csr and human rights due diligence, perspectives from japan

CSR and Human Rights Due Diligence : Perspectives from Japan

2013. 11.21 Pro. Hiroshi Ishida

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1. Introduction The history of Caux Round Table

2. What Caux Round Table Japan is doing 2-1. Our main activities (PSR, CSR, Partnership) 2-2. Global CSR Trends & challenges for Japanese companies 2-3. Our approach

Outline

©Caux Round Table Japan

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1. Introduction History of Caux Round Table


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The history of Caux Round Table


5 On 8 May 1985, NRC Handelsbrad in Netherlands carried the article on the front page whose title was “delusive smile of Japan”.

In 1985


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Aim 1. Easing trade friction and developing a sound economic & social relationship between Europe, U.S., and Japan. 2. Building shared understanding of corporate responsibility towards society.

In 1985 Founder Frederick Philips (former President of Philips Electronics) Olivier Giscard d’Estaing (former Vice-Chairman of INSEAD)

Establishment of Caux Round Table


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Theme: “to seek new attitude that hasten resolution of trade friction.”

In 1986 August 26-27

The1st Global Dialogue


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Member of the Caux Round Table believe that the business executives have to consider the impact of their decision on society in mid and long term before making a decision.

Questions to be asked when making a decision: 1.Is there value that can be shared as human beyond cultural differences? 2.Is it based on firm principle? 3.Does it consider the sustainable development of society?

Principle of Caux Round Table

Caux Round Table motto

“Putting one’s own house in order and seeking to establish what is right rather than who is right”


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Japan Europe US

Stakeholder Human Dignity Kyosei

Caux Round Table Principles for Business

In 1994


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1. General Principles i. Kyosei

Living and working together for the common good enabling cooperation and mutual prosperity to coexist with healthy and fair competition.

ii.Human dignity

“Human dignity” refers to the sacredness or value of each person as an end, not simply as a mean to the fulfillment of others’ purposes or even majority presentation.

2. Stakeholder Principles

The dignity and interests of stakeholders are respected.

In 1994 Launch of the Caux Round Table Principles for Business


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Principles for Business General Principles Principle 1. The responsibilities of Business: Beyond Shareholders Toward Stakeholders Principle 2. The Economic and Social Impact of Business:

Toward Innovation, Justice, and World Community

Principle 3. Business Behavior: Beyond the Letter of Law Toward a Spirit of Trust Principle 4. Respect for Rules Principle 5. Support for Multilateral Trade Principle 6. Respect for the Environment Principle 7. Avoidance of Illicit Operations



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Principles for Business Stakeholder Principles A) Customers

We believe in treating all customers with dignity, irrespective of whether they purchase our products and services directly from us or otherwise acquire them in the market.

B) Employees We believe in the dignity employee and in taking employee interests seriously.

C) Owners/Investors We believe in honoring the trust out investors place in us.

D)Suppliers Our relationship with suppliers and subcontractors must be based on mutual respect.



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Principles for Business Stakeholder Principles (Continued)

E) Competitors We believe that fair economic competition is one of the basic requirements for increasing the wealth of nations and ultimately for making possible the just distribution of goods and services.

F) Communities We believe that as global corporate citizens we can contribute to reform and human rights in the communities in which we operate.



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Largely have influenced on global initiatives and standards.

e.g. UN Global Compact Principles, ISO26000

Keidanren Charter for Good Corporate Behavior (Japan)

AliaRSE(Mexico)



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� Value “Putting one’s own house in order, and on seeking to establish what is right”

� Vision Our vision is building up a free, fair and prosperous global society built on the twin pillars; moral capitalism and responsible government.

�Mission Our mission is putting moral capitalism to work by ensuring business contribution to greater prosperity, sustainability and fairness.

Our Value, Vision and Mission


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2. What Caux Round Table Japan is doing


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2-1. Our main activities (PSR, CSR, Partnership)


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� Established in 2000, registered as NPO in 2006 � Our activities/services : From Aspiration to Action

Kyosei, Human Dignity, Stakeholder

CRT Principles for Business

Caux Round Table Japan

Company A

Company B

Company C

Company D

Company E

Implementation of CSR within an individual company

Aspiration

Action


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PSR Provide human

development training for executives and principled business leaders

CSR Help to integrate

CSR into business strategies

Part

ners

hip Facilitate

collaboration between companies, NGO/NPOs and academics

Kyosei and Human Dignity, Stakeholder

CRT Principles for Business

Caux Round Table Japan: our activities

Implementation of CSR within an individual company

Aspiration

Action


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2-2. Global CSR trends and

Challenges for Japanese companies


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Creating Shared Value

Principles for Responsible Investment

ISO26000

Integrated Reporting

Self-interest considered upon the whole society

Change in factors of business growth & competitiveness

Change in corporate evaluation criteria

Global CSR trends


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2006: PRI

2010: ISO26000

2013 : Integrated Report (expected)

2000: Millennium Development Goals

1982: Principle of Sustainable Development

1992: Rio Declaration, Action Plan ‘Agenda 21’

2000: UNGC

（1992: UNEP FI inauguration)

2008:Ruggie Report

1998: ILO Core Labor Standards

Principle of Prevention

ESG

Due Diligence

1997: Triple bottom line

2011: Creating Shared value

2000: OECD Guidelines for Multinational Enterprises （Revision）

2000: GRI

2008: CRF

Global CSR trends


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Challenges for Japanese companies: 3 most frequent questions 1. How can we address emerging CSR issues, such as

human rights and supply chain management, within a limited budget?

2. How can we integrate CSR into corporate

management? 3. Do our company’s CSR and CSR report meet global

standard? How can we carry out CSR that meet global standard?


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2-3. Our approach


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Our approach

Proactive and holistic approach to enable the companies to: 1. Understand current global CSR trend

2. Identify CSR issues and define materiality

4. Improve communication to the global society

3. Address risks from the CSR perspective


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Our approach

� Providing opportunities to participate in global conference and forum related to CSR e.g. GRI Global Conference, UNGC Conference, UN HR Forum

� Organizing CSR related seminars and forums e.g. Global Conference on CSR and Risk Management

1. Understand current global CSR trend


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Supply Chain Inspection Tour in Myanmar, Bangladesh, Thailand


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Global Conference on CSR and Risk Management

in Tokyo


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Our approach

2. Identify CSR issues and define materiality

� Organizing stakeholder engagement programme (Human Rights Due Diligence Workshop)

Aim: to facilitate companies to identify material CSR issues by providing opportunities to engage with stakeholders in a globally recognized way

Merit: 9 Cost efficiency 9 Input from other companies/ sectors 9 Collaboration


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Step 1: Listening to Stakeholderʼ’s voices

Step 2: Mapping sector specific human rights issues in the value chain

Step 3: Consulting with stakeholders (workshop)

Step 4: Sharing sector specific human rights issues

Public Consultation (online)

Stakeholder Engagement Programme Process

Issuing “Human Rights Issues by Sector”


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創る買う作る運ぶ売る使う捨てる

全般（バリューチェーン共通）研究・開発・設計設備建設（工場、製造ラインの設

置）、調達生産（製造ラインの稼働）保管・物流（社内流通含む）販売・営業消費および利用廃棄・リサイクル

事業活動が関与する地域

（報告時は非公開とする）※主に次の事業を対象として：

火力発電プラント、フェライト製品、デジタル

カメラ

日本・インド日本・韓国・中国・香港・インド・チェ

コ日本・韓国・中国・インド・チェコ

日本・韓国・中国・香港・インド・チェ

コ・ハンガリ－・ドイツ日本・北米・アフリカ世界全域世界全域

職場における待遇

（つぎの事項について、法令、労使

の確認、社会常識からみて問題がないか点検）・賃金、一時金の水準・最低賃金（途上国等）・労働時間、残業・安全衛生、メンタルヘルス・非正規雇用、アウトソーシング・外国人の雇用と処遇

間労働やサービス残業に従事しているおそれ。またこれにより、従業員のヘルスケア、特にメンタルヘルスに不調をきたすおそれ・特に、研究や製造・工場現場における死亡や重傷を伴う労働災害

サービス残業に従事しているおそれ。またこれにより、従業員のヘルスケア、特にメンタルヘルスに不調をきたすおそれ・化学物質管理の問題

同左

・特に、製造・工場現場における事故や有害物質による重大災害・製造機械とその作業における災害・非正規労働者、外国人の作業安全

同左

・保管に関する作業安全の問題・労働時間管理、作業環境管理の問題

・サービス残業に従事しているおそれ

差別

（同）

・性別による格差・障害や高齢による格差・外国人、先住民等への差別的取扱い・正規・非正規による格差・安全衛生、職業訓練での格差

条件、研修・トレーニング、昇進面での不平等な扱いをうけるおそれ・外国人労働者が不当に取り扱われる（解雇等）おそれ

条件、研修およびトレーニング、昇進面での不平等な扱いをうけるおそれ・外国人労働者が不当に取り扱わ

れる（解雇等）おそれ　・安全衛生の指導や教育が不十分

同左

・非正規、外国人などの作業安全確保と危険有害業務の問題・非正規労働者へのジョブトレーニングの問題

同左

・保管、物流に関する作業安全の問題・労働時間管理、作業環境管理の問題

り、研修・トレーニング、昇進面での不平等な扱いをうけるおそれ

るおそれ

児童労働

（同）

・途上国のバリューチェーン（下請作業場等）での児童の就労、ブローカーによる児童の斡旋・途上国のインフォーマルセクターでの児童の就労・危険有害業務、最悪の形態の児童労働

サプライチェーンにおいて、最悪の

形態の児童労働が発生するおそれ→定期的に実態を確認する等の対応が求められる

同左

・製造工程やサプライチェーン

における児童の死亡や重症を伴

う労働災害、最悪の形態の児童

労働

・労働災害「隠し」の問題

同左

・比較的軽易な保管、物流作業

での安易な児童の使用

・特にアジアのサプライチェーンにお

いて、最悪の形態の児童労働が発生するおそれ・児童のインフォーマルな販売員としての使用

強制労働

（同）

・事実上の強制労働（「前渡金」支払いのための労働、旅券取上げ、暴力的強制、等）性別による格差・外国人への強制労働

・外国人労働者の斡旋の際に、雇用

にあたり保証金や文書の提出を求める搾取

・中国では法律上認められている、若年労働者の夜間労働←？？

同左

・製造工程における事実上の強制労働、「監禁型」労働

同左

・過度な長時間労働が事実上の強制労働となるおそれ

・アジアにおける外国人労働者の斡

旋の際に、雇用にあたり保証金や文書の提出を求める搾取（マレーシア他）・過度なノルマによる事実上の強制労働

結社の自由と団体交渉権

（同）

・労働者の代表、労働組合等との対話、コミュニケーション・労使協議や団体交渉の制度化や運営・変則勤務、夜勤の職場での労使のコミュニケーション

（同右）

・研究開発、設計部門での労使コミュニケーションの確保

（同左）

・販売・営業職の現場での労使コミュニケーションの確保

製造業に適合するバリューチェーン

・非正規との労働条件などのコミュニケーションの不足

・団体交渉権は認められているが、実際には交渉が行われていない問題



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Step 3: Consulting with stakeholders (wprkshop)






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In English, Spanish, Chinese, Japanese



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Organizations that submitted comments:


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z UN Working Group on the Issue of Human Rights and Transnational Corporations and Other Business Enterprises (Geneva)

zUNEP (Geneva) z CSR Europe (Brussels) zGlobal Reporting Initiative (Amsterdam) z Corporate Accountability Round Table (Washington D.C.) z Shift (U.S.) zUN Global Compact (New York) z China Labour Watch (New York) z Japan Federation of Printing Industries (Tokyo) zUnited Nation University (Tokyo)

Organizations that submitted comments:


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Issuing “Human Rights Issues by Sector (2012)”

For more details, please visit our website: http://www.crtjapan.jp/files/humanrights%20due%20dilligence/due%20dilligence.html


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Participants in Human Rights Due Diligence Workshops(2012) <Companies> � AEON Co., Ltd. � Ajinomoto Co., Inc. � ASICS Corporation � Burberry Japan K.K. � Development Bank of Japan Inc. � Fujifilm Holdings Corporation � Fujitsu Limited � Hitachi, Ltd. � Konica Minolta Holdings, Inc. � Mitsubishi Heavy Industries, Ltd. � Mitsui Bussan Inter-fashion Ltd. � NEC Corporation � Nippon Express Co., Ltd. � Nippon Paper Group, Inc.

� Nippon Yusen Kabushiki Kaisha (NYK LINE) � Nomura Holdings, Inc. � Nomura Research Institute, Ltd. � Nomura Securities Co., Ltd. � NTT Data Corporation � Olympus Corporation � Ricoh Company, Ltd. � Sanofi K.K. � Seven & i Holdings Co., Ltd. � Sony corporation � Sumitomo Mitsui Banking Corporation � The Walt Disney Company (Japan) Ltd. � Toppan Printing Co., Ltd.

and NGO/NPOs and Academics


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Application of “Human Rights Issues by Sector (﴾2012)﴿ at the level of individual company


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Key issues by sector @ SH Engagement

Programme

Potential CSR issues

Material issues @ Individual

company

Corporate Strategy

Stakeholder consultation

CSR Report

Stakeholder consultation


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Mitsubishi Heavy Industry CSR Report 2013


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Nippon Express CSR Report 2013


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Our approach

� Organizing a series of Supply Chain Workshop → putting knowledge and expertise together

� Building a partnership with leading organizations in this field (e.g. SAC, SEDEX)

→ providing enabling tools with the Japanese companies

3. Address risks from the CSR perspective


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What we do from now:

Collaborating with UNGC, UNICEF, Save the Children and CRT Japan, in order to challenge to finding the risk regarding on Child labour’s issues with Japanese companies.

Child Labour


RISK ! Prevention Mitigation

Without preventing work there is no “RECOVERY” could take place in Risk management

Without collaborating with NGOs there is no “BARRIER” could take place in Risk management

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Our approaches

4. Improve communication to the global society

� Collecting Japanese companies’ opinions together and submitting the summary to global initiatives e.g. GRI G4, IR Framework

� Providing trainings to learn the requirements of global standards

e.g. GRI G4 Certified Training


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What we did:

Organized a workshop to discuss the contents of GRI G4 Guidelines and submitting the opinions to GRI for its improvement.

More than 50 participants from companies attended and had a fierce discussion.

GRI G4 PCP in Japan (August 23, 2012)


49 Submission of commentaries (27 pages)

GRI G4 PCP in Japan (August 23, 2013)


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Enhancing Corporate Value

1. Understanding current global CSR trend

2. Identifying CSR issues and defining materiality

4. Improving communication to the global society

3. Addressing risks from the CSR perspective

PSR Provide human

development training for executives and principled business leaders

CSR Help to integrate

CSR into business strategies

Part

ners

hip Facilitate

collaborative activities among Companies, NGO/NPOs and Academics

Integration of CSR into management
