Respect for human rights

HUMAN RIGHTS

Respect for Human Rights

We believe that respecting the human rights of all stakeholders is our responsibility as a company, and we are working towards this throughout the entire Group.

Human rights issues related to global business activities have come more to the forefront in recent years, and this has accelerated the promotion of protections in international frameworks. In light of this global situation, we established a Human Rights Policy in FY2017 in accordance with the UN Guiding Principles on Business and Human Rights, revising it in 2023 in response to the growing importance of human rights issues. The Group appropriately responds to the potential impact of our business activities on human rights by eliminating behaviors that violate human rights, including forced labor and child labor, and by encouraging our suppliers to respect human rights as well.

DMC Group Human Rights Policy (established in January 2018, revised in January 2024)

We understand the significance of our corporate responsibility to promote the protection of human rights, to protect stakeholders’ rights and individuality, and to provide a safe, secure and comfortable working environment. The DMC Human Rights Policy conforms to international norms, including the International Bill of Human Rights and the Declaration on Fundamental Principles and Rights at Work by the International Labor Organization (ILO). Responsibility for human rights protection applies to all executives and employees at DMC and its affiliated companies. We also require all our suppliers and business partners to protect human rights. If human rights are violated, we take prompt and appropriate action.

Fulfillment of our responsibility to protect human rights

DMC promotes human rights protections in accordance with the Guiding Principles on Business and Human Rights specified by the United Nations. Specifically, we will thoroughly implement measures to prohibit discrimination, harassment, and violence based on race, nationality, gender, religion, beliefs, etc. We will prohibit forced labor (including human trafficking) and prohibit child labor. We will provide employees with wages and benefits that exceed the legal wage, prevent overwork, provide appropriate holidays, and ensure a safe and healthy work environment. And we will respect freedom of association and the right to collective bargaining, promote diversity, data security, and responsible mineral procurement.
DMC has established human rights due diligence processes to identify DMC business that negatively impacts human rights, and strives to reduce or prevent human rights violations. DMC continues to examine these processes to respond efficiently to potential and actual human rights risks and impacts.
In the event that DMC business activities cause a negative impact on human rights, either directly or indirectly, it shall strive to immediately remedy and rectify the issue through appropriate action.
DMC follows the laws and regulations of the regions where it conducts business activities. In the event that there is a contradiction among internationally adopted human rights conventions and laws and regulations in individual countries and regions, DMC strives to follow international principles of human rights protection.
DMC provides appropriate education and enlightenment to implement this basic policy into its corporate and business activities.
In terms of addressing potential or actual impacts on human rights, DMC engages in dialogue and consultation with stakeholders, including employees and suppliers, who may be affected through our business activities.
DMC discloses the progress and results of its approaches to human rights protection on its website and in its reports.

Code of conduct for respecting human rights

Prohibition of discrimination, harassment, and violence
DMC shall respect the human rights and personality of individuals, and create a fair and unprejudiced workplace environment by eliminating all forms of discrimination, harassment, and violence on the basis of race, religion, gender, sexual orientation, age, nationality, language, disability, social origin, wealth or ancestry.
Prohibition of forced labor
- DMC shall prohibit labor gained, either directly or indirectly, through human trafficking or slavery, and forced labor.
- All labor must be voluntary, and DMC guarantees that no unreasonable restrictions will be placed on the movement, separation, or retirement of employees in the facilities provided by DMC.
- Furthermore, DMC shall not retain or confiscate workers’ identification cards, passports, or work permits, etc., and neither shall it deny workers their use (unless legally required to do so).
- In the unlikely event that so-called modern slavery, forced labor, or human trafficking is discovered, the involved worker will be removed from the work. In addition, DMC shall contact agencies that assist in the rehabilitation of workers and maintain contact with agencies to assist in monitoring the health status of the individual.
Prohibition of child labor
- DMC shall respect the rights of children and prohibit the employment, either directly or indirectly, of persons younger than the minimum working age (15 years old) stipulated in international norms, or the age of completion of compulsory education stipulated by the countries and regions where we operate, or the legal minimum working age in the relevant countries and regions. Moreover, under no circumstances shall young workers under the age of 18 engage in night work, overtime work, or dangerous work that threatens the health or safety of workers.
- In order to ensure the above, DMC shall verify the person’s age using documents issued by a public institution when an employment contract is signed.
- If the worker is under 18 years of age despite conducting proper age verification, as the employer, DMC shall explain the situation to the worker's parents or guardians (including with regard to supporting the worker's return home). Further, DMC shall report the matter to the Labor Standards Inspection Office, accept guidance on how to correct the situation, and take appropriate measures.
- DMC shall comply with all laws and regulations in the implementation of internships and other workplace learning programs.
Preventing overwork and providing appropriate holidays
- DMC shall strictly adhere to work hour regulations, not exceeding the customary working hours stipulated in the countries and regions in which we operate, providing at least one day off per week.
- In addition, annual paid leave will be granted appropriately based on local laws and regulations.
Wages and benefits
- DMC shall comply with laws regarding benefits, etc. stipulated in the countries and regions in which we operate, including minimum wages, overtime wages, equal pay for equal work, etc., striving to pay a living wage and providing welfare benefits required by law.
- DMC shall provide timely and easy-to-understand payslip statements with sufficient information to confirm accurate compensation for work performed during the pay period.
Health and safety
DMC shall comply with laws and regulations related to health and safety stipulated in the countries and regions where we operate, striving to create a safe, secure, and healthy working environment. This includes providing personal protective equipment needed for work and implementing health and safety management systems to maintain continuous improvement. DMC shall also integrate safety in all processes, continually provide training, and promote a strong safety culture.
Respect for freedom of association and the right to collective bargaining
- DMC shall respect employee’s freedom of association, freedom to join or not join a union, and the right to collective bargaining and peaceful assembly, in accordance with local laws and regulations.
- Moreover, DMS shall not unlawfully dismiss any employee.

Prohibition of Forced Labor and Child Labor

The DMC Group has a factory in Indonesia where human rights risks are high and where many local employees work. As such, we prohibit forced labor and child labor. As well as prohibiting forced labor, both domestically and internationally, DMC secures appropriate working hours and develops a work environment based on respect for the culture in each location. In addition, we are thoroughly working to prevent child labor by requiring employees to submit an official certificate when joining the company, by always verifying their age, and by not hiring applicants under the age of 18.

Prevention of Discrimination and Harassment

DMC respects the personality of individual employees and strives to prevent discrimination or harassment. We are focusing on education, such as conducting self-checks and training on harassment, for managers and those in higher positions who especially need the right knowledge and skills to respond appropriately. In addition to the above, education on harassment and human rights is provided as part of new employee training, mid-career entry training, and skills training to ensure a thorough understanding of the issues. Along with raising awareness through training and other means, we are strengthening communication with employees by holding individual interviews (four times a year) and by implementing a whistleblowing system. And at the Shirakawa Factory, a considerate work environment has been created that respects religious customs, for example, a prayer hall with small washroom for Muslims, and a time for worship, has been arranged.

Installation of a Human Rights Reporting & Consultation Desk

DMC has established a whistleblowing desk to provide appropriate and prompt responses to reports and consultations regarding human rights to prevent the risk of violations. In FY2023, we also established an external consultation desk, which received two consultations during FY2023. When receiving a report or consultation at the whistleblowing desk, we interview related persons, check the facts, and establish a disciplinary committee if necessary to decide how to proceed. Information about whistleblowers and their reports is strictly managed based on confidentiality obligations to ensure that whistleblowers do not suffer any disadvantage.

Number of Human Rights Reports and Consultations

	Scope	FY2021	FY2022	FY2023
No. of reports or consultations	Group	2	2	2
(Of which) human rights relatedrelated		0	0	0
(Of which) harassment related		0	2	1
No. of disciplinary actions due to violations		0	2	0

Training on Human Rights

In addition to human rights and compliance training for new employees, we conduct study sessions for management, including division managers, on our human rights policy, as well as social issues related to human rights and domestic and international trends. In FY2023, we held one training session each for managers and supervisors (approximately 60 employees) on the theme of harassment prevention.

Training Sessions on Human Rights

	Scope	Unit	FY2021	FY2022	FY2023
No. of sessions held	Group	Times	12	9	6
Attendance rate		%	100	74	62

Fair and Equitable Recruitment

Our policy is to recruit individuals based on their aptitude and abilities without regard to nationality, ethnicity, thinking or beliefs, religion, physical disability, gender, gender identity, or sexual preference, to provide job opportunities for a wide variety of people. In order to ensure that this policy is thoroughly implemented, the Human Resource Division has personnel who are familiar with the rules. A process is also in place to review a booklet that summarizes key points to bear in mind before interviewing any candidate. In addition, the recruitment process is published on our website and can be accessed by candidates at any time, ensuring transparency in the recruitment process. We also have systems in place to provide fair wages and benefits in consideration of human rights for employees who have joined the company.