Sustainability

Respect for Human Rights

Basic Principles Regarding Respect for Human Rights

Corporate Philosophy

Fuji Electric Group's corporate philosophy is "to pledge as responsible corporate citizens in a global society to strengthen our trust with communities, customers and partners and fulfill its mission with integrity", and the missions are “to contribute to prosperity”, “to encourage creativity”, “to seek harmony with the environment” through any business activity, and thereby to contribute to the realization of a sustainable society.

Corporate Code of Conduct

Fuji Electric has established the "Code of Conduct" which sets out eight standards as the basis for decision-making and behavior for Fuji Electric and its employees to enable Fuji Electric and every single employee to understand and comply with relevant laws and regulations/international rules and their spirit both in Japan and overseas, and to act with high ethical standards in order to put the "Corporate Philosophy" into practice and fulfill their social responsibilities.

These standards apply to all officers and employees (including temporary workers) of Fuji Electric Co., Ltd. and its affiliated companies.

Code of Conduct Regarding Respect for Human Rights

The first item in this standard is "Respect and value all people," and it clearly states that we will "respect human rights in our relationships within all corporate activities."
The company has clarified its policy to "conduct human rights due diligence to recognize, prevent, and deal with adverse human rights harm based on international human rights regulations such as the Universal Declaration of Human Rights and the United Nations Guiding Principles on Business and Human Rights."

With regard to the supply chain, setting out to “Respect and value our business partners” , we have established the "Fuji Electric CSR Procurement Guidelines" to build a supply chain that supports a sustainable society, including respect for human rights, thereby clarifying our policies for promoting procurement activities, together with our business partners.

Fuji Electric understands that its business activities have an impact on human rights, and will take into consideration the views of all stakeholders involved in all business processes.
We respect human rights and strive to prevent and mitigate any negative impacts that our corporate activities may have on human rights, thereby contributing to the realization of an inclusive society.

Code of Conduct Regarding Establishing a Governance System

Fuji Electric has stated that "Top management will thoroughly practice this standard," and to put this standard into practice, Fuji Electric management will build and promote soundness, efficiency, transparency, an effective governance system, and a compliance system that ensures thorough compliance with laws and social norms. This standard will be shared with all employees and communicated to partners, etc., as well as supply chains.

These standards were established following deliberation at the Executive Committee, an advisory body to the Representative Director, Chairman and CEO and Representative Director, President and COO, and reporting to the Board of Directors.

Respect for International Norms Regarding Human Rights

In its efforts to respect human rights, Fuji Electric will comply with the laws and regulations of the countries and regions in which it conducts business, and in particular will support and respect the following global principles and norms.

Governance System Regarding Human Rights

Fuji Electric has established the "SDGs Promotion Committee^*1"consisting of executive officers in business, sales, and corporate divisions to discuss, promote, manage and evaluate policies/measures regarding issues related to the environment, human rights/human resources empowerment and sustainable supply chains. The matters discussed in the SDGs Promotion Committee are regularly reported in meetings of the Executive Committee comprising of all executive officers and Board of Directors.

Regarding the human rights of the employees of Fuji Electric Group, we have established in the SDGs Promotion Committee the “Human Rights Promotion and Human Resources Empowerment Subcommittee^*2” headed by the executive officer in charge of human resources to discuss and evaluate policies/measures for “incorporating respect for human rights into management measures”, “empowering diverse human resources” and “raising job satisfaction”. Furthermore, we have organized “Human Rights Awareness Promotion Committees^*3” in its business sites and consolidated subsidiaries in Japan and overseas, establishing a system to promote thorough compliance with human rights.

Regarding respect for human rights in supply chains, the corporate procurement division works together with the relevant divisions such as the sustainability promotion division to plan/promote measures regarding issues related to sustainable supply chains including human rights issues.

*1 SDGs Promotion Committee:
Chaired by the Managing Executive Officer in charge of the President's Office, with the Managing Executive Officer in charge of the Environment, the Managing Executive Officer in charge of Human Resources, and the Executive Officers in charge of each business as committee members, the committee meets twice a year.
The Human Rights Promotion and Human Resources Empowerment Subcommittee has been established as a permanent subcommittee of the SDGs Promotion Committee, and is responsible for discussing and evaluating various policies and measures.

SDGs Promotion System

*2 The Human Rights Promotion and Human Resources Empowerment:
Headed by the Managing Executive Officer in charge of the Human Resources and General Affairs Office, the subcommittee shares human rights issues across Fuji Electric and plans and formulates company-wide policies and measures.
The subcommittee meets twice a year in principle to summarize activities based on the annual policy, and to consider and plan measures for individual issues.

*3 Human Rights Awareness Promotion Committee:
At each business site and subsidiary, a Human Rights Awareness Promotion Committee is organized with the business site manager, human rights officer, etc. as chairperson.

Priority Issues of Human Rights

Fuji Electric regards the following human rights issues as priority issues that should be addressed in all processes of its corporate activities, and will address them through appropriate procedures.

Specific Policies Regarding Respect for Human Rights

Policy for Human Rights of Employees

Based on the "Code of Conduct," Fuji Electric has established the "Policy for Human Rights of Employees" with the aim of respecting the basic human rights of all employees working in the Fuji Electric Group. In formulating the policy, we have referenced international standards and guidelines on human rights and have established policies on specific human rights issues.
This policy has been translated into various languages and deployed to each country's business site, and also made into posters and displayed in the workplaces of each business site.

In addition, to promote the dissemination of the "Policy for Human Rights of Employees," the Fuji Electric Group has established the "Guidelines on Employee Human Rights" and is distributing them throughout Japan and overseas.
The "Guidelines on Employee Human Rights" was formulated based on international standards such as the RBA Code of Conduct, and specifically state the matters that should be addressed with regard to each item in the "Policy for Human Rights of Employees."

Policy Regarding Supply Chain

Based on the “Fuji Electric Code of Conduct”, Fuji Electronic Group clarifies in its purchasing policy that it seeks business partners with adherence to its behavioral guideline of “fair trade” from around the world who have excellent competitiveness, and are considerate of corporate social responsibility. And our policy is to build a better partnership, deepen mutual understanding, and strive to maintain and improve cooperative relationships with every business partner through equitable/fair trade with free competition that does not discriminate between domestic and international ones.

In addition, to specifically realize this policy, we have set out the “Fuji Electric Group CSR Procurement Guideline” in compliance with the RBA Code of Conduct and requests for understanding and practice of this guideline including efforts to respect human rights, targeting at every business partner and its supply chains.

Human Rights Due Diligence

In light of the UN “Guiding Principles on Business and Human Rights”, Fuji Electric will fulfill its responsibility to respect the human rights of all stakeholders involved in our corporate activities.
To achieve this, we continually conduct "human rights due diligence" to identify, prevent, mitigate, and address potential adverse impacts on human rights.

Initiatives for Employees of Fuji Electric

We conduct a survey and evaluation of the current situation regarding human rights and labor using a self-assessment question (SAQ) that complies with the latest international standards at all domestic and overseas business sites and consolidated subsidiaries.

In fiscal 2022, we revised our "Guidelines on Employee Human Rights" and "Human Rights and Labor Assessment Sheet" to be more effective and in line with the latest international standards , and conducted an analysis of human rights risks (including temporary workers) using SAQ at all domestic and overseas business sites and 84 consolidated subsidiaries (42 domestic and 42 overseas) . No significant human rights risks were identified, but we found that efforts were lacking in areas such as "publicizing human rights policies" and "planned implementation of human rights education."
We have taken measures to improve the situation at 11 subsidiaries.

In addition, we have provided our "Guidelines on Employee Human Rights" to temporary staffing companies and contractors under contract with Fuji Electric Group companies, and we request that they support and practice our human rights policy. In this way, we are promoting respect for the human rights of not only directly employed employees, but all people who we work with.

Supply Chain Initiatives

To prevent human rights risks in its supply chain, Fuji Electric conducts an annual CSR self-assessment of major suppliers that account for the top 80% of its transactions, checking their compliance with the Fuji Electric CSR Procurement Guidelines and requesting improvements.

In fiscal 2023, we surveyed 783 companies (667 domestic and 116 overseas) to determine risks in areas including human rights and labor, health and safety, the environment, fair trade and ethics, product quality and safety, information security, and business continuity plan. We have interviewed 16 companies deemed in need of improvement to deepen their understanding of CSR and confirmed that they have improved their situations.

From October 2022, we require new suppliers to conduct a CSR self-assessment to check the status of their human rights initiatives.

Statement on Modern Slavery and Human Trafficking

Fuji Electric strives to "not violate or be complicit in human rights violations" in its own business and supply chain. This statement describes our efforts to eliminate modern slavery, such as forced labor, and human trafficking. The statement can be accessed from the link below.

Human Rights Consultation Desks and Whistle-Blowing System

Fuji Electric has set up a consultation and reporting desk as a grievance mechanism for employees and business partners regarding human rights.

Business Ethics Helpline

Fuji Electric introduced and are operating the Fuji Electric Business Ethics Whistle-Blowing Systems. Under these systems, internal and external parties can report real or suspected violations of laws, regulations, or internal rules including matters related to bribery and corruption to Fuji Electric’s President and COO via reporting points (in-house contact points and outside lawyers). (Anonymous reporting is also possible.)

Business Ethics Helpline

The Business Ethics Helpline handles reporting from Fuji Electric Group executives and employees in Japan and overseas (including retirees and dispatch employees). We strive to ensure awareness of the Helpline through posts in the company magazine and intranet.

Partner Hotline

The Partner Hotline handles reporting from outside stakeholders such as business partners. We strive to build full awareness of the system through posts on our public website and at explanatory forums for business partners.

In all reporting systems, we begin by taking thorough steps to protect the whistleblower by keeping his or her information confidential and prohibiting disadvantageous treatment, retaliation, or discrimination on the basis of his or her report. We then investigate the facts, take corrective measures, prevent recurrence, impose disciplinary measures, and take other necessary actions to resolve the issue and provide feedback detailing our response to the whistleblower. (Even in cases of anonymous reporting, we strive to provide indirect feedback through the measures described above.)

In fiscal 2023, our Whistle-Blowing Systems received 43 reports both in Japan and overseas, and these reports included 7 violations (2 harassment claims, 3 labor-related claims, 1 accounting-related claim, and 1 other claim). In all cases, necessary measures, including corrective actions and measures to prevent recurrence, have been taken.

Human Rights Consultation Desks

We have set up consultation desks at all domestic sites of the Fuji Electric Group as a means for employees to seek advice. We strive to create an environment where employees feel comfortable seeking advice by publicizing the relevant departments and the names of the people in charge on the intranet and noticeboards at business sites, and by providing consultation not only in person but also by telephone and email.

Human Rights Education and Training

Fuji Electric provides education and training to all executives and employees to deepen their understanding of the company's responsibility to respect human rights.

Education and Training to Foster an Organizational Culture That Respects Human Rights

Education on Business and Human Rights

In fiscal 2023, we conducted a company-wide e-learning course on the theme of business and human rights, with 11,075 employees taking the course. We promoted understanding of the importance of respecting human rights, risk management, and our company's human rights awareness efforts, and aimed to improve employees' human rights literacy.

Level-Specific Training

In Japan, we provide basic human rights training for new recruits, and training for assistant managers and managers to deepen their awareness of business activities and human rights risks. We also provide human rights training to mid-career recruits and newly appointed directors of Group companies, with a total of 1,101 people participating in fiscal 2023.

Mental Health Education

We conducted mental health education and job-level interviews through e-learning at each business site and across the company, with a total of 30,282 employees taking part in fiscal 2023.

Diversity training

We are continuously implementing various measures to promote employee awareness of diversity and foster a pleasant workplace environment. In fiscal 2023, a total of 307 people participated in training for those who were to be promoted to higher positions, aimed at understanding the importance of diversity, the company's initiatives, and the roles they should play in each position.

In addition to the above, various human rights awareness training programs are also conducted at each business site and subsidiary, with 11,192 employees taking part in the program in fiscal 2023.

Education and Training for Human Rights and Recruitment Personnel

In order to deepen understanding of human rights, human rights and recruitment personnel (including those at domestic subsidiaries) regularly participate in external training sessions. In fiscal 2023, 123 employees participated in training sessions on issues such as “Dowa issue (Buraku discrimination)”, harassment, and LGBTQ, organized by local governments and human rights organizations.

Education and Training for Procurement Personnel

In the procurement division, in education programs regarding procurement operations for newly assigned employees and briefing sessions on measures based on the “Fuji Electric CSR Procurement Guideline” at meetings comprised of corporate and business sites procurement managers, we are promoting understanding/dissemination of the importance of efforts to respect human rights in supply chains.

Preventing Harassment

Fuji Electric prohibits all forms of harassment in the "Policy for Human Rights of Employees"
In addition to disseminating the "Guidelines on Employee Human Rights" to human rights officers at each business site, we have set up " Human Rights Consultation Desks" at each company's major business sites to deal with all aspects of human rights, and introduced the "Business ethics helpline" that can be reached by phone or email and is separate from the regular business lines. Furthermore, we have taken measures such as including disciplinary clauses in our work regulations, and regularly conduct e-learning programs.

Participation in Initiatives/Industry Collaborations

We actively participate in international organizations and industry initiatives addressing human rights issues.

Japan Electronics and Information Technology Industries Association (JEITA) "CSR Committee"

As a member of the JEITA CSR Committee, we address various CSR-related issues common to the industry, and also participate in activities such as research, studies, dissemination and external recommendations from a specialist standpoint on CSR.

Tokyo Human Rights Awareness Business Association

We are a member of the Tokyo Human Rights Awareness Business Association and are continually working to promote and improve human rights awareness through initiatives that involve sharing issues and holding dialogue with member companies.

Global Compact Network Japan (GC- NJ)

In February 2010, we signed and declared our support for the United Nations Global Compact, a set of voluntary action principles for companies and organizations in the areas of human rights, labor, the environment, and anti-corruption advocated by the United Nations. We also participate in the Human Rights Due Diligence Subcommittee, Human Rights Education Subcommittee, and Supply Chain Subcommittee of the Global Compact Network Japan, a local network in Japan.

Information Disclosure

Fuji Electric will deepen mutual understanding and trust by promoting honest and active information disclosure and constructive dialogue with shareholders and investors. With regard to our efforts to respect human rights, we will disclose appropriate information on the progress and results of our human rights due diligence, while taking into consideration confidentiality of commercial transactions and ensuring that affected people and employees are not exposed to risk.

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