Respecting Human Rights
Initiatives
Implementation of Human Rights Due Diligence
Based on the UN Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidance for Responsible Business Conduct, we undertake human rights due diligence across the Group, as one of the activities under the Risk Management Committee. Each Canon Inc. division and Group company identifies and evaluates the potential adverse human rights impacts in their respective business activities, including the supply chain, and identifies the salient human rights risks. Subsequently, the secretariat aggregates, analyzes and evaluates those risks, and through stakeholder engagement, identifies salient human rights risks for Canon. In assessing human rights risk, we also refer to the human rights risk country/region index provided by the RBA (Responsible Business Alliance). Additional measures have been initiated to prevent or mitigate salient human rights risks identified by Canon Inc. divisions or Group companies where it is believed current actions are deemed insufficient.
As part of an International Labour Organization (ILO) initiative entitled “Building Responsible Value Chains in Asia” funded by the METI* in Japan, Canon’s initiatives in this area were cited as an example of good corporate practices in Japan and introduced in a feature article on the JETRO website.
- * Ministry of Economy, Trade and Industry
Feature: A New Era of Human Rights Due Diligence – As Told by Japanese Firms (Japanese website only)
Dialogues with Outside Experts
We are actively organizing dialogues with outside experts to effectively implement human rights due diligence at Canon. In 2023, besides participating in human rights training sponsored by the United Nations Development Programme (UNDP), we sought individual guidance from the UNDP and experts worldwide to advise on future activities, based on an explanation of Canon’s current initiatives and related issues, and current trends in the area. This advice will help to improve future activities.
Salient Human Rights Risks for Canon
Within the human rights risks that may arise in Canon’s business activities, 11 of those were identified as salient human rights risks, which include discrimination based on such factors as race, gender, or religion, harassment, child labor, forced labor, unpaid wages/low wages, excessive overtime work, occupational health and safety, and protection of privacy. As shown in the table of the next page, various measures are taken to prevent and mitigate these risks. Canon also assesses human rights risks for new businesses. For example, when conducting M&As, we review the status of compliance with laws and regulations related to labor standards and health and safety as part of our due diligence, to ensure that there are no serious human rights risks in the company newly joining the Group.
Salient Human Rights Risks for Canon
| Rights-holders | Measures taken by Canon | ||||
|---|---|---|---|---|---|
| Suppliers/ Contractors |
Canon employees |
Customers/ Consumers |
Local communities |
||
| Discrimination based on such factors as race, gender, or religion | ● | Diversity, Equity and Inclusion | |||
| Harassment | ● | Prevention of Harassment | |||
| Child labor | ● | Respect for Human Rights in the Supply Chain | |||
| Forced labor | ● | Respect for Human Rights in the Supply Chain | |||
| Unpaid wages/ low wages |
● | Respect for Human Rights in the Supply Chain | |||
| Excessive overtime work | ● | ● | Prevention of Excessive Overtime Work Respect for Human Rights in the Supply Chain |
||
| Occupational health and safety | ● | ● | Occupational Safety and Health Management | ||
| Protection of privacy | ● | ● | Protecting Personal Information | ||
| Procurement of conflict minerals | ● | Addressing the Issue of Responsible Minerals Sourcing | |||
| Noise, environment pollution at operational sites | ● | Environment | |||
| Health damage or accident caused by product | ● | Product Responsibility | |||
Grievance Mechanism
Canon has an internal reporting system for Canon Inc. and most Group companies worldwide through which employees can report specific human rights concerns in their own language. We also work to raise awareness of the reporting system via the company intranet and training programs. In addition, Canon Inc. has a point of contact on our website for external stakeholders to report specific human rights concerns about Canon’s corporate activities. Both internal and external contact points maintain the privacy of informants and allow them to report anonymously to ensure that they do not suffer unfair treatment as a result. The facts in any whistle-blowing case are investigated, where it is received. If Canon judges that there is a problem, with appropriate steps and procedures, Canon works to remedy such problem and prevent any recurrence. In 2023, Canon received 94 cases concerning human rights-related issues (discrimination/harassment, wages, working hours, etc.). Out of these 94 cases, 17 cases for which Canon completed investigations as of the end of 2023 required remedying.
For cases that required remedying, we issued warnings or guidance to the employees at fault or relevant departments, including disciplinary action or transfers.
A grievance mechanism is also available via a CSR promotion entity for supply chains. Since Canon is a member, Canon stakeholders can report specific human rights concerns through this platform as well.
Human Rights Awareness Training
Since 2021, we have been carrying out an online learning program for employees to instill basic knowledge about business and human rights and raise awareness of Canon’s human rights initiatives. Starting with Canon Inc., this program has been expanded to Canon Group companies in Japan, and was extended to overseas Group companies in 2023 (completion rate 99.4%). The training programs delivered overseas reflect national and local characteristics, and each company has optimized the content and translated it into each language.
Handbook to Inform Employees
The employee handbook issued by Canon Vietnam aims to further improve the working environment and help deepen the mutual understanding between the company and employees. It includes items such as the Canon Group Code of Conduct, the RBA Code of Conduct, and internal rules of Canon Vietnam, including respect for human rights.
Stakeholder Engagement
The OECD Due Diligence Guidance for Responsible Business Conduct states that it is important for companies to engage with stakeholders at the time they identify the actual or potential adverse impact caused by corporate activities. In addition to the Canon Workers’ Union, Canon is engaged in dialogue with institutional investors, suppliers, and business partners.
Stakeholder Engagement: Example 1 (Canon Workers’ Union)
To identify salient risks as part of Canon’s human rights due diligence, we organized dialogues with the union relating to issues that represent human rights risks for employees, including discrimination based on such factors as race, gender, or religion; harassment; excessive overtime work; occupational health and safety; and protection of privacy. Besides acknowledging union positions on such issues, dialogues provide an opportunity to exchange views on matters such as changes in work styles due to the adoption of telework and the use of childcare leave by male employees.
For Canon, these dialogues help to identify the salient human rights risks.
Stakeholder Engagement: Example 2 (Business Partner, Industrial Equipment)
Canon develops, manufactures and sells semiconductor steppers and other industrial equipment on a global basis. One of the salient human rights risks in the industrial equipment sector is the risk of accident or worker injury to employees of Canon or subcontractors during the transport or the installation of equipment. The massive size and mass of these systems means that any lack of OHS care could result in a serious accident such as being caught in machinery or falling from a height. As well as taking steps to prevent injury to its employees, Canon Inc. regularly discusses safety issues with delivery/installation subcontractors, including examples of near-misses and rule violations, and related problems.
Respect for Human Rights of Employees
Prevention of Excessive Overtime Work
We have instituted a system to accurately ascertain the working hours of employees at overseas production sites deemed to be subject to a notably high risk of excessive overtime work. Actual results on working time management, including overtime work, are reported annually to the HR division of Canon Inc. Work guidelines were introduced to Canon Group production companies based in Asia in 2015 as part of human rights risk-related initiatives. In 2022, we overhauled these guidelines to make them consistent with RBA standards, extending them to all our domestic and overseas Group production companies.
Respect for Freedom of Association and the Right to Collective Bargaining
As stated in the Canon Group Human Rights Policy, Canon respects freedom of association and the right to collective bargaining. We also strive to address various labor issues by promoting dialogue between labor and management. For example, the labor agreement between Canon Inc. and the Canon Workers’ Union commits both sides to work in good faith to peacefully resolve issues in a timely manner.
Prevention of Harassment
In line with the principle of respect for humanity that Canon has followed since its foundation, Canon not only prohibits discrimination on such factors as gender or occupation, but also maintains a zero-tolerance policy on harassment, which it communicates to all management executives and employees. In addition to sexual harassment and abuse of authority (power harassment), Canon Inc.’s employment rules and Harassment Prevention Provisions prohibit other forms of harassment, including maternity harassment. These provisions have been disseminated throughout Group companies in Japan, and many have instituted similar rules based on them. In a further effort to maintain a comfortable workplace environment, Canon Inc. and its many Group companies in Japan have established a Harassment Hotline. Confidentiality surrounding employee consultations is strictly maintained and a firm guarantee against unfair treatment is provided to victims and informants. In terms of preventing harassment, regular liaison meetings are held for persons responsible at Canon Inc. operational sites and Group companies in Japan, enabling the operational status of hotlines to be monitored and shared. Meeting participants review procedure manuals and share knowledge on how to respond to reports of harassment.
Evaluation & Improvement of Human Rights Risk-related Activities at Canon Group Production Sites
We utilize the RBA’s Self-Assessment Questionnaire (SAQ) to evaluate the risk of human rights violations at 59 Canon Group production sites worldwide. The SAQ can help to identify if a site makes use of child/forced labor, or disrespects workers’ freedom of association and the right to collective bargaining. In addition to SAQ, we conduct voluntary internal audits and undergo external audits through the RBA. From 2022 to 2023, 21 production sites in Japan and overseas underwent external RBA audits. We completed corrections and improvements or continue to pursue improvements for the items that were indicated as follows:- Management of working hours at some overseas production companies
- Inadequate emergency exits, fire extinguishing equipment, or evacuation route maps in factories, cafeterias, and dormitories
- Maintenance of first aid kits and personal protective equipment
- Risk assessment relating to pregnancy and childbirth
Prevention of Child and Forced Labor and Unreasonable Restrictions on Movements
We use the RBA’s SAQ at Canon Group domestic and overseas production sites. Based on the survey responses, we confirm there is no evidence of child or forced labor or any unreasonable restrictions on workers’ movements on the site or while at work. In addition, we have confirmed that the Group companies do not retain original documents of employees’ personal ID documents through the SAQ.
In order to prevent child labor, we thoroughly check the age of employees when they enter the company, and we have developed a response flow in case an employee who is under the minimum working age is found. In addition, young workers under the age of 18 are prohibited from working any overtime or night time, or engaging in dangerous work, thereby giving consideration to their health.
Respect for Human Rights in the Supply Chain
We have formulated the Canon Supplier Code of Conduct, which is based on the RBA Code of Conduct, to promote sound procurement activities that take proper account of labor, health and safety and environmental concerns, and management systems. We have collected a letter of agreement concerning adherence to the RBA Code of Conduct from our major suppliers. In addition, we conduct annual checks of our major suppliers using the RBA’s SAQ as part of efforts to prevent in our supply chain the use of any child/forced labor, unreasonable movement restrictions, or excessive working hours, alongside good health and safety measures. We also perform our own checks on some major suppliers, which may include conducting a local audit. Consistent with Canon’s support for the Keidanren-led “Declaration of Partnership Building” initiative, Canon is committed to cooperation and co-existence with business partners through fair trade. Canon strives to avoid unreasonable cost reduction requirements, short delivery orders without appropriate cost bearing, and requests for sudden changes in specifications. We also make efforts to set prices that take into account the impact on labor cost increases. Canon is also working with suppliers and industry bodies on responsible mineral sourcing initiatives.
Ongoing Monitoring
Canon continuously monitors compliance with the content set out in the Canon Group Human Rights Policy. We also pursue ongoing efforts to improve our identification and assessment methods for human rights due diligence, and periodically review them throughout the Group. We also review the Group’s human rights initiatives in accordance with social demand, dialogue with stakeholders, and Canon’s business operation.
Compliance with Modern Slavery Act
Canon discloses information to comply with requirements of the Modern Slavery Act, which mandates enterprises to publish annual statements verifying the risks of forced labor, human trafficking and child labor in their operations and supply chains.