2020
Human Rights Due Diligence Workshop(Stakeholder Engagement Programme)

Supported by / Cooperated by

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

10th February, 2021

“Human Rights Issues by Sector v.9”
In September 2012, Caux Round Table Japan (CRT Japan) established the Nippon CSR Consortium as aplatform for multi-stakeholders in cooperation with companies, NGOs/NPOs and academic experts. The
Consortium organizes a yearly Human Rights Due Diligence Workshop where multi-stakeholders cometogether to discuss the relationship between business activities and human rights.
The 2020 Human Rights Due Diligence Workshop was held for the ninth year, over eight sessions in
the period from 27th August to 18th November. The participants identified sector specific human rights
issues using the Human Rights Guidance Tool developed by the United Nations Environment Programme
Finance Initiative (UNEP FI). As a feature of the 2020 workshop, the impact and response issues of
Covid-19 were also shared and discussed to identify key human rights issues. This document is the resultof the participants' discussions.
This workshop applies the Chatham House Rule. The participants are free to express their views
as individuals, not representatives of companies or organizations that they belonged to. The sole
responsibility for the content of this document lies with CRT Japan, as an organizer of Nippon CSR
Consortium.
We would like to offer our great gratitude for the participants from NGO/NPO, and companies, andthose who gave public comments.

Caux Round Table Japan
Nippon CSR Consortium
Minoru Matsuzaki
Hiroki Wada

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

Table of Content

1.

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

1-1.

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

1-2.

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

1-3.

Implementation Steps of the 2020 Workshop ......................................................................................8

1-4.

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

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

3.

Human Rights Issues by Sector v.8

3-1.

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

3-2.

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

3-3.

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

3-4.

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

3-5.

Pharmaceuticals…………………………………………………………………………...………21

3-6.

Logistics and Transport………………………....……………………..........................................24

List of Participants of 2020 Human Right Due Diligence Workshop … ............................................................... 26
Appendix 1: Summary of the cross-industry meeting for corporate participants

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

Purpose of Human Rights Due Diligence Workshop

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

2013

2014

2015

2016

Companies

39

15

34

48

40

NGOs/NPOs

11

12

17

17

14

Participants

68 persons

35 persons

68 persons

98 persons

73 persons

2017

2018

2019

2020

Companies

23

17

24

20

NGOs/NPOs

17

14

13

10

Participants

67 persons

60 persons

80 persons

60 persons

Human rights due diligence encompasses process for (1) identifying and assessing any actual or potential adverse humanrights impacts, (2) integrating the findings from their impact assessments and take appropriate action, (3) tracking theeffectiveness of their response, and (4) communicating how they address their human rights impacts.
2 Refer to: Human Rights Council, 2011, Report of the Special Representative of the Secretary-General on the issue ofhuman rights and transnational corporations and other business enterprises, Available at:
http://www.ohchr.org/documents/issues/business/A.HRC.17.31.pdf#search='report+of+the+special+representative+of+the+se
cretarygeneral+on+the+issue+of+human+rights+and+transnational (Accessed Nov 10th, 2014).
1

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

1-2.

An overview of the Workshops for Identifying Human Rights Issues

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

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

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

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

modification on “Human Rights Issues by Sector ” formulated by the CSR Consortium last year, using the
Human Rights Guidance Tool 10 (2014 revision) developed by UNEP FI. As a feature of the workshop,
NGOs/NPOs raised globally increasing concerns such as AI and human rights, AI and privacy, relationships
between climate change and human rights, foreign workers in Japan, grievance mechanism, and SDGs andhuman rights. In regard to the composition of the corporate participants, the participation from the chemicaland building materials sector, consumer goods sector, and food sector increased significantly from theprevious year. The final report “Human Rights Issues by Sector (v.8)” was released.
In 2020, given the raised concerns from NGOs/NPOs, the participants reviewed the sector specific humanrights issues formulated by the CSR Consortium last year as to whether there were any
additions/deletions/correction points. This year, due to the impact of Covid-19, this workshop, which was
originally held from May to July, was postponed twice. In the end, we planned and implemented an online
workshop using the Zoom system from August to November. At the beginning of the workshop, thesecretariat and participants made some mistakes and were confused about how to operate the Zoom system.
However, they accumulated know-how on Zoom methods as they experienced the workshop. In the half of
the workshop, face-to-face meetings with adequate infection control measures were also incorporated, andthe workshop was conducted in a hybrid format combining both online and face-to-face meetings. Many ofthe participants were working from home for infection control measures, and the workshop truly reflected
the current work style. The final report “Human Rights Issues by Sector (v.9)” was released.
As the outcomes of the workshop this year, "Human Rights Issues by Sector (v.9)" and "Summary of thecross-industry meeting for corporate participants” (attachment 1) were formulated.

10

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

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

1-3.

Implementation Steps of the 2020 Workshop

The Workshop 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 the company,
NGO/NPO, and subject experts were separated 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 opened public comments on this paper from 28th December 2020 – 29th January 2021
(Japan Time). The Secretariat opened the draft document for public comment from Monday 28th
October 2020 to Friday 29th January 2021 (Japan time). Based on the discussions among participants,
NGOs/NPOs, and experts, and reflecting the opinions of the public comments, "Human Rights Issues
by Sector (v.9)" was developed and released.

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

1-4.

Notes for this document

1-4.a

Relevance between business operations and human rights

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

Scope of Study and Analysis

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

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

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

2

CRT Japan's viewpoint as the Secretariat of Nippon CSR Consortium
In recent years, there have been increasing calls for companies to fulfill their responsibility torespect human rights. The Guiding Principles on Business and Human Rights, adopted by the United Nations
Human Rights Council in 2011, require states to develop national action plans, and calls on companies,
regardless of size or industry, to develop and implement human rights due diligence which identifies, assesses,
prevents, mitigates, addresses, and discloses negative human rights impacts of their business activities. In
addition, in achieving the Sustainable Development Goals (SDGs), companies are positioned as an important
implementing entity, and are expected to maximize the positive impact and minimize the negative impact of
their activities. Against this background, on October 16, 2020, the Ministry of Foreign Affairs in Japan
released an action plan on business and human rights. From now on, it is expected that this plan willcontribute to the achievement of the SDGs by encouraging companies to promote a respect for human rights
while ensuring policy consistency among the relevant ministries and agencies in Japan.
One of the major events in 2020 is the outbreak of a pandemic new coronavirus infection (Covid19). A pneumonia of unknown etiology (unknown cause) detected in Wuhan City, China quickly spread to
all around the world. Countries around the world have introduced emergency declarations, strict lockdowns,
and entry restrictions to contain the spread of Covid-19. As a result, the movement of people and goods
stagnated and economic activities were greatly curtailed, which had a significant impact on businesses. In
the manufacturing industry, amid sluggish demand due to trade friction between the U.S. and China, there
have been a series of plant closures and downsizing due to the impact of Covid-19, and there has been an
increase in the number of layoffs and suspensions of employment of foreign workers and non-regular workers
who are in unstable labor contract positions. With regard to the supply chain, workers have been subjected
to wage payment delays and stay-at-home orders or dismissals due to order cancellations and payment delays
by business partners. On the other hand, demand is increasing in industries related to social infrastructure.
However, the rapid increase in production and orders are causing overwork and mental health problems. In
addition, it becomes an issue on how to ensure the prevention of infection of Covid-19 in departments where
it is difficult to work from home. In addition, there is a risk that people in socially vulnerable positions who
are already facing human rights issues such as forced labor and child labor will face even more serious humanrights issues. Under the growing negative impact on human rights, companies are encouraged to makecontinuous efforts to mitigate the negative impact on human rights of their stakeholders to the extent possible.
Covid-19 is a challenge to see how humanity can build a global safety net. Currently, while vaccine
development is reaching its climax at drug manufacturers and research institutes around the world, developed
countries are securing vaccines in advance. Vaccination has started in some countries such as the United
Kingdom. However, developing countries are lagging behind in securing vaccines, and there are growing
concerns that the disparity between the northern and southern will worsen. Out of concern that developing
countries will be left behind, WHO has established an international framework (COVAX Facility) with apublic-private partnership to jointly purchase Covid-19 vaccines and distribute them to developing countries,
and is calling on countries to join the COVAX Facility. The challenge is how to distribute vaccines to the10
Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho, Shibuya-ku, Tokyo, 150-0031, JAPANTEL: +81-3-5728-6365 FAX: +81-3-5728-6366
http://crt-japan.jp/en/socially vulnerable (those who are left behind) to ensure equitable access. WHO has warned that theslackening of infectious disease control measures due to excessive expectations for vaccines will prolong thecomplete control of Covid-19 infection. We are now faced with the challenge of shifting to a New Normal
lifestyle, not "after corona" but "with corona". Extension of conventional economic activities is not theanswer.

The purpose of this workshop is to support companies in taking the first step towards conducting
human rights due diligence. Individual companies, in cooperation with their stakeholders, are encouraged touse their expertise and strategy to address the human rights issues, and ensure legitimacy throughaccountability and transparency. By doing so, they will be able to obtain a license to operate from society
and ensure the sustainability of their business. The question is how the corporate participants in this workshop
can incorporate the outcomes of this workshop into their corporate management and utilize them for their
human rights initiatives.

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

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

Use

Sell

Transport

During employment and work

Child labour

1: Minimum age
2: Addressing young workers©Caux Round Table Japan

Buy

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

1: Severe incidents causing death or injury especially within research and development, as well as manufacturing sites. [C/M]
2: Long working hours may cause health problems, in particular mental health issues.
3: Progression of diseases caused by lack of health checkups.
1: Inadequate living conditions such as sharing one small dormitory room with several people, poor sanitation (shower, toilet,etc.), building a dormitory on the factory premises, and being locked up to control may affect the health of the employees.
3: Occupational diseases may be caused due to lack of protective equipment such as finger sacks, gloves, masks, ear-plugs, orレ レ レ レ レ
not wearing such equipment.
1: Health and safety standards in Japan do not conform to global standards. (emergency exit and evacuation drills)
4: Treatment of foreign workers in Japan (Especially awareness and training on health and safety, language barriers)
1: Ensuring safety and security of employees and their families residing in countries with a high number of COVID-19 casesand deaths
1: Ensuring workplace safety for employees in occupations where working from home would not be possible (manufacturing)

Discrimination

Forced orcompulsory
labourManufacture

Working hours and wage

・ In Global
1: Risks of long working hours, because the minimum wage does not meet the standard of living in the community
2: Excess labour risks due to production adjustment (priority delivery) *experienced both requests for production increase fordaily necessities due to COVID-19 and production cut plan due to a decrease in demand
3: Proper working time management may not be practiced
レ レ レ レ レ レ レ
4: Proper compensation (wage) for labour may not be paid. Working time is not recorded → Payment can not be made・ Unpaid overtime work especially in Japan, long working hours. A heavy workload for senior staff.
・ Discretionary labor system ・Inappropriate operation by managers in name only
・ Different work conditions and wage disparity among group companies. Equal pay for equal value of work
・ Long working hours caused by low production efficiency due to old production equipment

WorkplaceconditionsCore
operation/
Supplychain

Concrete issues

CreateKey human rights issues in the manufacturing sector

Deposits and papers
Forced overtime

・ Risk of receiving inequal treatment in working conditions, training, and promotion.
・ Discrimination against female workers and sexual minorities.
・ Harassment (Sexual and power harassment).
・ Addressing LGBTQ issues. (some companies established gender-neutral bathrooms/changing rooms and got rid of thegender section on applications)・ Discrimination against nationalities, races and religions.
1: There may be possible risks of child labour and child trafficking through brokers in supply chains across developing
countries (e.g. subcontracting works).
1: Workers in Asian countries may apply for recruitment by falsifying their age.
2: Risk of engaging in night work or dangerous work
・ When recruiting migrant workers (foreigners, migrant domestic workers) in Asian countries, recruiters may force them tohand over their ID (e.g. passport) and/or to pay excessive commission fees.
・ Long working hours due to excessive quota requirements may cause forced overtime.

レレ レ レ レ レレ

レ レ レ レレ

レ レ

レ

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

Use

Sell

Transport

Buy

ManufactureCore
operation/
Supplychain

Concrete issues

CreateKey human rights issues in the manufacturing sector

Freedom of
association

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

レ レ レ レ レ

Resources/local
Use of natural resources
community

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

レ レ レ レ レ レ レ

Security

・ Potential diversion of funds, goods and services to non-state groups and armed groups during procurement of raw materials
and disposal of products (e.g. conflict minerals)

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

レ レCommunity
Payment to non-state groups

Access to Land Land ownershipレレ

Bribery and corruption

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

レ レ レ レ レ レ レ

Relations to states with poor
human rights records

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

レ レ レ レ レ レ レ

Relations withcustomers

Health and safety andprotection of personal
information

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

レ

RemedyDevelopment of Access toRemedy・ Human rights abuses may not be addressed if remedy contacts and process are inadequate.
・ Risks that the current systems become superficial
・ Required to redeveloping comprehensive remedy processes addressing supply chain but not yet undertaken

レ レ レ レ レ レ レ

Society and Relations withgovernment governments

Others©Caux Round Table Japan

レ

レ レ レ

13

3.2 Chemical and Building Materials Sector

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

*A subcontractor/ onsite Subcontractor refers to an outsourcing company that provides various services such as manufacturing and logistics at each stage of the value chain (including staff who visits office/ plant on a regular basis)

Value Chain

Child Labour©Caux Round Table Japan

DisposeRedundancy anddismissal

Subcontractor
Onsite Subcontractor*

Discrimination

Reuse and recycling

During work

Sell

Wage

Use

Core
operation/
Supply chain

Transport

Disciplinary measures

ProcureWorkplacecondition

Produce

Health and safety

Development

Working hours

Concrete issues

Research

Key human rights issues in chemical and building
materials sectors

・ There may be overtime work when receiving orders because of the lack of due consideration of resources (one’s company and supply
chain) and shorter delivery times due to COVID-19.
レ レ
レ
レ
レ レ
レ
レ レ
レ
レ
・ There is not enough understanding on the degree of working hours management according to different working conditions depending
on country/areas (supply chain).
・ There are relatively many sources of risks in the workplace environment as manufacturers that use hazardous substances (chemical
substances) and large scale facilities (one’s company and supply chain).
・Accidents during the transportation of dangerous substances may cause health hazards to the parties concerned and those around thesite.
・ Insufficient information on chemical substances from suppliers may cause health damage to employees in one's company and final
レ レ
レ レ レ
レ レ レ レ レレ
レ レ
consumers (one’s company and supply chain).
・ If we outsource companies with poor ethical values to conduct safety tests or functionality tests through people, human rights issues
may arise (supply chain).
・ In the manufacturing sector (especially plant operation), working from home would be impossible. As many workers come to the plant
upon the regular maintenance and repairs, insufficient measures for COVID-19 may negatively influence safety and stable operations.
・ Because the customs of disciplinary measures differ largely according to each country or area, the disciplinary policies may notconform to the country or area (one’s company).
・ Grievance mechanisms available for disciplined persons may be insufficient (one’s company).
レ レ レ レ レ レ
レ レ
・ The customs of disciplinary measures differ largely according to each country or area, it becomes difficult to grasp the actual practicesof disciplinary measures at supplier's sites (supply chain).
・ Potential risks in suppliers and contractor.
・ The fair wage corresponding to working hours may not be paid.
レ
レ
レ レ レ
・ Wages paid to foreign technical intern trainees may not be clarified.
・ Cases of harassment issues which are raised as social problems differ depending on region and time (for instance, discrimination
against sexual minorities in 2015, and power harassment in 2019). Elimination of discrimination at workplace globally remains unsolved(one’s company and supply chain).
・ A delay in improvement of the working environment for people with disabilities/ foreign workers with limited Japanese skills may
レ レ レ レ レ レ
レ レ レ
lead to human rights problems (one’s company and supply chain).
・While the EU General Data Protection Regulation is being strengthened even in Japan, full measures may not be taken to respect theprivacy of employees and protect personal information (one`s company and supply chain).
・ Illness and pregnancy may be a judgment factor without specifying objective standards, and implementation based on sufficient
communication may not be made (one’s company and supply chain).
・Non-regular employees and on-site work contractors may be dismissed due to the economic downturn caused by COVID-19 and it may レ レ レ レ レ レ
be difficult to have a true figure of the situation.
・ Employees are likely to experience unexpected dismissal due to the progress of digital transformation in the time of COVID-19.

Dangerous work andemployment

・ Potential risks in suppliers and contractors

レ

レ レ

レ

Minimum age
Working hours andworking conditions
Employment of young
workers

・ Potential risks in suppliers and contractors

レ

レ レ

レ

・ Potential risks in suppliers and contractors

レ

レ レ

レ

・ Potential risks in suppliers and contractors

レ

レ レ

レ

レ

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

Value Chain

Freedom of
association

Community Resources

As a chemical company, we are working on reduction of environmental impacts and proper management of chemical substances, but thefollowing points are listed as potential human rights issues.
・ Concerns regarding inappropriate use and disposal by customers (value chain) (e.g. marine plastics)
・ The industry may give a huge impact to local communities, as it uses a relatively large amount of resources. Also, it may cause
Use of natural resources
pollution damaging to the communities by outflows of hazardous materials and exposure to them. (one’s company and supply chain)(water and land)
・ Possible risks of water depletion due to excessive use of water and deforestation by construction of factories. (supply chain)
・ Impact may be given to local communities due to the depletion of natural resources. (supply chain)
・Promoting the transition from fossil resources to non-fossil resources may adversely affect indigenous peoples' rights such as forced
detention of land and biodiversity such as deforestation.

レ レ
レ レ

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

レ レ
レ レ

Bribery and corruption
Society and Relations withgovernment governments

・ Acquisition of permits and licenses, and operations in countries with low human rights awareness, and procurement from such
Gov'ts with poor humancountries (such as conflict minerals and timber) may indirectly get companies be involved in occurrence of the negative impact onrights awarenesshuman rights. (one’s company and supply chain).
(1) Because we have a wide range of value chains, we may not be able to respond to the following matters in a timely and appropriatemanner・ Establish a consultation system and set up a contact point in consideration of the local language, reception hours, legal system, andculture.
・ Inform how to access grievance mechanisms, and on the expected handling method and period.
・ The value chain needs to be visualized
Remedy(2) Given the impact of COVID-19, consideration and response are required for the following items as well.
・ Review of grievance mechanisms (It is required not only to set up a grievance contact point on the premise of coming to the office(e.g. suggestion box) but also to build a system to manage grievances remotely)©Caux Round Table Japanレ

Subcontractor
OnsiteCore
operation/
Supply chain

DisposeForced Labour

Reuse and recycling

Sell

・ Quantitative data regaridng migrant workers globally and the actual situation of foreign technical intern trainees are notレcomprehensively identified. When forced labour occurs, companies may face great reputational risks (supply chain).
・ As a feature of B to B companies, forced overwork is demanded to workers when companies receive orders without due consideration
レ レ
レForced overtime
レ レ
レ
レ レ
レ
of resources (volunteer overtime work is regarded as overtime work) (one’s company and supply chain).
・ Quantitative data regarding migrant workers globally and the actual situation of foreign technical intern trainees are not
Human trafficking
レ レcomprehensively identified. When forced labour occurs, companies may face great reputational risks (supply chain).
・ Labour-management negotiations may not be properly conducted (one's company and supply chain).
Freedom of association
・ Employees may not have a means to discuss issues related to labour without interference of companies (one`s company and supply
レ レ レ レ レ レ
and collective bargaining
chain).
・ Employees may not have a means to discuss issues related to labour without interference of companies. (one’s company and supply
Conflict with local law
レ レ レ レ レ レ
chain)
Deposits and papers

Use

Transport

ProcureProduce

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 レ

レ

レ

レ
レ

レ レ

レ
レ レ レ レ レ レ レレ
レ

レ レ レ レ レ レ レ レ レ

レ(3) When a complaint about human rights is received at a grievance desk for compliance and harassment, it may not be shared withhuman rights personnel and appropriate measures may not be taken from the perspective of respect for human rights.
A double-check status (レレ) shows greater risks. 15

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

レ レ レ レ レ

レ

レ

レ レ レ

レ

レ

レ

レ レ レ レ レ

レ

レ

レ レ レ

レ

レ

レ レ レ レ レ レ レ

レ レ

レ

Use

レ

Disposeレ レ レ レ レ

Produceレ

Sell
AdvertiseTransport• Long working hours may be caused by (a) production schedules that presuppose overtime work, as well as
attempts to catch up to delays in production schedules in upstream supply chain, (b) low wages that do not match
local standards of living, (c) piece-rate work, and (d) repair work of a large volume of defective products or
products which need adjustments.
Working hours• Long hours of work may occur due to excessive response for customers and increase of man-power by
ambiguous targets.
• There is a possibility that labor management may be inadequate, or rest days required by law may not be
intentionally given, and limits of overtime hours may not be upheld.
• Pressure of cost reduction from buyers may lead to non-compliance with minimum wages.
• Frequent revisions of minimum wages in some countries may lead to non-compliance with minimum wages.
• Proper rewards for overtime hours may not be paid due to poor compliance with laws/regulations andWages
inadequate labour management.
• Equal pay for work of equal value may not be practiced.
Working• Fair compensation according to productivity may not be paid.
Conditions• Education on health and safety, disaster drills, first-aid drills, and handling instructions on toxic chemical
substances may not be thoroughly conducted.
• Health hazard may occur due to insufficient efforts to improve a harmful working environment to workers’
health (loud noise, vibrations, illuminance, room temperature, ventilation and exhaust).
Core• Risks of having pregnant women and young people engage in dangerous or injurious work.
operation /Health and safety• Workers may be exposed to danger due to aging buildings, illegal constructions, insufficient emergency exits
supplyand evacuation passages.
chain[Emerging concerns due to COVID-19]• Being forced to work remotely and loosing a work-life balance may lead to overwork.
• Employees in occupation that would be difficult to work from home have to commute to work or store, which
may increase stress against infection risk and psychological stress.
Harassment• Workers may be exposed to physical, sexual, mental or verbal harassment and abuse.
• Improper content of employment rules may cause improper disciplinary measures and treatments.
Working
Disciplinary measures • Sufficient explanations, including language, may no be provided to foreign workers and foreign technical intern
Conditions
trainees.
• Unequal recruitment/recruitment may be conducted based on disability, LGBTQ, BLM, religion, race, age andDuring employment
gender.
Discrimination During work
• Unequal treatment in opportunities for promotion, training and working conditions may be practiced based on
During use
disability, LGBTQ, BLM, religion, race, age and gender.
• Unequal treatment in use may be practiced based on disability, LGBTQ, BLM, religion, race, age and gender.
• Children under the minimum age may be working without verification of their identify, or based on counterfeit
identification.
Child labour
Minimum age• Children under the minimum age may be exposed to child labour due to poverty.
• Children may be exposed to child labour at raw material suppliers (plantations, quarries, etc.)• Children may be exposed to child labour including temporary staff and contract employees.
©Caux Round Table Japan

ProcureConcrete issues

Research
Development

Key human rights issues in consumer goods sector

レ16• Workers may be forced to work by violence, the threat of violence, financial issues, possession of passport, or
any other form of coercion.
Forced overtime• Labor contracts (employment contracts) are not explicitly stated in the document, and workers may be forced to
Human trafficking
work under unfavorable working conditions.
• Vulnerable immigrants, refugees, technical interns may be exposed to forced labour.
• The formation of labour unions and collective bargaining may be refused without any legitimate reason. Poor
treatment or dismissal to union members may be practiced.
• Workers may get fired due to participation in strikes.
• Use of a large amount of water and pollution of rivers by the inflow of toxic chemical materials may cause an
Water stressadverse impact on the local environment and health of local residents living in affected areas.
• Manufacturing products may cause an adverse impact on the protection of forest eco-systems.
Community Resources
Terrestrial resources• Abandoning waste or illegally dumping it because of not selecting an appropriate contractor.
Marine resources• Manufacturing plastic products may cause an adverse impact on the protection of marine eco-systems.
Bribery and corruption • Bribery may be demanded when acquiring license at each stage of the value chain.
Society and Relations with Relations to states• Reputational risks and human rights risks are present due to approach to a country with low human rights
government governmentswith poor humanawarenessrights records• Inadequate efforts to increase the quality and safety of goods, and to mitigate risks for consumers.
• If correct information is not communicated, the correct usage is not followed. This will bring disadvantages toboth the consumer and the manufacturer.
• Inadequate efforts to improve the traceability of materials and products.
• Insufficient efforts to solve consumer issues through innovation.
• Personal information such as customer profiles and monitoring data, security cameras, purchasing behaviour,
Relations with Privacy
information contained in cookies, and delivery address may be leaked, mismanaged, processed, transferred, andConsumer
consumers
used improperly.
• Advertisements and promotions may violate children's rights, impair healthy development, or threaten safety
Health and Safety ofand health.
Children• Equal access to products that meet the needs of children's growth characteristics may not be ensured.
Harassment and• Advertisements or promotions may be associated with discrimination or bullying, which seems accepting anddiscriminationencouraging discrimination or bullying.
Sustainable society• Disposal of plastic products, containers, and packaging may negatively impact on the environment.
Grievance mechanism• Grievance mechanism may not be developed. Even if already implemented, it may not work functionally.
©Caux Round Table Japan
Forced orcompulsory
Core
operation / labour
supplychain
Freedom of
association

レ レ レ レレレ

レ レ レ レ レ

レ

レ

レ レ

レ

レ

レ レ レ

レ

レ
レ

レ レ
レ レ レ レ レ

レ

レ レ
レ

レ レ レ レ レ レ レ

レ

レ レ レ レ レ

レ
レ

レ レ レ レ レ レ レ

レ

レ レ レ

レ レ
レ
レ
レ

レ レ レ
レ レ レ
レ レ レ レ レ レ レ

17

3.4 Food Sector
Value Chain

Workplace conditionsCore
operation /Supply chain
Health and safety

globalDisciplinary action

globalEmployment

globalDuring work

globalDiscrimination©Caux Round Table Japan

Dispose

Japan

Sell

Wages

Consumeglobal・ Long working hours may occur at all work in own manufacturing factories including those of suppliers, and in logistics drivers.
・ When production such as seasonal items concentrates, forced labour may occur to keep the delivery date.
・ Due to the impact of COVID-19 (increasing demand for home-cooked meals due to staying at home), overwork occurred because of レ
increased production. It became more common to work remotely due to changes in working styles, which leaves a problems regarding
working hour management (unpaid overtime).
・ Wage levels do not match the local standard of living.
・ Proper wages are not paid to workers due to the application of piece-rate work in palm farms and fishing grounds.
・ Introducing efforts effectively to the society such like fair trade enables to increase consumer`s safety and corporate value, as well as
pay fair wages to local workers.
・ The wages of foreign workers may not meet the minimum standard of living. Housing for them may not be well taken care.
・Securing wages according to working hours (compliance with laws and regulations in each country)
レ・ Wages are not guaranteed due to factory operation suspension, lockdown, etc. given the influence of COVID-19.
(The impact of COVID-19)
・ Unfair treatment to foreign workers and technical intern trainees such as unfair low wage and termination of employment contract
・ Unfair treatment to dispatched workers such as unfair low wage and termination of employment contract
・ Unreasonable deduction from salaries that is not determined in advance (e.g., bathroom usage fees, etc.) have occurred and are notmentioned in detail on a pay slip.
・ The health and safety of employees and workers may be threatened due to excessive work, inadequate measures against work-related
accidents, handling of chemical substances including agrichemicals, and dangerous work in a process of manufacturing products
including raw material suppliers and a process of research and development (Employee = including perspective of persons withdisabilities).
・ In order to reduce risks, it is important to consider and address cultural differences and diversity such as color barrier-free(consideration of coloring) and direction of opening and closing the door, display of their own language for foreign workers, andsupport for heavy-duty work by using supporting tools.
・ The physical burden on logistics drivers is heavy (unloading containers and freezer operations), and health considerations may belacking.
レ・ A heavy workload at distribution centre hub (unloading containers, working in the freezer, etc.). The impact on vulnerable people
will be even greater. In addition, there may be a lack of health considerations.
・ Insufficient support for foreign workers to make a clinic visit
・ Insufficient support for clothing, food, and housing for foreign workers
・ Insufficient mental health support for foreign workers
・ Insufficient precautions to prevent infections in the workplace (not limited to COVID-19, but also other diseases and infectious
diseases・ Insufficient precautions to prevent infection of children. Parents may abuse or neglect children due to the influence of COVID-19. ・Not all employees have a thorough medical examination
・ Compliance with the implementation of disciplinary action for an employee who engages in harassing behaviour
レ・ Implementation of appropriate disciplinary action in accordance with laws, regulations and office regulations
・ Discrimination may occur during the recruitment process, based on race, gender, religion, origins including overseas, sexual
orientation, sexual recognition, disabilities, ethnicity and beliefs.
レ・ Debt labour occurs through recruitment fees to sending organizations and payments to foreign language education institutions. Thereis also a domestic problem of employing workers without being aware of the background.
・ Safety education may be fully given to workers including foreign employees, disabled persons and temporary workers. Also, they
may receive unequal treatment in safety education.
・ Workers may be forced to have unstable employment form.
レ・ Sexual, power, maternity, SOGI harassment.
・ Harassing behaviour to people who tested positive for COVID-19 and their families
・ Insufficient support and work environment for people with disabilities

Produce

globalConcrete issues

Transport

Working hours

Area of risk occurrence

ProcureResearch
Developme

Key human rights issues in food sector

レ レ レ レレ

レ レ レ レレ

レ レ レ レレ

レ レ レ レレ

レ レ レ レレ

レ レ レ レレ18

Value Chain

Dispose

Sell

Japan

・ Manuals that support multiple languages, multiple religions, and consideration of the work environment are necessary.
レ レ レ レ レ
Discrimination may occur due to differences in nationality and religion.
・ Discrimination may occur in assessment and treatment based on race, gender, religion, origins, LGBT, SOGI, disability, ethnicity,
beliefs, medical history (HIV etc.), care for family members, and Infertility treatment.
・ It is necessary to support life for foreign workers and their families, and to prevent isolation in the community.
・Fair promotion and pay increase according to the evaluation of foreign technical intern trainees. Lack of communication creates sense
レ レ レ レ レ
of isolation. No rewarding evaluation or treatment is given.
・ Female managers in Japan still rremain uncommon. Delays in barrier-free. The disabled may not find the work rewarding
・ An increase in child labour due to widening of the income gap and the increasing number of poor people
・ Confirming whether tier 2, tier 3 suppliers engage in child labour especially in the developing countries.

ConsumeglobalAssessment, Treatment,
Dismissal

Produce

Discrimination

Japan

Transport

During work

Concrete issues

Area of risk occurrence

ProcureResearch
Developme

Key human rights issues in food sector

レレChild labour(elementary students)

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

レ レ レ レ レ

レ

Employment under
18 years of age

global Involvement in night labour and dangerous labour

レ レ レ レ レレ

レ レ レ レレレ

レ レ レ レレレ

レ レ レ レ レ レCoreoperation /Supply chain
globalForced or compulsory
labourJapan
Freedom of
association andcollective bargaining
Access to Remedy
Protection of Privacy©Caux Round Table Japan

Conflict with local law

・ Forced labour against immigrant workers may occur.
・ Illegal immigrants may receive inhumane treatment.
・ Forced labour in procurement process of agriculture, forestry and fisheries may occur (Working environment at the fishery workingsite).
 Long working hours may occur due to excessive requests from business partners.
・ Conclusion of an employment contract is required. Employment contracts should be prepared in local languages, or in the languageof foreign nationals. (Global)
・ Confirming whether employees of tier 2, tier 3 suppliers experience excessive working hours, especially in the developing countries.
・ Exploitation of technical intern trainees (e.g. taking a passport away), engagement in dangerous labor.
・ Slave labour in procurement process of agriculture, forestry and fisheries (working environment in domestic livestock sites)
・ Forced savings at the time of contract (Employers take passbook seal away from employees)
・ Support for technical intern trainees who have difficulty going home during the COVID-19 crisis

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

global・ It is necessary to address grievances throughout the value chain. Concerning consumption, it is necessary to provide 24/7 customer
support and multilingual printing.
・ It is essential to establish not only whistleblowing system, but also grievance mechanisms for external stakeholders.
・ Use of data of security cameras for food defense may infringe on privacy.

Japan

レ レ
19

Value Chain

Community
Impact on community

Access to land

globalTitle to land

Investment tocommunity
Access to remedy
Relations with society
Bribery and corruption
and governments
Relations withSociety andgovernments andgovernment
companies with low
awareness of humanrightsglobalglobalglobalglobalglobalProvision ofproper information

globalQuality control

globalResponsible disposal

globalHealth and safety
ConsumerPrivacy Protection©Caux Round Table Japan

global・ Reduced yield due to global warming
・ Impact on the living area due to the occurrence of natural disasters caused by climate change
・ Negative impact on community lifelines due to pollution (noise, vibration, foul odor, waste, etc.) associated with construction andoperation
・ Infringement of access to evacuation shelters in the event of a disaster・ Titles to the land of local people or indigenous groups may be ignored at the occasion of land enclosure, especially whenconstructing such as fields, ponds, factories/manufacturing sites, and waste treatment plants.
 Deprivation of the rights of local people may occur due to the enclosure of agricultural lands.
 The withdrawal of local factories and projects may reduce employment in the surrounding area, which may lead to a decline of thelocal economy.
・ Attention on not only foreign workers at work, but also their home environment is required. Also, grievance should be addressed.
・ In establishing factories and gaining marketing rights (marketing license), companies may be demanded for bribes to acquire lands
and permissions.

レ

レ レ レ

レ

レ レ レ レ レ レ

レ レ レ

レ

レ レ

レ

レ レ レ レ レ レ レ
レ レ レ レ レ レ レ・ Human rights violations such as human trafficking may occur due to collusion between the sending organization and relevant
government of the country concerned.
・ Expansion, business operation, and procurement in countries where occupational safety laws and regulations are not in place
・ Incorrect food labeling (ingredients, misrepresentation) may cause health hazard/ religious issues to consumers.
・ Inappropriate marketing may lead to incorrect eating habits of consumers, especially minors and the elderly. (health damage causedby overdose of specific ingredients)
・ Inappropriate advertising and PR may cause more discrimination.
・ Insufficient quality control (storage conditions, hygiene control, process control, transportation control, etc.) and hygiene training for
employees may cause health hazards to consumers.
・ Insufficient measures against intentional quality degradation (food defense)
・ Waste (food residue, plastic waste, etc.) may not be treated properly, causing environmental deterioration.
・ Child labour and forced labour in waste disposal work may occur.
・ Risks of leaking personal information gained through consumer campaigns, mail order sales, and member registration.
Storage management, information processing management, information transfer management (including contractors) are required.

DisposeglobalSell

Climate change

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

ProduceUse of natural resources
Resources

Concrete issues

Transport

Area of risk occurrence

ProcureResearch
Developme

Key human rights issues in food sector

レ

レ レ

レ

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レ

レ レ

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レ

レ レ レ レ レ レ
レ レ レ
20

3.5 Pharmaceutical Sector
Value Chain

Disciplinary actions
Employment

Discrimination

During work

Redundancy and dismissal©Caux Round Table Japan

DisposeHealth and safety

・Long working hours may occur due to concentration of clinical trial on developed products,
concentration of production due to approval of new products, increased production due to pandemic
occurrence, and product recall.
レ レ レ レ レ レ・Long working hours may occur due to excessive customer support.
・Long working hours may occur due to insufficient labor management based on labor laws of eachcountry / region.
・Wage standards may not conform to living standards in the local area.
・Proper wages for overtime work may not be paid due to non-compliance with labor laws of eachcountry / region.
レ レ レ レ レ レ・There may be unfair treatment (assessment, low wages) for non-permanent employees (including
foreign workers) and foreign technical intern trainees
・Employees' health and safety may be harmed due to dangerous work at research and development
sites, handling of animals, cells, compounds or pharmaceuticals, and insufficient occupational safety
and health (defective protective equipment, insufficient education, etc.)
・ Incomplete SDS may jeopardize health and safety of employees and transport workers.
レ レ レ レ レ レ・ Description of instructions, signs and others may not be correctly understood by all the workers,
which may jeopardize health and safety.
・Health and mental damage may occur due to long working hours and social isolation.
・During the clinical development stage of pharmaceutical production, the health and safety ofsubjects may not be managed properly due to poor ethics of contract research organizations.
レ
Moreover, improper involvement in clinical data may occur.
・Unfair disciplinary actions may be executed by companies.
・Unfair disciplinary actions may be executed due to the fact that no whistle-blower system has been レ レ レ レ レ レ
established.
・Discrimination may occur based on characteristic or attribute such as birthplace, nationality, sex,
レ レ レ レ レ レ
SOGI, age, race, belief, religion, and presence of disease.
・Harassment (sexual harassment, power harassment, maternity harassment, SOGI harassment)
・Discrimination in employment form may occur based on gender, birthplace, nationality, age, race,
レ レ レ レ レ レ
religion, SOGI, presence of disease.
・Unstable employment form may be forced.
・Organized dismissal may occur based on race, sex, SOGI, age, belief, religion, presence of disease.
レ レ レ レ レ レ・Unfair pressure may be given based on differences in employment form.

Consume

Health and safetyCore
operation/
Supply chain

Sell
Transport
Produce

Working
conditions

ProcureWage

Develop

Working hours

Concrete Issues

Research

Key human rights issues in pharmaceutical sector

レ

レ

レ

レ
レ

レ

レ
21

Value Chain

DisposeConsumeSell
Transport
Produce

ProcureChild labour

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

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

レ レ レ レ レ レ

レForced orcompulsory
labourForced or compulsory
labour・Immigrants, refugees, non-permanent workers including foreign workers, foreign technical interntrainees may be exposed to forced labour by being taken disadvantage of their vulnerable positions.

レ レ レ レ レ レ

レ

レ レ レ レ レ レ

レ

レ レ レ レ レ レ

レ

レ レ レ レ レ レ

レFreedom of
association andcollective
bargaining

Community

DevelopCore
operation/
Supply chain

Concrete Issues

Research

Key human rights issues in pharmaceutical sector

・ Participation in labor unions and similar organizations may be obstructed due to retaliation,
Freedom of association andintimidation or harassment from business people. The opportunity for labor-management consultationcollective bargaining
is not substantially secured.
・ Freedom of association and collective bargaining rights (in accordance with international law) may
Measures not permitted by
not be ensured in countries where trade unions and similar organizations are not recognized ornot
domestic law
applied in practice even if recognized.
Use of natural resources
・Bio-piracy may occur in sourcing natural compounds that are essential for drug development.
・The environment may be polluted by a leakage of animals, cells, pharmaceutical products andchemical compounds to nature.
Health and safety
・The health of residents may be harmed due to the environmental pollution. And, the environmental
pollution may spread to animals and plants that residents live on.

Resources
Environmental
impact ofpharmaceuticalproducts
Operations in preand post conflict Product supply risk
countries
Entry post
Product supply risk
conflict

Relations with
Bribery andgovernments
corruption

レ レ

レ レ

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

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

レ レ レ レ レ レ レ レ

Relations with authorities

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

レ

Relations with medical
persons (including
researchers)

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

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

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

レ レレ

レ レ レ レ レ レ22

Value Chain

Public health

Actions to pandemic

Personal
information

Management of healthinformation of individuals

Others©Caux Round Table Japanレ レ レ レ レ レ

DisposeResponse to rare diseases

レConsume

Health and safety

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

Sell
Transport
Produce

Relations withpatients

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

ProcureConsumers

Grievance

Relationship with patientsand study subjects
Employee and Supply
Chain

Develop

Access to
RemedyConcrete Issues

Research

Key human rights issues in pharmaceutical sector

レレ・Insufficient measures may be taken for elimination of counterfeit medicines.
レ レ
レ レ
・Health hazard may occur due to delay of report on side effects.
レ レ・Injury may occur due to product failure (including doctors, nurses, pharmacists, etc.)
レ レ・Investigational new products and therapeutic products to the patient may be given without priorレ
レ レ
informed consent.
・Side effects due to medication or incorrect medication may cause health hazard to the patient.
レ・Damage to the environment may be caused by inappropriate disposal of medicines that the patientレ レ
can not use (It becomes a problem in the United States that medicines are disposed in toilets).
・Inappropriate prescription / treatment may be given due to exaggerated PR of product information.
レレ レ・Decline in medical access in depopulated areas may result in failure to properly provide drugs in a
レ レtimely manner.
・Medicines may not be approved and sold to patients in a certain country despite conducting clinicalレレ
trials.
・New pandemic virus may endanger lives of people and deteriorate the public health ofレ レ レ レ レ レ レ・Social unrest and security deterioration caused by pandemic may hinder business activities andレ レ レ レmake it difficult for drugs to be supplied.
・Production of therapeutic products may be delayed due to manufacturing efficiency when
レ レ レ レpandemics occur.
・The leakage of personal information such as genetic information and invasion of privacy may
identify individuals and may cause data misuse.
レ レ レ レ レ レ
レ・ Risk of leakage of personal information acquired through business operations23

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

Sell: promotion, sales
Value Chain

Health and safety

Discrimination©Caux Round Table Japan

Employment
Environment andRequirement

DisposeCore
operation/
Supplychain

Transport

Workplaceconditions

Sell

Low wages

Buy

Working hours

Concrete issues

CreateKey human rights issues in logistics and transport
sector

Logistics and transport industries are a labour-intensive industry. Though it is anticipated that mechanization will be further
advanced in the future, laborious work of human beings will still remain.
・ Due to the volume of orders, long-term employment can not be made and employees may be exposed to unstable
employment forms.
レ レ レ レ・ Long working hours at sites and subcontracting companies may occur, especially in busy seasons.
・ Long working hours may occur due to work at late night and early morning to cope with time difference with othercountries.
・ Because this industry has a high public nature, unexpected long working hours may occur when disasters occur.
・ Low wages maynot meet the living standard for workers and their families.
・ Working hours may get longer due to expansion of mail-order markets, wages per unit of time may decrease.
レ レ レ レ・ The pandemic affected distribution volume and overal business volume, resulting in failure to obtain stable income.
At the site of the logistics and transport industry, there is always dangerous work such as loading and unloading heavy objects,
transportation, the use of large machinery/vehicles, and working in proximity to trains, aircrafts and ships. It is important tomake daily efforts to prevent risks from occurring, in order to keep workplaces safe.
・ Occupational accidents may occur when handling heavy machinery or heavy cargoes at shipping vessels, terminals, airplanes
and airports.
・ Securing workers' safety in areas of piracy occurrence and regions with geopolitical risks, such as the Straits of Holmes.
[shipping business]
・ As this industry has a high public nature, there is a possibility of secondary damage of occupational accidents when disasteroccursレ レ レ レ・ Long working hours may cause mental health risks.
・ Potential risks of causing forced and child labour, and threatening the health and safety (other than employees) in supply
chains.
・ Working remotely may adversely impact on employees' mental health (signs of declining mental health may not be easily
recognized)
・ The difficulties around transit and crew change may cause longer time stay at sea and trigger mental issues.
・ In the workplace where it is difficult to work from home, there is a risk of infection due to inadequate measures against
infectious diseases including coronavirus.
In anticipation of the shortage of human resources due to the declining population, in recent years, human resources and formsof employment have been diversified such as employment of temporary staff, senior employees, foreign employees, thedisabled, full employment of contract employees, and implementation of short work and teleworking.
・ There may be unequal treatment in working conditions, training and promotion as various types of human resources are
employed under various types of employment.
レ レ・ Foreigners may be treated unfairly in employment and treatment. (They are more likely to experience such unequal
treatments under these uncertain times)
・ There may be uniform treatment to workers without due concern for diversity (SOGI).
・ Discrimination against people who tested positive for COVID-19.
24

Value Chain

Customers
Society and Relations withgovernment governments
Illegal dealing,
Trafficking
OthersDigitization

Access to
remedy©Caux Round Table Japan・ Digital divide (Who can and can not benefit from digitalization)

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

レ

DisposeCommunity
Investment

In addition to fossil fuels, diversification of energy sources makes a progress including non-conventional natural gas resources
and power generation by natural energy.
・ There may be environmental pollution such as air pollution, water quality deterioration and destruction of habitats at
suppliers of fuel oils.[B]・ Air pollution may be caused by gas discharged from many transportation vehicles passing through the transportation route.
[T]
Use of natural
・ Oil spill accidents may cause marine environmental destruction.
レresources
・ Environmental destruction such as soil contamination, water quality degradation and air pollution may occur due toconstruction and use of transportation infrastructure such as a factory, distribution center, road, railway, port and airport.
・ The procurement and use of fossil fuels, and an inefficient use of resources may cause climate change and give a negative
impact on people’s lives.
・ Potential for contributing to sustainable development by efficient use of natural resources (positive impact)・ In the procurement stage of ingredients necessary for operations, human rights may be threatened in water and sanitation in
the area of procurement. [Aircraft]
・ Vehicles, ships, and aircrafts operated by companies may cause damage to the roads, harbors and airports where they
operate.
Use of・ Disasters may damage infrastructure and disrupt logistics.
レ レ
infrastructure
・ Efforts to promptly recover infrastructure such as roads and logistic centers after disasters, and maintain basic infrastructure
for local daily life (positive impact).
・ Accidents may cause an adverse effect on health and safety of customers, citizens, and other stakeholders.
・ There may be exercise of excessive use of force by national navies dispatched to the pirate occurrence area and regions withgeopolitical risks or by armed guards hired by a company to protect logistic centers with poor security.
・ Armed security guards on board may exercise excessive force against seafarers, crewmembers, and pirates (Shipping
industry).
・ Navy and pirates may violate the rights of local residents such as fishermen (Shipping industry).
・ Possibility to contribute to neighbors by cooperating in the operation of emergency relief supplies sites and transportation of
emergency relief supplies and support supplies to evacuation centers during occurrence of disasters. (positive impact)レレ・ Possibility to contribute to industrial revitalization, tourism promotion, job creation, culture promotion and maintenance ofthe local livelihood base by connecting people and goods and by long-term commitment. (positive impact)
・ Unnecessary stresses may be caused when various customers use public transportation [Airline]
Transportation
・ Risk of leakage of personal information / privacy customers provide to us
レ・ Customers' risk of getting infected with the coronavirus
・ Potential risk of being involved in bribery and corruption for example by way of a facilitation payment. [T]Bribery and・ Potential risk of being involved in collusion, bribery and corruption when negotiating capital investment and route
レ レ
corruption
development with governments and administrations. [C/B]
・ Potential risk of being directly involved in transportation of victims of human trafficking.
Human trafficking ・ Potential risk of transporting banned goods.
レ・ Risk of unintentional and indirect involvement in transport of persons involved in child prostitution and organ sales.
・ Technological evolution (AI, IoT, etc.) may cause unforeseen privacy / human rights issues, and cyber terrorism.
レ レ レTransport

Security

Sell

Community

Buy

Resources

Concrete issues

CreateKey human rights issues in logistics and transport
sector

レ

レ

レ

レ

レ

レ

レ
レ

レ

レ レ レ

レ
25

List of Participants of 2020 Human Rights Due Diligence Workshop■ Corporate Participants
Shunsuke Kikuchi
Hitomi Kobayashi
Emi Tanuma
Mitsuhiro Yonehara

Ryosuke Sakai

Wataru Shimizu
Junji Kokubo

Kazuya Doi
Hidemi Shintaku
Megumi Noda
Zhang Yi
Manabu Okubo
Koichiro Iwasa
Natsumi Terawaki
Koichi Kawahara
Emiko Mori
Yasushi Kato
Shuji Sonezaki

Eriko Takahashi

ANA HOLDINGS INC.
CSR Promotion, Manager
ANA HOLDINGS INC.
Planning team, Corporate Sustainability
ANA HOLDINGS INC.
Planning team, Corporate Sustainability
SHIONOGI & CO., LTD.
Sustainability Management Office, Corporate Planning Department,
Corporate Strategy Division
SHIONOGI & CO., LTD.
Sustainability Management Office, Corporate Planning Department,
Corporate Strategy Division
SHIONOGI & CO., LTD.
Human Resources Department, Administration Division
SHISEIDO CO., LTD
Group Manager, Environment Group, Sustainable Environment Department,
Social Value Creation Division
SUMITOMO CHEMICAL CO., LTD.
Legal Dept.
SUMITOMO CHEMICAL CO., LTD.
Assistant General Counsel, Legal Dept.
SUMITOMO CHEMICAL CO., LTD.
CSR Dept.
SUMITOMO CHEMICAL CO., LTD.
Procurement Dept.
SEKISUI CHEMICAL CO., LTD.
Senior Manager, ESG Management Department
SEKISUI CHEMICAL CO., LTD.
Senior Manager, ESG Management Department
SEKISUI CHEMICAL CO., LTD.
ESG Management Department
Chugai Pharmaceutical Co., LTD.
Head Manager, Business Ethics Group, Sustainability Department
Chugai Pharmaceutical Co., LTD.
Senior Director, Business Ethics Group, Sustainability Department
Chugai Pharmaceutical Co., LTD.
Business Ethics Group, Sustainability Department
TOTO LTD.
Chief Senior Planner
ESG Promotion Section, ESG Promotion Department,
Management Planning Division
TOTO LTD.
ESG Promotion Section, ESG Promotion Department,
Management Planning Division

Motoharu Miyazaki
Toshihide Ieki
Reiko Ohiro

Tatsuhiko Zengame
Tomonobu Sato
Makiko Ode
Toshihiro Oosawa

Mo Ro

Mari Kawamoto

Fuku Uno

Mayako Watanabe

Motoko Suzuki
Mihoko Nagai
Noriko Serita
Azusa Asahina
Hiroshi Horie
Takeshi Aoki
Mayu Isshiki
Katsuhisa Masui
Satoshi Arita

Toyo Seikan Group Holdings, Ltd.
General Manager, CSR Promotion Group, CSR Department
Toyo Seikan Group Holdings, Ltd.
CSR Promotion Group, CSR Department
NAXIS CO., LTD.
Sustainable Promotion Supervisor
Human Resources & General Affairs Division
NICHIREI FOODS INC.
MANAGER, Strategic Promotion Group, Strategic Planning Department
NICHIREI FOODS INC.
Manager, Strategic Planning Department
NICHIREI FOODS INC.
MANAGER, Human Resources Department
NICHIREI FOODS INC.
GROUP LEADER, Manufacturing Administration Group, NO.1-Overseas,
Manufacturing Administration, Department-Overseas,
Manufacturing Division
NISSHIN SEIFUN GROUP INC.
General Administration Division, General Affairs Department,
CSR Management office
NISSHIN SEIFUN GROUP INC.
General Administration Division, General Affairs Department,
CSR Management office
NISSHIN SEIFUN GROUP INC.
General Administration Division, General Affairs Department,
CSR Management office
NISSHIN SEIFUN GROUP INC.
General Administration Division, General Affairs Department,
CSR Management office
NISSHIN SEIFUN GROUP INC.
Business Development Division, Corporate Planning Department
NISSHIN SEIFUN GROUP INC.
General Administration Division, PR Department
NYK Line
Manager, CSR Team, IR Group
NYK Line
GHR Coordination Team, Human Resources Group
NYK Line
CSR Team, IR Group
Bridgestone Corporation
General Manager, Organization Planning Dept.
Bridgestone Corporation
D&I Promotion Unit, Organization Planning Department
Bridgestone Corporation
Organization Planning Department
POLA ORBIS HOLDINGS INC.
Manager, Corporate Communications Div., Corporate Social Responsibility

Hiroaki Nambu

Tatsushi Sakamoto
Reiko Abe
Kiyoshi Mizuma
Noriko Minamizaki
Mina Kanda
Mayumi Honda
Noriaki Hattori
Tetsushi Mori

Kentaro Kiriya

Yoshiatsu Ooike
Keiko Kurasawa
Yuta Okuda

POLA ORBIS HOLDINGS INC.
Senior Manager, Corporate Communications Div.,
Corporate Social Responsibility
POLA ORBIS HOLDINGS INC.
Corporate Communications Div., Corporate Social Responsibility
MITSUI CHEMICALS, INC.
Director, Corporate Sustainability Division
MITSUI CHEMICALS, INC.
Manager, Corporate Sustainability Div.
MITSUI CHEMICALS, INC.
Manager, Corporate Sustainability Div.
Mitsubishi Chemical Holdings Corporation
General manager, KAITEKI Promotion Office, Corporate Strategy Office
Mitsubishi Chemical Holdings Corporation
Manager, KAITEKI Promotion Office, Corporate Strategy Division
Mitsubishi Chemical Corporation
Manager, Corporate Planning Department, KAITEKI Promotion GroupMORINAGA MILK INDUSTRY CO., LTD.
Section Manager, Environmental Affairs Group, CSR Promotion Department,
Corporate Division
MORINAGA MILK INDUSTRY CO., LTD.
Leader, CSR Planning Group, CSR Promotion Department, Corporate
DivisionJAPAN POST BANK Co.,LTD
Chief Manager, Human Resource Department
JAPAN POST BANK Co.,LTD
Senior Manager, Public Relations Department
JAPAN POST BANK Co.,LTD
Diversity and Inclusion Department■ Organizations that Raised Issues
Dr. Saul Takahashi
Professor, Osaka Jogakuin College
Akiko Sato
Attorney-at-Law, Kotonoha Sogo Law Office, Deputy Secretary General,
Human Rights Now
Yumiko Horie
Advocacy Manager, Save the Children Japan
Mariko Yamaoka
Director, Not for Sale Japan (NFSJ)
Masahiro Koizumi
Director/Secretary General, NPO Sapporo Free School "Yu" (Japan)
Dr. Toyoyuki Kawakami
Japan Representative, Rainforest Action Network
Miki Nishiyama
Development and Communications
Services for the Health in Asian and African Regions (SHARE)
Sumire Kanda
Director, Tokai Daily Life Support Center for Foreigners
Hideaki Nakagawa
Executive Director, Amnesty International Japan■ Organizer
Caux Round Table Japan, Nippon CSR Consortium