Realizing the importance of considering human rights in global business environments, Nidec upholds international guidelines such as “the UN Guiding Principles on Business and Human Rights,” “the UN Global Compact,” “the UN Universal Declaration of Human Rights,” and “the ILO Declaration on Fundamental Principles and Rights at Work” in response to the diversifying human rights-related issues.
The Nidec Group CSR Charter provides for “respect for human rights,” while the Nidec Group Declaration on CSR Conduct, which complements the CSR Charter, prohibits forced labor, child labor, and discrimination and inhumane treatment, and guarantees proper wages; work hours, non-work days, and leaves; freedom of association; and the right to collective bargaining.
Nidec Corporation’s CSR Committee, an organization under the company’s Board of Directors, comprises the chairperson, who is appointed by the Board (the current chairperson is Mr. Akira Sato, Nidec Corporation’s Executive Vice President and CPO), and other members appointed at individual sites, and deliberates and makes decisions on important matters, such as activity policies and annual plans of CSR-related issues in general (e.g. human rights issues).
The Nidec Group annually assesses human rights-related and other risks at all of its business sites, including newly established ones and those that have newly joined the group via M&A. The group has in place a whistle-blowing system for employees to ask for aid in the face of any actual or suspected human rights abuse.
The Nidec Group’s human rights-related risk assessment is most focused on Asia, where more than 70% of its employees work. Working with a third-party certification organization, we regularly conduct an RBA (the former EICC)*-based audit mainly on major factories in the region, while strictly checking the seven-side audit items on employees’ human rights, including free will of employment, young labor force, and work hours. We prioritize human rights-related risks identified in an audit, and address them one by one.
*RBA (Responsible Business Alliance) Code of Conduct: A code of conduct, established by the electronics industry, on business activities throughout the supply chain.
The Nidec Group’s sites in China, working with their customers, improved the way to manage their factories’ work hours, and maintained the improved way of work hour management. A CSR audit based on an international standard (RBA) revealed that their employees’ excess work hours are mainly attributed to labor shortage and fluctuation in production demand, among other reasons.
To address these issues, the sites acted to improve their production plans’ accuracy and raise their employees’ awareness on work hours, to successfully improve the factories’ productivity and lower the employees’ turnover rate based on a better employee satisfaction level.