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Labor and Human Rights
Hiring and Treatment of Human Resources

Canon strives to create an attractive workplace environment where employees are motivated to rise to challenges.

Basic Policy on Human Resources

To become a truly excellent global corporation, Canon believes that each employee must be an “excellent person.”

In line with its human resource measures, Canon is building a corporate culture that encourages an enterprising spirit by guaranteeing respect for the values of ambition, responsibility and mission, as well as fair and impartial assignments, evaluations, and treatment based on merit. At the same time, we are focused on developing our next generation of leaders.

Guiding Principle of the Three Selfs Spirit

The San-ji (Three Selfs) Spirit has been a central guiding principle for Canon since its founding. The three “selfs” refer to 1) self-motivation: proactively taking the initiative; 2) self-management: conducting oneself responsibly and with accountability; and 3) self-awareness: knowing one’s position, roles and circumstances.

Canon encourages all Group employees to embrace the San-ji Spirit as they pursue their work with a positive and forward-looking attitude, and promotes this approach at Group companies worldwide.

Guiding Principles
Three Selfs Adhere to the principles of self-motivation, self-management and self-awareness in day-to-day activities
Meritocracy Make vitality (V), specialty (S), originality (O), and personality (P) daily pursuits
Internationalism Strive to become a culturally sensitive, internationally minded, sincere and active person
Familism Strengthen trust and understanding of others and work together in a spirit of harmony
Health First Live by the motto “healthy and happy” and work to cultivate character

Hiring and Retaining Talent

Canon seeks to hire and retain talent that can drive globalization and innovation in its businesses with the ultimate goal of sustainable growth. With this in mind, we follow a uniform policy for hiring, job placement and human resource development.

In 2016, Canon Inc. and Group companies in Japan embarked on a vigorous recruitment program, resulting in the hiring of 1,012 employees in total (excluding subsidiaries newly consolidated in 2016). Canon also has established various programs and systems, such as a career matching system to support the continued employment of each and every employee so that they remain motivated and can maximize their skills and abilities over the long term. We regularly conduct employee surveys and work to improve employee satisfaction. Thanks to these initiatives, Canon Inc. boasts one of the highest retention rates in the industry, with a turnover rate of only 1.1% in 2016.

Fair and Impartial Compensation System

Salary Linked to Duties and Performance

Canon Inc. has introduced a position-based pay system to evaluate and compensate individuals fairly and impartially, regardless of gender or age.

In this system, remuneration is based on duties and performance. Basic pay scales incorporate the level of position in the company based on responsibilities and other factors. An employee’s achievements as well as work-related processes and performance during the year are evaluated to determine annual remuneration. Bonuses reflect individual achievements and company performance.

This system is being applied across the Group worldwide, and has already been adopted by the majority of Group companies in Japan and manufacturing subsidiaries in Asia. Systems for determining compensation based on duties and performance have already been established at Canon U.S.A. and Canon Europe, along with other Group companies in those regions.

Regarding basic salary amounts and increases as well as calculation and payment of bonuses, a committee meets with the Canon Workers’ Union four times a year to check whether remuneration is being paid in accordance with the rules of the labor agreement. The minutes of these meetings are made available to all employees. The committee also facilitates discussions between labor and management on the implementation and improvement of the compensation system.

Employee Benefit Programs

Canon Group companies in Japan offer various employee benefit programs, covering each stage of life from hiring to retirement, enabling employees to lead comfortable and enjoyable lives.

To foster workplace communication, Canon provides subsidy programs and funds clubs whose activities bring together people with shared interests, and maintains a range of facilities for employees, including cafeterias and gymnasiums. We also host events for employees and their families that incorporate the local culture and customs of each region.

With a view to securing their futures, in addition to Japan’s national social insurance programs, employees are eligible for added benefits that include a corporate pension plan as well as membership in our welfare association and health insurance society. Canon Inc. also offers a voluntary employee stock ownership plan, a savings plan and group life insurance policies, among other benefits.

Corporate Pension Plan

At Canon Inc., we offer the defined-benefit Canon Corporate Pension as a form of performance-based pay —a role- and grade-based retirement system— to supplement their public pension and contribute to a more comfortable retirement. A company-run pension fund manages pension assets so employees do not need to provide any additional funds. Other Canon Group companies in Japan have also set up their own corporate pension plans.

Canon Inc. also offers a defined-contribution pension plan, which, coupled with the defined-benefit pension plan, provides solid financial security.

Examples of Employee Benefits (Canon Inc.)
Benefit Overview
Employee stock ownership plan Fixed amount deducted from monthly salary and used to purchase Canon Inc. stock.
Employee savings plans Savings plan for any purpose. May be used to save for marriage, education, furniture or car purchase etc.
House savings plans Savings plan for house purchase or, under certain conditions, extensions/renovations.
Pension savings plan Plan aimed at receiving pension for five years or more from age 60 from funds saved during employment.
Funded pension plan Private old-age pension arrangement makes available breaks on income and residence taxes.
Canon family welfare association Aims to provide financial support to members and their families in the spirit of mutual aid, mainly to respond to unforeseen troubles such as disaster, personal injury, and extra hospital bed fees.
Canon Group life insurance Canon Group insurance plan specializing in death benefits and critical injury coverage.
Canon Group corporate accident insurance Comprehensive accident insurance that covers a wide range of circumstances in which the insured is hospitalized or undergoes surgery due to illness or disease, or has an injury or accident. Other categories of corporate accident insurance include income protection insurance and spousal income protection insurance, personal compensation insurance and golfer’s insurance.
Group insurance Canon Group employees who join the plan can receive the group discount on insurance premiums. Group discounts apply to automobile, fire, cancer and medical insurance, among others.
Summer festivals Individual operational sites hold summer festivals for employees and their families. These events, which often include volunteer-run shops and musical attractions, allow employees and their families to come together with their colleagues for fun and relaxation.
Workplace sports competitions/athletic meets To stimulate workplace communication, we hold sporting events at operational sites where employees can engage in such activities as volleyball and futsal. Events vary depending on the location, but they all enable large numbers to join in the fun.
Workplace communication subsidies We provide subsidies to stimulate communication within the workplace through such events as bowling competitions, New Year’s parties, cherry blossom viewing and year-end parties.
Canon employee clubs To bring employees closer together, Canon supports intramural sports and cultural activities. Each operational site hosts active sporting and culture-themed clubs.

Reducing Total Work Hours

Canon works diligently to ensure that employee work hours comply with the laws of each country and region where it operates.

For example, at Canon Inc., we encourage workplaces to ban overtime work in principle and to review work methods. We have also taken other measures, such as encouraging employees to take their paid leave, which brought the annual hours worked per employee in 2016 down to 1,721, which is 78 hours less than 2010 (1,799 hours) when efforts to reduce work hours began.

We will continue our efforts to keep total hour worked per year to less than 1,800.

Annual Hours Worked per Employee (Canon Inc.)
  2012 2013 2014 2015 2016
Total work hours 1,744 1,740 1,751 1,762 1,721

Flexible Work Styles

In 2005, Canon Inc. formulated an action plan following the guidelines of Japan’s Ministry of Health, Labour and Welfare. Based on this plan, we are encouraging the adoption of flexible work styles while helping employees achieve work-life balance, and taking steps to aid the development of the next generation.

Promoting Flexible Work Styles

Canon Inc. has a number of leave programs that enable employees to take time off flexibly to respond to their personal circumstances.

Main Leave Provisions (Canon Inc.)
Time-unit leave program(in 30-minute increments) To promote flexible work styles, in April 2014 we introduced a program in which employees can take leave in 30-minute increments for such reasons as childcare, illness or injury.
Open vacation program To encourage planned vacations, in 2000 we introduced a program in which employees can take five consecutive days of vacation once a year.

In April 2015, we launched the fifth phase of the action plan outlined in the table below. This phase spans the three-year period to March 2018.

Action Plan Phase V (from April 2015 to March 2018)
Action Plan Measures Results as of the End of 2016

(1) Promote use of work-life balance programs and raise participation rate.

  • Regularly check the performance of employees using work-life balance programs, and have VIVID*1 and the Work-style Innovation Committee work together to consider and implement specific measures before March 2018.
  • Confirmed that, in addition to female employees, who have made up the majority of those taking advantage of these programs, the trend for use of these programs by male employees is on the upswing.

(2) Make work-style reform a part of our corporate culture, continue efforts to reduce overtime work, promote use of paid leave, and maintain an appropriate level of total work hours.

  • Use total work hours as an indicator for work-life balance, and in 2015 work to raise awareness of this change internally through visualization techniques, and consider and implement specific measures for 2016 and beyond.
  • Prohibited overtime work, in principle, throughout the year.
  • Implemented earlier work hours from July–September as campaign period to promote work-life balance. This was maintained as an opportunity to pursue further improvements to labor practices. Provided employee benefits program for encouraging self-development during the earlier work hours.
  • Total work hours company-wide decreased by 78 hours compared to 2010*2

(3) Carry out community contribution activities targeting children—who are the future of our communities.

  • Continue reaching out to local regions and communities and implement appropriate initiatives from April 2015 to March 2018.
  • Continuously conducted throughout Japan the following community contribution activities for children
  1. (1) Unique tutorial program for children, including lessons on lens-crafting and environmental education outreach programs
  2. (2) Junior Photographers photography classes
  3. (3) Support for girls soccer (Canon Girls-eight, Canon Girls-Camp)
  4. (4) Tag rugby lessons and rugby lessons, etc.
  5. (5) Track and field clinics
  • *1 VIVID: VItal workforce and Value Innovation through Diversity, a company-wide horizontally integrated organization for promoting diversity.
  • *2 The year that activities to reduce total work hours commenced.

Supporting Working Parents

To enable employees to focus on childcare responsibilities with peace of mind, Canon Inc. offers an array of programs, including childcare leave for employees raising children up to the age of three, which go beyond the legally stipulated minimum requirements. Hotlines have been set up at each of our operational sites to handle employee inquiries about these systems.

To support the work-life balance of those in our local community, Canon Inc. established Poppins Nursery School Tamagawa. Located on our property adjacent to the Shimomaruko headquarters, the school is certified by the Tokyo Metropolitan Government and open to local residents. Approximately 40 children are enrolled at the school.

Main Support Provisions (Canon Inc.)
Childcare leave In April 1992, we introduced a program allowing one year of childcare leave. The program was later expanded to one year and two months in April 2003, one year and six months in April 2005, and three years in April 2007, improving the work situation for the child-rearing generation.
Supporting working parents (shorter/flexible work hours) In April 1992, we introduced shorter/flexible work hours. After returning to work, employees may choose to start an hour later or finish an hour earlier for a maximum work-hour reduction of two hours per day. Flexible working hours involve starting anytime between 8:00 and 9:30. These provisions support employees in balancing work and child rearing.
Number of Employees Taking Childcare and Nursing Care Leave (Canon Inc.)
  2012 2013 2014 2015 2016
Taking childcare leave 154
(15)
153
(14)
168
(22)
184
(30)
186
(43)
Using reduced work hours for childcare 147
(3)
169
(9)
144
(7)
142
(10)
132
(4)
Taking maternity leave 25 19 27 34 30
Working reduced hours due to pregnancy 2 4 6 7 5
Taking nursing care leave 7 12 13 9 15
Using reduced work hours for nursing care 4 5 6 6 4
Applications for childbirth support 261 263 222 260 248
  • * Number of employees in that year using the system for the first time.
  • * ( ) Number of male employees
Return Rate and Number of Employees Returning from Childcare/Nursing Care Leave (Canon Inc.)
    2012 2013 2014 2015 2016
Returning from
childcare leave
Number of returning employees 136
(15)
134
(9)
132
(22)
169
(30)
185
(37)
Return rate (%) 100 97.8 100 100 97.3
Returning from
nursing care leave
Number of returning employees 6 8 13 9 18
Return rate (%) 100 100 100 100 100
  • * ( ) Number of male employees
Development of Childcare and Nursing Care Leave Programs (Canon Inc.)
1998
  • Introduced program of reduced work hours for childcare*1
2005
  • Introduced childcare leave support program*2
2007
  • Introduced maternity leave program for mothers, subsidy program for infertility treatment costs, and infertility treatment leave program to support childbirth
2010
  • Revised program of reduced work hours for childcare, reducing unit of work from one hour to 30 minutes
  • Established nursing care leave program
2014
  • Introduced time-unit leave program where employees can take leave in 30-minute increments due to certain situations (illness or injury, childcare, nursing care, etc.)
2016
  • Units for child nursing leave and nursing care leave reduced from one day to 30 minutes
  • *1 Reduced work hours for employees with young children: Employees raising young children may reduce their workday, in 30-minute increments up to two hours, until the child has finished the third grade of primary school.
  • *2 Childcare leave support program: Canon Inc. provides support to employees who are returning to work after taking childcare leave through our Himawari Club internet portal site. The Himawari Club aims to reduce unease accompanying the return of those who have taken childcare leave and to maintain and improve their vocational skills to enable a smooth return to the workplace.

Supporting Employees’ Volunteer Activities

In recognition of the growing interest in volunteer activities within the community and among employees, Canon Inc. established a volunteer leave system in 1994. Under this system, employees wishing to participate in volunteer activities certified by the company may take up to one year of leave (two years and four months in the case of JICA Japan Overseas Cooperation Volunteers.)

Worker–Management Relations

At Canon Group companies in Japan, worker-management relations are founded on the principle of prior consultation, that is, finding solutions through thorough discussion. Candid discussions between management and the labor union are held whenever policies that affect wages, working hours, safety and health, and welfare issues are to be implemented.

Every month, Canon Inc., Canon Marketing Japan, Fukushima Canon and Ueno Canon Materials convene a Central Worker/Management Conference with the Canon Workers’ Union to exchange opinions and information spanning a range of subjects.

The 2016 conference focused on recent developments at the company and within the workers’ union. Additionally, special committees have been established to consider wages, working hours, safety and health issues, and welfare. Based on these conferences, new systems are established and policies enacted. As of the end of 2016, combined employee membership in the Canon Workers’ Union totaled 27,456, representing 81% of Canon Inc.’s workforce.

Group companies in Japan hold a similar conference, which they refer to as the Canon Group Workers’ Union Conference. This conference brings together 17 Group workers’ unions, including executives from 20 Group companies as well as representatives of the Canon Workers’ Union. In 2016, reports on the current situation of both labor and management throughout the Group as a whole were presented. As of the end of 2016, there were 52,160 employees in unions that belonged to the Canon Group Workers’ Union Conference.

In accordance with the labor laws of each country and region in which we operate, Canon continuously maintains proper labor relations based on thorough dialogue between labor and management at Group companies outside Japan.

Canon will continue to implement changes based on mutual understanding and trust with the Canon Workers’ Union in its pursuit of continuous development.

Minimum Notification Period for Changes in Work Duties

Canon Inc. has established a minimum notification period clause within its labor agreement to ensure that personnel transfers do not negatively impact the lives of employees.

Employees receive official notice of personnel transfers at least two weeks in advance for temporary assignments and at least one week for other types of transfers. Employees who need to relocate due to the transfer are officially notified up to four weeks in advance.

Additionally, Canon Group companies inside and outside Japan have established minimum notification periods in accordance with the laws and regulations of the countries and regions where they operate.