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Human Rights Policy

We have established a policy to proactively and continuously conduct our business activities in consideration of internationally recognized standards and the like concerning human rights, and we will fulfill our responsibility to respect human rights, as is expected of global companies.

• View the Human Rights Policy[PDF:119KB]

Basic Policy on Human Rights

The Mitsubishi HC Capital Group Code of Ethics and Conduct include sections on "Respect for Human Rights and the Environment," and the Code of Conduct states under "Human rights" that "Consistent with the fundamental spirit of respect for humanity, no employee engages in any discriminatory action or human rights violation on the ground of gender, sexual orientation, age, nationality, race, ethnicity, political opinion, beliefs, religion, social status, lineage, illness, or disability."
Furthermore, we support and respect international norms concerning human rights, labor, the environment and anti-bribery, including the Universal Declaration of Human Rights, the International Covenants on Human Rights (International Covenant on Civil and Political Rights; International Covenant on Economic, Social and Cultural Rights), the UN Guiding Principles on Business and Human Rights (Ruggie Principles), and ILO Declaration on Fundamental Principles and Rights at Work. We strive to respect the human rights of all stakeholders under these basic principles on human rights.
The Group's compliance manual states, under "Respect for human rights and the prohibition of discrimination," that "All Group employees must respect basic human rights and must not engage in any discriminatory action or human rights violation on the ground of gender, sexual orientation, age, nationality, race, ethnicity, political opinion, beliefs, religion, social status, lineage, illness, or disability." Within this section, under "Eliminating harassment," it further states, "All Group employees should respect one another as professional partners and must work to eliminate all forms of harassment, including sexual harassment, harassment related to pregnancy, and abuse of power."

Human rights due diligence

In recent years, many countries have rapidly advanced human rights legislation that imposes a duty of respect for human rights on corporations. The Guidelines on Respecting Human Rights in Responsible Supply Chains issued by the Ministry of Economy, Trade and Industry in September 2022 require companies to (1) formulate a human rights policy, (2) undertake human rights due diligence, and (3) build a relief or complaint mechanism as the pillars of efforts to respond to human rights. As mentioned above, the Group has addressed these three human rights issues by formulating and publishing its Human Rights Policy. With regard to human rights due diligence, our Human Rights Project has designed a system that started operating in November 2023.
In terms of efforts to address human rights due diligence, we have, as a prerequisite, identified the areas of critical risk^* listed below. The system design incorporates the following two elements.

1. Screening business partners based on information regarding concerns about human rights violations We have established a mechanism for identifying clients, suppliers, and other business partners where information exists regarding concerns about human rights violations in areas of critical risk.
2. Eliminating the risk of human rights violations through dialogue with business partners (engagement)
   Where concerns have been identified through screening, we open a dialogue (engagement) with the business partners and, by concerning the actual situation and their responses, we encourage them to respect human rights initiatives.

The main objective of human rights due diligence is to prevent and reduce human rights risk in our corporate activities by using dialogue to improve and enhance human rights awareness at our business partners. Through repeated dialogue with business partners, we gain experience in how to handle human rights due diligence and effectiveness.

*Identifying areas of material risk

There are various types of human rights issues. Since it is important for our Group to identify the risks and to respond effectively, we have determined that the following areas present serious risk to the Group in light of the principles and recommendations of the United Nations Global Compact principles.

Respect for freedom of association and collective bargaining

We respect the ILO Declaration on Fundamental Principles and Rights at Work, which states that member countries have obligations to respect, promote, and realize the effective recognition of the freedom of association and collective bargaining. Our Human Rights Policy states as below in 1. Global Standards to be Respected and Upheld.

Response to the Modern Slavery Act in the UK

Based on the Modern Slavery Act enacted in the UK in 2015, Mitsubishi HC Capital UK PLC, our Group company in the UK has published an Anti-Slavery and Human Trafficking Statement on its website about efforts to prevent slave labor, human trafficking, and similar human rights violations.
Please refer to our website for details. (English only)

• https://www.mitsubishihccapital.co.uk/media/mfddmxxa/2023-mhcuk-anti-slavery-statement.pdf

Human Rights Training and Raising Awareness

The Group educates and raises awareness among employees about human rights and also provides training on human rights as they relate to certain jobs and business operations. We ensure respect for human rights through these efforts. Specifically, we provide yearly e-learning sessions for employees of Mitsubishi HC Capital and Group companies to raise awareness about human rights, and also integrate human rights training into new employee training, rank-based training, and specialization-based training such as credit screening and A/R management training. In conjunction with Human Rights Week, we issue a Group-wide call to employees and their families for slogans to raise awareness about human rights, and recognize those of particular merit.

(1) Human rights e-learning session for all employees

Once every year we provide an e-learning session for employees of Mitsubishi HC Capital and Group companies to raise awareness about human rights.

• In FY2021, e-learning was held for 5,795 employees in Japan (including Group companies).
  Group companies outside of Japan promote awareness about human rights individually based on the laws and regulations of their respective countries.

(2) Implementation of human rights training in a group format

Training on human rights is conducted at the same time as new employee training, rank-based training, and specialization-based training, such as credit screening and A/R management training.

(3) Solicitation of slogan to raise awareness of human rights

In conjunction with Human Rights Week, we solicit for and recognize slogans to raise awareness of human rights from employees, including those of Group companies, and their families.

Continual improvement of human rights management

Mitsubishi HC Capital recognizes the importance of continual improvement based on the latest social trends concerning human rights. We gather information on relevant trends including at the UN and also serve as a member of the Industrial Federation for Human Rights, Tokyo. This allows us to stay up to date on the latest human rights issues, along with their practical applications and utilization by management. Furthermore, staff charged with raising awareness of human rights coordinate with public relations departments to check advertisements, pamphlets and other written materials for internal and external use for discriminatory phrasing and content that could lead to unconscious bias.

Dealing with harassment in the workplace

Consultations from employees about human resource-related issues (such as reporting being the victim of sexual harassment or harassment related to pregnancy, or about witnessing harassment) are investigated by the staff of the Human Resources & General Affairs Division consultation hotline (counselors appointed to the Human Resources Department) and workplace helpline (external reporting hotline). Furthermore, by reinforcing coordination between the Legal & Compliance Department and the compliance promotion officers of each department, we proactively work to prevent abuse of power, the most prevalent type of workplace human rights issue we face.
Acting from an understanding of human rights due diligence based on the United Nations Guiding Principles on Business and Human Rights, we will continue to go beyond efforts to ensure respect for human rights internally by engaging in dialogue and discussion with related external stakeholders about measures to address the potential and practical impacts of human rights issues in business. By doing so, we will work to prevent being complicit in human rights violations on the part of customers or business partners, and thereby help prevent such violations from occurring.

Fiscal 2021 Harassment Incidents

• The above figures pertain to the Mitsubishi HC Capital Group (consolidated basis).

Investigation and verification

• Counselors investigate, verify the facts, and determine the most appropriate response considering the human rights and privacy of the employee submitting the report.
• Officers and employees asked to cooperate with the investigation and verification must cooperate in good faith and cannot interfere with the investigation and verification.
• Counselors cannot disclose information they learned from their response to the report or complaint to third parties without just cause and the consent of the employee submitting the report.

Evaluation and improvement

• If the investigation and verification find that sexual harassment or maternity harassment, etc., has occurred, the Human Resources Department promptly implements corrective measures, including improvement of the workplace environment in question, and preventive measures.
• The Human Resources Department verifies if the corrective measures, etc. are functioning, including after completion of said corrective measures, etc., and if needed, it carries out improvements to the corrective measures, etc.
• The Human Resources Department conducts follow-up to make sure that the employee submitting the report and persons cooperating with the investigation are not subjected to disadvantageous treatment or workplace bullying as a result of the consultation/complain or their cooperation. If disadvantageous treatment is found, it carries out appropriate remedy and restoration measures.