Establishment of the Human Rights Statement
Chugai’s efforts to date to respect human rights have mainly been focused on respecting the human rights of its employees, including the prohibition of discrimination and harassment in the workplace, respect for employee diversity, and health and safety. However, in order to move ahead with business activities in various areas around the world as a global company, we established our Human Rights Statement based on the UN Guiding Principles on Business and Human Rights in January of 2019. This was based on the recognition of the need to address human rights issues, including respect for labor rights among stakeholders involved in our business activities and throughout the supply chain.
At Chugai, we regard human rights as a material issue (materiality) in our sustainable business activities (Sustainability), and position them as one of our compliance issues. Policies regarding human rights efforts and activity progress are reported to and deliberated by the Compliance Committee. They are also reported to the Executive Committee and the Board of Directors for instructions.
Various issues concerning human rights will be addressed in a coordinated effort by the relevant departments listed below. In addition, new systems will be established to address newly emerging issues in consultation with the appropriate relevant departments.
Human Rights Promotion System
|Compliance Committee||Supervision of the Human Rights Statement|
|Human Resources Management Dept.||Employee labor practices, diversity promotion, labor unions|
|Legal Dept.||Privacy (including personal information protection)|
|Research Ethics Committee||Bioethics|
|Sustainability Dept.||Discrimination, harassment, employee consultation service and whistleblower hotline, human rights in the supply chain|
Identifying human rights issues
When we formulated the Chugai Group Human Rights Policy in 2019, we listed the following five items as Chugai’s priority items concerning human rights. We asked our Group officers, employees, and business partners for their understanding and support for this policy, and together, we launched our efforts to respect human rights.
- Prohibition of discrimination
- Prohibition of harassment
- Respect for basic labor rights
- Respect for personal privacy
- Respect for diversity
Chugai established its Human Rights Policy based on “the corporate responsibility to respect human rights” set out in the UN Guiding Principles on Business and Human Rights (UNGPs). In addition to respecting the human rights of employees, such as through the prohibition of discrimination and harassment in the workplace, respect for diversity, and health and safety, we have been conducting employee training on the importance of efforts regarding human rights issues, including respect for labor rights among stakeholders involved in our business activities and throughout the supply chain.
As part of our efforts to respect for human rights for our suppliers, we became a member of the Pharmaceutical Supply Chain Initiative (PSCI), a non-profit organization composed of global pharmaceutical companies, and established the Chugai Group Supplier Code of Conduct, which stipulates matters that the Chugai Group expects its suppliers to respect and comply with as a Code of Conduct. When we conclude new contracts with suppliers, we provide an explanation of the intent and summary of this Code and have them submit a consent form.
The content of this Code states that it requires suppliers to respect and comply with the standards for ethics, labor, health and safety, the environment and related management systems based on the Pharmaceutical Industry Principles for Responsible Supply Chain Management* (hereinafter “PSCI Principles”) formulated by the PSCI. We also require that suppliers understand and cooperate with the prohibition of child labor and the protection of young workers based on the 10 principles in the Children’s Rights and Business Principles.
In addition, we conduct audits of important suppliers, requiring them to present an improvement plan for any confirmed findings, and we also started activities to conduct regular monitoring.
Further, for three years since 2018, we have participated in the Stakeholder Engagement Program hosted by the Caux Round Table (CRT) Japan, taking part in the establishment of the “Human Rights Issues by Sector” through dialogue and collaboration with multiple stakeholders. At the same time, we are reviewing human rights issues related to our own business activities and preparing to conduct another human rights due diligence process.
Status of the handling of consultations and whistleblower reports regarding human rights
At the Chugai Group, we have established a point of contact that allows all employees (including contract and temporary employees) to seek consultation on matters concerning the Code of Conduct, including respect for human rights, and to report violations and suspected violations of the Code of Conduct. Issues reported are investigated impartially and with strict confidentiality to find a solution while respecting the opinion of the person who made the report or consultation. Company rules prohibit retaliation or any other disadvantageous treatment of employees who seek consultation or make reports.
Status of handling in Japan in FY 2020 was as follows.
- Number of consultations and reports: 48
- Details of consultations and reports: power harassment, human rights, work environment, sexual harassment, internal regulations, other
- Handling status: Of the consultation and reports that are received, cases that are determined to require investigation are properly investigated and cases for which a violation is found are handled appropriately. As a result of investigations, disciplinary action was taken in six cases in FY 2020.
One case occurred internally in FY 2020 that fell under discrimination and other human rights violations in the form of harassment, which was investigated impartially with strict confidentiality and handled appropriately. With respect to our suppliers, no significant risks were found regarding forced labor or child labor.
Response to the UK Modern Slavery Act
In response to the Modern Slavery Act that was enacted in the UK in 2015, our UK subsidiary published a Modern Slavery Act Transparency Statement as follows.
- Chugai Pharma Europe Ltd.
Modern Slavery & Human Trafficking Statement
Continuing from the previous year, in October 2019 we participated in the Business and Human Rights Conference ([the 8th] International Human Rights Conference in Tokyo) hosted by Caux Round Table Japan and held individual dialogues with overseas experts.
We received opinions and advice on practical approaches for companies to conduct human rights due diligence of suppliers and supplier management methods. Experts were made aware of and asked to evaluate Chugai’s supplier management efforts to date, and they indicated their expectation for due diligence to be incorporated into our corporate activities and put into practice in the future by taking into account the characteristics of our approach to human rights issues during audits.
We will continue our efforts to respect human rights based on the opinions obtained in the dialogue, and with regard to conducting human rights due diligence, we will require our business partners to also comply with laws and social norms.