Global Stakeholder Engagement Program

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Date: 14th September 2017 at AP Tokyo Marunouchi Nippon Seimei Marunouchi Garden Tower
Host: Caux Round Table JapanExperts：•Dr. Puvan J Selvanathan, CEO, Bluenumber Foundation(Former member of UN Working Group on the issue of human rights and transnational corporations
and other business enterprises)•William Rook, Regional Manager, Middle East, Institute for Human Rights and Business (IHRB)•Cathrine Bloch Poulsen-Hansen, Senior Adviser, Corporate Engagement Programme Manager,
Human Rights and Development, Danish institute for Human Rights (DIHR)•Hideki Wakabayashi, Secretary General, Japan NGO Center for International Cooperation (JANIC)(Former Executive Director of Amnesty International Japan)•

Kaori Kuroda, Executive Director, CSO Network Japan•

Saul Takahashi, Japan Representative, Business & Human Rights Resource Centre (BHRRC)

Participants：•Toshihiko Hoshino, Senior Expert, CSR Group, Corporate Planning Div., FUJIFILM Holdings
Corporation•

Mari Kojima, Manager, CSR Group, Corporate Planning Div., FUJIFILM Holdings Corporation•Shigeru Sugimoto, Manager, Corporate Brand & CSR, ANA HOLDINGS INC.

•Haruo Hatanaka, Vice President, Sustainability Planning Group, Corporate Strategy, KaoCorporation•

Takashi Yoshioka, Manager, Sustainability Planning Group, Corporate Strategy, Kao Corporation•Tamaki Shimamoto, Department Director, Sustainability Strategy Department, Shiseido Company,Limited•

Junji Kokubo, Group Manager, Environment Integrity Group, Sustainability Strategy Department,
Shiseido Company, Limited•

Kazumi Azuma, Manager, Environment Integrity Group, Sustainability Strategy Department,
Shiseido Company, Limited

Moderator：•Hiroshi Ishida, Executive Director, Caux Round Table Japan

Secretariat：•Minoru Matsuzaki, Nippon CSR Consortium, Caux Round Table Japan•Hiroki Wada, Nippon CSR Consortium, Caux Round Table JapanCaux Round Table Japan
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Introduction
Hiroshi Ishida, Executive Director of CRT Japan, first

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introduced the organization and the work it does in Japan andabroad. Then, he presented that since 2012, CRT Japan has held
annual stakeholder program in Tokyo for Japanese businesses,
NGO/NPO and subjective experts. And, in response to theincreasing concern from the society on supply chain practicesof Japanese companies, it has scaled up its program to hold in
Thailand in 2016 and 2017, Malaysia in 2017, and Myanmar
2017. In addition, CRT Japan conducted a dialogue withThe venue photo

Japanese businesses and small-scale palm oil farmers inMalaysia.
Next, Minoru Matsuzaki from CRT Japan reported on the Stakeholder Engagement Program in Japan. In
the program, NGO/NPO gave the corporate participants a lecture on human rights issues in supply chains inAsia, human rights issues particular to Japan, and trends of institutional investors in Japan. Then, given theconcerns raised by NGO/NPO, the corporate participants identified the sector specific human rights issues.
Compared to the composition of corporate participants last year, there were more corporate participantsfrom the consumer goods sector and food sector, and the participants from the human resource department
and procurement department participated in the program this year.
From the chemical and building material sector, Toshihiko Hoshino from FUJIFILM Holdings Corporation,
firstly reported that the sector identified positive and negative impact on the SDGs across their value chain
in the program last year. In the program this year, he shared that the sector recognized the need to enhancetheir efforts to respect human rights, as human rights of dispatched workers and workers at upstream supply
chain were potentially and actually violated due to the recent shortage of labour in Japan. He then sharedthat by utilizing the gain knowledge from the program, FUJIFILM Holdings Corporation facilitated humanrights efforts such as enhancing CSR procurement practices and working with the human resource
department. From the consumer goods sector, Takashi Yoshioka from Kao Corporation reported that thesector recognized the importance of identifying various causes for Karoushi in Japan (death caused byoverwork), clarifying the types of discrimination and being aware of discrimination, and grasping the actual
conditions of human rights violations such as forced labor and child labor in upstream supply chain likeplantations, which could be great risks for companies.
Shigeru Sugimoto from ANA HOLDINGS INC., who participated in the programs in Thailand andMalaysia, shared his learnings such as ethnic discrimination at local, ethnic discrimination raised whencoup d'état occurred, health issues caused by overdose of sugar, and difficulty for migrant workers in joining
labour unions. Junji Kokubo from Shiseido Company, Limited, who participated in the dialogue with smallscale palm oil farmers in Malaysia, shared the need to cooperate with suppliers in order to continue toprovide products in consideration for safety, reassurance, the environment and human rights.
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Lastly, Hiroshi Ishida from CRT Japan shared the plan for next year that CRT Japan would continue toprovide workshops just like the dialogue with small-scale palm farmers in Malaysia. Then, the participants

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and the experts conducted the discussion to exchange their views. The following shows the main points ofthe discussion.
The Stakeholder Engagement Program
The experts shared their positive comments that theprogram was held for six years, and the companies andNGO/NPO continued to listen and learn from each other.
This program assisted companies in conducting humanrights due diligence.

However, in order to take further steps, companies should
conduct a direct dialogue with people actually going
through human rights violations (rights-holders). It was
NGO/NPO that the companies had the dialogue with.

Cathrine from DIHR shared her opinions.

Thus, I would like you to conduct a direct dialogue with rights-holders in your company or by sector.
(CRT Japan later explained that the corporate participants had the direct dialogues with the rightsholders such as LGBT in the program in Japan and small-scale palm farmers in Malaysia.)

Business and Human Rights in Asia
In particular, the labour human rights issue against immigrant workers and prohibition on forming
labour unions are remarkable in Asia.

The participants noted that companies in Myanmar including Japanese companies often failed tocomply not only with international standards, but even with the standards of labour law in Myanmar.
In particular, the right to form labour unions without hindrance was established clearly in Myanmar
labour law. Nevertheless, there were instances where companies had fired employees for unionizing.
The place where workers continued to raise their concerns should be secured.

When addressing human rights issues in China, you could address human rights issues in the context
of the environmental protection or health and safety.

The interaction between Global Compact Local Networks among Japan, China and Korea was getting
active. The awareness of addressing human rights issues in China was rising.

SDGs and Human Rights


The experts shared their positive comments that in the program in 2016 the corporate participants
identified positive and negative impacts on the SDGs across their value chain in consideration withthe raised concerns from NGO/NPO.

The issues for SDGs including poverty, inequality and conflicts were inter-connected. Whenaddressing these, you should develop a systematic solution that put a focus on solving all the problems.

When raising issues such as on migrant workers to your government, you should advocate based on

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measurable results gained through human rights impact
assessment. In addition, you should advocate by

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collaborating with each actor including company and civilsociety and even competitors while raising the level of thecompany and the entire sector. In case that problems occur
when conducting this collaborate efforts, it was necessary
to decide in advance who should take responsibility, what
degree of responsibility should be taken, and who should
conduct corrective action.

Wakabayashi from JANIC shared his opinions.

The essence of SDGs was human rights "Leave No One
Behind". Companies were likely to lose sight of how the SDGs were developed and what the essenceof SDGs was, as their eyes went too far to look at business opportunities. Although various trends
such as ESG investment and materiality came out recently, the essence was to implement a humanrights due diligence required by the UN guiding principle. Also companies should remember that John
Ruggie's word at UN Forum on Business and Human Rights held in Switzerland in 2016, saying thathuman rights were not a risk to the company, but a risk to people.

The essence of SDG's goal 16 was to protect fundamental freedoms. After this goal was formulated,
the idea began to disseminate among NGO/NPO that it was important to protect and promote humanrights in international development. There was the rising concern that civic space was shrinking
recently, and this would hinder the achievement of the SDGs.

Human Rights Initiatives and DisclosureOnce companies carried out human rights risk
assessment, and identified people receiving
human rights abuses, they could no longer saythat they were working on the issues. These issues
had to be fixed. In the point view of rightsholders, addressing human rights issues wasurgent.

Thecompanies

thatreceivedaffirmativeThe participants in the programcomments on their human rights initiatives were proactively communicating their processes on
identifying what the human rights challenges were across their supply chains and how they wereworking on them. Although it was hard to say that they could address the issues perfectly, they gained
trust from their stakeholders by showing a progress status of their improvement. It was also important
to share and disseminate the cases as to how to respond to the negative impact on human rights in acorresponding way between other companies

We often heard Japanese companies saying that disclosing information was more risky than notdisclosing. Japanese companies tended to decide whether to disclose information by using checklists
on their human rights efforts. However, you should not judge whether or not to disclose in this wayof thinking. You must convey the process of how you were working on your human rights issues, andCaux Round Table Japan
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a progress status of improvement. Besides it was also important to involve the CSR department andpersons responsible for Human Rights as well as the purchasing department and business divisions,

Caux Round Tableand establish internal capacity to address human rights.

It was important to keep communication with suppliers on a daily basis and grasp the problems they
were having. This led to the prevention and mitigation of risks.

It could not be said that Japanese companies were lagging behind their human rights efforts, as there
were many companies that had and practiced Japanese traditional values of “Sanpo-Yoshi”, three-waysatisfaction, which advocated benefits to the seller, to the buyer and to the local community. However,it was important to continue to learn about human rights issues which were being discussed globally.
It was also important to communicate the values of Japan and Asia to the world.

Many companies had internal reporting systems, but these were often available only inside thecompany. The grievance mechanism stated by the Guiding Principles was a system that allowed
suppliers and local communities to report, so I would like you to develop it.

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