Human Rights and Labor

Human Rights and Labor Policy

In recent years, companies have been required to carry out human rights due diligence based on the UN Guiding Principles on Business and Human Rights. In Japan too, the government formulated the National Action Plan for Business and Human Rights in October 2020.

TAIYO YUDEN Group not only complies with the labor laws and regulations of each country in which it operates, it also supports and respects major international standards and rules for protecting human rights, such as the UN Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the UN Global Compact, the UN Guiding Principles on Business and Human Rights, and the standards of the Responsible Business Alliance (RBA).

In May 2020, TAIYO YUDEN signed onto the UN Global Compact and has been acting in accordance with its “Ten Principles,” which are set out under the headings of Human Rights, Labor, the Environment, and Anti-Corruption.
Since FY2020, we have been participating in various subcommittees hosted by the Global Compact Network Japan such as the Human Rights Due Diligence (HRDD) Subcommittee, SDGs Subcommittee and Human Rights Education Subcommittee.

TAIYO YUDEN Group undergoes a third-party evaluation positively to make continuous improvement.
TAIYO YUDEN Group's main sites undergo RBA VAP audits on an ongoing basis, and third-party evaluations are conducted regarding the status of compliance with the RBA Code of Conduct. Most recently, TAIYO YUDEN Mobile Technology's headquarters and TAIYO YUDEN Nakanojo Plant received the highest level of "Platinum" certification (valid until February 21, 2027, and January 17, 2027, respectively), while Wakayama TAIYO YUDEN, Fukushima TAIYO YUDEN, and TAIYO YUDEN Tamamura Plant received "Gold" certification (valid until March 19, 2027, July 14, and June 16, 2025, respectively).

Policies (CSR Code of Conduct)

Article 11 (Labor)
  • 1.
    No child labor, forced labor or its support, enhancement or promotion shall be made.
  • 2.
    Work conditions shall be controlled appropriately. (Wages, work hours, holidays etc.)
Article 12 (Respect of Human Rights, Anti-Discrimination and Anti-Harassment)
  • 1.
    The diversity, personality and individuality shall be respected and the work environment without any discrimination shall be ensured.
  • 2.
    No power harassment or sexual harassment by authority shall be conducted.
Human rights and labor promotion Framework

Human Rights Due Diligence and
Labor Human Rights Management System

TAIYO YUDEN Group is engaged in developing human rights policy, conducting human rights due diligence (Identification of adverse effects on human rights, prevention and mitigation of adverse effects on human rights, follow-up of effectiveness of response, dissemination of information and communicate outside the company), and establishing a remedial mechanism.

TAIYO YUDEN Group develops and operates the labor and human rights management system to ensure an appropriate work environment where human rights are duly respected.
In order to implement specific initiatives, we have established the Labor and Human Rights Management Policy and Compliance Requirements, and each site conducts PDCA activities to make continuous improvements.

TAIYO YUDEN Group had established the "Group Labor Rights Management Manual" and the "Management Standards for Limiting Working Hours to 60 hours per week and limiting working hours to 6 consecutive days," etc., and all sites are operating and monitoring accordingly. In cases where employees work more than 60 hours a week or more than 6 days in a row, we take measures to prevent recurrence by creating a "Violation / Countermeasure Report."In addition, As part of human rights due diligence (① identifying adverse impacts on human rights, and ② preventing and mitigating adverse impacts on human rights), we have been conducting RBA-based labor and human rights self-assessments at all sites on a regular basis (every other year) since FY2020, evaluating risks related to human rights, labor, etc., and carrying out improvement and corrective activities based on feedback. Regarding non-compliance, we have created corrective action plans (including root causes, improvement measures, preventive measures, deadlines, etc.) and are working to reduce risks.
In FY2024, we conducted self-assessments regarding ethics (in collaboration with procurement, legal, intellectual property, and public relations departments) in addition to human rights and labor.

  • *
    Ethics: power harassment, sexual harassment, intellectual property rights, bribery and corruption, human rights issues in the supply chain, and the right to access remedies (25 types of human rights risks from the Ministry of Justice of Japan)

TAIYO YUDEN Group does not have any significant human rights issues. We have TAIYO YUDEN Group has listed 8 important themes in our Labor and Human Rights Management Policy and Compliance Matters which are child Labor, forced labor, health and safety, freedom of association, discrimination, inhumane treatment, appropriate working hours, and compensation/Wages.

Management Review
At Taiyo Yuden Group, the executive officer in charge of Articles 11 and 12 of the CSR Code of Conduct (Labour, Respect for Human Rights, Discrimination, and Harassment), who is responsible for ensuring the implementation of the labor human rights management system and related programs, regularly reviews the status of the management system. In addition, we formulate an implementation plan (including objectives, improvement targets, and previous year's performance and evaluation) every fiscal year and work toward continuous improvement.
Human rights and labor for temporary workers
TAIYO YUDEN Group (including overseas production plants) concludes agreements on human rights and labor and conducts regular evaluations such as audits and corrective actions with employment agencies, contractors and security / cafeteria / cleaning personnel (on-site) etc.
In FY2024, 130 companies sighned agreements, 131 cases were pointed out through audits, etc., and the correction rate was 100.0%. [In FY2023, 146 companies sighned agreements, 86 cases were pointed out through audits, etc., and the correction rate was 100.0%.]
Human rights and labor for Suppliers

Internal audit

In FY2024, we conducted remote internal audits at our domestic sites (8 sites) using RBA as the base [Labor/Labor Management System] . We also conducted on-site internal audits at our overseas munufacturing site (China). All 4 findings have been corrected. Regarding non-conformities, we create corrective action plans (including root causes, improvement measures, preventive measures, deadlines, etc) and work to reduce risks.
In addition to compliance, we have begun efforts to improve effectiveness (risk management) and share good practices from FY2024.

Implementation of internal audit

TAIYO YUDEN (CHANGZHOU)
(FY2024)
KOREA KYONG NAM TAIYO YUDEN
(FY2023)
TAIYO YUDEN(SARAWAK)
(FY2023)
TAIYO YUDEN(GUANGDONG)
(FY2023)
TAIYO YUDEN(PHILIPPINES)
(FY2023)

Past findings

  • The items of "root cause," "improvement measures," and "preventive measures" are not specified in the corrective action plans of dispatched on-site contractors, security, cafeteria, and cleaning companies.
  • The process for disclosing job information is not clearly defined (there is no procedure manual for disclosing job information)
  • Needs analysis regarding the training plan is not clearly stated
  • Age is stated on the job posting
  • Employees are not regularly informed of the overtime rate on their pay slips.

Number of Findings in Internal Audit and Correction Rate

Number of findings Correction rate This is a bar graph of the number of issues pointed out (cases) from FY2018 to FY2024 and a line graph of the correction rate. The number of issues pointed out is as follows: FY2018: 35 cases, FY2019: 22 cases, FY2020: 26 cases, FY2021: 52 cases, FY2022: 17 cases, FY2023: 33 cases, FY2024: 4 cases. The correction rate is 100% every year.

Cumulative total of internal audit findings

Cumulative total of findings This is a line graph of the cumulative number of issues pointed out from FY2018 to FY2024. The cumulative number of issues pointed out is FY2018: 35, FY2019: 57, FY2020: 83, FY2021: 135, FY2022: 152, FY2023: 185, FY2024: 189.

Education

In order to increase employees' understanding of issues related to "respect for human rights and appropriate labor conditions", TAIYO YUDEN Group regularly provides employee training, particularly on the prohibition of child labor and forced labor, discrimination and inhumane treatment.

In FY2024, we continued to conduct regular training through e-learing for employees at domestic sites (including the UN Global Compact, the United Nations Guiding Principles on Business and Human Rights, our human rights policy, harassment prevention, sexual orientation, etc.), and shared the training materials (including the English version) with all sites.
We conducted regular specialized training through e-learing for employees in the labor and human rights department in Japan.
In addition, we conduct comprehension tests regarding the content of each training program to confirm its effectiveness.

Training on CSR CoC for Employees in Japan
Article 11, 12 (Labor, Respect of Human Rights, Anti-
Discrimination and Anti-Harassment)

Participants (person) Participation rate This is a bar graph of the number of participants (people) from FY2020 to FY2024 and a line graph of the participation rate. The number of participants was FY2020: 4,847 people, FY2021: 5,110 people, FY2022: 5,384 people, FY2023: 5,453 people, and FY2024: 5,652 people. The participation rates were FY2020: 92.3%, FY2021: 94.1%, FY2022: 93.9%, FY2023: 93.3%, and FY2024: 94.5%.

Specialized Training for Employees in Labor and Human Rights
Dept. in Japan

Participants (person) Participation rate This is a bar graph of the number of participants (people) from FY2020 to FY2024 and a line graph of the participation rate. The number of participants was FY2020: 50 people, FY2021: 66 people, FY2022: 71 people, FY2023: 76 people, FY2024: 79 people. The participation rates were FY2020: 98.0%, FY2021: 97.1%, FY2022: 95.9%, FY2023: 93.8%, FY2024: 95.2%.

Prohibition of Discrimination and Inhumane Treatment

TAIYO YUDEN Group prohibits discrimination and inhumane treatment. We respect the individuality of employees and prohibit discrimination based on nationality, gender, religion, age, sexual orientation, or other attributes. Furthermore, in order to prevent all forms of harassment, we provide training to employees on a regular basis to increase their understanding of the issue.

TAIYO YUDEN Group regularly shares information about its support and consideration for people with disabilities and foreign workers. In addition, we have taken measures to reduce discrimination by monitoring through the Monthly Report on Human Rights and Labor.

Examples of Consideration
  • Accessible toilets, Priority lanes for pregnant woman and disabilities in cafeteria
  • Unisex factory uniforms
  • Japanese language classes, Notice of events such as softball games cheering, translations of foreign languages for general information and internal documents.

In addition, TAIYO YUDEN Group (including overseas production plants) has an advisory service for employees at each base to prevent harassment. We provide contact information during orientation (for new employees and mid-career hires) and regular training. We have created a harassment response procedure manual (including protection of anonymity, confidentiality, and prohibition of retaliation) for consultation services. In FY2024, there were 19 harassment consultation cases (one of which resulted in disciplinary action), and while taking into consideration the privacy of both the victim and the perpetrator, we are working to prevent the occurrence of harassment by sharing consultation cases with the human resources and general affairs departments of each site.
In FY2024, Taiyo Yuden conducted harassment prevention training (3,177 people took the e-learning course and 283 people took the management/supervisor training course).

Harassment prevention training at group companies

TAIYO YUDEN (CHANGZHOU)
KOREA KYONG NAM TAIYO YUDEN
TAIYO YUDEN(SARAWAK)
TAIYO YUDEN(GUANGDONG)
TAIYO YUDEN(PHILIPPINES)

For example, we give consideration to employees' religious customs by making a prayer room available for Muslim employees. We also provide advisory services for employees to use as necessary.
Also, we provide periodic human rights guidance to security guards, particularly with a focus on preventing incidents of harassment.

TAIYO YUDEN extends welfare benefits to all employees, regardless of whether they are employed on a regular or non-regular basis, such as health checkups and other medical care programs, compensation for workplace injuries and illnesses, and childcare and family care leave.

Prohibition of Child Labor / Forced Labor

TAIYO YUDEN Group is committed to the prohibition of child labor and forced labor.

Child Labor

The UN Global Compact states that "Principle 5: Businesses should uphold the effective abolition of child labor".
Taiyo Yuden Group writes "①TAIYO YUDEN GROUP shall not apply the child labor at any stage. The term “child” refers to any person under the age of 15, or under the age for completing compulsory education, or under the minimum age for employment in the country, whichever is greatest. ②Young worker (who is supposed to be over the child age, and also less than 18 years old) is not applicable for overtime work, midnight work, or any work which can be harmful or dangerous in physical or mental growth, in accordance with the laws and regulations in the nation." in the compliance items, and as part of its actions [initiatives], the following contents are regularly confirmed through internal audits and other means.

  • Workers are not below the minimum age
  • Workers under the age of 18 are not allowed to perform work that is likely to jeopardize the health or safety of these young workers, including night work or overtime
  • Apprentice/Intern/Student Worker employment conforms with learning objectives

Furthermore, we have established "Work Standards for Child Applicants," and have confirmed how to respond in the event of child labor (guaranteeing physical safety and not exposing the child worker to the threat of retaliation, as well as conducting medical examinations and taking appropriate measures as necessary).

Forced Labor

The UN Global Compact states that "Principle 4: Businesses should uphold the elimination of all forms of forced and compulsory labor".
Taiyo Yuden Group writes "①TAIYO YUDEN GROUP shall not have employees engage in any kind of enforced labor, debt or slave labor, involuntary prison labor, or trafficking of persons. ②When hiring workers (including foreign workers, dispatched workers and contractors), GROUP do not ask employees to pay deposit, or to submit officially issued ID, passport. Also, GROUP must have employees not required to pay any commission relating recruiting. ③GROUP shall give employees right to leave the working site during break time or after working hours, for the reason of mal physical condition and physiological phenomenon, and also to finish the employment contract with rational inform." in the compliance items, and as part of its actions [initiatives], the following contents are regularly confirmed through internal audits and other means.

  • Any type of forced, involuntary or exploitative prison, indentured, bonded (including debt bondage), trafficked or slave labor is not permitted
  • Terms and conditions of employment are provided in writing and in their native language prior to employment (foreign and internal migrant workers: before leaving their home country/region) and the key terms and conditions of employment are explained verbally in their native language, so workers understand what the terms and conditions of employment state
  • The worker's government issued identification and personal documentation originals are not held by employer and agents

To prevent child labor violations, each site confirms that prospective new hires have reached the legal working age before an offer of employment is made.
Also, the company presents the employment terms and conditions (which comply with local laws and regulations as well as international rules) to each prospective new hire and confirms their agreement before an employment contract is signed.

In case of personnel transfer requiring a change of residence, the company notifies the relevant employee and the labor union of the planned transfer at least one month in advance, in principle. If the labor union files an objection to any specific transfer questioning the appropriateness of the assignment or assignee or raising other issues, the company consults with the union to seek its agreement regarding the transfer.

Goal

Compliance rate: 100% in all countries and regions

FY2024 Results

Country or Region Employees
(in thousands)
Prohibition of Child Labor Prohibition of Forced Labor
Japan 6.2 100% 100%
USA, Europe 0.1 100% 100%
Greater China 4.5 100% 100%
South Korea 1.0 100% 100%
Singapore, Malaysia, Thailand 6.3 100% 100%
Philippines 3.8 100% 100%

Labor Management

TAIYO YUDEN Group ensures that each site complies with applicable statutory standards for working hours, number of workdays, and holidays while understanding and working to satisfy the working conditions required by the RBA Code of Conduct.

Each site manages employees' working hours accurately with a highly reliable system, complies with applicable local laws and regulations regarding compensation, such as minimum wages and equal pay for equal work for men and women, and pays fair wages to each employee based on their performance. Also, we offer a range of leave programs, including paid leave as well as childcare and family care leave, and encourage employees to use the programs appropriately according to their needs and family situation. We are also working to prevent overwork and reduce overtime hours.

Communication with Employees

Recognizing the importance of maintaining relationships based on mutual trust between employer and employees in order to facilitate business activities, TAIYO YUDEN Group creates opportunities for employer-employee communication, such as opinion exchange sessions.
Regularly hold labor-management conferences, etc. [including respect for or support for the right to collective bargaining].

The UN Global Compact states that "Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining".
Taiyo Yuden Group writes "TAIYO YUDEN GROUP shall respect the right to associate without any fear of revenge, threat, harassment, to enter the union and social gatherings and meetings between labor and employer and, to join a protest action, labor council in accordance with the laws and regulations in the nation." in the compliance items, and as part of its actions [initiatives], the following contents are regularly confirmed through internal audits and other means.

  • Workers can form or enroll in a trade union of their own free will
  • Legal rights of all workers to bargain collectively, or refrain from doing so, are respected
  • Participants respect the legal right of all workers to peacefully assemble

Based on the policy of enabling "job satisfaction, a purposeful life, and a comfortable lifestyle," TAIYO YUDEN is working together with the labor union to improve the workplace environment.
When major changes are being made to operating practices, the company and the union hold discussions at meetings of the Central Labor-Management Council. In pursuit of common goals to achieve the ongoing development of the company, the Labor-Management Exploratory Committee holds meetings to discuss issues related to working conditions and the workplace environment. The company and union have concluded a collective labor agreement regarding occupational health and safety, based on which issues are discussed and examined. When engaging in collective bargaining, the company and the union observe agreed-on provisions setting forth the notification period and consultation and negotiation rules, engage respectfully with one another, and act in good faith and in an orderly manner.

Labor Union at TAIYO YUDEN

Number of members: 2,742
Participation rate (out of the entire workforce): 81.9% (as of the end of FY2024)