Chugai Group Human Rights Initiatives
- Basic approach to respect for human rights
- Promotion system
- Key human rights issues and Chugai’s initiatives to address them
- Human Rights Initiatives in Supply Chain
- Status of the handling of consultations and whistleblower reports regarding human rights
- Labor-Management Relations
- Response to the UK Modern Slavery Act
- Engagement
Basic approach to respect for human rights
The mission of the Chugai Group is to “dedicate ourselves to adding value by creating and delivering innovative products and services for the medical community and human health around the world.” Chugai recognizes that respecting human rights is an important and indispensable element in realizing our mission, and Chugai Group Code of Conduct states, “We will respect human rights in every aspect of our business activities”.
In 2019, the Chugai Group formulated “Chugai Group Human Rights Statement” based on the United Nations Guiding Principles on Business and Human Rights. The Chugai Group supports and respects international norms on human rights, such as the International Bill of Human Rights and the International Labour Organization (ILO)’s Declaration on Fundamental Principles and Rights at Work, as well as the ten principles of the United Nations Global Compact, and conducts business based on the principle of respect for human rights.
Promotion system
The executive officer in charge of Chugai Pharmaceutical Co., Ltd.’s Risk and Compliance Department acts as the supervisory manager of human rights. Under said executive officer’s direction, the Risk and Compliance Department is responsible for formulating group-wide policies on respecting human rights respect, conducting human rights due diligence, and developing programs to correct human rights violations. The results of human rights due diligence are reported by the department to the Compliance Committee, which directs the measures to prevent, mitigate, and correct human rights risks as necessary. Key human rights policies and measures, and cases of human rights violations are also reported to the Executive Committee and the Board of Directors.
Under the responsibility of its president, each domestic and overseas subsidiary establishes internal regulations based on international norms and applicable local laws and regulations concerning human rights, develops its own organizational structure and provides regular and continuous education and training to its employees for respecting human rights, and reports the status of these efforts to the supervisory manager of human rights.
Key human rights issues and Chugai’s initiatives to address them
In 2021, Chugai held interviews with relevant departments regarding the details of its human rights due diligence efforts based on the UN Guiding Principles on Business and Human Rights. Based on the results, we assessed the risks using two evaluation axes (severity, probability of occurrence) and identified five areas as key human rights issues for the Chugai Group.
In 2024, with the help of external human rights experts, we surveyed the status of efforts to address human rights themes related to these key human rights issues using a questionnaire on human rights due diligence. Below is a list of the Chugai Group’s key human rights issues, related human rights themes, and efforts for those human rights themes.
| Key Human Rights Issues | Relevant human rights themes | Initiatives on respect for human rights to date |
|---|---|---|
| Patient Safety | Management of clinical trials Ensuring quality safety Eliminating distribution of counterfeit drugs Preventing and responding to accidents at the use and disposal stage |
Management of clinical trials |
| Efforts to enhance the reliability of drugs | ||
| Risk management and safety communication based on drug risk management plans | ||
| Efforts to combat counterfeit drugs | ||
| Dialogue with patient groups, disease awareness to improve patient literacy, and advocacy activity support for medical participation | ||
| Various patient-centric efforts | ||
| Personal Information and Privacy | Protecting personal information and privacy | Management of personal information and privacy |
| IT security and information management efforts | ||
| Efforts for appropriate storage and handling of human-derived genome data, etc. | ||
| Human Rights in the Supply Chain | Toxic spills at customer sites Biopiracy at customer sites Forced or child labor EHS, employment and working conditions |
Implementation of EHS and compliance risk assessments for suppliers |
| Global environmental efforts | ||
| Human Rights of Employees in the Workplace | Power harassment of employees Superior conduct toward client employees Customer harassment towards employees Discrimination and long working hours |
Efforts to create a harassment-free workplace |
| Efforts to improve the working environment and reduce long working hours | ||
| D&I promotion efforts | ||
| Efforts to promote the success of diverse human resources | ||
| Support for return to work for those with mental health problems and employment support efforts related to cancer treatment | ||
| Efforts to register as an LGBTQ ally and hold e-learning and seminars to promote understanding | ||
| Access to Healthcare | Stable supply of medicines in emergency situations Improving global health Others (rural areas, elderly people living alone, etc.) |
Efforts to ensure a stable supply of products |
| Improving pharmaceutical product development and access to medicines for diseases for which there is no treatment, and sustainable access to health care | ||
| Establishment of a system to perform decentralized clinical trials (DCTs) | ||
| Efforts for vulnerable patient groups and rare diseases, including pediatric drug development |
Human Rights Initiatives in Supply Chain
As part of our commitment to respecting human rights of our business partners, we are affiliated with the Pharmaceutical Supply Chain Initiative (PSCI), a non-profit organization comprised of global pharmaceutical companies, and have formulated “Chugai Group Supplier Code of Conduct”, which sets forth the matters that Chugai Group expects its business partners to respect and comply with. When entering into an agreement with a new business partner, we explain the purpose and outline of the Code, and require the business partners to submit a letter of agreement on the Code.
It requires respect for and compliance with ethics, labor, EHS, the environment and related management systems based on the “Pharmaceutical Industry Principles for Responsible Supply Chain Management” developed by PSCI.
In addition, we conduct audits of important business partners, require them to present corrective plans for any identified findings, and conduct regular monitoring.
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 Chugai Group 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.
Any counseling or reporting made to the internal whistle-blowing system which needed the clarification of the details was all investigated. In the case of compliance violation, the disciplinary or other appropriate actions were taken. As a result of the investigation, five cases were subject to the disciplinary action in Fiscal Year 2023.
Labor-Management Relations
In Chugai Group, the Chugai Workers’ Union has been formed and organized with the union member of 4,559 including Chugai Pharmaceutical and its domestic affiliated companies such as Chugai Pharmaceutical Manufacturing, Chugai Clinical Research Center, Chugai Business Solution and Chugai Research Institute for Medical Science as of the end of December in 2023. Regular meetings between the management and the union are held at various levels in keeping close communication and building upon cooperative, sound labor-management relations based on trust.
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 & Human Trafficking Statement in its company website.
- Chugai Pharma Europe Ltd.
https://www.chugai.eu/human-rights/
Engagement
For seven 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, including activities of our supply chain and conducting human rights due diligence.
The Caux Round Table Japan Stakeholder Engagement Program (SHE)
In addition, we are a member of the Industrial Federation for Human Rights, Tokyo, and are working to resolve various human rights issues, including the Burakumin discrimination issue, from a corporate standpoint.
Chugai is also a member of the Global Compact Network Japan and the Frontier Network to collect the latest information on respect for human rights and to build and strengthen networks and alliances with companies in other industries.
