareness of recognizing risk andProtect andprotecting and managing personal information/privacy [selling]
management of・Awareness of recycling among consumers is not raised, and recycling of rare metals andRelations with personal information
recovery of unused mobile terminals do not progress [discard]
consumers
and privacy
・Big Data services that gather public consumer data may unintentionally identify personal
Freedom ofdata by combining information, and there is a potential risk of the misuse of customer’s
expression
personal data for commercial purposes without prior approval from users [create/sell]・Possible risks of violating human rights by the mis-use of ICT [sell]・Violence on the Internet, verbal abuses, and porn may pose risks of giving adverse impacts
on the psychological development of children. [sell]・Infringement on freedom of expression (premised that human rights are protected) [sell]©Caux Round Table Japan

●
●
●
●

・Insufficient legal systems may cause improper working environment[buy/create/produce/sell/discard]
・Land ownership of ethnic minorities is deprived during land acquisition. [buy]・It may be difficult to decline the request from the state power to provide personal
information in data center and cloud service [sell]・Infringing freedom of expression [selling]

Relations with society

Consumers

Produce

Society andgovernment

R&D

Relations withgovernments

CreateStakeholder

Employee
Supplier (Procure)Business partner（order destination）
Community（local community and residents）
Customers

ProcureConcrete issues

Buy

Key human rights issues in the ICT sector

レ

レ

レ

レ

レ

16

4.3 Logistics and Transport Sector*The reviewed points by the discussion are showen in red.
Value Chain

レ レ

Low wages

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

レ レ

Health and safety

Dangerous work always exist in sites of logistics and traffic such as loading and unloading heavy objects,
transportation, the use of large machinery, vehicles; and working close to trains, aircrafts and ships. It is important tomake daily efforts to prevent risks from occurring in order to keep workplaces safe.
・Workplace accidents could occur due to lack of sufficient safety instructions at a site where heavy machinery andcargos operate, such as terminals, aircrafts and airports, and ships under operation for the marine transportationindustry (shipping industry).
・Safety of workers in the marine transportation industry when in waters in which piracy may occur.
・As the logistics industry has a public nature, secondary disasters of labour hazards may occur.
・Long working hours may cause mental health risks.
・Potential risks of causing forced and child labour, and threatening the health and safety of workers and others in
supply chains.

Core
operation/
Supplychain

Discrimination During work

A lack of human capital due to a shrinking population is anticipated, personnel and forms of employment such as
contract/temporary workers, ex-employer based on reemployment system, the change of the employment status of
temporary employees to regular employees, reduction of working hours, working at home.
・Inequality in working conditions, training and promotion may occur due to various types of employments andvarious human capitals.
・Foreigners may face discriminatory treatment in employment and payment.
・Uniform treatment to workers without due concern for diversity.

DiscardTransport

Sell

Buy

Working hours

Logistics and Traffic industries are a labour-intensive industry. Though it is anticipated that mechanization will befurther 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 fields and subcontracting companies especially in busy seasons.
・Long working hours such as night work and early morning work due to time difference with other countries.
・Because the logistics industry has a public nature, unexpected long working hours may happen during theoccurrence of disasters.

Workplaceconditions©Caux Round Table Japan

Concrete issues

CreateKey human rights issues in logistics and transport
sectorレ

レ レ

17Value Chain

Use of infrastructure

・Vehicles, ships, and aircrafts operated by companies may cause damage on the roads and ports where they operate.
・Disasters may damage infrastructure and disrupt logistics.
・Efforts to recover infrastructure such as roads and logistic centres after disasters, and maintain basic infrastructure
for local daily life (positive impact).

レ レ

レSecurity

Community
Investment

・Possible contribution to people living in local areas by cooperating with the operation of relief suppliers sites, thetransportation of relief and supporting supply to shelters during occurrence of disasters (positive impact).
・Possible contribution to cultural development, job creation, tourism promotion, industrial vitalization, andenhancement of the local infrastructure by making a long-term commitment and connecting people and goods(positive impact).

Illegal dealing, Trafficking
Trafficking
in human・Potential risk of direct association with trafficking through the transportation of trafficking victims (viainternational airlines and shipping companies).
・Potential risk of transporting banned goods.

DiscardTransport
レ・Potential risk of giving a negative impact on health and safety of customers, the public, and other stakeholders.
・Potential risk of excess use of force like violence by national navies dispatched to areas where piracy is occurringor by armed guards hired by a company to protect logistic centres in less secure areas.
・Potential risk of excess use of force like violence by armed guards on board ships towards mariners and pirates.
(Shipping industry).
・A potential risk to navies, pirates may abuse the rights of local communities such as fishermen (Shipping industry).

©Caux Round Table Japan

Sell

レ

・Possible risk of being involved unintentionally in bribery and corruption for example by way of a facilitation
Society and Relations withpayment. [T]Bribery and corruption
government governments
・Potential risk of being involved in collusion, bribery and corruption at the time of negotiating investments androute development with governments and legislative authorities. [C/B]
OthersBuy

Use of natural
resources

Diversification of power generation by the user of fossil fuels, nonconventional natural gas resources, as well as
natural energy makes a progress.
・Potential risks of causing or contributing to environmental pollution such as air pollution, water quality degradation
or destruction of natural habitats at the site of oil extraction. [B]・Exhaust gas from vehicles operating frequently along the same route may cause or contribute to local air pollution.
[T]・Oil spill accidents may cause marine environmental destruction.
・Environmental issues such as soil contamination, water quality degradation and air pollution may occur due to theconstruction and use of factories/logistic centers, roads, railroads, ports and airports.
・The procurement and use of fossil fuels, and an inefficient use of resources will contribute to climate change which
gives a negative impact on people’s quality of life.
・Efficient use of natural resources can contribute to sustainable development (positive impact).

Resources

Community

Concrete issues

CreateKey human rights issues in logistics and transport
sector

レ

レ

レ レ

レ レ

レ

レ レ
18

4.4 Chemical and Building Materials Sector*The reviewed points by the discussion are showen in red.
Value Chain
Procure(labour)
Discard

Use

Sell

Transport©Caux Round Table Japan

・BtoB companies may face possible occurrence of overtime work arising from receiving orders without due
consideration of resources (one’s company and supply chain).
レ レ
レ
レ レ
レ
レ レ
レ
・Not enough understanding on the degree of importance in the management of working hours corresponding toworking conditions that differ according to country/areas (supply chain).
・There are relatively many sources of risks as the industry uses hazardous substances (chemical substances) andlarge scale facilities (one’s company and supply chains).
・Possible risks of causing health hazards to employees and final consumers if suppliers do not provide complete
レ
レ レ レ
レ レ
レ
information on chemical substances (one’s company and supply chain).
・Possible risks of violating human rights by outsourcing to companies that conduct safety and functionality tests
on human beings with poor ethical values (supply chains).

レ

Disciplinary measures

・Because practices of disciplinary measures differ largely according to countries and regions, there are possible
risks of developing policies on disciplinary measures that do not match regions (one’s company).
・Inadequate grievance mechanisms against disciplined persons (one’s company).
・Difficulty in understanding actual situations of disciplinary measures against suppliers, because practices of
disciplinary measures differ largely according to countries and regions (supply chains).

レ レ レ レレ

During work

・Cases of discrimination issues differ in areas and time (for instance, discrimination against sexual minorities has
occurred in 2015(?)). Elimination of discrimination during work globally remains unsolved (one’s company andsupply chains).
レ レ レ レ レ レ・Possible risks of violating human rights of disabled people due to a delay in the development of working places(one’s company and supply chains).

レレ

Redundancy anddismissal

・Clear and convincing selection standards may not be presented during redundancy and dismissal (one’s
company and supply chain).
・Possible risks such as taking a legal case from not conducting an appropriate communication based onstandards of judgment for redundancy (one’s company and supply chains).

Risks to children

・Possibility in supply chainレ

Minimum age

・Possibility in supply chainレWorking hours andconditions of
employment

・Possibility in supply chain

レ

Employment of young
・Possibility in supply chain
workersレ

レ

レ

Discrimination

Child Labour

ProduceCore
operation/
Supply chain

Health and safety

ProcureWorkplacecondition

Development

Working hours

Concrete issues

Research

Key human rights issues in chemical and building
materials sectors

レ

レ

19

Value Chain
Procure(labour)
Discard・There are high reputational risks during occurrences of forced labour, because the presence or absence of
migrant workers is not globally and comprehensively identified (one’s company and supply chains).

Use

Trafficking in human

Sell

・BtoB companies may possibly demand forced overtime, because they receive orders without consideration of
their resources (volunteer overtime work ends up being overtime work) (one’s company and supply chains).

Transport

Forced overtime

Produce・There are high reputational risks during the occurrence of forced labour, because the presence or absence of
migrant workers is not globally and comprehensively identified (one’s company and supply chains).

ProcureDeposits and papers

Development

Concrete issues

Research

Key human rights issues in chemical and building
materials sectors

レ

レ

レ レ
レ
レ
レ レ
レ

レレ

Forced LabourCore
operation/
Supply chain

Freedom of
association

Community Resources

Society and Relations withgovernment governments

レ レ

Freedom of association ・Labour-management negotiations are not properly conducted (one`s company and supply chains).
and collective・Employees may not have a means to discuss issues related to labour without interference of companies (one’s
bargaining
company and supply chains).

レ レ レ レ レ レレレ・Possible risks of facing a production suspension due to the occurrence of strikes and boycotts, if negotiation
between management and labour is not conducted correctly. (one’s company and supply chains)
Conflict with local law
・Employees may not have a means to discuss issues related to labour without interference of companies. (one’s
company and supply chains)レ レ レ レ レ レ

レ

レ

レ レ
レ レ

レ

Use of natural
resources

・The industry may give a huge impact to local communities, as it uses a relatively large amount of resources andhas a potential for causing pollution damage by discharge and leak of hazardous materials. (one’s company andsupply chains)
・Possible risks of water depletion due to the construction of factories and deforestation. (supply chains)
・Possible risks of causing an adverse impact on local communities due to the depletion of natural resources.
(supply chains)

・Due to an extension of the scope and application of legislation on bribery and an increase in enormous
surcharge payments, there are potential impacts of giving bribes to stakeholders such as employees and investors.
(one’s company and supply chains)
Bribery and corruption
レ レ・Bribery and excessive treatment of foreign public officials, risks of excessive payment to smoothentransactions, risks of receiving an order of suspension of operations for not engaging. (one’s company andsupply chains)

Gov'ts with poor
human rights records©Caux Round Table Japanレ レ・Potential risks of being involved in violations of human rights due to operations in countries with poor humanrights activities. (one’s company and supply chains)・Potential risks of being involved in violations of human rights by gaining permissions(?) from local
governments (reputational risks by operations in countries with poor human rights records and risks involved inhuman rights abuses) (one’s company and supply chains)・Potential risks of a squeeze on profits, as more resources are required to undertake activities to raise awarenessof human rights issues. (one’s company)

レ
レ
レ
レ
レ

レ

レ レ レ レ レ レ レ

20

4.5 Food Sector*The reviewed points by the discussion are showen in red.
Value Chain

Assessment andTreatment

・Discrimination in assessment and treatment based on race, gender, religion, origins, sexual orientation,
disability, ethnicity and beliefs.
・Unequal evaluation due to remote / telework evaluation inequality, communication shortage.

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Child labour
Elderly labour

・ Children under the minimum labor age may possibly be employed at a supplier of raw materials.
・ There is a risk that children lose the right to education.

レ

Forced orcompulsory
labour・Risk of forced labour against immigrant workers.
・Risk that illegal immigrants may receive inhumane treatment.
・Exploitation of technical intern trainees and their involvement in dangerous work.
・Slave labor in the procurement process of agriculture, forestry and fisheries

レ レ レ・Freedom of association and the rights of collective bargaining under international human rights law may not be
fully ensured in countries in which unions are not permitted, or unions are permitted but poorly implemented.
・"Transportation" is also included when overseas manufacturing sites are assumed.

レ レ レFreedom of
association andConflict with local law
collective
bargaining©Caux Round Table Japan

DiscardDuring work

・ Discrimination during the recruitment process, based on race, gender, religion, origins including overseas,sexual orientation, disabilities and beliefs.
・Non-Japanese employees/workers may receive unequal treatment in access to safety education because of
not only language barriers, but also communication barriers that people with disabled face.
・Insufficient safety training for temporary employees/workers.
・Temporary employees/workers may suffer from precarious employment.
・Sexual, power, maternity harassment.

Use

Discrimination

Sell

Employment

レ レ レ レ レ・ Wage levels are lower than the local standard of living.
・ Proper wages are not paid to workers due to the application of piece-rate work (Farms like palm and fishingground).
レ レ レ レ・ Introducing efforts like fair trade effectively to the society enables to improve consumer`s safety and corporate
value, as well as pay appropriate wages to workers.
・ Improper low wages under the Technical Intern Training Program.
・Risk of jeopardizing the health and safety of employees and workers due to inadequate health and safety
programs, mishandling of chemical substances including agrichemicals and dangerous work in productmanufacturing (including raw material procurement) and research and development process. (Employee =レ レ レ レ レ
Perspective of Persons with Disabilities)
・In order to reduce risks, it is important to consider cultural differences such as color barrier-free (considerationof coloring) and direction of opening and closing the door.
・ Accidents during the operation of vehicles.

Core
operation /Supply chain

Transport

Health and safety

Produce

Wages
Workplaceconditions

ProcureWorking hours

・ Long working hours may occur at any pleaces such as in own manufacturing factories including those of
suppliers and for logistics drivers.
・ Restrictive labor may occur to keep the delivery date at the time when production such as seasonal items
concentrates.

CreateConcrete issues

Key human rights issues in food sector

21Value Chain

Bribery and corruption

・In establishing factories and gaining marketing rights(marketing license), bribes may be demanded of acompany when it expands its business and develops a new store, at the stage of obtaining approvals andlicenses for land acquisition.

レ レProvision ofproper information

・Inadequate food labeling may cause consumer health hazard.
・Incorrect understanding by not informing consumers of the right knowledge on food.
・Realization of language-independent provision of information by utilizing "Pictogram" that Japan disseminates
to the world

Responsible marketing・Risks of leading consumers (especially young people) to poor eating habits due to improper marketing.
・Proper nutrition guidance and support for children living in country of origin.

Quality control

・Inadequate quality control may cause consumer health hazard.
・Intentional quality obstruction (food defense)

Privacy
Protection©Caux Rount Table Japan・Risks of leaking personal information gained through consumer campaigns, mail order sales, and member
registration (contractor is also considered)

Discardレ レ

Use・Risk of deprivation of the rights of local people by the enclosure of agricultural lands.

Sell

レ レ

Title to land

Transport

・Titles to the land of local people or indigenous groups may be ignored, especially when constructing such as
fields, cultured ponds, factories/manufacturing sites.

Access to land

Community

Consumer

Produceレ レ

Use of natural
resources

Health andsafetyProcure・Due to Large-scale commercial agriculture, fishery and forestry at suppliers of raw materials, community may
face a decrease in agricultural production and catches of fish.
・Adverse impact on access to water for the local community and local ecological systems.
・Risks of damaging culturally/historically/religiously important places for indigenous peoples and groups *As thisissue is almost settled, it is assumed that the priority is low at present.
・A single crop production change (a switch to cash crops) may cause the loss of a self-sufficient food system.
・Construction of factories may limit the access right to water of local people living in proximity to them.
・Water risks due to climate change.

Resources

Society and Relations withgovernment governments

Concrete issues

CreateKey human rights issues in food sector

レ

レ レ

レ

レ レ

レ レ レ レ レ レ
レ レ レ
22

4.6 Consumer Goods (Cosmetics and daily goods) Sector*The reviewed points by the discussion are showen in red.
Value Chainレ

レ レ レ レ

Health and safety• Education on health and safety, including emergency drills, first-aid drills, and handling instructions on
toxic chemical substances may not be conducted or may be conducted improperly.
• Insufficient efforts to improve a working environment that is potentially hazardous to workers’ health i.eloud noise, vibrations, high/low temperature, poor ventilation and exhaust. Risks of having pregnant womenand young people engage in dangerous or injurious work.
• Workers may be exposed to danger and harm due to dilapidated buildings, illegal constructions or an
improper provision of emergency exits and escape routes.

レ

レ レ レ

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

レ

レ レ レ レDisciplinary measures• Improper content of rules of employment may cause improper disciplinary measures and treatments.
• Grievance mechanism may not be put in place.

レ

レ レ レ レ• Make unequal recruitment / recruitment with restrictions on the presence or absence of disability, LGBT,
religion, race, age and gender.
• Receive unequal treatment in opportunities for promotion, training and working conditions based on thepresence or absence of disability, LGTB, religion, race, age and gender.
• Suffer a disadvantage in use due to the presence or absence of disability, LGTB, religion, race, age andgender.

レ

レ レ レ レ レ

Working
ConditionsCore
operation /supplychain

Working
Conditions

During employment
Discrimination During work
During use©Caux Round Table Japan

Use

Wages

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

Discardレ レ レ レ

Sell
Transport

Procureレ

Concrete issues

Manufacture

Research
Development

Working hours• Long working hours may be caused by (a) production schedules that presuppose overtime work, as well as
in attempting to meet delays in the sewing process in upstream, (b) low wages not matching local standardsof living, (c) piece-rate work, and (d) repair work of a large volume of inferior products.
• Long hours of work may occur due to excessive response for customers and increase of man-power by
ambiguous targets.
• Rest days required by law may not be intentionally given, and limits of overtime hours may not be
regulated due to improper labour management.

Key human rights issues in consumer goods sector

23

Value Chain• Workers may be forced to work through 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 beworked at work conditions where they do not agree.
• Immigrants, refugees, technical interns may be exposed to forced labour.

レ レ レ• Companies may refuse the formation of labour unions and collective bargaining without any legitimate
reason, and may give poor treatment or dismissal to union members.
• Workers may get fired due to participating in strikes.

レ

Use

Forced overtime
Human trafficking

Discard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.

レレ レ

Waste disposal• Risk of improper waste disposals and dumping waste illegally due to not using proper agents.
• Risks of harming the environment due to not making an effort to reduce waste.

レ

レ レ レ レ レ レ• Bribery may be requested at the time of acquisition of licenses etc. at each stage of the value chainレ

レ レ レ レ• Inadequate efforts to create a positive impact by promoting fair-trade, building an ethical market, andresponding to change of awareness of consumers.

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

レ

レ レ レ レ レ レ• Inadequate efforts to improve the traceability of materials and goods.

レ

レ レ レ レ レ レ• Insufficient efforts through innovation to solve consumer issues through goods and services.

レ

Community Resources

Society and Relations with
Bribery and corruption
government governments

Relations with
Health and Safety
consumers©Caux Round Table Japan

Sell
Transport

Minimum age• Children under the minimum age may be permitted to work without confirmation of their identification
papers, or based on forged papers.
• 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 plantation.

Freedom of
association

Consumer

ManufactureCore
operation / Forced orcompulsory
supplylabourchain

ProcureChild labour

Concrete issues

Research
Development

Key human rights issues in consumer goods sector

レ レ
レ レ レ

レ レ

24