2017.11.23
Human Rights Risk Report-Stakeholder Engagement Programme-

Caux Round Table (CRT) Japan developed the following unique methodology in 2012,
to assist companies in fulfilling their responsibilities of ‘respect’ and ‘remedy’, as statedin the UN Guiding Principles for Business and Human Rights (UNGPs).

The UNGPs established that all companies have the responsibility to respect humanrights, and state that companies should conduct ‘human rights due diligence’ as ameans to identify, prevent, mitigate, and account for any potential and actual negative
impact on human rights that business activities may have.

Ⅰ. CRT Methodology of Human Rights Due Diligence
CRT believes that effective human rights due diligence requires a simple andtransparent procedural framework, and has designed the following methodology:1

We created the above ‘framework’ for individual companies to implement, whereas
the ‘platforms’ are based on companies working together with NGOs and other actors.
★Platforma. Stakeholder Engagement Programme (May – Jul. 2018)-- Japan, Thailand, Malaysia, Myanmar, Indonesia
b. Review sessions with experts (12-13 Sept. 2018)-- International Conference on Business and Human Rights (Tokyo)★Framework (tailored for individual companies)
a. PillarⅡ Human Rights Policyb. PillarⅡ Human Rights Due Diligence：
Idenitification of priority issues and potential negative impacts
c. PillarⅢ Remedy：Grievance mechanism（KAIZEN-COM）

Below please find more details on the Platforms we offer.

II. Platform: Stakeholder Engagement Programme (SHE)
1. Origins of the programme
One of the main reasons that companies had difficulties addressing human rights
issues for many years was that the messages of the victims of human rights violations
were not being conveyed adequately. The involvement of multiple stakeholders andother actors resulted in messages being confused, and companies were unsure ofwhat concrete steps were required. CRT’s neutral and impartial position allowed it toact as a mediator for all involved, and we decided to create a platform for dialogue.
CRT formed a platform for dialogue - the ‘Japan
Consortium’ - for NGOs and other experts andcompanies to engage in dialogue, as a first step towards
establishing a common understanding of the UNGPs anda relationship of trust for all actors. Though there wereobstacles at first, we conducted successful workshops fora large number of companies, NGOs, and experts, and were able to create a safe2

space where our three rules of ‘fairness’, ‘integrity’, and ‘honesty’ were respected, andall felt empowered to discuss the issues on the basis of Chatham House Rules. We
plan to strengthen the programme in 2018, to enable a more direct dialogue withvictims of human rights violations.

2. SHE overview
The SHE participants have included a wide range of companies, NGOs, and academics,
all of whom have come together to discuss the contexts and backgrounds of humanrights issues, the relationship between business
operations and such issues, and the importance ofrespecting human rights in all business activities.
The results of our discussions are presented
internationally to the public for comment, after
which our annual report on ‘Important Human Rights Issues by Sector’ is published.
The SHE programme serves as a base for the human rights due diligence of individualcompanies.
<Participants>
Year

Companies

NGO

Total participants

2012

39

1168 people

2013

15

1235 people

2014

34

1768 people

2015481798 people

2016

40

1473 people

2017231767 people

The final SHE reports can be viewed at:
http://crt-japan.jp/project-overview/stakeholder_engagement/report_doc/

33. Expansion into Asia
It subsequently came to light that there were many human rights risks not only inJapan but in the supply chains of many Japanese companies, and, CRT started
reaching out in 2014 to organizations (such as Marimo5 in Thailand) to explore
partnerships in Asian countries. We held our first overseas dialogue session in Thailand
in 2016, and continued to expand with sessions in Thailand, Malaysia, and Myanmar in2017. In 2018, we plan to hold sessions in the above three countries and in Indonesia.

These dialogue sessions have allowed Japanese companies to obtain in depth
knowledge and understanding about issues on the ground, and forge partnerships andexplore common solutions with local NGOs active in those countries.

Strengthening engagement with stakeholders-- Expanding dialogue sessions to five countries
In 2018, we plan to hold dialogues in Japan, Thailand, Malaysia, Myanmar, and, for the firsttime, Indonesia. We hope these sessions will serve as fora where companies and NGOs canenter into partnerships to address human rights issues.
-- The three engagement programmes
In particular, we hope to assist companies and stakeholders in addressing rights issues
faced by rights holders such as small scale palm oil farmers, victims of human trafficking,and indigenous peoples.

III. Platform: Review sessions with Experts
At the ‘International Conference on Business and Human Rights in Tokyo’, which CRT
has organized annually since 2013, we invite global practitioners to present global
trends and positive examples from frontrunning companies, and to deepen theirunderstanding of measures taken by Japanese companies.

Around this conference, we organize sessions for these global experts and individualcompanies to engage in dialogue.
4For example, from 11 to 15 September 2017, we had a week long programme ofseminars and meetings in Tokyo.
11 Sep: AM: ‘CRT Partner Session: Learning Recent Human Rights Due Diligence Tools’ (SEDEX, Bluenumber,ELEVATE, Verisk Maplecroft)
PM: ‘Consultation and Feedback on Corporate Human Rights Benchmark’
12 Sep: ‘Towards a Responsible Supply Chain:Merits of SEDEX’, ‘Bilateral dialogue with individual companies part 1’
13 Sep: ‘Mega-Sporting Event Forum (Towards the 2020 Tokyo Olympics)’
14 Sep: ‘Bilateral dialogue with individual companies part 2’
15 Sep: ‘International Conference on Business and Human Rights in Tokyo’ http://crt-japan.jp/conference2017/

At the 90 minutes bilateral dialogue sessions on 12 and 14 September, companies
presented experts with the steps they had taken in human rights over the past year,
and received advice from an international perspective. These sessions have assistedcompanies in clarifying the direction for their future measures, and CRT has followed
up in assisting those companies with formulating concrete action plans.

IV. The future of the programme: ‘keizoku ha chikara-nari’
CRT has assisted companies in dealing with human rights issues through the following
two phases:★Phase 1: Dialogue sessions with multiple stakeholders and practitioners, todeepened understanding of the issues.
★Phase 2: Build partnerships with practitioners and NGOs through dialogue withvictims of human rights violations.

We have received a large amount of comments on the SHE since we started
presenting our findings internationally in 2012. We started organizing the internationalconference in 2013, hoping to inform the world of how Japanese companies areaddressing human rights issues. Thanks to the many recommendations from theinternational experts at our conferences, we had the opportunity to present our workat the UN Forum on Business and Human Rights in Geneva, in 2014.

5In Japanese, we say ‘keizoku ha chikara-nari’ – a proverb that means continuing agood thing is in itself a worthy undertaking. At CRT, we believe that maintaining thisengagement is a significant achievement. I personally think that this is, at the very
least, a ten years endeavor, until 2022. We hope you will also partner with us to bringabout positive change to society.

Hiroshi Ishida
Executive Director, CRT Japan6