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Respect for Human Rights and Labor Practices

Policy and initiatives to protect the fundamental rights of all

Basic Policy
Human Rights Awareness Promotion System
Human Rights Education
Prohibition of Child Labor and Forced Labor
Harassment Prevention
Freedom of Association

Basic Policy

OMRON Human Rights Policy

OMRON Human Rights Policy

OMRON Group (hereinafter referred to as “OMRON”), which consists of OMRON Corporation and its subsidiaries, has established this OMRON Human Rights Policy (hereinafter referred to as “this Policy”), to fulfill its corporate responsibility in respecting human rights in accordance with “OMRON Principles”, and to ensure that our management practices and actions are always in line with those of the international community.

Scope of the Human Rights Policy

This Policy applies to all executives and employees of OMRON in order to ensure respect towards the human rights of all stakeholders involved in the OMRON Group value chain. We also expect all business partners of OMRON, including suppliers and distributors, to understand and support the content of this Policy, and will continue to work to ensure that this Policy is respected.

Commitment to “Respect for Human Rights”

We declare that OMRON will carry out human rights due diligence in accordance with the United Nations Guiding Principles on Business and Human Rights and will avoid causing or contributing to adverse human rights impacts in our value chain.
To meet the above-mentioned commitment, OMRON respects human rights as those expressed in the International Bill of Human Rights, the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work, and the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises. OMRON Corporation has also signed the United Nations Global Compact and upholds the 10 Principles of the United Nations Global Compact. We will respect the above internationally recognized human rights principles based on compliance with all the laws and regulations of each country and region in which we operate.

Commitment for Specific Human Rights Issues

OMRON will identify human rights-related issues to focus on throughout all our business processes, including development, procurement, production, distribution, and sales, and take the appropriate measures to deal with them.

1. Discrimination or Other Unreasonable Treatment
OMRON does not tolerate any discrimination, acts that hurt the dignity of an individual, harassment or treat others in an unreasonable manner on the basis of national origin, citizenship, color, race, belief, religion, ancestry, marital status, gender, disabilities, age, sexual orientation, gender identification, place of birth, social status, or any other basis prohibited by local law.

2. Forced Labor and Child Labor
OMRON does not tolerate any forced labor or child labor including slavery and human trafficking.

3. Privacy and Personal Information
OMRON respects the privacy of all persons and will use all reasonable care to maintain the privacy and confidentiality of personal data. OMRON complies with the laws and regulations of countries and regions related to the protection of personal information and does not tolerate unauthorized disclosure of or access to such data.

4. Harassment
OMRON does not tolerate any action that causes physical or mental distress such as sexual harassment or power harassment*.

  • *Power harassment is a common form of workplace harassment that’s characterized by a power disparity between the harasser and the harassed.

5. Occupational Safety and Health
OMRON will strive to create and maintain a safe and healthy working environment where persons working in each workplace can fully demonstrate their abilities.

6. Ethical Use of Technology
OMRON will take account of potential impact for human rights caused by technologies such as AI, robotics and IoT, and will take advantage of them appropriately to avoid problems, including but not limited to cause of accident, discrimination and invasion of privacy.

Governance to Meet the Responsibility to Respect Human Rights

All persons at OMRON, from operation-level staff members to senior management, will work together to establish a system ensuring the execution of our responsibility for respecting human rights at the global level. As for the system to assume the responsibility covering OMRON’s entire value chain, the Senior General Manager of the Global Human Resources and Administration HQ and the Senior General Manager of the Global Procurement, Quality and Logistics HQ and the Senior General Managers of the related business divisions, who have been delegated authority from the President and CEO, will be responsible for promoting respect for human rights for OMRON companies and supply chains, respectively. Important points concerning our commitment fulfillment for respecting human rights will be decided by the Board of Directors. The execution status of this decision will be reported to the Board of Directors by the President and CEO and monitored and supervised by the Board of Directors.

Human Rights Due Diligence

To fulfill our responsibility for respecting human rights, OMRON will carry out human rights due diligence in accordance with this Policy. OMRON will assess impacts that our activities have on human rights and will commit to avoid or mitigate any adverse impacts identified. OMRON will strive to use its leverage in the impact of our business relationships on human rights that are directly linked to the operations, products or services of the group so that this Policy will be respected.

Remediation

Should it become apparent that we have caused or have contributed to adverse impacts on human rights through any of our business activities, OMRON will provide for remediation through appropriate processes.

Stakeholder Engagement

OMRON will implement activities set forth in this Policy through consultation and communication with various internal and external stakeholders.

Information Disclosure

OMRON aims to realize fair and transparent management practices. We will disclose results from and progress of the human rights due diligence we carry out as appropriate exercising the utmost care for the affected stakeholders and trade secrets.

Dissemination / Education

In order to ensure that this Policy is embedded within all members across OMRON, OMRON provides appropriate education and training to all executives and employees. We will also encourage business partners such as suppliers and distributors to fully comprehend this Policy.

Human Rights Policy Formulation Process and Review

This Policy was formulated with the approval of the Board of Directors of OMRON Corporation. To effectively address human rights issues that may change in response to social trends and the changing business environments, this Policy will be undergone periodic reviews and revisions.

(Established: March 1, 2022)

Human Rights Due Diligence

Human rights due diligence is a procedure companies should take to identify, prevent, and address negative impacts that are related to human rights.
OMRON has incorporated the UN Guiding Principles on Business and Human Rights (Ruggie Framework) into the corporate policies, and established human rights due diligence process based on the steps outlined in the Principles.

We at the OMRON Group have identified issues related to human rights and labor practices, such as slavery, human trafficking, and child labor, which are matters of growing global concern, as sustainability issues requiring the focus of the Group. We learned that there is a potential risk at OMRON Group factories and supply chains in Japan, China, and Southeast Asia. In particular, we determined that potential risks are especially high with temporary workers, contract workers, and foreign workers who are engaged with production. In fiscal year 2021 as well, we took measures in response to the results of this risk assessment.

[The OMRON Group]

Internally, we conducted onsite investigations and assessments at 25 OMRON Group production sites, mainly those in Japan, China, and Asia Pacific countries, using the Self-Assessment Questionnaire (SAQ) from the RBA and other self-assessment tools. As one of our key challenges, we are currently working on the protection of human rights for the employees of contractors who provide services (such as production, development, in-house logistics, security guards, meal service, cleaning) at our production sites. To address this challenge, we have enhanced our human rights training program and whistleblower system in Japan, Asia Pacific, and Europe. We have also begun preparatory steps for the monitoring and auditing of contractors with regard to human rights and labor practices, rolling out the measures at some contractors. We also started working on the program rollout in China as well.
With Regard to the joint ventures with less than 50% stakes holding, we conduct human rights assessment equivalent to the Group companies at least every 3 years, requiring corrective actions if necessary.

[Supply Chains]

As for our supply chains, we are working to avoid the risk of infringing upon human rights, and implement a periodic review of our suppliers. Specifically, we ask suppliers to conduct a self-assessment. With these, suppliers can confirm their compliance with the “OMRON Group Sustainable Procurement Guidelines”, including observance of human rights and fair labor practices. Based on the results of the survey, we request that suppliers make improvements as necessary. With regard to our 50 critical suppliers, we conduct the assessment annually, and at least every 3 years for the others. During fiscal 2021, we conducted assessments for a total of 603 companies: 81 in Japan, 365 in China, 11 in Asia-Pacific, 93 in the Americas, and 53 in Europe. Suppliers for whom risks were identified such as child labor and forced labor were requested to draw up an improvement plan, and corrective action is being taken.

(Number of suppliers assessed as at risk in fiscal 2021: 0)

<Management Review>

The results of the aforementioned human rights due diligence revealed that OMRON had no cases of slavery or human trafficking in fiscal 2020. Our initiatives to address sustainability issues, including slave labor, human trafficking, and other human rights-related issues, are annually evaluated by the Sustainability Committee, which then reports the results of evaluation to the Executive Council and the Board of Directors.

Respecting the human rights of citizens living near our business operations, we make every effort to protect the environment of our communities, including the appropriate management of noise, vibrations, drainage, and CO2 and other exhaust gas emissions. In addition, we publish contact telephone numbers and publicize contact information for complaint desks.

Human Rights Awareness Promotion System

Building a system for promoting human rights awareness at the global level

In Japan, to enhance human rights awareness more effectively and efficiently, the OMRON Group established the Basic Rules for Human Rights Awareness Promotion as common rules for all Group companies in Japan. In accordance with these rules, the Central Human Rights Committee chaired by Senior General Manager of Global Human Resources and Administration HQ has been established at OMRON headquarters. Under this core organization, a human rights committee has been set up at each OMRON Corporation site and each of the Group companies in Japan, working to raise human rights awareness among all employees in Japan.

On a global level, each company abroad is taking its own approach to enhance human rights awareness, while complying with the laws in the region/country. For example, they clearly state the Group's view of human rights in working rules and human resource policies, to fully share the idea with employees.

Human Rights Awareness Promotion System

Human Rights Awareness Promotion System

Human Rights Education

Offering human rights education to all onsite workers

The OMRON Group in Japan conducts human rights training for all employees, including part-timers and temporary workers, designed to raise awareness of human rights. Rank specific human rights training programs are also available for new employees, mid-career recruits, new senior managers, and directors and executive officers.

During fiscal 2020, we at the Group conducted human rights training sessions for employees via e-learning. The content focused on power harassment in line with legal revisions related to power harassment. By explaining the definition, causes, and effects of power harassment, as well as through multiple video-based case studies, we aimed to prevent power harassment and raise awareness of human rights. A number of participants commented that they gained a deeper understanding of the definition of power harassment, that criteria for power harassment and sexual harassment are different, and the realization that power harassment could occur not only from superiors to subordinates, but also vice-versa.

We provide a human-rights related questionnaire to all participants after the human rights training, taking any necessary remedial measures immediately and as appropriate.

We also conducted human rights awareness training to a wider range of workers, providing onsite contractors with the same training for the Group employees. The Group widened access to remedies, such as human rights consultations and compliance hotline, to cover all onsite workers as well, announcing the availability via posters and other media. The OMRON Group will keep working so that everyone at the OMRON sites is treated with respect and dignity and can work securely and safely.

Human Rights Training Participants

Human Rights Training Participants

Prohibition of Child Labor and Forced Labor

The OMRON Group states its prohibition of forced labor and child labor in any form, including slavery and human trafficking, in the OMRON Human Rights Policy.

For its supply chains as well, OMRON Group Sustainable Procurement Guidelines clearly specify that forced labor, including slavery and human trafficking, are prohibited, and all its suppliers are requested to comply with these guidelines.

In fiscal 2021, OMRON issued the “OMRON Group Slavery and Human Trafficking Statement for FY2020”, clearly stating its determination to further strengthen its commitment to preventing child labor and forced labor. The Statement is under the responsibility of the Board of the Directors, and has been approved by a board member given the authority by the Board.

As one of the measures to strengthen this commitment in child labor and forced labor, the Group conducts periodic review of internal/external on-site status, by assessments and self-check questionnaires.

Fair Treatment and Wages

All OMRON Group companies operate with the following principles in mind:

  • All employees are treated fairly and appropriately based on individual evaluations.
  • The level of employee wages is determined by reflecting employee performance based on roles, capabilities, and the market situation in the country/industry sector. The specifics of wages shall be in compliance with local laws and regulations.

Harassment Prevention

Creating an environment that encourages anyone to seek advice

The OMRON Group has set up human rights consultation centers at all OMRON Group companies in Japan. By posting the names and departments of sexual and power harassment advisors, human rights committee members, and those in charge of human rights issues on the intranet and office bulletin boards, as well as offering one-on-one, telephone-or email-based consultation, the Group is working to create an environment in which anyone can feel at ease and comfortable to talk to.

When advice is sought, the Group works to solve issues based on the defined, prepared escalation process, specifically as follows:

  1. Investigate the facts of situation
  2. Deliberate countermeasures with the consulter’s consent depending on the nature of the problem
  3. The Central Human Rights Committee Chairperson decides to discuss measures with concerning Human Resources Department and General Affairs Department Senior General Managers if necessary.

In addition, after the annual human rights training sessions given to all employees, participants are asked to fill out a questionnaire regarding harassment-related information (e.g. “Had harassment?” “Saw harassment?”), with the names of respondents included. This serves to assess the current situation and identify possible sources of harassment, leading to solve the problem at an early stage.

To improve consultation skills, training to deal with harassment consultations is offered, focusing on role-playing by inviting external instructors to ensure a high level of effectiveness.

The OMRON Group companies overseas, too, offer human rights training programs, covering harassment, to all employees.

The OMRON Group both in Japan and overseas take corrective measures based on the defined, prepared escalation process and take disciplinary actions as necessary.

The OMRONG Group had one disciplinary case related to human rights globally during fiscal 2021 (including one case of harassment). We will continue to strengthen our human rights efforts.

Freedom of Association

OMRON Corporation and Group companies in Japan with trade unions each has concluded a labor agreement with the union. The agreement requires both sides to act in good faith and to strictly observe contract provisions in order to establish and develop labor-management relations based on mutual sincerity and trust.

Currently, sustainable growth of the OMRON Group as a whole is more crucial than ever, as is resolving the entire Group’s issues. With this in mind, OMRON is in close communication with the OMRON Group Trade Union Confederation regarding business plans, management measures, and working conditions.

Management policies, business plans, and management and business measures are explained to union members at various Management Council meetings, while discussions on working conditions are held at Labor-Management Council meetings and Labor-Management Review Committee meetings. Through extensive discussions based on respect for the other party’s position, the company and the Trade Union jointly pursue the Group’s sustained development and the wellbeing of Union members.

In fiscal 2020, labor and management worked hard together to propose and carry out a number of ideas to reform personnel system and management support measures, aiming to realize sustainable growth of both the company and employees. Among the initiatives are:
- Retirement benefit & pension system reform to enhance sustainability of the defined contribution pension system, including additional educational support and products
- Shift from relative evaluation to absolute evaluation to enhance employees’ motivation
- Establishment of a new system to continue to employ 65-year-old and order suited to the new era

A similar stance is taken outside Japan. Each of OMRON Group company in Greater China has organized a labor union, initiating activities to encourage discussion between the management team and representatives of employees, and promote better understanding between them.

Trade Union Membership Rate

84% (provisional figure) in 22 countries including Japan*1, Mexico, Brazil, Italy, Sweden, Turkey, Netherlands, Poland, Belgium, Austria, France, Bangladesh, India, Indonesia, Malaysia, Vietnam, Philippines, Singapore, Thailand, Australia, New Zealand and South Korea (As of March 31, 2022)

  • *1:In Japan, 97% of employees are trade union members
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