2022
Human Rights Due Diligence Workshop(Stakeholder Engagement Programme)

Supported by / Cooperated by

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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/

26th December, 2022

“Human Rights Issues by Sector v.11”
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 2022 Human Rights Due Diligence Workshop was held for the 11th year, over eight sessions in the
period from May 19th to July 14th. The participants identified sector specific human rights issues using the
Human Rights Guidance Tool developed by the United Nations Environment Programme Finance Initiative.
This document is the result of the discussions of the participants.
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, and those
who gave public comments.
Caux Round Table Japan
Nippon CSR Consortium
Minoru Matsuzaki
Hiroki Wada

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Caux Round Table Japan
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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 2022 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

3-1.

Manufacturing…………………………………………………………………...……………..….13

3-2.

Chemical and Building Materials……………..…………………………………………...……….18

3-3.

Consumer Goods (Cosmetics and Daily Goods)..........…………………………………………… 20

3-4.

Food and Beverage………….……………..…………………………………………………...24

3-5.

Pharmaceuticals…………………………………………………………………………...………30

3-6.

Logistics and Transport………………………....……………………..........................................33

3-7.

Appreal………………...………………………....……………………..........................................37

List of Participants for Human Right Due Diligence Workshop …....................................................................... 42
Appendix 1: Summary of Inter-industry B2B Discussions (12 participating teams)

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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/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

2021

Companies

23

17

24

20

26

NGOs/NPOs

17

14

13

10

10

Participants

67 persons

60 persons

80 persons

60 persons

71 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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2022
Companies

30

NGOs/NPOs

10

Participants

89

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 that
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),3
4

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brought together companies mainly from the Food sector, NGOs and other stakeholders.

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 fewer 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(Accessed on November 7th, 2017)
http://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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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/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 andmodification 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.
In 2021, NGOs/NPOs and experts raised issues and, referring to the human rights guidance tool developedby the United Nations Environment Programme's Financial Initiative (developed in 2011 and revised in 2014),
the Nippon CSR Consortium conducted a review of each sector to see if there were any additions, deletions
or amendments to the "Human Rights Issues by Sector" formulated last year. Due to the impact of the Covid19 since last year, the program was conducted in an online format using the Zoom system. Due to the stateof emergency declared during the period (June to October), most of the participants were teleworking, andthe programme reflected the work style of the Covid-19. Due to the teleworking environment, someparticipants came from Chubu, Kansai, Kyushu, Tohoku and the United States, broadening the scope of the
programme. This year's program covered ten themes, including human rights and environmental issues thatneed to be taken into account as the shift to renewable energy continues, the issue of forced labour in Xinjiang
and Uyghur Autonomous Region, which is having a major impact on global supply chains, proposals from
Generation Z who have risen to the occasion of climate change, and the hidden challenges of resource
recycling. As the outcomes of the workshop, the final report “Human Rights Issues by Sector (v.10)” wasreleased. "Content of cross-industry sharing and discussion" (Appendix 1) is the result of discussions among10

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

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participants in other industries on how their business activities have a negative impact on the human rightsof their stakeholders and how they should be addressed, referring to specific examples related to "businessand human rights" introduced by civil society.
In 2022, issues were raised by NGOs/NPOs and experts and, referring to the Human Rights Guidance Tool
(developed in 2011 and revised in 2014) developed by the United Nations Environment Programme FinanceInitiative, the review was conducted on an industry-by-industry basis to see if there were any matters that
could be added, deleted or amended to the "Human Rights Issues by Sector" formulated last year. Due to theimpact of the new coronavirus infection (Covid-19), the programme was conducted using the Zoom system,
an online meeting tool, in combination with face-to-face meetings, as in previous years. Due to the declaredstate of emergency and restricted activities, STEP 1 was held via the web, and from STEP 2 (the sixth session)
onwards, the programme was held via a two-dimensional relay between the web and a face-to-face venue
with infection countermeasures, reflecting the work style of the Covid-19. The use of a teleworking
environment has broadened the range of participants, who now come from all over Japan. This year, 10
themes were discussed by the civil society, including the issues of internally displaced persons and refugees,
such as the displaced persons in Ukraine, plastic waste, which is becoming increasingly contaminated on a
global scale, migrant workers (including foreign technical interns) in Japan, and the dangers of handlingpersonal information in cyberspace, which is increasingly being used for business purposes. The results are
summarised as Human Rights Issues by Sector (11th edition). This time, the Summary of Inter-industry B2B
Discussions (12 participating teams) (Appendix 1) is also attached as an appendix. In the Summary of Interindustry B2B Discussions (12 participating teams), the participants from different industries discussed thefollowing points of view and the secretariat summarised them in a diagram.
⚫

Cases where alleged human rights violations involving the state have had and manifested real business
impacts.

⚫

Cases of potential negative impacts of the company's activities following issues raised by civil society.

⚫

The form of 'grievance mechanisms' that should be put in place for socially vulnerable groups.

8Caux Round Table Japan
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1-3.

Implementation Steps of the 2022 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.

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)”.
*For each industry, additional supplementary meetings were held on the web, as appropriate, depending
on progress.

Step4: Collecting Public Comments and finalizing our report⚫

The Secretariat opened public comments on this paper from October 7th 2022 – November 7th 2022.
Based on the discussions among participants, NGOs/NPOs, and experts, and reflecting the opinions of
the public comments, "Human Rights Issues by Sector (v.11)" was developed and released.

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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.

10
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2

CRT Japan's viewpoint as the Secretariat of Nippon CSR Consortium
The year 2021-2022 saw the pandemic Covid-19 continue to spread across the world with one mutant after

another; the sudden Russian military invasion of Ukraine in February created an extraordinary situation that
had a major impact on the world's population wherever they lived. An energy crisis, soaring food prices anda sharp depreciation of the yen currency ensued. A major negative impact on global economic activity, on
which 'business and human rights' had been premised.
In March last year, the European Parliament adopted human rights and environmental due diligencelegislation for companies' own value chains. In October 2009, the UN Human Rights Council (48th session)
adopted a resolution recognizing the right to live in a clean, healthy and sustainable environment as afundamental human right, and discussions on climate change as a human right continued at COP26 in
November 2009. The importance of viewing human rights in the context of the environment is growing.
These trends were efforts to mainstream the promotion of the proper integration of the concept of humanrights into the global economy, but the situation changed with Russia's invasion of Ukraine. Russia is using
oil and gas as a bargaining chip to create a global energy crisis in retaliation for Russian economic sanctions
as support for Ukraine through unity among democracies, particularly in Europe. In Europe, there is concern
about energy reserves for this winter, and there has been a move away from nuclear power generation to adecision to restart nuclear power plants.
Also, at the end of August, the Office of the United Nations High Commissioner for Human Rights(OHCHR) published a report stating that "serious human rights violations have been committed" by the
Chinese government in the Xinjiang Uyghur Autonomous Region of China. This has prompted national andglobal human rights NGOs to call for discussions on pursuing the matter at the UN. Forced labour andconfinement of minorities (ethnic minorities) who are gathered arbitrarily has been raised as an issue, and in
the past two to three years, Japanese companies have also been reported with their real names, making it ahuman rights issue in the supply chain that requires a response. At the G7 foreign ministers' meeting in
October last year, forced labour was discussed, leading to a 'Statement on the Elimination of Forced Labour'with China's Xinjiang and Uyghur Autonomous Region in mind. There are concerns about human rights
issues in 'agriculture, solar panels and clothing' where the region is part of the supply chain, and a major
Japanese apparel company had its imports suspended in the US in January due to insufficient proof that its
suppliers were not involved in forced labour.
In Myanmar, the second year of military rule after the coup d'état continued, and companies continue tobe questioned by civil society about indirect human rights violations (facilitation and involvement) bybusiness activities linked to the state military, and Japanese companies are also subject to such violations.
From the perspective of economic security, the year saw the start of serious discussions between
government and business on the establishment of supply chains separate from Russia and China (in someregions).
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In Japan, the Action Plan on Business and Human Rights (NAP) (October 2020) was formulated, leading
to a move from the Ministry of Foreign Affairs to the Ministry of Justice and then to the Ministry of Economy,
Trade and Industry. The Ministry of Economy, Trade and Industry (METI) established the Business andHuman Rights Policy Coordination Office in July last year. In August 2021, the Government conducted alarge-scale survey of listed companies and others on human rights issues in their supply chains, and in
September published a collection of examples of corporate initiatives as an interim summary of the survey
results; in November, it published the results of the survey. Based on the results of the survey, the government
is now considering whether rules and legislation requiring companies to take action are necessary. The second
Kishida cabinet (inaugurated in November 2021) announced that it would push for the promotion of 'humanrights due diligence' to identify and prevent risks of human rights violations by companies in their supply
chains. This appears to be a response to concerns that Japanese companies may lose international
competitiveness if they fail to take appropriate action, as legislation requiring companies in Europe and the
US to take action is in the process of being developed. In August this year, a public consultation on the Draft
Guidelines on Respect for Human Rights in Responsible Supply Chains, based on the Guiding Principles on
Business and Human Rights, was conducted. This was in response to a request from a company survey
conducted last year (request for the formulation of a guideline document).
In the above series of developments, this Programme was introduced as a "human rights due diligence"
initiative that should be referred to, in the guidance on "Responses to 'Business and Human Rights' now
required of companies" published in 2021 by the Human Rights Protection Bureau of the Ministry of Human
Rights and Justice, and published by the Nippon CSR Consortium. In the guide to "Responding to 'Businessand Human Rights' as Required of Businesses Today" published by the Human Rights Protection Bureau of
the Ministry of Justice in 2021, the "Important Human Rights Issues (Draft) Japanese by Sector" (publiccomments to be implemented at the end of 2020) published by the Nippon CSR Consortium was cited as an
example to refer to and introduced as a high-profile initiative.
In 2021-2222, when vaccination had the effect of continued dissemination in many countries or strict
behavioural restrictions were imposed in many parts of the world, countries began to respond to the withcorona and made progress in resuming economic activities. However, with the emergence of mutant strains,
the shift from Delta to Omicron strains (BA-1) and BA-2, the number of infected people continues to increase,although the number of severely infected people is decreasing. In Japan, during the sixth wave, theGovernment of Japan established a balance between countermeasures against 'with corona' infection andsocio-economic activities, and no official restrictions on economic activities were imposed during theongoing seventh wave (BA-2 and BA-5 mainstream) in the summer. Countries have eased entry restrictions
and the number of countries where visa-free travel is possible is gradually increasing. In Japan, the easing oftravel restrictions continues to be limited.
Covid-19, a pandemic since 2020, has continued to reduce production capacity in the global supply chain,labour availability on transport, rising resource prices and challenges continue to mount: new issues such as
mental health due to teleworking in the With Corona era, essential workers The harsh working environment
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in the Covid disaster has been revealed, including the working environment of those who cannot stand still,
represented by essential workers. These are directly linked to human rights issues.
The workshop among participating companies took place after the issues raised by civil society in STEP
1, shuffling industries and dividing them into 12 teams to promote cross-industry discussions and share theconcerns they currently face.
⚫ Cases where alleged human rights violations involving the state have had and manifested real business
impacts.
⚫ Cases of potential negative impacts of the company's activities following issues raised by civil society.
⚫ The form of 'grievance mechanisms' that should be put in place for socially vulnerable groups.
This was summarised by the Secretariat as an appendix to this deliverable. This one gives a concrete pictureof what the issues are in the business world. The group was then divided by industry and reviewed the humanrights issues for each industry.
The companies participating in the Programme are continuously and diligently addressing 'business andhuman rights'. In the business environment surrounding the aforementioned corporate activities, companies
have also initiated human rights due diligence initiatives. However, in many cases, the scope of the subjectsof human rights respect (rights-holders) investigated by Japanese companies is their own full-time employees.
Although an increasing number of companies are conducting human rights due diligence, including in the
supply chain, their methods are mainly questionnaires to check the CSR initiatives of their business partners,
and they are not able to approach their employees (frontline workers), who are the subjects of respect forhuman rights. Some companies were also considering implementing human rights due diligence through theuse of various certification systems and social audits, but these do not guarantee meaningful engagementwith rights-holders and cannot replace human rights due diligence. Rather than efforts to tick human rights
checkboxes, such as questionnaires and audits, companies need to dynamically understand where and against
whom human rights and environmental issues are occurring across their entire business relationship.
Only a few companies have been able to visualise their supply chains from their current situation andidentify and engage rights-holders in specific vulnerable positions.
As a result of this situation, there is a noticeable delay in the implementation of a grievance mechanismthat reaches rights-holders directly. We see the situation as a continuation of the inability to change theparadigm, as the answer is sought as an extension of the whistleblowing system already in operation. The
Secretariat feels that companies should be aware of the difference in scope and stakeholders between thewhistleblowing system, which focuses on compliance violations, and human rights issues that extend along
the supply chain.
Finally, it should be noted that dialogue is the essence of human rights initiatives. The Programme makes
human rights issues of concern visible to both civil society and business. As a next step, an important part ofa company's efforts to address human rights issues is to recognise the issues through dialogue with the parties
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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/affected by human rights violations and the NGOs/NPOs that support them. The approach of the Programmeis to support companies in taking the first step towards conducting human rights due diligence, which is theentry point. If there is a problem, companies are to work with stakeholders to address the issue, using theirexpertise and strategy to ensure accountability and transparency to ensure legitimacy. By doing so, they canobtain a licence to operate from society and ensure the sustainability of their business. The question is how
the programme's corporate participants will incorporate this approach into their corporate management andlink it to their own human rights initiatives.
The global economy has aimed to open up markets, but the reality is that its broadening supply chainscreate a series of obvious and salient issues that need to be resolved. Although the economy has been on an
expansionary path, the past few years have also seen the emergence of a new set of national conflicts due todifferences in political systems. Furthermore, the global supply chain was dealt a decisive blow when Russia
launched a military invasion in February. The supply chain is now under pressure to restructure itself with asecurity-oriented BCP in mind. Under any circumstances, business activities have the potential to generate
negative impacts on human rights, and only corporate activities that address these issues seriously can ensure
their sustainability.
Caux Round Table Japan
Nippon CSR Consortium
Minoru Matsuzaki
Hiroki Wada

14
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/

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

Working hours and wage

Concrete issues

Dispose
Use
Sell
Transport
Manufacture
Buy
CreateKey human rights issues in the manufacturing sector

・Risk that the minimum wage does not match the local standard of living, leading to long working hours.
・Compensation for leave and wages in the event that a child is forced to take an extended leave of absence due to a sudden closure of preschool orschoo (Not guarantee a proper place to stay if the guardian cannot take leave.)
・Risk of overwork due to production adjustments (priority on delivery) *While there is a request to increase production of daily necessities due to
COVID-19, there is also a plan to drastically reduce production due to decreased demand.
・Proper working hour management is not carried out. Separation of work and private life (self-reporting).
・Possible lack of proper management of working hours in remote work (work-life balance).
・Possible rounding down of working hours (rounding down of fractions of working hours).
・In the deemed working hours system, there is a risk that overtime is not paid although the prescribed/legal working hours are exceeded (working
time management).
レレレ レレレ レ
・In the deemed overtime system, there is a risk that overtime will not be paid even though the deemed overtime hours have been exceeded.
・Appropriate compensation (wages) for labor is not paid. Not keeping track of hours worked → unable to pay
・Wage disparity may affect the future education of children.
・Risk of transferring increased raw material and energy costs due to geopolitical changes to subcontractors, resulting in longer working hours andlower wages for subcontractors.
・Overtime and long working hours, especially in Japan. Excessive working hours for managers (middle management).
・Inappropriate use of discretionary labor system and deemed management positions
・Disparity in working conditions and wages among group companies. Equal pay for equal work.
・Possibility of long working hours due to old production facilities.

Workplaceconditions

Health and safety
1: Physical, hard
2: Mental side
3: Health
4: Education(1)Workplace accidents resulting in death or serious injury, particularly in research, manufacturing and factory settings [creation/construction].
(1) Potential for work-related accidents while working from home (lack of safety considerations, health hazards due to different working
environments, disruption of the rhythm of life)(1) Living conditions that do not provide a minimum of space, such as dormitories with several people per room, inadequate sanitary facilities(showers, toilets, etc.), dormitories set up on the factory premises, management with locks from the outside, etc. may have a negative impact on thehealth of employees.
(1) Health and safety standards do not comply with global standards. (emergency exits, evacuation drills, etc.)(1) Risk of blurring of work and private life, resulting in a decrease in workers' private life.
(1) Ensuring the safety of employees and their families in COVID-19 endemic countries(1) Ensuring the safety of employees engaged in non-teleworkable work (manufacturing sites) under COVID-19.
(1) - (4) Long working hours of parents may infringe on the healthy life of their children.

レレレ レレレ 13

1: Physical, hard
2: Mental side
3: Health
4: EducationCore
operation/
Supply chain

Discrimination

Child labour

During employment andwork

1: Minimum age
2: Addressing young
workers

レレレ レレレ・Risk of unequal treatment in terms of working conditions, training, and promotion
・Discrimination against women and sexual minorities
・Harassment (sexual harassment, power harassment, and remote work harassment)
・Customer harassment
・Technology harassment (against young and old)・Response to SOGI (sexual orientation and gender identity) (renovation of restrooms and changing rooms, some companies have stopped including
gender on resumes)
・Discrimination based on nationality, race, religion, etc.
レレレ レレ・Discrimination against non-vaccinated people (forced vaccination) ・Discrimination against infected people
・Discrimination against workers may lead to discrimination against their children
・Discrimination against Russians may occur in the wake of Russia's military invasion of Ukraine.
・Fear that AI may read potential discrimination tendencies in humans through the data it learns (e.g. TMS) and encourage them.
・AI may predict resignations and declines in job offers, resulting in unequal treatment.
・Worker privacy may be infringed by AI monitoring of workers.
・Risk of workers' privacy being infringed by the company's management of workers' vital information (e.g. sleep information).

レ・The use of AI in recruitment and personnel evaluation may unintentionally encourage discrimination by preventing those in charge from making
appropriate judgments.
・Apprentices may be dismissed or returned to their home countries due to marriage, pregnancy or childbirth.
・Risk of apprentices not being allowed maternity/paternity leave, shorter working hours, etc.
・The risk of unequal decisions being made at the time of recruitment due to an unconscious bias.
・Risk of products and services not reaching consumers due to withdrawal from business (e.g. in conflict countries).
・Risk of corporate activities leading to human rights violations due to a lack of ESG awareness among employees. (Due to the trend of the need to
introduce the concept of ESG assessment not only to executives but also to general employees, and to raise their awareness of the need to be
involved in ESG issues).
レレレ レレ・The risk that the working environment of in-house apprentices can be verified, but that of apprentices employed by suppliers cannot be
ascertained.
・The risk of discrimination based on community affiliation (e.g. area of residence, area of employment, etc.)
・Risk that gender bias may deprive women of freedom of choice in their work and reduce their opportunities to play an active role. (This includes
the risk of loss of work experience opportunities due to biases such as not allowing women to carry heavy loads or drugs they cannot handle.)
・The risk of lack of equal promotion in terms of diversity (changes in the ratio of attributes at the time of joining the company and in the ratio of
promotion to leadership positions).
・Risk that the image of the industry is not improved, resulting in fewer opportunities for women to play an active role. (not excusing thecharacteristics of the industry, but due to the lack of awareness of role models and the image of women working through life time events)

レ1) Children may be employed in supply chains (subcontracting work, etc.) in developing countries, and that brokers may be using them asintermediaries.
1) Asian workers may apply for employment by falsifying their age.
2) Asian workers may be forced to engage in night work or dangerous work.

レ(2) Long working hours may lead to health problems, especially mental health problems.
(2) Lack of communication due to remote working may lead to alienation and exclusion from the workplace.
(2) Possible failure to receive workers' compensation in the event of injury or illness while working remotely.
(2) Risk of having to pay out-of-pocket for increased utility costs associated with remote working (compensation for teleworking allowance).
(3) Disease progression due to lack of medical check-ups(3) Progression of occupational diseases due to lack or non-use of protective equipment such as finger sacks, gloves, masks, ear plugs, etc.
(3) Permanent remote work and associated long-term work environment may not be in place (e.g. illness less illness).
(4) Treatment of foreign workers (especially in terms of health and safety, language issues, etc.)
Loss of training opportunities for employees due to long working hours.
(4) Differences in educational opportunities due to differences in employment status, nationality, race, gender, age, educational background, lengthof service, etc.

レレ レレ

14

Forced orcompulsory
labour

Employment

・Migrant workers (including foreign nationals and domestic migrants) may be required to pay excessive recruitment fees and keep identification
documents (e.g., passports) when hired.

Forced overtime

・Long working hours due to excessive quotas may lead to de facto forced labor.
・Negative impact on stakeholders may be given in the material production process.

レレレ レレ・There may be a lack of dialogue and communication with worker representatives and labor unions.
・There is a risk that labor-management consultations and collective bargaining are not sufficiently institutionalized and managed.
In addition, although the right to collective bargaining is recognized, there is a risk that negotiations are not actually conducted.
・There is a risk that the rights of workers are not sufficiently secured in the union store system.
・In countries and regions where the formation and activities of labor unions are prohibited (including cases where they are prohibited in
substance), there is a risk that workers' rights are not sufficiently secured.
(In some cases, labor unions are not protecting employees and are not fulfilling their roles as they should be.)・The risk of impeding the freedom of association of foreign workers.
・Risk that in Japan the main body for negotiating with the company is the enterprise-based union, which has more influence than the industrial
trade unions.
・Risks due to lack of secure labour rights, e.g. in the delivery and retail sectors.

レレレ レレFreedom of
association

Resources/
local
community

Use of natural resources

レ レ

レ

レ

・There is a risk of over-extraction of resources (upstream supply chain) due to development, design, distribution and sales of products with highenvironmental impact (high power consumption, low recyclability).
・In addition, there is a risk of damaging the lives and health of local residents in the vicinity of production sites, as well as overuse and pollution ofwater and land at factories and local construction sites, and depletion of resources [buy/create/dispose].
・The use of energy and resources that are assumed to have a low environmental impact when in fact they have a high environmental impact, which
may lead to environmental destruction and human rights violations.
・Risks of adversely affecting local communities through the use of renewable energy and biomass resources (environmental impact from power
plants, promotion of deforestation through the use of palm oil)・Risk of inappropriate use or disposal by suppliers or final consumers(e.g., ocean plastic problems, increased processes at waste treatment facilities)
・Circulation and use of virtual currencies may generate huge amounts of power consumption
レレレ レレレレ・Risk of destruction of forest and ocean ecosystems due to procurement of raw materials
・Construction and operation of business sites may destroy local ecosystems.
・Risk of continued adverse effects on the global environment due to failure to review the environmental impact of business・The risk of negative environmental impacts in the production of environmentally friendly products.
・Risk of some dominant companies buying up natural energy sources.
・Risk of child labour and forced labour at rare metal mining sites due to semi-conductor shortages.
・Risk of negative impact on the global environment when processing solar panels
・Risk of a sharp increase in waste due to an increase in take-out.
・Risk of increasing the local water burden in overseas production (virtual water problem)
・Lack of automation in car wash machines, dishwashers, etc. may increase water consumption.
・May increase the risk of disease due to the effects of global warming.

Community

Security

Disposal・Risk of microplastics being generated by business activities.
・Risk of low recycling rates despite waste separation.
・Risk of consuming seafood only and consequently contributing to the increase in marine plastic litter.

Payments to anti-socialorganizations

・Funds, products, or services may flow to non-governmental or armed groups in the procurement of raw materials or disposal of products.
(e.g. conflict minerals)
・In the procurement of labor, part of the wages may flow to anti-social organizations or armed forces (e.g., technical trainees).
・The placement of landmines and other objects in war-torn countries may affect logistics.

レ レ レ レ レ レ レ

レ

レ
15

Access to
Land

Land ownership

Bribery and corruption
Society andgovernment

Relations withgovernments
Relations to states withhigh human rights risks

Health and safety and
Relations withprotection of personalcustomers
information

OthersComplicity

・Risk of forced displacement of indigenous and local residents when acquiring land for business purposes.
・Risk of damaging the value of the land through construction and operation of the project site
・Risk of health hazards to indigenous and local populations due to the spread and infection of viruses caused by land reclamation.
・There is a risk of environmental degradation due to the clearing of mountains and installation of solar panels.
レレ・Risk of leaving unused solar panels unattended due to bankruptcy of operators, etc.
・Use of land without considering its resistance, adaptability and change over time may result in threats to the livelihoods of local residents.
(e.g. the mudslide problem in Atami).
・Mining of rare metals, gold, etc. may pollute the environment in the surrounding area and cause damage to local residents.
・ Potential risk of being involved in bribery and corruption, such as facility payments, especially at the time of obtaining licenses andauthorizations.
・ Possible risk of bribery at the time of contract, customs in the industry, collusion (in the form of transactions / operations), risk of conspiracy tofraud at the time of government-related business orders
レレレ レレレレ・ The risk that foreign companies with which they have alliances or investments may end up complicit in the military regime by making donations
to the military regime, etc.
・ Risk of corruption, such as bribes, in order to keep logistics running.
・ 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 andinternational standards
・ Risk of paying fees to military regimes when using airports in countries such as the military regime, and consequently being complicit in the use レ レ レ レ レ レ レ
of such airports.
・ Risks due to the assumption that Japan does not have a high human rights risk.
・The risk of harm to the life, health, or property of consumers due to defects in products or services provided to customers, inappropriate
marketing activities, or failure to properly disclose information
・Risk of infringement of individual human rights due to inappropriate management of personal information obtained in the business process
・Risk of increased damage due to lack of concrete measures to deal with violations of an individual's human rights
・Inappropriate advertising and information dissemination may cause consumers to feel uncomfortable or have false perceptions, promote
discrimination or prejudice, or cause health problems due to false perceptions.
・Product services that do not take diversity into consideration may make it difficult for vulnerable groups to access them.
・The use of PCs and smartphones has become the mainstream for various procedures, and there is a risk that those who are not familiar with IT
devices will be left behind.
・The lack of multilingualisation of various procedures may prevent foreigners from accessing the infrastructure necessary for their daily lives.
・Lack of uniformity in industry standards, such as containers, may lead to higher costs and increased waste.
・Lack of consideration for foreigners and children (e.g. child locks) may cause inconvenience and danger to consumers.

・Surveillance cameras may be used for forced labor facilities or for sexual damage such as voyeurism.
・There is a risk of criminal use of social networking services.
・There is a risk of illegal modification for conversion into weapons such as cars and drones, or for misuse.
・Possibility of stalking by using IC tags.
・The risk of consumers suffering damage, such as rupture or the emission of harmful gases, when detergents, etc. are transferred into containers
Unintended use or misuse
other than those specially designed for this purpose.（There is a risk of consumers being harmed (e.g. when alcohol disinfectant is put into a
container that is not compatible with alcohol).
・Risk of 3D printers producing weapons or other items that infringe human rights.
・Fear of counterfeit currency being produced by scanners.
・Risk of being used for sexual damage such as voyeurism due to advanced camera functions, etc.

レ

レ

レレレ

レ

16

Remedy©Caux Round Table Japan・Human rights violations may not be corrected if the remedy contact points and processes are inadequate.
・Inadequate monitoring by a third party may prevent the remedy process from being effective.
・Reports may not be connected to the remedy process.
・The whistleblower may not be protected.
・Current functions may become ineffective
・It is necessary to consider a remediation process that includes the supply chain, but this has not been done yet.
Development of Access to・Lack of information dissemination (absolute lack of information, lack of multilingual support, business practice factors) may prevent recognition レ レ レ レ レ レ レ
Remedyas a target of remedy.
・The contact details are displayed only by e-mail or chat and no telephone number is given (or it takes a lot of effort to obtain the information on
the telephone number), which may cause inconvenience, especially for visually impaired persons and other consumers.
・The risk of not being able to consult with the contact person in charge of the delivery, even though the contact details of the person in charge ofthe delivery are known.
・Risk of not being able to trust the consultation service and not being able to make enquiries (psychological safety assurance).
17

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.

3.2 Chemical and Building Materials Sector*Each value chain item includes not only the company itself but also contractors and cooperative companies that outsource manufacturing, logistics, services, etc. at each stage of the value chain. (This also includes contractors in and out of offices
and factories.)
Value Chain

Concrete issues

Dispose
Reuse and recycling
Use
Sell
Transport
Produce
ProcureDevelopment
Research

Working hours

・Concerns that changes in the international situation (e.g. pandemics such as COVID-19, the situation in Ukraine) may have an impact on the global supply
chain, resulting in short delivery times for orders, etc., which can easily lead to overtime work, or concerns that overtime work is a regular occurrence that isdifficult to remedy and improve.
・Insufficient understanding of working hour management in accordance with the different working conditions in different countries and regions.
・If there is a gap between international norms and the laws of each country, there is a concern that following the laws of countries that allow longer working
hours than international norms may lead to health hazards for workers.

レ レ

Health and safety

・Concerns that as a manufacturing industry using hazardous substances (e.g. chemicals) and large scale equipment, it could cause negative impacts on people
within the work environment and in the vicinity of the manufacturing site.
・Concerns that accidents during the transportation of hazardous substances may cause health hazards to those involved and to people living near the site.
・Concerns about health hazards to the company's own employees and end consumers when suppliers do not provide sufficient information on chemical
substances
・In the case of outsourced safety and functionality testing, if the outsourced company does not have a strong sense of ethics, it could lead to human rights
issues.
・Concerns that inadequate measures against infectious diseases such as COVID-19 may lead to damage to workers' health, as it is difficult to introduce
teleworking in the manufacturing industry (especially in plant operation) and many construction workers come and go during scheduled maintenance.
・In the case of a discrepancy between international norms and national laws, there is concern that compliance with national laws that allow longer working
hours than international norms may lead to health hazards for workers.

レ レレDisciplinary measures

・Concerns that disciplinary practices in different countries/regions differ and that disciplinary action policies have been developed that are not consistent withlocal practices (company)
・Concerns that disciplinary practices in different countries/regions differ, and that suppliers are unable to identify disciplinary practices and encourage
necessary improvements.

レ レレ レレ レ

Wage

Concerns at suppliers, contractors, etc.
(1) Concerns that appropriate wages are not paid in line with working hours(2) Concerns that wages paid to foreign technical interns are not understood.
(3) Delayed or unpaid payments to workers due to turmoil in the financial markets affected by international developments.
(4) Wages are not set in line with price increases and living wages (wages necessary to maintain an adequate standard of living) are not paid.

During work

・Concerns that instances of harassment vary by region/period (e.g. discrimination against certain ethnic and sexual minorities, power harassment) and that the
global workforce is not adequately addressing the elimination of discrimination at work.
・Concerns about human rights issues due to inability to keep up with improvements in the working environment for foreign workers who do not understandJapanese and workers with disabilities.
・Concerns that employee privacy is not being respected and personal data is not being reliably protected, even though regulations based on the European
General Data Protection Regulation are on the way to being strengthened in Japan.
レ レレ レレ レ・Concerns about being categorised (gender, sexual orientation or gender identity, age, nationality, language, etc.) based on unconscious bias (unconscious
prejudice or assumption) and being deprived of work opportunities, promotions and advancement opportunities in the desired job category.
・Concerns about discrimination in employment opportunities and work environments due to COVID-19 vaccination or non-vaccination.
・Concerns about discrimination against certain racial groups due to international conditions.
・Concerns that workers are subjected to unfair and discriminatory treatment on the grounds of illness, pregnancy, etc., without stating objectively valid criteria.

Redundancy anddismissal

・Concerns that, in the case of foreign apprentices and temporary staff who have difficulty in being reassigned to a different location, there is a fear that illness,pregnancy, etc. will be used as a determining factor without stating objectively valid criteria, and that implementation will not be based on sufficient
communication.
レ
レ レレ レレレ・Concerns about dismissal when it becomes difficult to change work locations due to changes in the life cycle.
・Concerns that changes in the business environment could result in the unexpected loss of employment for those employment types considered particularly
vulnerable in the value chain (e.g. non-regular workers, contractors, etc.).

Key human rights issues in chemical and building
materials sectors

WorkplaceconditionCore
operation/
Supply chain Discrimination

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

Dangerous work andemployment/ Working
・ Concerns that risks exist at Tier 2, 3 and beyond suppliers but are not fully understood as the supply chain becomes more complex and globalised.
hours and working
conditionsレレ レ

Minimumage/Employment ofyoung workers under
18 years of age

レ

レ レ

レ

レ

レ レ
レ
レ
レ レ
レ

レ

Child Labour・ Concerns that, as supply chains become more complex and globalised, there are risks at Tier 2, 3 and beyond suppliers that are not fully understood.
・ There are differences between local and international laws regarding the concept of reference age, and there is concern that this is not being properly
followed up on a regional basis.

Exploitation of security ・ Concerns that risks and problems may be overlooked due to a lack of a comprehensive grasp of the existence and actual situation of migrant workers anddeposits andforeign technical interns on a global scale.
documentation for・ Concerns about unjustified imposition of costs due to insufficient human rights DD when using the foreign technical internship system and when recruiting
employment
trainees.
Forced Labour
・ Forced overwork is demanded to workers when companies receive orders without due consideration of resources (volunteer overtime work is regarded asForced overtime
overtime work).

レ レ・ Concerns about missing risks and problems due to the lack of a comprehensive understanding of the existence and reality of migrant workers and foreign
レレ
レapprenticeships on a global basis.
Freedom of association ・ Labour-management negotiations may not be properly conducted.
and collective
・ Employees may not have a means to discuss issues related to labour without interference of companies.
レ レレ レレ レ
レ レbargaining
・ Concerns about the outbreak of industrial disputes and human rights problems due to the company's refusal to negotiate with minority unions.
Freedom of
association
Measures to be taken
・Labor-management negotiations may not be normal.
when not permitted by
レ レレ レレ レ
レ レ・Concerns that employees do not have the means to discuss labor-related matters without interference from the company.
national law
・Concerns that procurement from countries/regions with high human rights risks through the selection of suppliers that prioritise their own interests may
Relationships with suppliers in countries indirectly contribute to the occurrence of negative human rights impacts.
レand regions with high human rights risks ・Concerns that the company will stop procuring from countries/regions with high human rights risks without encouraging suppliers to make improvements,
レthereby abandoning the solution to the underlying problem.
As a chemical company, we are working to reduce environmental impact and properly manage chemical substances, but we have identified the following as
potential human rights issues.
・Concerns about inappropriate use and disposal by suppliers (customers) (e.g., marine plastics)
・Because the industry uses a relatively large amount of resources and is likely to cause local pollution damage due to spills or exposure to pollutants, theimpact on local communities is significant.
・There is a risk of water depletion due to deforestation caused by factory construction and excessive consumption.
・Concerns about the impact of resource depletion on the surrounding population.
Use of natural capitals ・The promotion of conversion from fossil resources to non-fossil resources may lead to violation of indigenous peoples' rights such as forced incarceration ofレ レCommunity Resourcesレ
レ レ(water and land)
land and adverse effects on biodiversity due to deforestation, etc. Specifically, there are the following concerns(1) Concerns that the use of edible plants (corn, soybeans, etc.) as resources will indirectly cause price hikes and food shortages.
(2) Concerns that the use of biodegradable plastics and biomass fuels made from oil palm will contribute to environmental destruction.
(3) Concerns that the false image of bioplastics (e.g. biodegradable plastic will return completely to nature) will encourage ocean dumping and impede
resource recycling.
・Lack of awareness that environmental issues are part of the human rights agenda.
・Concerns that erroneous operations and decisions due to lack of a human perspective could lead to environmental destruction and health hazards, while
promoting materials informatics in materials development and improving efficiency through the use of AI.
・Concerns that bribes may be demanded in cases where new land acquisition is required to obtain permits for factory establishment or sales, resulting infavourable conditions for the company, forcing local residents to change their living environment under unfair conditions or leading to a deterioration of their
レ レレBribery and corruption living environment.
レ レ
レ レ
レ
・If
the
companyisinvolvedincorruption,
it
may
be
orderedtopayasurchargeorsuspendoperations,orits
reputation
may
bedamaged,whichmay
indirectly
Society and Relations withaffect the employment of its employees (the company).
government governments
Relationship withConcerns about indirectly contributing to the occurrence of negative human rights impacts
レcountries with high(1) Obtaining permits, licenses, etc. and operating in countries with high human rights risksレ
レ レ レレ レ レレhuman rights risks(2) Procurement from such state-sponsored enterprises (conflict minerals, timber, polysilicon, etc.)
Human trafficking(1) Concerns that negative impacts on human rights cannot be ascertained due to the lack of establishment, maintenance, and dissemination of a grievancemechanism to a wide range of stakeholders related to the business.
・Concerns that the voices of suppliers from Tier 2 onwards, with whom there are usually no direct communication contacts in the supply chain, are not being
heard.
・Concerns that the grievance system remains formal and does not capture the voices of those directly affected.
Remedy(2) Concerns that the following human rights concerns are not being addressed in a timely/appropriate manner・Consultation systems/points of contact have not been set up, taking into account local languages, reception times, legal systems, culture, etc.
・The access to the grievance mechanism and the expected response and timeframe are not communicated in advance.
・The value chain is not visualised.
・Information is not properly communicated and appropriate action is not taken from the perspective of respect for human rights.
・No dialogue, disclosure of query details, etc.

©Caux Round Table Japan

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

レ レ レ レ レ レレ レ レ

19

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

Working hours• Long working hours may be caused by (a) production schedules that presuppose overtime work, as well as attempts to catch up to delays inproduction 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.
• 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 ofovertime hours may not be upheld.
• Particularly after Covid-19, the introduction of telecommuting may have led to a situation where management does not function adequately,レovertime work and minimum required rest periods cannot be guaranteed on a regular basis.
• Overtime and long working hours, especially in Japan. Overwork of managers.
• The introduction of male parental leave, family care leave and a three-day workweek may lead to an uneven workforce and a shift in working
conditions.
• There is a risk of putting a burden on suppliers by reducing their own working hours and focusing on high value-added output to meet diverse
needs.

レ レ レレレレ

Wages• Pressure from manufacturers, retailers, etc. to reduce costs, which may inhibit the transfer of costs to transaction prices and prevent compliancewith the minimum wage and living wage, mainly at suppliers.
• 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 and inadequate labour management.
レ• Equal pay for work of equal value may not be practiced.
• Risk of gender-based wage inequalities.
• Fair compensation according to productivity may not be paid.

レ レ レレレ

レ

Health and safety• 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).
• Risks of having pregnant women and young people engage in dangerous or injurious work.
• Workers may be exposed to danger due to aging buildings, illegal constructions, insufficient emergency exits and evacuation passages.
[Emerging concerns due to COVID-19]• The number of people working remotely is increasing, blurring the line between private and professional life, leading to long hours of overtime レ
and excessive workloads, which may cause health problems.
• Mental health problems resulting from the lack of communication opportunities associated with increased remote working.
• The risk of increased stress and psychological stress due to the risk of infection due to the need to commute to the workplace or shop for work.
• The management may have fewer opportunities to visit the work site, and safety checks at the work site may be neglected (e.g. neglecting
evacuation drills).
• The risk of undue stress due to insufficient information sharing when there is a problem, or being engaged without a follow-up system in thecompany.

レ レ レレレレHarassment• Workers may be exposed to physical, sexual, mental or verbal harassment and abuse.
• The time spent on measures to increase sales is regarded as important, and there is a risk that not enough time will be allocated to raisingawareness of the need to deter harassment.
• After Covid-19, there are fewer opportunities for management to visit the workplace, and there is a risk that the actual situation of harassment レ
will not be identified and a response will be delayed.
• The number of foreign workers and foreign apprentices and their families may be isolated due to insufficient explanations, including in theirown language.

レ レ レレレ

レWorking
Conditions

Own
employees/s
uppliers

Concrete issues

DisposeUse
Sell
AdvertiseTransport
Produce
ProcureResearch
Developme

Key human rights issues in consumer goods sector

20

Working
Conditions

Disciplinary
measures

Discriminationレ

レ レ レレレレTraining, promotion, • Potential for unequal treatment in work environment, training and promotion opportunities due to gender, age, race, religion, LGBTQ,
and employment
disability status, BLM, etc.

レ

レ レ レレレ

レFreedom of
association

Freedom of• The formation of labour unions and collective bargaining may be refused without any legitimate reason. Poor treatment or dismissal to union
association, right to members may be practiced.
collective bargaining • Workers may get fired due to participation in strikes.

レ

レ レ レレレレ

Grievance
Mechanism• There is a risk that the grievance mechanism is not in place, or that it is in place but is not functioning (there is a risk that the reporting desk
will become a mere formality due to insufficient protection of whistleblowers, lack of awareness of the scope of the target group and the content
Effectiveness of the of the report).
レ
reporting point for • Inadequate multilingual support and inability to identify human rights abuses among vulnerable groups.
employees• Lack of expertise in dealing with LGBTQ issues, which could lead to human rights abuses being left unattended or could cause secondary
damage.

レ レ レレレ

レChild labour

Minimum age• Children under the minimum age may be working without verification of their identify, or based on counterfeit identification.
• 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.

レレレ

レForced orcompulsory
labourForced overtime
Human trafficking• Workers may be forced to work by violence, the threat of violence, financial issues, possession of passport, or any other form of coercion.
• Labor contracts (employment contracts) are not explicitly stated in the document, and workers may be forced to work under unfavorable
working conditions.
• Vulnerable immigrants, refugees, technical interns may be exposed to forced labour.

レレレレHuman rights
violations at
suppliers• Failure to conduct sufficient investigations and exercise influence may encourage human rights violations at upstream suppliers, such as
secondary suppliers and production contractors.
• Failure to conduct on-site interviews with suppliers' foreign employees, foreign technical interns and trainees (companies where traineeswork), who are a socially vulnerable group, to ascertain the actual situation, which may prevent human rights violations from being corrected.

レレレ

レ• There is a risk that the supplier reporting contact point may become a dead end due to lack of protection for whistleblowers and lack ofawareness of the scope of the target group and the content of the reports accepted. （The scope of reporting needs to be broadened to include awide range of human rights complaints, including living wages, freedom of association and educational opportunities, as well as nonEffectiveness of the compliance, bribery and violations of subcontracting laws. The scope and awareness needs to be broadened so that it can be used by any
reporting point for employee of a subcontractor or contractor working in a supplier's factory as a target group).
employees• Multilingual support• The escalation process and remedies (remedy procedures by the legal and compliance departments) need to be determined, otherwise humanrights violations could escalate.

レレレ

レ

レレレ

レ

Suppliers Assessment

Grievance
Mechanism

Mutual information
management system
M&A
Business
partners
Business
partners• Improper content of employment rules may cause improper disciplinary measures and treatments.
• Sufficient explanations, including language, may no be provided to foreign workers and foreign technical intern trainees.

Logistics

Human Rights
Assessment inAcquisition Audits
Human rights issues
at business partners
Workingenvironment• Inadequate information sharing systems with primary and secondary suppliers may lead to human rights issues among supplier employees.
• Risk of human rights violations not being remedied due to inadequate human rights assessments of companies under consideration for M&A
during acquisition audits.

レ

レ レ レレレレ• Risk of human rights violations not being remedied when human rights issues become apparent within the supplier's company, whether
upstream or downstream.

レ

レ レ レレレレ• There is a risk of manufacturers and distributors requesting unreasonable delivery dates from upstream, resulting in long working hours andoverwork becoming a chronic problem.
• Failure to reform business practices and insufficient consideration of SCM functions when changing business models, such as increasing theratio of e-commerce, may lead to chronic long working hours and overwork of employees of logistics providers.

レ
21• Likelihood of human rights violations (discrimination in terms of education, gender, nationality, harassment, identity theft) against applicantsfor employment• Potential for unequal recruitment and hiring with restrictions on gender, age, race, religion, LGBTQ, disability status, BLM, etc.

Applicants• Air pollution, emissions of chemical substances, and wastewater caused by business operations that may be harmful to the health of local
residents
Local residents.• Risk of impact on land rights of indigenous peoples and local communities due to construction of new sites
Infringement of• Risk of impact on the daily lives of indigenous peoples and local communities through noise, air pollution, and traffic safety due to businessliving space and time
operations
Water stress• The risk of drought due to the use of large amounts of water.
Climate Change• Negative impact on the global environment by emitting large amounts of CO2.
Natural• Manufacturing products may cause an adverse impact on the protection of forest eco-systems.
Environment Terrestrial resources• Abandoning waste or illegally dumping it because of not selecting an appropriate contractor.
Health hazards indaily life

Planet /Societyレ レ レレレ

レ

ㇾ

レレレ

レ

レ

ㇾ

レレレ

レ

レ

レ
レ

レレ
レレレ

レレ
レレ レ

レ

レレレ

レ

レ

Marine resources• Manufacturing plastic products may cause an adverse impact on the protection of marine eco-systems.

レ

レレレ

レ

レ

Bribery andCorruption• Bribes may be demanded when obtaining permits and licenses.

レ

レ レ レレレレ

レ レ レレレレ

Relations with Relationship withgovernments countries with low
awareness of highhuman rights risks• Risk of complicity in human rights abuses due to proximity to countries with high human rights risks• The risk of inadequate measures to improve the quality and safety of products and to reduce risks to consumers.
• Inadequate communication of correct information may lead to inappropriate use of products, to the detriment of both consumers andmanufacturers.
• Insufficient traceability of materials and products may cause disadvantages to both consumers and manufacturers.

レ

レ レ レレレレ レ

レ

レレレ レ

レ

レ レ レレレレ レ• The risk of insufficient resolution of consumer issues through innovation.

レ

レレPrivacy• Personal information such as privacy information and delivery addresses contained in purchase behaviour and cookies such as customer
medical records and monitor data, surveillance cameras, electronic purchasing and use of point systems may be leaked, managed improperly,
processed or transferred and used inappropriately.
• The seller or manufacturer may not clearly state the terms and conditions or use difficult expressions regarding the handling of privacy
information including facial images such as the use of various simulators and diagnostic equipment, which may cause misunderstanding, anxiety レ
or disadvantage to consumers as they may not be able to fully understand the handling of information.
▪Risk of personal information (e.g. website browsing history, electronic purchase history tracking, recommendation functions) being usedwithout the consent of the parties concerned, as the seller or manufacturer prioritises marketing activities.

レレレレ

Respect for theindividual• Advertising/marketing and sales activities may promote stereotypes of uniform beauty, gender, generation, etc.
• There is a risk that the use of AI, etc. may cause the provision of algorithms and information that may promote consumer misperceptions andstereotypes.

Children's healthand safety• Potential for children's rights to be violated, for their healthy development to be hindered, or for their safety or health to be endangered, by notproviding sufficient information on product use and skin knowledge, including information on usage and quality.
• There is a risk of not ensuring equal access to products that meet the needs of children according to their growth characteristics.

レレレ

Harassment anddiscrimination• The risk of violating human rights without prior confirmation that the advertising and marketing does not induce discriminatory harassment.
• The advertising and marketing activities may give the impression that they are associated with, condone or encourage discrimination or
bullying.
• The possibility of being disadvantaged in use due to differences in gender, age, nationality, race, religion, LGBTQ, disability status, BLM, etc.

レレレ

Health and safety

Relationship
Consumers with
Consumers

レ

レ

レレレ

22

©Caux Round Table Japan

Sustainable society• Risk of environmental impact due to disposal of plastic products, containers, and packaging.
• Failure to control the use of virgin plastic in containers and packaging materials may not provide consumers with an awareness of the need tosave plastic and may contribute to negative environmental impacts.
• Failure of sellers and manufacturers to involve consumers in raising environmental awareness may contribute to negative environmental
impacts.
• Failure to provide easy-to-sort containers and packaging may undermine consumers' awareness of disposal and contribute to negativeenvironmental impacts.

Ethical advertisingand marketing• Risk of human rights violations without prior confirmation that advertising marketing does not induce discrimination and harassment.
• Risk of recurrence of human rights violations due to advertising and marketing without applying the lessons learned to future businessactivities when such violations occur.

レレレ

Monitoring andassessment• The risk that human rights violations caused by advertising and marketing or by individual employees are not actively monitored (e.g. throughSNS monitoring) and that they are not corrected.
• When human rights violations occur as a result of advertising and marketing, sales activities or business activities, the lessons learnt are notutilised in future business activities and may recur.

レレレ

レ

レレレ

レレ レ

23

3.4 Food and Beverage Sector
Value Chain

・ The company's own and contract manufacturers' manufacturing plants (suppliers), logistics drivers, etc., all work long hours.
・ There is a risk of long working hours in all operations, including the company's own and contract manufacturers' manufacturing plants(suppliers) and distribution drivers.
・ Possible occurrence of overwork due to pressure to increase production under the influence of temporary special demand, and possible
problems with working time management due to the increase in teleworking as a result of changes in working methods.
・ Possible occurrence of working time management problems (service overtime).
・ The impact of COVID-19 may lead to a significant reduction in working hours, resulting in a decrease in wages.
・ Impact on employees' families due to long working hours
・ Staff shortages and increased workload due to spread of infection
global ・ Concern on chronic overtime due to staffing based on overtime work.

DisposeConsumeSell
Transport
Produce
ProcureWorking
hours

Concrete issues

Research
Development

Key human rights issues in food sector

Area ofrisk
occurrenceレ

レレ レ レレ

レレ レ レレ・ Concern on mental illness due to the psychological burden on employees who have no choice but to come to work.
・ Concerns about long working hours due to second and concurrent jobs.
・ (Impact of COVID-19) Difficulty in securing working hours for the childcare generation due to childcare, school holidays and online
classes.
・ Concerns about the worsening of manpower shortages due to infectious diseases, war, etc. and the resulting increase in employee
working hours
・ Concerns about the increase in working hours due to the worsening manpower shortage and the resulting increase in working hours of
employees
・ 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
global 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)
・ Wages are not guaranteed due to factory operation suspension, lockdown, etc. given the influence of COVID-19.
・ Differences in wages between employment types despite the same work content due to the impact of COVID-19.
・ Wages are below the standard of living.
・ Foreign workers and apprentices are treated unfavourably, with unfairly low wages, suspension of employment and otherdisadvantageous treatment.
・ Japanese workers are also treated unfavourably, such as dispatched workers being paid unfairly low wages and being stopped from beingレ
employed.
・ Unreasonable deductions from wages that are not pre-determined (e.g. toilet charges) and not recorded on the payroll.

Wages

Japan

Workplaceconditions

24

Japan ・ Inability to raise wages due to inability to pass on price increases in raw material prices to prices
・ Unemployment due to production stoppages, substantial decrease in remittances to home country due to yen depreciation, and decline inattractiveness of labour in Japan.
Increased competition among suppliers due to difficulty in securing raw materials (biased selection of suppliers, monopoly of available raw
materials) Potential deterioration of working and wage environments at suppliers not selected.
・ Discrepancies with international standards in the guarantee of living wages to suppliers.
・ The difference in take-home pay between urban and rural areas is large because the level of rent collection for foreign workers is thesame in urban and rural areas.
・ The level of rent collection for foreign workers is the same in urban and rural areas, so there is a large difference in take-home pay
between urban and rural areas.

Workplaceconditions

Health andsafety▪ The health and safety of employees/workers may be threatened by hazardous work in product manufacturing (including raw material
procurement) and research and development processes, handling of chemical substances including pesticides, inadequate response tooccupational accidents and overwork (also from the perspective of employees = physically challenged persons).
▪ The use of colour barrier-free systems to reduce risk (consideration of colour use), direction of door opening and closing, language
signage for foreign workers, and the use of assistive devices to cope with heavy-muscle work, etc., are necessary to accommodate various
cultures and diversity.
▪ The burden of work at distribution centres (unloading containers, working in freezers, etc.) is heavy and falls on those who are in aweaker position, and there may be a lack of health considerations.
▪ Insufficient support for foreign workers in terms of access to medical facilities, food, clothing and housing, and mental health.
▪ Inadequate infection prevention in the workplace (not only COVID-19 but also other diseases and infections)▪ Insufficient infection prevention measures for children, fear of parents abusing or neglecting their children under the influence of
COVID-19 - No robust medical check-ups for all employees and no company action based on the results▪ Insufficient provision of physical space for relaxation▪ The physical workload inherent in remote working is left to the individual.
globalレ▪ (Impact of COVID-19) - Mental health problems due to increased teleworking (obstacles to work progress, stress) and reduced
communication due to restricted outings, as well as deterioration of employee health and safety, such as poor physical condition due tolack of physical exercise.
・Risk of infection during commuting and working for workers who cannot telework, e.g. in factories.
・Safety and health risks for older workers.
・ (Health and safety added to ILO Core Standards) - Lack of awareness and delayed response by companies regarding health and safety
may threaten the health and safety of their employees.
・ Health and safety may be threatened due to lack of response by companies to the addition of ILO Core Standards (health and safety).
・ Lack of education and training opportunities for night workers, short-time workers and temporary workers may endanger their health andsafety.
・ Risk of threats to the health and safety of employers due to rising costs of raw materials and energy.
・ Risk of not clearly indicating evacuation routes, nearest evacuation points of accommodation, etc. in a language that foreign workers canunderstand.
・ Risk of insufficient evacuation drills at the workplace (especially for night workers, short-time workers and temporary workers).
・ Restrictions on eating (e.g. raw oysters, bivalves, etc.) due to hygiene controls such as norovirus prevention may lead to infringements ofrights.

・Compliance with the implementation of disciplinary action for an employee who engages in harassing behaviour
Disciplinary
global ・Implementation of appropriate disciplinary action in accordance with laws, regulations and office regulations
action・The risk of international condemnation for taking a pay cut as a disciplinary measure prohibited by international standards.

レ

レレ レ レレ

レレ レ レレ25

・ Risk of discrimination in recruitment based on race, gender, religion, region, LGBTQ, SOGI, disability, ethnicity, creed, medical history(e.g. HIV), care, fertility treatment, childcare, etc.
・ Risk of debt to sending agencies, such as recruitment fees and payments to foreign language institutions, which are in effect debt labour.
Duringglobal There is also a domestic problem of recruiting without realising the background to this.
レ
employment
・ Risk of working under inadequate conditions due to failure to present working conditions in a language understood by foreign workers at
the time of recruitment.
・ Risk of repeated discrimination due to complicity in reproduction of bias due to unconscious bias and lack of recognitionCore
operation /Supply chain

Duringwork

Discrimination

Assessment
Treatment
Dismissal

レレ レ レレレ

レレ レ レレレ

レレ レ レレ・ Likelihood of workers (including foreign employees, disabled persons and temporary employees) receiving inadequate safety training
and unequal treatment.
・ Likelihood that workers will be forced into precarious forms of employment.
・ Discrimination based on employment status (e.g. lack of training opportunities or not being allowed to attend meetings).
・ Harassment (sexual harassment / power harassment / maternity harassment / SOGI harassment etc.) from/to business partners
global ・ Harassment and discrimination against COVID-19 infected persons and their families.
・ Lack of working environment facilities for persons with disabilities
・ Lack of LGBTQ-friendly facilities (e.g. toilets and changing rooms)
・ Insufficient LGBTQ-friendly facilities (e.g. toilets, changing rooms, etc.) ・Incidence of harassment invisible to those around them due toincreased telework
・ Discrimination, invasion of privacy and restrictions on work based on COVID-19 vaccination status
・ Manuals that are multilingual and multi-religious, consideration for the working environment, and the risk of discrimination due todifferent nationalities, religions, etc.
・ Discrimination and harassment of foreign technical interns by receiving companies.
・ In the factory, workers are made to wear work clothes/hats of different colours depending on their nationality.
Japan ・ Need for consideration of prayer rooms, hijabs, national etiquette, etc.
・ Lack of direct communication by Japanese to foreign workers (too much reliance on interpreters)
・ Lack of a unified approach to time management.
・ The need for consideration of the etiquette of each country.
・ Possible coercion of vaccination.
・ The need to support the livelihoods of foreign workers and their families, and to prevent their isolation in the community.
Support for foreign workers and their families in their daily lives and prevention of isolation in the local community are necessary.
・ The Japanese Government should implement promotion and salary increases for foreign workers in accordance with their evaluations. ・・ Equal and fair treatment of foreign workers, including Japanese workers.
global ・ The decrease in demand in COVID-19 has led to unfair dismissal of those in vulnerable positions in labour contracts, such as nonregular workers.
・ Imposition of high-risk jobs on those in weak labour positions.
・ Wages not guaranteed in the event of factory non-operation due to the COVID-19 disaster.
・ Discrepancies between the contract and treatment of employees (including technical trainees).
・ Few female managers, delayed implementation of barrier-free access, possible undermining of job satisfaction for people withdisabilities.
・Appropriate implementation of promotions and pay rises based on evaluations for foreign technical interns. The lack of communication
creates isolation, and there is no evaluation or treatment that is worth working for.
・Seniority-based evaluations do not allow for proper assessment.
・Differences in treatment between new graduates and mid-career hires.
Japan・Lack of consideration for male employees and others as a result of the expansion of the system for women.
・Lack of consideration for male employees, etc. when expanding the system for women.
・The company has a system that is based on the assumption that promotional examinations are conducted in Japanese.
・The number of women in management positions is increasing.
・Possible deterioration of the employment environment and maintenance of an appropriate evaluation and treatment system due to risingcosts of raw materials and energy.

26

Child labour(14 years andunder)

・ Fear of child labour below the minimum age for employment, fear of identity forgery
・ Fear of children losing their right to education and suffering physical and mental damage.
・ Increase in child labour due to increase in the number of poor due to widening disparities in the COVID-19 disparities.
global・ Confirmation that there is no child labour in upstream suppliers (secondary and tertiary), especially in developing countries.
・ Child labour in family business settings.
・ Late night work of child talent in (domestic) commercial filming.

レ

レレ レ レレ

Employment ofyoung workers
under 18 yearsof age Night work, engaging in hazardous work, identity forgery.
global  Lack of awareness of possible risks in the country as hazardous work for under-18 (some manifest cases in the news exist).
・ In some small-scale crop producers, young people under 18 years of age are involved as domestic labour.

レ

レレ レ レレ

レレ レ レレ

レレ レ レレ・ 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 working site).
 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 language ofglobalforeign nationals. (Global)
・ Confirming whether employees of tier 2, tier 3 suppliers experience excessive working hours, especially in the developing countries.
・ The company may have control over workers' ID cards, etc.
・ The company may be forced to procure raw materials other than certified sustainable products due to supply chain disruption, which maylead to the procurement of raw materials suspected to be used for forced labour.

Forced orcompulsory
labour・ 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)
Japan ・ Support for technical intern trainees who have difficulty going home during the COVID-19 crisis
・ The existence of temporary employment agencies that force foreign students to register and work in exchange for covering their tuition
fees and commissions.
・ The high fees charged to sending agencies and brokers in the home country for technical interns, which may lead to forced labour.

Freedom of
associationcollective
bargaining

Access to Remedy

Conflictwith locallaw

・In countries where unions are not permitted, or where they are permitted but not applied as a matter of substance, there is a risk that
freedom of association and the right to collective bargaining (in accordance with international law) may not be ensured.
global・In countries with weak legal systems, even if freedom of association is recognised and there is a union in the company, there is
intimidation on the part of the company and the union does not fully function in practice.

レ・The right to freedom of association and the right to associate may not be adequately explained to foreign technical interns.
Japan ・The following are some of the most common reasons why foreign technical interns may be restricted or prohibited from joining tradeunions.
・ 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.
・There is a risk of insufficient access to the hotline (e.g. employees are unaware of it, the system is difficult to use, it is not resolved, etc.).
globalレ・Even if multilingual support is available, there is a risk that complaints and consultations will be ignored or put off, for example, because
they are too cumbersome to deal with.
・Possible that complaints/consultations in need of resolution are ignored/put off due to the high number of consultations that do not
require redress.

レレ レ レレ レ

27

Protection of Privacy

Use ofnaturalresources
Resources

ClimatechangeCommunity

レレ レ

レ

レレ レ レ レ レ・ Titles to the land of local people or indigenous groups may be ignored at the occasion of land enclosure, especially when constructing
such as fields, ponds, factories/manufacturing sites, and waste treatment plants.
 The withdrawal of local factories and projects may reduce employment in the surrounding area, which may lead to a decline of the local
global economy.
レ・ Possible loss of jobs due to business withdrawal or suspension of trade due to geopolitical risks
・ The factory needs to take into account and greivance not only at the time of the employee, but also in the home environment and family
global life of the worker.
・ Possible failure to reach complaints and consultations of neighbours of factories and other business establishments.

Access to remedy

Society andgovernment

レ

Title to land global

Investment tocommunity

Relations withsocietyandgovernments

・ Reduced yield due to global warming
・ Impact on the living area due to the occurrence of natural disasters caused by climate change
・ Impact on employment due to business shutdowns caused by droughts, etc.
global・ Impacts on livelihoods, such as the impact of climate change due to the expansion of agricultural land and the resulting increase innatural disasters.
・ Delays in reducing food losses and contributing to poverty inequalities due to the lack of a food system.

レ レ・ Negative impact on community lifelines due to pollution (noise, vibration, foul odor, waste, etc.) associated with construction andoperation
global ・ Infringement of access to evacuation shelters in the event of a disaster・Triggering of poverty through price increases
・Violation of water access rights of local communities due to excessive water abstraction by beverage and food factories

Impact oncommunity

Access to land・ Use of data of security cameras for food defense may infringe on privacy.
・Appropriate management of personal data.
・The risk that privacy may not be adequately ensured, particularly due to the allocation of dormitory accommodation for technical interns
and internal inspections of dormitories by audits, etc., and the infringement of rights through unwilling consent due to ignorance of theJapan rights granted.
・The risk of privacy infringements due to systems failing to keep pace with technological innovations such as AI and the metaverse.
・The risk of using AI analysis alone for personnel data and recruitment data that can affect lives.
・The increased risk of leakage due to multiple parties (employers (other than HR managers), supervisory bodies, sending organisations,etc.) managing personal information of foreign technical interns.
・ Large-scale agriculture, fisheries and forestry in the raw material sourcing areas may cause communities to face reduced production andcatches.
・Impact on livelihoods, traditions, local ecosystems (e.g. air pollution, soil contamination, pollution from waste and plastic waste) andaccess to water for local people and indigenous peoples.
・Risk of loss of food self-sufficiency due to mono-cropping (conversion to cash crops).
global ・The risk of over-extraction of resources (upstream supply chain) due to environmentally hazardous product development, design,
distribution and sales (e.g. high electricity use, low recycling).
・Generation of plastic waste due to packaging that is difficult for consumers to sort and recycle.
・Environmental pollution of export destinations due to the export of waste plastic, and deterioration of the health of the population.
・Possible increase in water stress due to increased water use throughout the supply chain, including increased planting of agricultural
crops.

Bribery andcorruption

・ In establishing factories and gaining marketing rights (marketing license), companies may be demanded for bribes to acquire lands andglobal permissions.
・ Contributes to poverty inequalities, delays or hinders the resolution of issues.

レ

レレ レ

レ

レレ

レ

レレ レ レ レ レ

レレ レ レ レ レ

レレ

レ

レ
28

・ Human rights abuses such as human trafficking due to collusion between the sending organisation and the government of the country
concerned.
・ The following are some of the situations in which the company may be involved in human rights abuses
global ・ The risk of being complicit in human rights abuses when operating in countries or regions where there is a gap between local laws andcustoms and international standards.
・ In countries with good information management controls, even third-party audits may be influenced by the authorities and may be far
removed from the actual situation. Contractual bindings may not make sense.

Society and
Relations withgovernment
governments
andcompanies withlow awarenessof human rights

レレ・ Possible health or religious problems for consumers due to inappropriate labelling (e.g. raw materials, misrepresentation of quality, etc.).
・ Inappropriate marketing may lead consumers (especially minors and the elderly) to erroneous eating behaviour.
Provision of(Health hazards due to excessive intake of certain ingredients)
properglobalレ・ Possible health hazards due to failure to warn.
information
・ Possible health hazards, religious problems, etc. among foreign consumers in Japan due to the lack of language descriptions that they canunderstand..

レ

レレ

Health and safety

・ Insufficient quality control (storage conditions, hygiene control, process control, transportation control, etc.) and hygiene training for
employees may cause health hazards to consumers.
global・ Insufficient measures against intentional quality degradation (food defense)
・Are products developed with easy-to-understand labelling and accessibility for people with disabilities?

レ

レレ レ レ レ

Japan ・Potential for large amounts of food loss due to excessive quality control (e.g. zero missing items).

レ

レレ レ レ レ・ Failure to properly dispose of waste (e.g. food residues and waste plastics) may lead to environmental degradation.
・ Child labour and forced labour in waste disposal operations.
Responsible
global ・ Food loss due to lack of consumer awarenessdisposal・ The possibility of expired food being exported to third countries and causing health hazards.
・ Continued use of virgin plastic in packaging materials may aggravate the waste problem.

レ

レレ レ レ レ レ

Qualitycontrol

Consumer

Discrimination

Gatheringappropriate
information

Privacy Protection©Caux Round Table Japan

global・Lack of consideration for human rights when collecting marketing information, such as questionnaires, gives a discriminatory impression
レof minorities.

・ Leakage, storage management, information processing management and information transfer management of personal information
global obtained through consumer campaigns, mail order, membership registration, etc. (also considering contractors)
・ The risk of infringement of privacy due to the system not keeping pace with technological innovations such as AI.

レレ

レ レ

レレレ
29

3.5 Pharmaceutical Sector
Value Chain

Health and safety

Health and safety

Disciplinary actions
Excessive monitoringCore
operation/
Supply chain

Employment

Discrimination

During work

DisposeEmployment Status

ProcureWorking
conditions

ConsumeSell
Transport
Produce

Wage・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.
・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 levels are not in line with local living standards
・ Possible failure to pay adequate wages for overtime work due to non-compliance withnational/regional labour laws.
・ Unjust treatment of non-regular workers (including foreign nationals) and foreign technicalapprentices (evaluation, low wages, etc.)
・ Possible failure to realise equal pay for equal work.
・ Impact on child development and family mental health of salespeople and expatriates working
alone.
・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.
・ 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.
Moreover, improper involvement in clinical data may occur.
・Unfair disciplinary actions may be executed by companies.
・Risk of the rights of whistleblowers being undermined by unfair treatment due to the lack of awhistleblowing system.
・Excessive monitoring of employees and control of their working conditions.
・Discrimination may occur based on characteristic or attribute such as birthplace, nationality, sex,
SOGI, age, race, belief, religion, and presence of disease.

Develop

Working hours

Concrete Issues

Research

Key human rights issues in pharmaceutical 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 レ レ レ レ

レ

レ レ レ レ レ レ
レ レ レ レ レ レ

レ・Harassment (sexual harassment, power harassment, maternity harassment, SOGI harassment)
・Discrimination in employment form may occur based on gender, birthplace, nationality, age, race,
religion, SOGI, presence of disease.
レ レ レ レ レ レ・Posssibility of being forced to be vaccinated
・ Risk of being forced into precarious employment
・ Risk of incorrect application of internal systems (parental leave, family care leave, sick leave, etc.)

レ30

Child labour

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

・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.
・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
レ レ レ レ レ レ- Exploitation- Mental and physical damage

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.

Freedom of
association andcollective
bargaining

・ 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 consultation レ レ レ レ レ レ
collective 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
レ レ レ レ レ レ
domestic law
applied in practice even if recognized.

Personal
information

Management of personal
information

・ The risk that personal information such as personal health records (including genetic information)
may be leaked or misused, leading to the identification of individuals or invasion of their privacy.
・ The risk that personal information obtained in the course of the work of healthcare professionals,
patients, employees, etc. may be leaked or utilised beyond the scope of the person's authorisation.

レ レ レ レ レ レ

レResources

Use of natural resources

・Bio-piracy may occur in sourcing natural compounds that are essential for drug development.

レ レ レ レ レ レ

レ

Health and safety

・Pollution of the environment by animals, cells, medicines, chemicals and waste plastics, which may
endanger the health of the population and spread contamination to the animals and plants on whichレ
they feed.
・ Water and land abuse at factories and local construction sites.

レ レ

Local residence Right of residence

・ Forced evictions following the construction of new factories and other new buildings; violation ofresidents' rights to their living environment.
・ Effects on local communities due to inadequate disaster prevention measures at factories, offices,
etc.

レ レ

レ レ レ

Operations inhigh conflict risk
Product supply risk
areas andconflict zones

・Products may not be provided to people in needed due to unstable social situations.
・ Likelihood of indirectly contributing to conflicts in the area (products, funds)

レ レ レ レ レ レ レ レ

Redundancy and dismissal

Community

Environmental
impact ofpharmaceuticalproducts

Relations with Bribery andgovernments corruption

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・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 レ
レ

レ レ レ レ レ レ
31

Access toRemedyGrievance

Relationship with patientsand study subjects
Employee and Supply
Chain

Health and safety

Consumers

Relations withpatients

Consideration forvulnerable subjects

OthersPublic health©Caux Round Table Japan

Actions to pandemic

・Appropriate remedy may not be provided due to insufficient or undeveloped systems.
・Appropriate remedy may not be provided due to insufficient or undeveloped systems.
・Inadequate efforts to combat counterfeit medicines
・Risk of health hazards due to abuse and misuse.
・Risk of health hazards due to delayed reporting of adverse drug reactions.
・Injuries due to product defects or accidents during handling (including doctors, nurses,
・Risk of using investigational or therapeutic drugs on patients without sufficient prior explanation.
・Risk of health damage to patients due to side effects of medication or incorrect medication.
・ Risk of taking inappropriate prescription and treatment due to exaggerated PR of product・ Risk of being forced to take vaccinations, and the risk of human rights violations by not taking
vaccinations.
・ Risk of lack of access to treatment for rare diseases
・ Possible inability to provide medicines in a timely and appropriate manner due to depopulation of
the region and reduced access to healthcare due to changes in the supply-demand balance・ Lack of access to medicines or information about them due to language barriers
・The risk that, despite clinical trials, the drug may not be approved and marketed in the country
concerned and reach patients.
・New pandemic virus may endanger lives of people and deteriorate the public health of・Social unrest and security deterioration caused by pandemic may hinder business activities andmake it difficult for drugs to be supplied.
・Production of therapeutic products may be delayed due to manufacturing efficiency when
pandemics occur.
・ Inappropriate use of antimicrobial agents may lead to an increase in infections caused by AMR(Antimicrobial Resistance) bacteria that are ineffective against existing antimicrobial agents, leading
to deterioration of public health and endangering human life.

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
32

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

DisposeTranspor

Sell

Buy

Workplaceconditions

Concrete issues

CreateKey human rights issues in logistics and transport
sectorWorking hours

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.
・ Long working hours and sudden labour 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 other countries. ・Risk of unexpected late-night work, long working hours and working on holidays in the event of a disaster or international conflict,due to the highly public nature of the business.
・ Working remotely may make it difficult to maintain work-life balance・ From the aspect of having a certain public interest, overwork and long working hours may occur due to the demand for nesting in
the Covid-19 and traffic restrictions during the Olympics.
・ The number of employees who work long hours due to lack of control over working hours at the workplace.
・ Long working hours may occur due to staff shortages.
・ Long working hours may occur in the supply chain due to difficulties in ascertaining working conditions outside the company. ・Long working hours may occur due to long waiting times for trucks at warehouses

レ レ レ レ レ

Low wages

・ 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.
・ The pandemic affected distribution volume and overal business volume, resulting in failure to obtain stable income.
・ If performance increases under Covid-19, employees may lose motivation because their wages are not commensurate with theirefforts and they are not rewarded with special compensation, etc.
・ The risk of lower wages for workers in supply chains other than the company's own.
・ There is a risk that differences in employment status may prevent fairness in wages for the same work.
・ There is a risk of nationality discrimination in careers, e.g. only employees of a certain nationality are given opportunities forpromotion.
・ Risk of wages falling due to sluggish demand.
・ Risk of wage decline and loss of employment opportunities due to mechanisation.

レ レ レ レ レ

33

Workplace
conditions

Health andsafetyThere are always hazardous operations at logistics and transport sites, such as loading, unloading and transporting heavy goods,
using large machinery and vehicles, and working in close proximity to trains, aircraft and ships.In order to maintain safe conditions,daily efforts must be made to keep hazards under control.
・ Risk of occupational accidents at sites where heavy machinery or heavy cargo is handled, such as operating vessels, terminals,
aircraft and airports.
・ Risk of health hazards and occupational accidents for employees in unstable working environments such as outdoors or in cold
レ レ レ レ レ
storage warehouses.
・ Ensure worker safety in areas of international conflict, piracy, the Strait of Hormuz and other geopolitical risks [shipping industry].
・ The risk of secondary damage from industrial accidents in the event of a disaster due to the highly public nature of the business.
・ The risk of mental health problems due to long working hours, accidents and harassment.
・ Risk of health and safety hazards, child labour and forced labour in the company's supply chain (in addition to employees).
・ The expansion of telecommuting may lead to an increase in health hazards such as mental disorders and lifestyle-related diseases
caused by lack of exercise (signs of which are not easily seen by those around).
・ Risk of infection and sequelae due to inadequate countermeasures against infectious diseases, including coronavirus, in workplaces
where teleworking is difficult.
・ The risk of seafarer fatigue due to long periods of time on board due to a lack of smooth crew turnover in the event of acoronavirus outbreak may impede the safety of vessel operations.
レ レ レ レ レ・ Risk of health hazards due to shortages of perishable foodstuffs after unexpectedly long delays or voyages due to coronal disasters[shipping industry].
・ Possible failure to ensure the health and safety of employees working as essential workers
・ Risk of health hazards due to work on holidays and long working hours to compensate for absent employees
・ Obstruction of business or violence by customers.

Core operation/
Supply chain

In anticipation of the shortage of human resources due to the declining population, in recent years, human resources and forms of
employment have been diversified such as employment of temporary staff, senior employees, foreign employees, the disabled, full
employment of contract employees, and implementation of short work and teleworking.
・ The risk of unequal treatment in terms of working conditions, training and promotion (soft aspects) due to diverse employees(nationality, ethnicity, religion, gender, age, disability, sexual identity, etc.) being employed under various forms of employment.
・ The lack of a workplace environment (e.g. multipurpose toilets) for diverse employees (e.g. nationality, ethnicity, religion, gender, レ レ レ レ レage, disability, sexual identity, etc.) may lead to violations of human rights (hard aspects).
・ The risk of uniform treatment that does not recognise diversity (e.g. SOGI).
・ The risk of prejudice and discrimination against employees with coronas and those who have not been vaccinated.
・ Employment environment and treatment of senior workers (due to employment extension and retirement age extension systems)(e.g.) problems with senior drivers

Discrimination

Employment
Environment
andRequirement

Foreign Workers(General)・Risk of unfair treatment in terms of employment and treatment .
・Lack of language and daily life support may isolate foreign workers.
(Domestic)
Employment
・There is a risk that foreign nationals employed under the technical internship system will be subjected to unfair treatment (forced
Environment
long working hours, unpaid wages, unfair deductions from salaries, etc.).
レ レ レ レ レ
and Conditions ・Discrimination in hiring foreign technical interns based on whether or not they have been vaccinated (e.g., forcing them to be
vaccinated in the workplace, giving priority to those who have been vaccinated).
(Overseas)
・There is a risk of human rights abuses such as child labor and forced labor occurring at business partners in overseas supply chains.
・There is a risk of non-payment of wages for work performed prior to regular employment.
34

Safety・Risk of causing health hazards and unnecessary stress to a diverse range of passengers due to the characteristics of the space beinga closed space, the long detention time and the inability to move seats [Aviation].
・Risk of causing damage to health and unnecessary stress due to the closed nature of the space, high density and diverse passengers
on board. Also, risk of being victimised by sexual crimes, etc. [Railways].
・Risk of delays in the initial response to medical emergencies due to the closed space.
・Risk of passengers being infected with covid-19.

Services・The risk of loss of opportunities to use public services due to a lack of support for diverse customers (nationality, ethnicity, religion,
gender, age, disability status, sexual identity, etc.).
・Possible loss of community quality due to the discontinuation of routes [railways and buses], while local communities aremaintained through the continuation of routes [railways and buses].

Information
management

・Personal information entrusted to us by our customers/possible leakage of privacy.

Customer/regionUse of natural
resources

Resources
Community

Use ofinfrastructure

In addition to fossil fuels, diversification of energy sources makes a progress including non-conventional natural gas resources andpower generation by natural energy.
・ There may be environmental pollution such as air pollution, water quality deterioration and destruction of habitats at suppliers offuel oils.[B]・ Air pollution may be caused by gas discharged from many transportation vehicles passing through the transportation route. [T]・ Oil pollution incidents may cause damage to the marine environment and negative impacts on ecosystems.
・ Environmental destruction such as soil contamination, water quality degradation and air pollution may occur due to construction
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.

レ レ

レ レ レ レ レ・ 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 thearea of procurement. [Aircraft]
・ The use of SAF fuel (aviation biofuel), which is positioned as a renewable alternative aviation fuel, may result in passengers
having to bear the relatively high cost of such fuel.
・ Measures to reduce emissions of sulfur oxides, nitrogen oxides, etc. by switching fuels or installing scrubbers on ships in operationin accordance with Sox and Nox regulations [Shipping].
・ The use of ballast water may affect ecosystem services in the local marine environment and violate the human rights of the local
population [shipping industry].
・ Disposal of vehicles, vessels and aircraft may cause negative environmental impacts.
・ Vehicles, ships, and aircrafts operated by companies may cause damage to the roads, harbors and airports where they operate.
・ Trucks may damage roads in countries around ports for transport to landlocked countries.
・ Damage to infrastructure in the event of a disaster could disrupt supply chain logistic.
・ Efforts to promptly recover infrastructure such as roads, tracks, station facilities, logistic centers after disasters, and maintain basic
infrastructure for local daily life (positive impact).
・ Cargo stopped due to dockworkers' strike may affect customers or supply chain.
レ レ レ レ・ Lack of drivers, accidents and insufficient maintenance of roads, tracks and ports may affect the supply chain
・ Decline in the number of users due to falling birthrates and ageing population may make it impossible to maintain routes[railways].
・ Risk of changes to the environment of the sea and surrounding areas due to the development of ports to allow large vessels to enter
the port.

35

・ Exposure to bribery and corruption, including facilitation payments.
・ The company may be exposed to bribery and corruption, such as facilitation payments, when negotiating with governments andadministrations on route development and capital investment.
・ Risk of companies being complicit in human rights abuses due to policy guidance or state ideology that leads to human rights
abuses.

Security

レ レ レ・The evolution of technology (AI, IoT, etc.) may lead to privacy/human rights issues and cyber-terrorism, etc., which are currently
unforeseen.
・The IT gap may widen (those who can benefit from digitalisation and those who can't).
・The introduction of AI in the transport flow, the elimination of manpower shortages and human errors due to IT, and the possibilityof a reduction in the number of employees.
・The risk of not being able to respond appropriately to victims due to unclear responsibility in the event of an accident.
・Lack of personnel capable of responding to emergencies (system) due to reduction of personnel due to digitalisation.

Digitalisation

Illegal dealing,
Trafficking

OthersAccess to remedy©Caux Round Table Japan

Human
trafficking

・ Risk of being involved in the transport of victims of trafficking in persons, organ traffickers, etc.
・ Risk of unintentional transport of stowaways [shipping industry].
・ Risk of transporting contraband.

レ レ レ・Lack of access to redress in the event of human rights issues in general.
・Likelihood that employees working for secondary and tertiary suppliers will not be able to access redress (e.g. no redress office, nomultilingual support, no 24-hour system, no functioning office even if one exists, etc.)
・Possible inaccessibility due to lack of guarantees of psychological safety (choice of anonymity, confidentiality of information, no- レ レ レ レ レ
retaliation policy, etc.) for those who wish to access it.
・Lack of redress contact points in the supply chain or lack of penetration, which may prevent parties from accessing them.
・Lack of timely provision of adequate remedies for issues that take time to resolve.
36

3.7

Apparel (clothing)

Creation: Research, development, design, and design Purchase: Construction of facilities, procurement (fabrics, sub-materials) Manufacturing: Production, manufacturing (sewing)Transportation: Storage, logistics Sales: Sales, marketing, retailing Use: Consumption, utilization, maintenance, packaging (wrapping) Disposal: Disposal, recycling, waste plastic
Value chain

Treatment in
the workplace

Concrete issues

DiscardUse
Sales
Transport
Manufacturi
Purchase
Creation

Key human rights issues in apparel sector

Working hours

・There is a risk of long working hours due to (a) a production plan that incorporates overtime work or a situation
where the sewing site absorbs delays in the upstream plan, (b) a wage level that does not match the local standard ofliving, (c) a piece-rate wage system, or (d) factory reasons such as a large volume of defective or reworked
products.(workers in their own factories or contracted production)
・ Due to inappropriate work management, there is a risk that the legally stipulated days off will not be granted orthat overtime limits will not be observed. (own employees or workers at their own factories or production
contractors)
レ レ レ レ レ レ
・ Labor standards violations may be occurring due to lack of understanding of technical intern trainees' actual work
conditions (Japan) (Domestic sewing factories or technical trainees from outsourced production)・ Lack of support in the local language for technical trainees, which may result in inadequate support and care interms of daily life, and the possibility of their lives becoming isolated (Japan) (sewing factories in Japan or technicaltrainees at outsourced production sites).
・ Overtime work, overwork by managers, and overwork by deemed managers (Japan) (Own employees)
・ Overwork due to telework (Japan) (Own employees)
・ Possible occurrence of overtime work due to external factors such as changes in national policy or policy(disputes, lockdowns) (workers at the company's own factories or contracted production sites).
レ レ レ レ レ・ Possible occurrence of excess labour due to manpower shortage as a result of foreign workers (e.g. from China,
South East Asia) engaged in repair and sewing after purchasing goods returning home due to the impact of thesituation overseas (e.g. due to Corona) (own employees or workers at contracted production sites).

Wages

・The minimum wage (living wage) may not be observed due to pressure from buyers to reduce costs (workers atoverseas-owned factories or production contractors).
・ In some countries, minimum wages are frequently revised and there is a risk of non-compliance with minimum
wages (workers at overseas-owned factories or production contractors).
・ The risk that overtime work may not be properly remunerated due to inadequate compliance with laws andregulations or poor work management (own employees, workers at own factories or contracted production sites).
・ Risk of not being paid fair remuneration in line with productivity (own employees, workers at own factories or
production contractors).
レ レ レ レ レ レ・ Problems of equal pay for equal work by regular and irregular workers (own employees, workers at own factories
or production contractors).
・ The risk that changes in social conditions, such as inflation, may cause real wages to fall and prevent workers
from maintaining their standard of living (the company's own employees, workers at the company's own factories or
production contractors).
・ The status of the wage gap between men and women is not understood, and there is a risk that a gap may exist.
The proportion of female officers is low. The reality is that women are not actively promoted. (Own employees,
workers at own factories or production contractors)

37

・The risk that health and safety training, including disaster prevention training, first aid training and handling of
hazardous chemicals, may not be thoroughly implemented. (Own employees, workers at the company's own plants
or contracted production sites).
・ The risk of increased safety and health risks to employees due to situations where health and safety training andmedical examinations are not carried out properly due to external factors (own employees, workers at own plants orcontracted production sites).
・ The risk of health hazards due to failure to address health-hazardous working conditions (noise, vibration,
レ レ レ レ レ レ
lighting, room temperature, ventilation, local exhaust ventilation, etc.) (own employees, workers at own plants orcontracted production sites).
・ Risk of pregnant or nursing women, young people, etc. being placed in dangerous or hazardous work (company
employees, workers at company plants or contracted production sites).
・ Risk of workers being exposed to harm due to lack of personal protective equipment (PPE) in dangerous or
hazardous workplaces and lack of appropriate education and training (workers at the company's own plants orcontracted production sites).

Treatment in
the workplace

Health and Safety

Business /Supply Chain

・ Risk of harm to workers due to lack of inspection of machinery and equipment that are required to be inspected
and insufficient protective equipment (own employees, workers at own factories or contracted production sites).
・ Risk of harm to workers due to dilapidated buildings, illegal construction, illegal emergency exits, escape routes,
etc. (your own employees, workers at your own factory or production contractors).
・ The risk of accidents or health hazards due to inadequate storage of chemical substances (your own employees,
workers at your factory or contracted production sites).
・ Risk of mental health problems (mental health problems), such as anxiety and stress over infection amongproduction workers who cannot telework (Japan) (own employees).

レ レ レ レ レ・Risk of psychological problems due to privacy breaches, e.g. due to personal data leaks or the introduction of
remote work monitoring tools (own employees, workers at own factories or production subcontractors).
・Risk of psychological problems (customer harassment, slander, stalking, etc.) occurring in customer relations andcontact points (customer service, social networking responses, etc.). Or, there is a risk that adequate resolution
レ レ レ レ レ
mechanisms have not been established. (Own employees)
・Risk of mental health problems (stress) on both sides due to lack of understanding of national customs and culturaldifferences (the company's own employees, workers at the company's own factories or production contractors).
・The risk of mental health problems (stress) occurring on both sides due to lack of understanding of nationalcustoms and cultural differences (own employees, workers at own factories or contracted production sites).

38

Disciplinary
measures・Risk of unfair disciplinary punishments or treatment due to inappropriate content of work rules (for own
employees, workers at own factories or production contractors).
・ Risk of non-permanent employees being subjected to unfair contracts without proper explanation (e.g. unfair
dismissal) (own company and non-permanent employees in the supply chain).

レ レ レ レ レ

When hired
Discrimination At Work
Diversity・Possibility of unequal recruitment and employment with restrictions on nationality, race, religion, gender and age(of own employees, workers at own factories or production contractors).
・ Possibility of unequal treatment in terms of working environment, training and promotion opportunities due togender and age differences (for example, misogyny) (own employees, workers at own factories or contracted
production sites).
・ Potential for harassment and unequal treatment with disregard for diversity (LGBTQ, SOGI, etc.) (ownレ レ レ レemployees, workers at own factories or contracted production sites).
・ Possible discrimination in recruitment due to disability, illness, etc. (own employees, workers at own factories orcontracted production sites).
・ The risk of invasion of privacy and discrimination in recruitment due to leakage of personal information (ownemployees, workers at own factories or contracted production sites).
・ Risk of human rights violations due to the introduction of an Ai-based evaluation system, etc. (own employees,
workers at own factories or production contractors).

Child Labour

Minimum age

・The risk that child labour under the minimum age may be carried out without identification or on the basis offalse identification (workers at the company's own factories or contracted production sites).
・Risk of child labour in the supply chain in developing countries (e.g. subcontracted work), or of child mediation
by brokers. (workers at own factories or contracted production sites)

Forced Labour

Forced overtime
Human trafficking

・Risk of being forced to engage in forced overtime work (own employees, workers at own factories or production
contractors).
・ The risk that the labour contract (employment contract) is not clearly stated in writing and that workers are madeto work under working conditions that they have not agreed to (the company's own employees, workers at thecompany's own factories or production contractors).
レ レ レ レ レ・ In Japan, there is a risk of serious violations of labour laws and regulations, such as restrictions on the freemovement of technical interns due to the deposit of their passports, alien registration cards and residence cards, andforced savings (technical interns at domestic factories).
・ In Japan, there is a risk of serious violations of labour laws and regulations, such as restrictions on the freemovement of immigrants and refugees (technical interns at domestic factories).

Freedom of
association

・Refusal to form a trade union, refusal to bargain collectively without just cause, detrimental treatment of union
members or threat of dismissal
Freedom of・The threat of dismissal on the grounds of strike action.
レ レ レ レ レ レ レ
association and・There is a risk that labour-management consultations and collective bargaining are not sufficiently
collective bargaining institutionalised and managed (i.e. have become a formality). In addition, although the right to collective bargaining
is recognised, there is a risk that negotiations are not actually taking place (particularly at overseas production
39
plants).

レ レ レ レレGrievance
Mechanism

・ Complaint handling mechanisms are not in place, or are in place but may not be functioning (protection of
informants, scope of target groups and details of what can be reported are not sufficiently known, and the reporting
Effectiveness ofdesk may become a skeleton).
reporting channels for
・ The complaint handling mechanism is in place, but the operational checks are not functioning.
employees
・ Lack of multilingual support and may not be able to identify offers of human rights violations by vulnerable
groups.

Freedom of
association

・ The risk of refusing to form a trade union, refusing to bargain collectively without justifiable reasons, or treating
union members unfavourably or dismissing them (the company's own employees, workers at the company's own
plants or production contractors).
Freedom of・ The union may dismiss workers on the grounds of strike action (its own employees, workers at its own plants or
レ レ
association andproduction contractors).
collective bargaining ・ The risk of insufficient institutionalisation and operation of labour-management consultations and collective
bargaining (i.e. it has become a skeleton). Also, although the right to collective bargaining is recognised, there is arisk that negotiations are not actually taking place (especially at overseas production plants) (own employees,
workers at own plants or production contractors).

Global warming

Water stress

Resources
Biodiversity
conservation

Community

Depletion of natural
resources

レ レ レ・The problem of CO2 emissions due to excessive electricity consumption in production plants and sales outlets
CO2 emission problems due to irresponsible (unplanned) mass production and mass disposal.
・ Possible deterioration of employee health due to heat stroke, etc. (own employees, workers at own factories or
レ レ レ レ レ レ レ
contracted production sites).
・ Fear of layoffs due to factory closures, etc. as a result of changes in production sites due to climate change) (ownemployees, workers at own factories or contracted production sites).
・The use of large quantities of water and the pollution of rivers by toxic chemicals in tanneries, dyeing and plating
レ レ レ レ レ レ レ
plants, etc., may have a negative impact on the health of nearby residents and on the local environment. (local
・Large amounts of water used in the production of raw materials (cotton, cattle, natural rubber) leading to water
レ レ レ
depletion and possible water pollution.(local people)
・Wooden products (paper materials) may have a negative impact on the conservation of forest ecosystems(indigenous people living in forest ecosystems).
・ Microplastics generated during washing of synthetic fibre products may lead to marine pollution (all mankind). レ レ レ レ レ レ レ・ Materials procured through routes with unclear traceability may lead to environmental and soil pollution (organic
cotton, wool). (local residents)
・Depletion of natural resources with limits, such as oil and gas
・ High use of resources may contribute to climate change and extreme weather events.

レ レ レ レ40

Community

Waste management

・ Possible illegal dumping of waste due to leaving waste unattended or not using the right contractors.
・ May have a negative impact on the environment by not working to reduce waste.
レ レ レ レ・ Risk of causing environmental pollution by using materials that cannot be returned to nature.
・ May use biodegradable plastics even for unnecessary materials, such as combustible materials, thereby rendering
recycling non-functional.

Indigenous rights

・Threats to the livelihoods of people living in countries where pulp is sourced (e.g. evictions, violence)・In developing countries where laws and regulations are not yet in place, though there is compliance with local
laws, there is a risk of causing local environmental pollution and health hazards to the population.
・ The expansion into the interior to reduce costs may threaten the livelihoods of new indigenous peoples.

レ レ レ レ レ レ レ・Risk of discrimination through inappropriate expressions (e.g. unconscious bias/LGBTQ) in advertisements andother media.
・ The existence of the system itself may be endangered due to an excessive negative image of the apprenticeshipsystem (technical interns in domestic factories).
・ In advertising and sales activities through SNS, there is a risk of promoting stereotypical gender bias (e.g. use of
specific colours for women and men).

レ レ レ レ レ レ レ・ The system of circular economy (e.g. recyclable materials) has not been established due to insufficient efforts toraise consumer awareness of recycling.
・ Lack of correct information on sustainable materials may mislead consumers and prevent them from making
intended purchases.

レ レ レ レ レ

Discrimination Diversity

Health and Safety

Consumers

・Improving the quality of products and their safety and reducing the risks to consumers
・Health hazards due to inclusion of hazardous substances in final products
・Health risks to consumers due to battery failure, wearable devices, fires in the use of new materials, etc.
・The risk of privacy infringement and discrimination due to personal information leakage, AI, SNS and othertechnologies.
・ There is a risk of inducement by dark patterns on e-commerce sites (e.g. cases where it is difficult to cancel acontract or return a product).
・ Risk of algorithms and information provision that encourage consumer misperception and stereotyping throughthe use of AI, etc. on e-commerce sites (e.g. targeted advertising, etc., which may force recommendations on
consumers).

Relationships
with consumers

Consideration withdiversity©Caux Round Table Japan・Insufficient consideration of diverse (LGBTQ, nationalities, and religions) consumers

レ レ

レ レ レ レレ

レレ
41

List of Participants in 2022 Human Rights Due Diligence Workshop*Of the total of 8 workshops, attendance of 6 or more times are noted on the list and marked with a "✔"; attendance of 2 to 5 times is noted on the list; attendance of 0 to 1 time is not be noted on the list.

Company
AOYAMA TRADING Co., Ltd.

ANA HOLDINGS INC.

OKAMURA CORPORATION

Onward Trading CO., Ltd.

Department/Title

Name

Head of Purchase Dept. Quality Control Group

Tetsuya Yamada✔

Group leader, Risk Management Department

Masahiro Miyamoto✔

Group leader, Public Relations Department

Masaharu Takeno✔

Manager, Corporate Sustainability

Takaaki Tomihari✔

Corporate Sustainability

Yuko Hashimoto

Corporate Sustainability

Hitomi Kobayashi✔

Section Chief, Sustainability Promotion Office, Sustainability Promotion Department

Kimiko Yusa✔

Sustainability Promotion Office, Sustainability Promotion Department

Tsubasa Kishibuchi✔

Sustainability Promotion Office, Sustainability Promotion Department

Tomoki Nagao✔

Director of Corporate Design Group

Masaki Kusanagi✔

Manager of Corporate Design Group Sustainability management Division R&D section

Taiga Rokukawa✔

Corporate Design Group Sustainability management Division R&D section Mayu Harada

Cuore C Cube CO.,Ltd.

KOSÉ Corporation
Suntory Holdings Limited.
Shiseido Company, Limited
SHIONOGI & CO., LTD.

Mitsui O.S.K. Lines, Ltd.
Sumitomo Chemical Co., Ltd.
SEIKO EPSON CORPORATION

Daifuku Co., Ltd.

✔

Director, Sales &Marketing Division

Yumi Namba

Director, Planning&Development Dvision

Izumi Inao✔

Sales &Marketing Division

Mari Iwai✔

Corporate Strategy Dept. Sustainability Strategy Office

Tamao Taneda✔

Corporate Strategy Dept. Sustainability Strategy Office

Ayako Takahashi✔

General manager, Sustainability Management Division

Tetsuichiro Akashi

Sustainability Management Division

Slimane Gani

Sustainability Strategy Acceleration Department

Miho Ogura

Sustainability Management Department

Ryosuke Sakai

Sustainability Management Department

Shuntarou Horiuchi

Sustainability Management Department

Tomoya Uchida

Environment & Sustainability Strategy Division General Manager, Team

Keita Akazawa

Environment & Sustainability Strategy Division Coordinator

Maki Hosokawa✔

Environment & Sustainability Strategy Division Coordinator

Haruna Mori✔

Sustainability Department

Megumi Noda✔

Sustainability Promotion OfficeTetsuya Yazaki✔

Sustainability Promotion Office

Shiho Kamozaki✔

Human Resources Department, Human Resources Division

Takami Takeuchi✔

Assistant Manager, CSR Group, Sustainability Promotion Department

Hiroyuki Takiguchi✔

Associate Manager, CSR Group, Sustainability Promotion Department

Eiji Kawada

✔

✔

✔

Group Manager, Environment and Quality Group, Sustainability Promotion Department. Takehiro Yamamoto

CHUGAI PHARMACEUTICAL CO., LTD.

TIS Inc.

TOKYU CORPORATIONTOTO LTD.

TOYO SEIKAN GROUP HOLDINGS, LTD.

NAXIS CO., LTD.

Head, Business Ethics Group, Sustainability Dept.

Koichi Kawahara✔

Business Ethics Group, Sustainability Dept.

Yasushi Kato✔

Business Ethics Group, Sustainability Dept.

Ryuichi Kai✔

Corporate Planning Dept, Corporate Sustainability Promotion Office, Expert

Yoshichika Ebara✔

Corporate Planning Dept, Corporate Sustainability Promotion Office Mai Nakauchi✔

Diversity & Inclusion Promotion Office

Etsuko Hosoya✔

Manager, ESG Promotion Group, Corporate Affairs Headquarters

Yoko Takahashi✔

Manager, ESG Promotion Group, Corporate Affairs Headquarters

Kazuya Kanda✔

ESG Promotion Group, Corporate Affairs Headquarters

Sarasa Kobayashi✔

ESG Promotion Sect 1, ESG Promotion Dept.

Eriko Takahashi

ESG Promotion Sect 1, ESG Promotion Dept.

Shunichi Takeda

General Manager, Sustainability Dept.

Koji Nakamachi✔

Asistant Manager, Sustainability Dept.

Mayumi Miyakoshi✔

Asistant Manager, Sustainability Dept.

Mayuko Toi✔

Sustainability expert

Reiko Ohiro✔

Marketing Development Div.

Mitsuyo Morisawa✔

42

Nichirei Corporation

Nichirei Foods Inc.

NISSHIN SEIFUN GROUP INC.

Nippon Yusen Kabushiki Kaisha

FUJIFILM Holdings Corporation

POLA ORBIS HOLDINGS INC.

Mitsui Chemicals, Inc.

Deputy General Manager, Sustainability Management

Mari Sato

Assistant Leader, Sustainability Promotion

Takuro Kawakami✔

Sustainability Promotion

Yui Iizuka✔

Deputy General Manager, Sustainability Promotion Department Motonari kouzai✔

Deputy General Manager, Sustainability Promotion Department Hikari Horimura✔

Manager, Promotion of diversity division✔

General Manager, CSR Management Office, General Affairs Department Mayako Watanabe✔

Manager, CSR Management Office, General Affairs Department Yosuke Suzuki✔

Manager, Human Rights Promotion Office, Human Resources Management Department

Go Hayakawa✔

ESG Communication Team, ESG Management Promotion Group

Hiroshi Horie✔

HR Group

Midori Kinoshita✔

Legal Coordination Team, Legal & Fair Trade Promotion Group

Erika Yoshida✔

Manager, ESG Division

Tomoko Tonami✔

Manager, ESG Division

Mari Kojima✔

ESG Division

Maki Nogaito✔

Manager, Corporate Communications Div, Sustainability Supervision

Hiroaki Nambu

Corporate Communications Div, Sustainability Supervision

Maiko Tsutsui✔

Manager, Corporate Sustainability Division

Kiyoshi Mizuma✔

Director Planning & Coordination Group Purchasing Division

Hirofumi Otani✔

Manager, Diversity & Inclusion Group, Human Resources Division

Norie Mizuhashi✔

Leader,Human Resources Department

Yukari Suzuki✔

MORINAGA MILK INDUSTRY CO., LTD. Leader,Promotion Group,Sustainability Promotion Department

Yamaha Corporation

Lawson, Inc.
worlding Inc.

Kumiko Kubo

Asami Hori

Leader,Planning Group,Sustainability Promotion Department

Azusa Nakatsuji✔

Group Manager, Sustainability Group, Corporate Planning Division

Hiroyasu Abe✔

Manager, Sustainability Group, Corporate Planning Division

Kaoru Yoshioka✔

Assistant manager, Legal Dept

Atsushi Nakama✔

Senior manager, Legal Dept

Shuuji Yamanouchi✔

Head of office, SDGs Promotion Office

Shinichi Arimoto✔

Chair, Management Planning Board

Shoichiro Ikebe✔
43