“Business and Human Rights”: Towards a Responsible Value Chain

Background

After WW II, the importance of the role of corporations in improving the standard of living and creating jobs was recognized, but at the same time, there was a growing social concern about the negative impact of corporate activities on society. Since the 1970s, there has been a strong demand for responsible corporate behavior, especially from corporations with global activities. As interest in respect for human rights in corporate activities has increased, discussions have been held mainly at the United Nations, and concrete measures have been taken (for details, see "International efforts to date"). In particular, “the Guiding Principles on Business and Human Rights”, agreed to by the UN Human Rights Council in 2011, have become a fundamental international document on how to respect human rights in business activities.

Various policies that promote respect for human rights by business enterprises are being implemented in various countries, and business enterprises with cross-border activities are not only required to comply with the domestic laws and regulations of the countries in which they operate; their actions are also evaluated based on international standards. Regardless of the size of the company, it is necessary to identify risks resulting from a company's failure to respect human rights, including those of suppliers, and to take appropriate measures to mitigate any such risks.

Respect for human rights in corporate activities is an important element of ESG investment, and it falls within the "social" category of "environment," "social," and "governance.” It is becoming increasingly important in terms of attracting ESG funds. Investors are increasingly expecting companies to disclose information on their human rights initiatives and to engage in dialogue with a wide range of stakeholders based on this information.

In October 2020, the Japanese government formulated the National Action Plan on Business and Human Rights (hereinafter referred to as the "NAP") in order to encourage Japanese companies to take further action in light of the recent increase in public demand regarding corporate activities and human rights. Respect for human rights in corporate activities is not only a natural responsibility required by society, but also contributes to addressing business risks, enhances trust from the international community, and leads to high evaluations by investors from around the globe. The Government expects Japanese business enterprises to fulfill their responsibilities in terms of respecting human rights and to resolve issues with effective grievance mechanisms, aiming to foster an environment where Japanese business enterprises that are implementing such measures will be fairly evaluated.

In light of this background, this website introduces international frameworks on "business and human rights" initiatives in Europe, the United States, and other countries, as well as information on related surveys and events, in order to help Japanese business enterprises respond appropriately to various situations that may arise in relation to human rights and the value chain.

International Efforts to Date

There are guidelines from various international organizations as an international framework for "business and human rights"

United Nations "Guiding Principles on Business and Human Rights":

• UN ”Guiding Principles on Business and Human Rights” (in English)
• UN ”Guiding Principles on Business and Human Rights”（provisional translation in Japanese）
• UN ”FREQUENTLY ASKED QUESTIONS ABOUT THE GUIDING PRINCIPLES ON BUSINESS AND HUMAN RIGHTS”

The OECD Guidelines for Multinational Enterprises:

• The OECD Guidelines for Multinational Enterprises (in English)
• The OECD Guidelines for Multinational Enterprises (provisional translation in Japanese)

⇒In Japan, the Ministry of Foreign Affairs, the Ministry of Health, Labour and Welfare, and the Ministry of Economy, Trade and Industry (METI) have established National Contact Points (NCPs) for multinational enterprises to disseminate information on the OECD Guidelines, handle related inquires and support problem solving.

NCPs: National Contact Points for the OECD Guidelines for Multinational Enterprises

"OECD Due Diligence Guidance for Responsible Business Conduct":

• “OECD Due Diligence Guidance for Responsible Business Conduct" (in English)

• “OECD Due Diligence Guidance for Responsible Business Conduct" (in Japanese)

• OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector (in English)
• OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector (provisional translation in Japanese) (Prepared by METI)
• OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Third edition
• OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (including tin, tantalum, tungsten Supplement), Third edition (provisional translation in Japanese) (Prepared by JEITA)

United Nations Global Compact:

• United Nations Global Compact "The Ten Principles of the UN Global　Compact" (in English)
• United Nations Global Compact "The Ten Principles of the UN Global Compact" (provisional translation in Japanese)

Principles for Responsible Investment (PRI):

• Principles for Responsible Investment

⇒ In October 2020, PRI released a new report which sets out clear expectations for investors based on global human rights standards and provides recommendations on the integration of human rights into investment practices.

• Why And How Investors Should Act on Human Rights

ILO "Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy”:

• ILO "Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy” (English text)
• ILO "Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy” (Provision Translation in Japanese) 

UN Special Representative John Ruggie ”Protect, Respect and Remedy: a Framework for Business and Human Rights”:

• UN Special Representative John Ruggie ”Protect, Respect and Remedy: a Framework for Business and Human Rights”

"The 2030 Agenda for Sustainable Development,” in which the 2015 Agenda for Sustainable Development Goals (SDGs) is fully incorporated:

• "The 2030 Agenda for Sustainable Development" (English text)
• "The 2030 Agenda for Sustainable Development" (provision translation in Japanese)

Japan's Approach to Human Rights

In October 2020, the Government of Japan formulated the National Action Plan on Business and Human Rights (NAP) based on the UN Guiding Principles on Business and Human Rights. In cooperation with the relevant ministries and agencies, we are working to disseminate and raise awareness of this action plan to the industrial world.
In addition, industry organizations are working on initiatives related to "business and human rights", such as promoting efforts to respect human rights among their member business enterprises and raising awareness of international guidelines.

*We will continue to update this page as additional information becomes available, so if you are an organization that would like to be listed, please contact us at the bottom of this page.

Guidelines on Respecting Human Rights in Responsible Supply Chains

Study Group on Guidelines for Respecting Human Rights in Supply Chains
In the "Questionnaire Survey on the Status of Efforts on Human Rights in the Supply Chains of Japanese Companies," released in November 2021, half of the companies that had not yet made progress in respect for human rights said they did not know how to make concrete efforts, and there were many requests for the establishment of guidelines. 
The first meeting of the study group was held on March 9, 2022. The study group aimed to compile a draft of the guidelines by the summer of 2022.

• study group page (in Japanese)

As a result of the discussion in the study group, we have compiled the "Guidelines for Respecting Human Rights in Responsible Supply Chains (Draft)" was compiled.
The draft was open for public comment procedures from August 8, 2022, to August 29, 2022.
For details on the public comment procedures, please refer to the e-Government Information Desk (e-Gov). 

• e-Government Information Desk (e-Gov) *(available in Japanese)

Questionnaire Survey on the Status of Efforts on Human Rights in the Supply Chains of Japanese Companies

The Ministry of Economy, Trade and Industry, jointly with the Ministry of Foreign Affairs, conducted a survey “Questionnaire Survey on the Status of Efforts on Human Rights in the Supply Chains of Japanese Companies” This was the first official survey on corporate efforts for business and human rights made by Japanese companies.
 
The National Action Plan (NAP) formulated in October 2011 encourages Japanese companies to introduce due diligence on human rights regardless of their business type and scale. The survey was conducted as a part of the NAP follow up aiming to gauge the status of Japanese companies’ efforts.

The survey results are published on the following website:

• Release on the Results from the Questionnaire Survey on the Status of Efforts on Human Rights in the Supply Chains of Japanese Companies

Inquiries about the questionnaire should be directed to: Business and Human Rights Policy Office

Japanese Government

• Japanese Government "National Action Plan on Business and Human Rights” (in Japanese)
• Japanese Government "National Action Plan on Business and Human Rights” - Overview (in Japanese)

Industry Organizations

• KEIDANREN (Japan Business Federation) (in Japanese)
• KEIDANREN (Japan Business Federation) "Charter of Corporate Behavior" (in Japanese)
• Japan Electronics and Information Technology Industries Association (JEITA) "Responsible Business Conduct Guidelines" (in Japanese)
• Japan Textile Federation "Guideline for Responsible Business Conduct for the Textile and Clothing Industry of Japan"

Related Organizations

• Japan Federation of Bar Associations "Our activities relating to Business and Human Rights” (in Japanese)
• International Civil and Commercial Law Centre Foundation "THE CORPORATE RESPONSIBILITY TO RESPECT HUMAN RIGHTS: An Interpretive Guide" (in Japanese)
• The Tokyo Organising Committee of the Olympic and Paralympic Games / ILO "International Labour Standards and Sustainable Sourcing Handbook" (in Japanese)

Related Links (Websites and Documents)

Japanese Government and Related Organizations

The Japanese government is working together with related ministries and agencies to promote and raise awareness of "Business and Human Rights", and as a part of this effort, each ministry and agency provides information on their respective websites.

• Ministry of Foreign Affairs "Business and Human Rights Information Portal Site” (in Japanese)
• Ministry of Justice “Business and Human Rights” (in Japanese)
• Ministry of Justice "Human Rights Training in Corporations: For Corporate Human Rights Trainers” (in Japanese)
• Ministry of Health, Labour and Welfare "Business and Human Rights": Towards a Responsible Global Supply Chain (in Japanese)
• Ministry of Agriculture, Forestry and Fisheries "Business and Human Rights" (in Japanese)
• Japan External Trade Organization (JETRO), "Special Feature: Supply Chains and Human Rights" (in Japanese)

Foreign Governments

Governments in Europe and the U.S. are also working to promote and raise awareness of "Business and Human Rights," and information is being disseminated on their websites, mainly by the diplomatic and economic administrative agencies of each country.

(US)

• Bureau of Industry and Security "PROMOTING HUMAN RIGHTS AND DEMOCRACY"
• U.S. Department of State "Business and Human Rights"
• U.S. Department of State "Business and Human Rights FACT SHEET" 
• U.S. Customs and Border Protection "Forced Labor"

(EU)

• European External Action Service "Business and Human Rights"
• European Commission "EU Trade Strategy, especially in relation to responsible and sustainable value chains"
• European Commission "Conflict Minerals Regulation"
• European Commission "Corporate sustainability due diligence"

(UK)

• Foreign, Commonwealth & Development Office “UK government partners implementing the UN Guiding Principles on Business and Human Rights across government departments”

(Germany)

• Federal Ministry for Economic Affairs and Energy “Network of National Contact Points for implementing the OECD Guidelines”
• Federal Foreign Office “Business and human rights”
• Federal Ministry of Labour and Social Affairs "CSR Made in Germany" 

• *Survey on the current status of the draft bill for a Supply Chain Act under discussion in Germany (survey based on the draft of the cabinet decision, which may be subject to change depending on future deliberations) (in Japanese) (PDF:409KB)

(France)

• Ministry of Europe and Foreign Affairs “Business and human rights”
• Ministry of Europe and Foreign Affairs “The United Nations Guiding Principles on Business and Human Right”

(Australia)

• Department of Foreign Affairs and Trade “Human Rights”
• Department of Home Affairs "Modern Slavery" 

(International organizations, etc.)

• Office of the High Commissioner for Human Rights "Guidance on National Action Plans on Business and Human Rights" 
• the Human Rights Reporting and Assurance Frameworks Initiative "The UN Guiding Principles Reporting Framework" 
• Office of the Representative of the United Nations Development Programme (UNDP) in Japan "Human Rights Due Diligence and the Novel Coronavirus: A Quick Checklist for Companies to Assess Their Own Company" (in Japanese) 

Inquiries

• For inquiries about this page: Business and Human Rights Policy Office, Trade Policy Bureau（+81-(0)3-3501-1539）bzl-business-jinken@meti.go.jp
• For inquiries about National Contact Points: Investment Facilitation Division（+81-(0)3-3501-1662）
• For inquiries about SME seminars, etc.: Corporate Finance and Tax Affairs Division（+81-(0)3-3501-5803）