July 19, 2016
Nippon CSR Consortium<Draft Version for Public Consultation>
July 19, 2016 ‐August 10, 20162016 Stakeholder Engagement Programme-Bangkok, ThailandHuman rights are one of the core CSR topics that have sparked discussions and activities in countries
such as Japan over recent years. Since September 2012, the Nippon CSR Consortium has been working
to provide a forum in which to identify and discuss negative human rights impacts that may arise as aresult of corporate activities. This work has been conducted in collaboration with companies fromvarious industrial sectors, as well as NPOs, NGOs and human rights experts in academia.
This year of 2016, we decided to arrange this consortium in Thailand with collaboration of Marimo5.
The results of discussions are summarized in the draft “Stakeholder Engagement Programme (draft) in
Thailand” document and are hereby disclosed for public consultation.
1.

Subject
Stakeholder Engagement Programme (draft) in Thailand

2.

Access to the document
The document is available via the CRT Japan website : http://crt-japan.jp/en/

3.

Application(1) Consultation Period
July 19, 2016 to August 10, 2016 (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 beadvised that we are unable to accept comments through other methods (such as by telephone,
fax, or post), nor are we able to accept anonymous submissions.
(3) Application Procedure
Address to: Secretariat of the Nippon CSR Consortium (in CRT Japan)
Subject: Comment on “Human Rights Issues by Thai and Japanese companies (draft)”
Organization/Affiliation and Name: (Department, Name)
Email and Telephone :1(4) Comments:
We invite public comments on the following questions. In the description of your comments,
please specify, Thai and Japanese companies, page number, and concrete issue that yourcomment addresses. Depending on your needs, please enter your comments on the Public
Comments sheet (Appendix 2).
1.

Please share any comments on the “Stakeholder Engagement Programme (draft) in
Thailand”

2.

Please freely respond with any comments on “Stakeholder Engagement Programme(draft) in Thailand” document

3.

The final report is scheduled for publication in August 2016. 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
4.

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. Unfortunately we are unable to respond to individualcomments. All the comments, personal names and/or corporate and organizational names submitted
will 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,by which a particular individual can be identified, or any information deemed to damage a property
right of an individual person or a corporation, pertinent sections of the text will be deleted at thetime of publication.

Hiroshi Ishida
Executive Director, Caux Round Table Japan2

Table of Content

Preface ....................................................................................................................................................... 4
1-1. Purpose of the Stakeholder Engagement Programme Workshop ....................................................... 4
1-2. Workshop for Identifying Human Rights Issues ................................................................................ 6
1-3. Procedure of the Workshop in 2016 ................................................................................................... 6
1-4. Some Points for Consideration ........................................................................................................... 8

Points for collecting Public Comments ...................................................................................................... 9CRT Japan's viewpoint as the Secretariat of Nippon CSR Consortium in Thailand ............................... 10

Human Rights Issues by Thai and Japanese companies
4-1. Thai companies………….…………………………………………..…….……………………..….12
4-2. Japanese companies………………………………………………………………………………15

Feedback from NGOs and other experts in June 28th……………………………………..............…… 17

Appendix 1: Thai SHE Public Comments Sheet
Appendix 2: List of Participants Stakeholder Engagement Programme in Thailand 2016
Appendix 3: Comments from NGOs and experts in June 7th3

1

Preface

1-1.

Purpose of the Stakeholder Engagement Programme 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
human rights issues with NGOs and other Japanese companies. The consortium consists of corporate
participants, NGOs/NPOs, human-rights experts and representatives from academia.
There are some underlying factors that contributed to the establishment of the consortium. Companies
sometimes struggle to address diverse human rights issues with limited budgets and resources.
Therefore, even once a year, it is useful for them to get together to try to be leaders in their field byproactively seeking to understand and address human rights issues that their industry may be involvedin.
The consortium also emphasizes sustainability of activities. As stated above, the companies arecommitted to continuous efforts for incremental improvement. In order to respond dynamically to adiverse range of issues, participant companies seek to stay abreast of changes and issues in the societythat potentially link their activities to human rights impacts.
The Nippon CSR Consortium positions the Human Rights Due Diligence Workshop as an activity thataims to assist companies at industry levels in (1) identifying and assessing any actual or potentiallyadverse human rights impacts as defined in the UN Guiding Principles 1, which are connected to theiractivities at company levels, and (2) integrating and acting upon the findings, (3) tracking responses,
and (4) communicating how impacts are addressed to the affected stakeholders. We hope participants’companies can use the knowledge acquired at this workshop to support their human rights due diligence
activities at each company.
Marimo5 and CRT Japan organised with The Embassy of Japan in Thailand and NIDA（National
Institute of Development Administration）this Stakeholder Engagement Programme in Thailand firsttime, the participants to the first workshop, noting that there were 11 Japanese companies (13participants), 7 Thai companies (9 participants), and 10 NGOs and other organizations (11 participants).
The participants of this programme must to think about ‘what is right, not who is right’, and to aim forconcrete solutions to social problems in Thailand, based on the principles of ‘fairness, sincerity, andhonesty’. In order for business to succeed, there had to be social order, which in turn required thatbusinesses co-operate with the various stakeholders in society.
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+repr
esentative+of+the+secretarygeneral+on+the+issue+of+human+rights+and+transnational (Accessed Nov
10th, 2014).

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The workshop was also an opportunity for the participants to discuss the issues within the framework ofbusiness and human rights, and to show the international community that this framework is indeed
being utilized in the Thai and Japanese context. Most Japanese businesses had difficulty understanding
the framework of business and human rights, and until 2015, CRT Japan used terms such as ‘CSR risk
management’ in its approaches to Japanese companies. Given that it was a similar situation in Thailand,
for this Stakeholder Engagement Programme, CRT Japan used terms such as ‘good for people, good forthe company, and good for the community’, on the understanding that, in practice, these terms could be
implemented in a way analogous to respect for human rights. There was little point in forcing newconcepts on to persons on the ground before they are ready.
Nevertheless, as companies increased their business with Western countries, it was inevitable that
respect for the business and human rights framework would be called for. In addition, the companies
must respect for human rights, including the maintenance of a responsible supply chain, will be key inthe preparation for, and during, the 2020 Tokyo Olympics Games such as “Mega Sporting Events andHuman Rights”.

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1-2.

Workshop for Identifying Human Rights Issues

The Nippon CSR Consortium, guided by the UN Guiding Principles, has been working on identifying
important potential human rights issues by industry sector. The process used to identify the issues is
explained in the following section. All the comments from participants reflect personal opinions and do
not represent any of the affiliated organizations and companies.
In the 2016 Stakeholder Engagement Programme in Thailand, important human rights issues by Thaiand Japanese companies were identified through dialogue with the participants based on identifying thehuman rights issues and expectations relevant to business 2 in UNEP FI Human Rights Guidance Tool3(‘Human Rights Guidance Tool’).
1-3.

Procedure of the Workshop in 2016

The workshop consists of the following four steps.

Step1: Understanding the context in which human rights issues ariseIn Bangkok June 7th, corporate participants were given a lecture on the particular context in whichhuman rights issues arise by members of NGOs/NPOs, academics and subject experts.

Step2: Reviewing and identifying adverse human rights impacts that can arise from corporate activities


In Bangkok June 28th, the corporate participants conducted a series of discussions Thai andJapanese companies to examine any added/removed/modified points in “Human Rights Issues by
Sector (v.2)” based on Human Rights Guidance Tool (2014) developed by UNEP FI.

Step3: In Bangkok June 28th, integrating perspectives from both corporations and stakeholders


The participants summarised discussion contents and exchanged views on them with NGO/NPO,
academic and subject experts. Then, the participants reviewed the feedbacks and finalize the resultof the discussions by sector. The Secretariat aggregated their reports and developed “2016
Stakeholder Engagement Programme in Thailand (draft)”.

2 http://www.unepfi.org/humanrightstoolkit/fundamentals.php（Accessed on 2012.11.01）
3

http://www.unepfi.org/humanrightstoolkit/fundamentals.php (Accessed Nov 10th, 2014).

6

Step4: Collecting Public Comments and finalizing our report

The Secretariat invites public comments on “2016 Stakeholder Engagement Programme in
Thailand (draft) ” from 19th July, 2016 to 10th August, 2016 (Japan time).

7

1-4.

Some Points for Consideration

1-4.a

Differing degrees of awareness of human rights issues in Thailand, localisation

The levels of detail in the feedback provided by NGO/NPOs and the expert stakeholders were notconsistent across the Thai and Japanese companies, indicating differing study and priority areas among
the experts. Similarly, there were gaps in the level of awareness of human rights issues among thecorporate participants, reflecting similar gaps between their degree of understanding and engagementwith human rights issues. Each company and sector can be placed in a different situation and the levelof scrutiny may differ according to the company’s size and sector.

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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 Thai or Japanese companies, page number, and concrete issue that your comment
addresses, and the background and reason for your comments. You may use the Public Comments Sheet(Appendix 1) to submit your comments, if you prefer.

2-1.

Please share any comments on “2016 Stakeholder Engagement Programme in Thailand(draft)” document.

2-2.

Please freely respond with any comments on “2016 Stakeholder Engagement Programme in
Thailand (draft)” document

2-3.

Comments on the format and procedure of the final report

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3.

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

Making efforts in the “Business and Human rights” issues in the field of international CSR movement
attract greater attention mainly among the Western countries. Demands for companies to take actions
regarding CSR become certainly growing as their social environments are changed. These changes canbe defined as: CSR legislation and CSR mandatory; a rapid market growth in the Socially Responsible
Investing; developing the guidelines and rules on human rights issues; increasing the media coverageand the development of social media.
It addition, along with global business expansion, companies are always in a situation of facing local
human rights and environmental issues which are occurring in areas of their operation sites. There arealways various types of “risks” beyond the scope of companies’ understanding. This means that thecompanies are always exposed to unpredictable “mine risks”. From the perspective of risk-management,
it is important for companies to deal with such social changes and issues.
“Guiding Principles on Business and Human Rights: Implementing the United Nations “Protect,
Respect and Remedy” Framework” (2011) so-called “Ruggie framework” guided by the UN
recommends implementing human rights due diligence which requires companies to identify, protect,
mitigate and explain human rights impact.
The Nippon CSR Consortium was established in 2012, positioning a series of workshops as an activity
that aims to assist companies in identifying and assessing any actual or potentially adverse humanrights impacts as defined in the UN Guiding Principles. Through the Stakeholder Engagement
Program in 2015, it came out to be clear that gaps still exist between the companies and the NGOs forthe degree of understanding the “Business and human rights”. The companies do not fully understandthe exact meaning of the specific terms in the context of NGOs. For instance, as for business overseas
expansion and operation in local areas, the infringement of the right of indigenous people becomes a
crucial matter in a context of NGOs. However, companies are likely to deal with this issue in a context
of land ownership. Gaps, or “misconception”, between NGOs and the companies come out as an
obstacle for advancing human rights because they take the same issue in different ways, with the one
perceives it as their own while the others as issues of third parties.
In 2016, it was first time that Thai and Japanese companies had met with the NGOs and experts throughthe open framework of “the Stakeholder Engagement Programme in Thai” and both of them learned
each others perspective. Especially it was important for the companies to know more deep meaning of“Business and Human Rights”. The companies need to develop effective human rights grievancemechanisms, conduct a dialogue with human rights victims and NGOs supporting them to implement ahuman rights due diligence in the near future.

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The issues raised by NGO participants in June 7th , and listed the priority human rights issues that had
been identified by Thai and Japanese companies in accordance with the UN Guiding Principles on
Business and Human Rights.
The companies identified the following as priority issues, in the order listed:
Priority 1. Work conditions: health and safety at the workplace
Priority 2. Work conditions: adequate pay
Priority 3. Child labour
Priority 4. Relations with authorities: corruption and bribery
Priority 5. Relations with authorities: money laundering and transparency
Priority 6. Forced labour and human trafficking
Priority 7. Security: forced payments to non-governmental actors
Priority 8. Security: law enforcement
Priority 9. Security: arrest and detention
Through this process, the companies are able to listen to the local voices, recognize their specificpressing issues, and approach the identified issues and risks with utilizing high expertise and strategies.
And, as outlined in the Guiding Principles, the companies should be held accountable for any harm theycause and outcomes of their actions, as well as should enhance their transparency by disclosing
information linked to economic, environmental, and ethical aspects related to their businesses in orderto ensure legitimacy. By doing so, the companies can earn “License to Operate” and trust fromstakeholders which becomes a backbone for corporate sustainable competitiveness in the long run.
Particularly in Thai there were two main agendas had been discussed among the participants and came
to conclusion that also important to be challenged with collaboration between companies and NGOs,
first is “Health and Safety” and second is “Responsible supply chain with labour practice and include
community”.

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4.

Human rights issues by Thai and Japanese companies

The participants broke out into three groups (one made up of Japanese companies and two of Thaicompanies), to examine the issues raised by NGOs and identify human rights issues that had the largest
potential impact on their operations.
4.1

Thai companies
Comments

Key human rights issues in the Thai companies

Workplaceconditions

Working hours
Wages

Priority 2

Health and
SafetyPriority 1
a. There is a need for concrete action in thisarea, based on self sufficiency, work-life balance,and respect for human dignity.
b. Basic needs: basic infrastructure is neededthat aims at ensuring health services for all insociety. Healthy and nutritious food needs tobe provided, including food based on traditional
Thai herbs.
c. Though Thai law requires companies toestablish safety committees, this is rarely
implemented. Working conditions are often
unsafe, e.g. work in extremely hightemperatures, exposure to harmful chemicals,
excessively loud noise. There is also often a lackof qualified supervision of work at aerial
platforms at construction sites.

Core operation/ Supply

Disciplinary
practices
Discrimina

Recruitment-tion

During work
Redundancy anddismissal

Child labour

Risk to children
Minimum age
Working hours
and conditions of
employment

Priority 3

Employment ofyoung workers
Worst forms ofchild labour
Forced orcompulsory

Prison labour
Deposits and12labourpapersForced overtime
Trafficking ofworkers

Priority 6

OthersForced labour and migrant labour:
These are still common. In particularCambodians tend to work in furniture
manufacturing, Laotians as domestic workers,
and Burmese and Vietnamese in all sorts ofindustries. Migrant labourers are increasingly
faced with abuses. Some Thai managers arestarting to take measures to engage with
migrant labourers, e.g. organized trips totemples.

Communities

Freedom of
association
andcollective
bargaining

Freedom toassociate and to
bargaincollectively

Resources

Use of natural
resources

Natural resource issues: droughts and otherfactors have led to a shortage of water, resulting
in conflicts between factories and communities
over the resource.
Effectiveness use of natural resources anddevelopment Eco friendly technology.
There are also a need for implementing such as ;a. 3R (reuse, reduce, recycle)
b. Water management

Security

State provision of
security

Priority 8

Non-state groups
and security
payments

Priority 7

Detainment

Priority 9

Access toLand

Conflict withlocal law

Tittle to land
Voluntary
relocation-consul
tation andcompensation
Forced relocation

Community
Investment

Othersa. Safety and well being: the safety of not only
companies but also communities needed to beprotected.
b. Quality of life is important, as is theworkplace environment (in particular pregnant
women, persons with disabilities, migrantlabourers and children).
c. There is a need to prepare for natural13

disasters, and lessons could be drawn fromJapan.
d. Management of waste: there is a need toreduce both industrial waste and rubbish in thecommunity.
Operations incountries inconflict
Entry(pre andpost conflict)Society andGovernments

Bribery andcorruption

Priority 4

Moneylaundering andtransparency

Priority 5

Relations to statewith poor humanrights records
Respect rights ofindigenous
peopleRespect to ESG
Others

1. Educationa. Environmental issues : many factories still
do not abide by environmental regulations.
b. The Thai government is encouraging a shift torailtransportation,
toreduceenergyconsumption
andtheimpacttotheenvironment.
c. Governance and transparency: there needs tobe a board or a steering committee to ensurethat decisions are taken in a transparent andunbiased manner.

Quality education is vital for sustainability. Though the Thai government
puts considerable financial resources into education, the results are still
mixed. Diversity within ASEAN: there are six hundred million people in
ASEAN, and a system is needed to understand and harness that diversity,with a common knowledge base and a common education system.

2. Inequality is growing and is a serious issue: there is a need to create employment
in the provinces.
3. Sustainability: goods and services produced by disadvantaged communities need
to be promoted, so as to ensure self-sufficiency.
4. Some companies translate documents such as SOPs, fire procedures and others
into the languages of migrant labourers.

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4.2

Japanese companies
Comments

Key human rights issues in the Japanesecompanies

Workplaceconditions

Working hours
Wages
Health and Safety

Disciplinary
practices
DiscriminationPriority 2
Priority 1
Ensuring health and safety at the workplaceleads to higher motivation on the part of
employees and better productivity: a positive
cycle. Neglecting this, on the other hand, leads
to a negative spiral for all, and must be avoided.

Recruitment
During work
Redundancy anddismissal

Core operation/ Supply

Child labour

Risk to childrenChild labour had serious implications for the
future of the children involved and must be
avoided at all costs. It also would lead to serious
damage to the brand of the company.
Nevertheless, it remains a serious problem.

Minimum age
Working hours
and conditions of
employment

Priority 3

Employment ofyoung workers
Worst forms ofchild labour
Forced orcompulsory
labourPrison labour
Deposits andpapersForced overtime
Trafficking ofworkers

Freedom of
association

Priority 6
There are many cases of migrants being
subjected to forced labour in Thailand.
Unscrupulous brokers are engaged in humantrafficking. The case of the shrimp industry is
receiving wide ranging international attention,
but this is just one example, and it is imperativethat companies are aware of the situation
throughout their supply chains.

Freedom toassociate and to15

Communities

andcollective
bargaining

bargaincollectively

Resources

Use of natural
resources

Security

State provision of
security

Priority 8

Non-state groups
and security
payments

Priority 7

Detainment

Priority 9

Tittle to land

Ambiguity regarding land ownership rights inmany countries in SE Asia often leads tosituations where the rights of disadvantaged
persons and communities are disregarded.
Companies need a complete understanding ofland rights, as there is a high risk of infringing
on the rights of others.

Access toLand

Conflict withlocal law

Voluntary
relocation-consul
tation andcompensation
Forced relocation
Community
Investment

OthersOperations incountries inconflict
Entry(pre andpost conflict)Society andGovernments

Bribery andcorruption

Priority 4
It is not uncommon in ASEAN countries that
senior government staff would demand bribes.
This is unacceptable.

Moneylaundering andtransparency

Priority 5

Relations to statewith poor humanrights records

OthersRespect rights ofindigenous
peopleRespect to ESG

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5.
1-1.

Feedback from NGOs and expert

Toshiyuki Doi（Senior Advisor, Mekong Watch）

He participated as an observer in the breakout group of Japanese companies. He noted that thefive issues identified were definitely important, and measures to address them could benefit
from the following:a. Child labour: it is important to base actions on the Children’s Rights Convention and on theguidelines produced by Save the Children. Companies should provide children with educational
opportunities for their future.
b. Forced labour and human trafficking: JICA and the Thai government have been
implementing a programme in Thailand and along the Mekong River for five years, and could
provide useful information.
c. Land rights: in Thailand and Cambodia, this issue should be looked at not as one ofindividual rights, but as a question of the right to natural resources. Land is not only a space
where people live, but is often fundamental to their identity.
d. Human rights and the new Thai Constitution: international human rights conventions
remain in force even if there is a political vacuum. Human rights must be protected under any
circumstances.
He also commented that the perspective of the Thai companies appeared to focus on risk
management. Thai companies need to give serious consideration to the establishment ofgrievance mechanisms, not only to assess claims but also as a tool for communication withrights holders.
1-2.

Naiyana Thanawattho（Child Protection Specialist, Save the Children）

She stated that the workshop had been a good opportunity to discuss businesses andhuman rights issues. She noted that though there was awareness of child labour as an
issue, it was necessary to understand Thai law in relation to minimum age of children thatare allowed to work, as well as the condition of their work.
age in order to employ a child is 15 years old in Thailand.

Under the law, the minimum
The child cannot perform

dangerous or risky work or be in inappropriate environment.
Child labour should also be looked at in the context of forced labour and sex work. It was
important to ensure not only the well being of the child who works but also the safety andwellbeing of the parents working in your company.

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1-3.

K. Sureepun（FTPI）

One of the expert noted that it was important to share best CSR practices, and that issues
related to land rights needed to be understood not only by foreign companies but also by
investors. Business has the power to change society, and therefore companies have a
responsibility to engage with NGOs and other civil society actors to discuss solutions to social
problems. For example, the issue of education in Thailand is not just one of quality, but ofpoverty, as many families are financially unable to send their children to school. Businesses
need to concentrate their efforts on those fundamental issues.

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