Our Approach to Human Rights
The Rohto Group aims to realize a well-being society, expanding its business not only in Japan but around the world. Respect for human rights is the foundation of all business activities. Recognizing that human rights may be directly or indirectly impacted in the course of its business, the Group supports and respects international human rights standards, such as the United Nations' International Bill of Human Rights and the International Labour Organization's (ILO) Declaration on Fundamental Principles and Rights at Work, as well as treaties on workers' rights, including those regarding wages and working hours, and the OECD Guidelines for Multinational Enterprises. In pharmaceutical research and development activities, the Group respects and protects the human rights of patients and research subjects in accordance with the Ethical Principles for Medical Research Involving Human Subjects (Declaration of Helsinki).
By establishing the Rohto Group Human Rights Policy and promoting human rights initiatives throughout the group, we will contribute to the realization of a sustainable, well-being society.
Human Rights Due Diligence
In 2022, the Group formulated its Human Rights Policy based on the United Nations Guiding Principles on Business and Human Rights (UNGPs). Based on this policy, we have established a human rights due diligence system to ensure respect for the human rights of all stakeholders. Since fiscal 2023, we have been conducting ongoing human rights risk assessments through supplier CSR surveys. Furthermore, in fiscal 2024, we led a due diligence survey targeting Rohto Pharmaceutical, domestic Group companies, and Group companies in priority regions overseas, using desktop surveys, questionnaires, and interviews to identify and prevent/mitigate adverse human rights impacts in the Group's business activities and value chain. Based on this survey, we created a human rights risk map (see "Human Rights Impact Assessment (FY2024)" below for details). Going forward, we will continue to promote human rights due diligence efforts and, based on our well-being management philosophy, strive to create a work environment where diverse human resources can maximize their potential.
Human Rights Due Diligence Promotion System and Process
The Group promotes sustainability-related initiatives, including respect for human rights, primarily through the Sustainability Committee. Overall plans regarding respect for human rights and identified risks of serious human rights violations are reported and discussed by the Sustainability Committee, which is the decision-making body for sustainability management issues, and the details are reported to the Board of Directors.
The process begins with identifying and assessing human rights risks. This is done by extracting risks and conducting quantitative and qualitative analysis. The survey results are shared with the Sustainability Committee and the Board of Directors, and issues that need to be addressed as priorities are identified. Preventive and corrective measures are then considered and implemented for the priority issues, and progress is tracked and monitored.
The progress of these activities will be regularly reviewed and discussed by the Sustainability Committee and the Board of Directors. Through these processes, we will continue our efforts to further reduce human rights risks, and will report and disclose our progress and results both internally and externally.
Human Rights Due Diligence Process
Human rights impact assessment (to be carried out in fiscal 2024)
1. Scope: Consideration of the overall picture and due diligence method
Based on various guidelines and desktop research, the Group has organized its business activities into the following four categories, considered how to proceed with identifying human rights risks for each category, and established the scope of the activities.
- (1) Our company alone, (2) Domestic Group: The survey covered the entire value chain, including research and development, procurement, manufacturing, logistics, sales (marketing), and consumption.
- 3) Overseas Group: Based on international reports and surveys on human rights, such as the CPI Corruption Perceptions Index and the U.S. Department of State Country Reports on Human Rights Practices, we prioritized regions with high risks to our business activities.
- ④Suppliers (domestic): Starting in fiscal 2023, we will include a human rights item in the CSR questionnaire survey and conduct an annual review.
Supplier CSR Assessment
2. Identifying, extracting, and assessing human rights issues (risks) (quantitative and qualitative analysis)
To identify human rights risks, we conducted questionnaire surveys, interviews, and research using external reports, etc.
The next step was to carry out a risk assessment.
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Desktop Survey
We conducted a wide-ranging survey of human rights issues both in Japan and overseas based on international norms, industry trends (manufacturing, pharmaceuticals, cosmetics), and regional human rights risk indexes.In Japan, we identified human rights issues in light of international human rights standards and considered specific cases that may arise within the company.
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Conducting surveys and interviews
- Japan (1, 2): We conducted a human rights risk survey and interviews with all division heads and managers, as well as 13 domestic group companies.
- Overseas (3): Based on the information obtained from the desktop survey, we selected regions considered to be high risk (Asia, Africa, Brazil, etc.) and grasped the actual situation through interviews with local managers.
3. Identifying and analyzing issues
Based on these survey results, we identified human rights issues that could affect rights holders. We created a risk map by checking the "impact (severity) on human rights" and the likelihood of occurrence of the issues identified for each rights holder. We are considering initiatives and implementing measures for the priority issues (risks) identified from these surveys.
Human Rights Risk Map
4. Addressing priority issues (risks)
Based on the survey results and with reference to international human rights standards (UNGPs), industry trends, and external research reports, we classified rights holders into four categories: "local communities," "customers/patients," "business partners/suppliers," and "our Group employees." The human rights issues identified in each area were reevaluated from three perspectives: "severity," "relationship with our Group," and "likelihood of occurrence." As a result of mapping, we identified items with high scores on all three of these criteria as "priority issues." We are examining the effectiveness of existing initiatives for the identified priority issues and identifying themes that need to be strengthened in the future.
As a result, the Group has identified the following seven priority issues, which have been organized into 11 issues by rights holder.
- The health and safety of our customers and patients
- Discrimination, Prejudice, and Gender Minorities
- Personal Information and Privacy
- Prevention of modern slavery and forced labor
- Environment and climate change (including human rights impacts)
- "Workstyle, Health, Safety and Hygiene" in the Group's Supply Chain
- Access to Remedies/Reporting Mechanisms
We recognize that the prevention of modern slavery and forced labor is a particularly serious human rights issue globally, and are therefore conducting risk assessments in our supply chains both at our company and across the entire group, both in Japan and overseas.We have also formulated a group-wide "Statement on Modern Slavery" and, taking into account the results of surveys based on the actual conditions at our bases in each country, will continue to promote efforts to improve the effectiveness of our response across the group.
In addition to Promotion of Chemical Safety, we are also proactively working to strengthen the foundation for the health and safety of our Group employees, instilling a culture of safety throughout all of our business activities and preventing industrial accidents.
Regarding access to remedies common to all rights holders, we will work to improve this across the Group, focusing on improving the effectiveness of our reporting system and ensuring that it is widely known.
For other areas of strengthening, we will clearly define the implementing body, responsible department, and KPIs, and monitor progress.
Furthermore, while this scoping initiative began with human rights due diligence in priority areas, we will expand the target areas and proceed with implementation across the entire Group in parallel.
Going forward, we will continue to engage in dialogue with stakeholders, regularly review our policies, systems, and training, and establish a cycle of continuous improvement (Plan-Do-Check-Act) based on frameworks such as the UNGPs and GRI Standards.
The Group will promote consistent efforts to respect human rights throughout the company and strive to strengthen mechanisms to prevent and mitigate adverse impacts on human rights through its business activities.
*Please see the PDF for details.
Initiatives to respect human rights
The Rohto Group clearly states its respect for human rights in the Rohto Group Human Rights Policy, and in ROHTO Group Action Agenda for Compliance, it states that it respects the human rights of its employees and business partners and strives to fulfill its responsibilities as a member of society.
Furthermore, in our relationships with business partners, we strive to promote sustainable procurement that takes human rights into consideration through transactions in accordance with the Rohto Group CSR Procurement Guidelines.
Furthermore, we have joined the RSPO and are working towards procuring sustainable palm oil that takes human rights and the environment into consideration.
These policies and the results of human rights due diligence (including the identification of priority issues and the status of responses) are discussed by the Sustainability Committee and reported to the Board of Directors for oversight. The response policies for each human rights priority issue and examples of major initiatives to date are summarized in the "Human Rights Priorities and Major Initiatives" (PDF) mentioned above. Going forward, we will continue to strengthen our efforts to respect human rights.
Preventing modern slavery and forced labor
The Rohto Group has published the "Rohto Group Statement on Modern Slavery" as its policy on preventing modern slavery and forced labor, etc. In addition, the Modern Slavery Statement published by each country's bases in accordance with laws and regulations is posted below.