Hitachi Construction Machinery

Global

Respect of Human Rights

Policies about respect for human rights

“In accordance with the Hitachi Group Human Rights Policy, the HCM Group clearly establishes the “Hitachi Construction Machinery Codes of Conduct” and “Hitachi Construction Machinery Group Human Rights Policy”, and undertakes initiatives for respecting human rights. The “Hitachi Construction Machinery Group Human Rights Policy” that was established in March 2014 indicates that it interprets the human rights described in the “International Bill of Human Rights*1” and the International Labour Organization (ILO)’s “Declaration on Fundamental Principles and Rights at Work*2” as the absolute minimum for human rights. In addition, it also touches on human rights due diligence*3 based on the United Nations’ “Guiding Principles on Business and Human Rights*4” and clearly defines the implementation of appropriate education for employees, compliance with the laws of the countries or regions in which business is conducted, and the pursuit of methods for respecting international human rights principles when there are conflicts between internationally recognized human rights and the domestic laws of individual countries.

In March 2015 the Hitachi Group established the human rights due diligence guidelines. In accordance with the Hitachi Group’s general principles regarding human rights, the Hitachi Construction Machinery Group is focusing efforts on promoting human rights education and preventing child labor and forced labor. The Group provides direction and respects international standards related to human rights, including freedom of association and the right to collective bargaining, prevention of child and forced labor, and discrimination with respect to employment and occupation. In FY2015 we participated in the “Human Rights Workshop” held by the Hitachi Group. This workshop was held as part of the Hitachi Group’s initiatives for human rights due diligence based on the “Hitachi Group Human Rights Policy” with consultation by American NPO Shift, and evaluated risks and priorities for human rights in the supply chain and confirmed measures for reducing those risks.

Moreover, we have established an “whistle-blowing system” for employees and “advice lines” for external stakeholders as part of our human rights reporting mechanisms.

*1 The collective name for the International Covenants on Human Rights and Universal Declaration of Human Rights adopted by the United Nations General Assembly.
*2 Includes upholding the freedom of association and the effective recognition of the right to collective bargaining, rejecting forced labor, effective elimination of child labor, and abolition of discrimination in hiring and employment.
*3 “Report of the Special Representative of the Secretary-General on the issue of human rights and transnational corporations and other business enterprises, John Ruggie.”
*4 This refers to evaluating and responding to the impact that business has on human rights and continually verifying and disclosing the results of measures to prevent, mitigate, or provide aid for the negative impact.”

Hitachi Construction Machinery Group Codes of Conduct

Hitachi Construction Machinery Group Human Rights Policy

HITACHI GROUP CSR PROCUREMENT GUIDELINE

Taking on human rights due diligence

Nurturing the minds of employees to have a deep understanding of human rights and mutual respect for one another is essential in developing a corporate culture where employees with a diverse set of values and thinking can come together and flourish. In light of this, Hitachi Construction Machinery (HCM) Group is actively promoting measures, including the exchange of personnel between global sites.

In FY2016, we participated in the human rights due diligence working group, which was launched primarily by the human resources and CSR divisions of Hitachi, Ltd. The working group examines the human rights risks in business. At the workshop, we examined, as examples, Hitachi Construction Machinery (Europe) N.V. (Netherlands) and PT Hitachi Construction Machinery Indonesia. We discussed the issues being confronted by these two companies and measures for alleviating risk.

Discrimination issues are triggered in part by the cultural background of the local area so it is necessary to promote understanding of each region. In addition, the policies and initiatives of the head office have not been instilled at some overseas business sites and factories. This makes it necessary to look into each individual employee. Going forward, based on the knowledge we obtained at the workshop, we plan to incorporate human rights activities at the individual level to create a workplace environment where a diverse range of people can play an active role.

Human rights due diligence workshop

Human rights education and training

The HCM Group continually implements education concerning human rights included in stratified training for new employee and new section manager, and so on, for the purpose of improving each individual employee’s awareness of human rights. In addition, we conduct training concerning harassment during our compliance training.

Preventing child labor and forced labor

“Respect for Human Rights”, Chapter 3 in the “Hitachi Construction Machinery Group Codes of Conduct”, Hitachi Construction Machinery Group declare that the Group will not employ child labor (work from children who are younger than the minimum work age) and forced labor (labor against the will of the employee) . In addition, it also makes reference to procurement activities that maintain a focus on human rights, including prohibition of unfair discrimination in hiring and employment, and the elimination of child labor and forced labor.

The “HITACHI GROUP CSR PROCUREMENT GUIDELINE” covers areas such as the prohibition of forced labor, the prohibition of inhumane treatment, the prohibition of child labor, the prohibition of discrimination, appropriate wages, management of working hours, and respect for employee collective bargaining rights, and we demand that suppliers comply with these precepts. Moreover, HCM continues its dialogue with suppliers on the non-use of conflict minerals as per the Hitachi Group Conflict Minerals Procurement Policy.


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