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 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 evaluated risks and priorities for human rights on employees and confirmed measures for reducing these risks. At the workshop, we looked at the examples of Hitachi Construction Machinery (Europe) N.V. and PT Hitachi Construction Machinery Indonesia. We discussed the issues being confronted by these two companies and measures for alleviating risk.
Harassment and 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 headquarters have not been instilled at some overseas group company business sites and factories. Therefore, we need to gain a deeper understanding of each individual employee. Going forward, based on the knowledge we obtained at the workshop, we plan to incorporate human rights initiatives at the individual level to create workplace environments where a diverse range of people can play active roles.
Human rights due diligence workshop
From FY2020 we have taken more in-depth measures and utilized the Hitachi Group’s common priority risk assessment survey with 30 questions* for “forced labor and immigrant labor,” which we have defined as priority risks that should be tackled. More specifically, we conducted and evaluated the concerning labor/ safety and health/ handling of complaint process for direct manufacturing personnel.
The target of implementation was large-scale manufacturing plants or manufacturing plants in Southeast Asia, that is, our 6 major factories and 12 domestic and overseas group companies. As a result of the FY2020 survey, our six major factories and two group companies that had evaluation issues below a certain level are implementing countermeasures.
In FY2021, we conducted a risk assessment survey of suppliers in the Asian region and received responses from 361 of the 506 target suppliers. Of all 30 questions, 85% of the answers deserve a certain level of evaluation or higher, and 7% of the answers do not reach a certain level . The remaining 8% are non-applicable questions. In the future, we will request improvements to these 7% items.
In May 2021, Hitachi Construction Machinery Group has established the Hitachi Construction Machinery Human Rights Due Diligence Promotion Council with the president as the promotion manager. We will carry out a PDCA (plan -do -check -action) cycle for human rights due diligence through this council. At the council held in February 2022, we reported and accepted the status of countermeasures for employees and the status of questionnaire surveys to suppliers.
*An example question of risk assessment survey /
Does your company and workers agree on the contract documents that state, at a minimum, the key employment terms and conditions required by local laws and regulations, in a language properly understood by them? (Key employment terms and conditions include job description, period of the labor contract, place of work, working hours, wages, deductions from wages, and disciplinary rules.)