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Respect for Human Rights and Labor Practices

Basic Concept for Human Rights

Since signing the United Nations Global Compact in 2005, as an enterprise that does business worldwide, the CITIZEN Group has supported, respected, and enacted its 10 principles related to human rights, labor, the environment, and anti-corruption. In addition, Article 4 of the CITIZEN Group Code of Conduct identifies the basic policy of “Respect human rights and diversity and create safe, comfortable workplaces.” We have established guidelines on respect for human rights, building comfortable workplaces, workplace safety, and health management. Through these efforts, we strive to fulfill our responsibilities with respect for human rights in cooperation with our business partners.

Human Rights Due Diligence Structure

In FY 2019, through a decision by the Board of Directors, we established the CITIZEN Group Human Rights Policy as a reaffirmation of the CITIZEN Group’s responsibilities for and its approaches to respect for human rights. Together with our Statement on Modern Slavery and Human Trafficking and the CITIZEN Group Policy on Conflict Minerals, this policy describes the Group’s understanding of issues related to human rights on which we base our clear definition of related initiatives as a global enterprise.

We have also enhanced our structures for implementing these policies and other measures and established, under the Sustainability Committee, the Group HR Committee as an important organization tasked with securing respect for human rights. Chaired by the director of CITIZEN WATCH responsible for HR, the HR Committee consists of members from the HR sections of Group companies in Japan. This committee makes decisions on measures and plans for realizing respect for human rights throughout the Group, as well as receiving reports and sharing information on the state of initiatives at individual companies. Furthermore, matters reported to the HR Committee are reported periodically to the Board of Directors via the Sustainability Committee as information on the state of Group materiality-related initiatives.
In deploying initiatives related to respect for human rights throughout the Group, the CITIZEN WATCH HR Division serves as the secretariat to effect cooperation throughout the group, while the HR sections of Group companies in Japan carry out the decisions of the Group HR Committee and handle matters and risks related to respect for human rights in business activities.
With regard to the development of our overseas business locations, we have been working closely with our human resources and CSR departments to disseminate the decisions made by the Human Resources Committee and other relevant matters. With regard to the development of our overseas business locations, we have been working closely with our human resources and CSR departments to disseminate the decisions made by the Group HR Committee and other relevant matters.

We are implementing human rights due diligence through such means as attitude surveys of employees at Group companies in Japan. We also strive to respond to and prevent risks through the use of an internal whistleblowing system (together with the Speak Up system) to accept from employee reports, requests for consultation, comments, proposals, and other feedback regarding human rights issues. In addition, we are making progress in areas such as on-site fact finding to suppliers under the CITIZEN Group CSR Procurement Guidelines.
Also, since the CITIZEN Group includes subsidiaries subject to UK Modern Slavery Act, we employ measures, such as publishing the Statement on Modern Slavery and Human Trafficking at the start of each fiscal year, to fulfill our responsibility to help resolve human rights issues as a member of the international community.

We also conduct thorough internal training on the human rights policy, and in fiscal 2020, we conducted e-learning for domestic Group employees. CITIZEN Group has designated December as the Human Rights Month and held a panel exhibition to introduce the CITIZEN Group Human Rights Policy and all 30 articles of the Universal Declaration of Human Rights to deepen the understanding of human rights at each of the domestic group companies and at our sites in Thailand, the U.S. and Australia. This initiative will be expanded to other overseas group companies in the future.

Panel exhibition
Panel exhibition

Progress and Outlook for the Roadmap on Respect for Human Rights

Arousing Awareness of Respect for Human Right

The CITIZEN Group continuously implemented three measures to get awareness of respect for human rights to take root within the entire Group in FY 2020. The first was to exhibit panels describing all 30 articles of the Universal Declaration of Human Rights, an international principle of respect for human rights, and the CITIZEN Group Human Rights Policy at each of the domestic bases in December, which is the Human Rights Month in the CITIZEN Group, of every year to deepen the understanding of human rights. A similar exhibition was also conducted at a total of four overseas companies with two in Thailand, America, and Australia.

The second was to provide e-learning about human rights at all domestic Group companies. As the CITIZEN GROUP’s CSR Procurement Guidelines were revised in April 2020, the attendees learned how to respect human rights in the supply chain.

E-learning was also conducted with one overseas company in Australia, taking the pandemic and situation in each country or region into consideration.

The third was to feature human rights in the Group house journal and disseminate a message from the president of CITIZEN WATCH and efforts to respect human rights in the supply chain made by each Group company and competitors. The president’s message was delivered to all domestic employees by e-mail.

Effort to Establish the System for Implementing Human Rights Due Diligence

In FY 2020, the CITIZEN Group endeavored to spread awareness of human rights and identify negative impacts on human rights in business operations, which could lead to a risk, holding up the idea of preparation of a system to identifying negative impacts as the framework for implementing human rights due diligence. Specifically, identifying risks over human rights was moved forward in the employee awareness survey that had been continuously conducted, and consultations over harassment or health and stress checks were also continuously carried out. Aside from that, when identifying a negative impact, information reported to the compliance hot line of the group was also used.
Moreover, the human rights risk that employees of foreign nationality or foreign technical trainees may come under in their workplace environment is checked at each Group company by using a CSR human right survey checklist and a CSR awareness survey questionnaire translated into their native languages. In addition, human rights due diligence is pushed toward identifying human rights risks in the supply chain by sending SAQs to the suppliers.

Outlook

In FY 2020, the CITIZEN Group embarked on forging a framework for respect for human rights and identifying human rights risks. In the future, it will proceed with overseas expansion of e-learning to spread awareness of respect for human rights and continue to aim at creating a human rights due diligence implementation system and identifying human rights risks in business operations.

Basic Concept for Labor Practice

The CITIZEN Group stresses efforts to create comfortable and rewarding workplaces. As part of these efforts, we have issued the Health Declaration under which we are promoting health management based on thinking and practice intended to ensure the good health of our employees. We are also stressing gender management practices based on thinking about the working environment for female employees from the perspective of gender diversity. In these ways, we aim to build an organization in which our diverse human resources, the source of our strength as an organization, can work and demonstrate their abilities over the long term.

Progress and Outlook for the Roadmap on Respect for Labor Practice

Work style Reform and Human Resources Development

The CITIZEN Group believes that securing and developing competent human resources can lead to “sustainable management”. Each Group company takes the initiative in moving forward with the creation of a workplace environment where various human resources can be active. The entire Group is promoting the creation of a workplace environment by sharing examples of efforts made by each company at Group Human Resources Committee meetings. In FY 2020, the introduction of telecommuting advanced in the Group. For human resources development, the results of the 360-degree evaluation that CITIZEN WATCH has been operating since FY 2019 are used to improve human resources management and seminar. Talent management that makes the most of talented human resources is building a mechanism that helps individuals carve out their careers by having the employees declare the certifications they have or their wishes to get transferred and preparing seminar menus in accordance with what each wants to learn or realize during seminars. Like improvement in the workplace environment, CITIZEN proceeds with sharing and developing human resources within the Group.

Efforts to Improve Labor Safety and Health

The entire Group makes up an alliance system to create safe and secure workplaces. Specifically, a safety and health committee meeting is held every month at each company. Information about the effort by each company is shared at a safety and health liaison committee meeting, which is held two times a year with all the group companies participating. In FY 2020, the liaison committee meeting was called off due to the effect of the pandemic, but information was closely shared between Group companies by e-mail and other means. As efforts to ensure safety and health in the workplace, importance is placed on the risks of handling chemical substances, as well as the risks during ordinary work, and those risks are managed. Specifically, the usage of all new chemical substances to be used is deliberated at a safety and health secretariat. For some chemical substances, multi-faceted risk management is conducted in collaboration with other relevant departments to stave off accidents during work. When introducing equipment or a facility, an equipment safety examination council examines the safety of the equipment or facility to thoroughly ensure safety and health.
Should an industrial accident occur, the case, cause, and countermeasures will be shared at safety health committee meetings to implement thorough preventive measures against similar accidents and reduce the number of accidents to zero, which is a goal of the Group. As a result, the occurrence of industrial accidents seems to be on the decline.

Outlook

In FY 2020, the employees’ awareness of their work styles and work went through a significant transformation due to the effect of the coronavirus pandemic. Against this background, the CITIZEN Group will tackle creating a workplace environment where each one of the employees can have their anxiety or stress eased and fully show their abilities. Although some activities concerning safety and health were canceled, online information sharing and expansion will be positively promoted as the case may be.