Respecting Human Rights
Epson is serious about keeping all forms of discrimination and unfair practices out of its operations around the world. This stance is reflected in our participation in the United Nations Global Compact since 2004. In 2005 we documented policies that outline Epson's strong convictions in areas including respect for human rights, elimination of harassment, eradication of all forms of discrimination, respect for local culture and customs, prohibition of child and forced labor, and maintenance of positive labor relations.
We have established services that employees can use to report or consult on abuses of any kind. These services include such things as a harassment hotline, employee counseling service, and Epson helpline. Epson also strives to prevent fraud and other forms of misconduct in a number of ways, including by periodically sharing information with all employees and by raising awareness with bulletins on the intranet.
Power Harassment Prevention Training
Epson maintains a harassment hotline to respond to employees' harassment concerns. Epson has been actively fostering the development of an organizational culture with zero tolerance for harassment. To achieve a fair and pleasant working environment, we provide anti-power harassment training seminars to Epson Group companies as a way to prevent and stamp out harassment.
In fiscal 2015, we carried out training for management (directors and administrative officers) and all managerial staff at Group companies in Japan, with 100% attendance. In fiscal 2016, we expanded the training to middle management and personnel who are to be transferred overseas. More than 90% of those eligible attended the training in fiscal 2017.
The training has also been provided to personnel who are newly promoted to management and other leadership positions since fiscal 2016. In addition, in fiscal 2018, on-line harassment preventive training was provided to all employees.
Anger Management Training
Anger management training is said to be an effective way to prevent so-called power harassment (abuse of authority at work).
Seiko Epson has provided anger management training since 2016 to teach employees skills needed to control feelings of anger at work. Echelon- and department-based anger management training is offered about 70 times a year. An introductory course teaches people the skills they need to defuse their anger and improve their control long-term, while a course in constructive criticism teaches managers and others effective communication skills. More than 4,500 Epson Group employees in Japan have taken a course. By providing its people with the proper training and skills, Epson hopes to eliminate power harassment from the workplace.
Epson Slavery & Human Trafficking Statement
Based on the UK Modern Slavery Act 2015 and the Australian Modern Slavery Act 2018, Epson discloses the policy for eradicating modern slavery and human trafficking from the supply chain and the situation of Epson as follows:.
Human Rights Due Diligence
Epson is vertically integrated and develops and manufactures the majority of the products we sell through our global network of sales subsidiaries. We strive to identify human rights risks throughout our operations but particularly at our production sites in Southeast Asia, where the risk of human rights violations is generally said to be highs.
To identify and understand human rights risks in our supply chain, we ask suppliers to perform a CSR self-assessment questionnaire.
On the other hand, to identify human rights risks within its own group, we conducted the Epson CSR Self-assessment questionnaire on overseas subsidiaries that started in fiscal 2017 as well as in fiscal 2018, as well as at our manufacturing facilities and domestic affiliates.
The results allowed us to identify risks, which we instructed our facilities and group companies to take steps to mitigate. The CSR self-assessment will be performed yearly, and we will encourage companies to understand where the issues are and to address them.
CSR Self-assessments by Epson Group Companies
In the FY2018, Epson had its own facilities, domestic affiliates and overseas group companies complete a self-assessment questionnaire (SAQ) to evaluate their performance with respect to CSR requirements. The purpose of the SAQ was to identify and address risks and potential threats in areas such as human rights. Epson created the SAQ based on the basic requirements of the Responsible Business Alliance (RBA). The SAQ consisted of 100 questions concerning things such as human rights, labor, safety and health, the environment, the management system, and ethics. Suppliers were asked to complete the same questionnaire as part of our socially responsible procurement program.
||Minor category examples||Number of questions|
|A: Labor||Freely chosen employment, young workers, working hours, wage and benefits, humane treatment, non-discrimination, freedom of association||28|
|B: Health and safety||Occupational safety, occupational injury and illness, dormitory & canteen, etc.||22|
|C: Environmental||Environmental permits & reporting, pollution prevention & resource reduction, hazardous materials, wastewater & solid waste, air pollution, energy consumption & greenhouse gas emissions, etc.||14|
|D: Management system||Company commitment, management accountability & responsibility, risk assessment & risk management, training, supplier responsibility, etc.||16|
|E: Ethics||Business integrity, intellectual property, fair business, advertising & competition, responsible sourcing of minerals, privacy, etc.||12|
|F: Additional items||Export control, information security, product safety, business continuity plan, etc.||7|
|Survey period||August, 2018 - June, 2019|
|Surver coverage||9 Seiko Epson facilities (factories)
13 domestic affiliated companies (10 manufacturing companies and 3 sales companies)
54 overseas Epson Group companies (20 manufacturing companies and 34 sales companies)
|Questionnaire||Epson Group Supplier Self-Assessment Questionnaire (SAQ)|
|Corrective action||Apr. -||Companies began taking corrective action|
|Status check||Mar. 2020||The status of corrective action will be checked by having companies complete another SAQ.|
Rankings based on SAQ scores
|Risk rank||Assessed points||Explanation|
|Low risk||86-100 pts.||It basically meets the requirements of the Epson Supplier Code of Conduct.
Is able to independently correct weaknesses.
|Medium risk||66-85 pts.||It does not meet all the requirements of the Epson Supplier Code of Conduct but is able to independently correct weaknesses.|
|High risk||65 pts.
|It needs to be monitored based on an improvement plan to meet the requirements of the Epson Supplier Code of Conduct.|
FY2018 SAQ results
|Risk rank||Total score||Seiko Epson
|Japanese affiliated companies||Overseas subsidialies||Grand total|
|Manufacturing||Sales and others||total||Manufacturing||Sales and others||total|
|Low risk||86-100 pts.||9||100||6||60||3||100||9||69||16||80||17||50||33||61||51||67|
|Medium risk||66-85 pts.||0||0||4||40||0||0||4||31||4||20||16||47||20||37||24||32|
|High risk||65 pts. or less||0||0||0||0||0||0||0||0||0||0||1||3||1||2||1||1|
•No serious human rights, compliance or ethics problems were found at any facilities and group companies as a result of the SAQ.
•With regard to the three overseas subsidialies that were at high-risk in the CSR self-assessment evaluation in FY2017, as a result of visiting the site from the Head Office or confirming the situation by video conferencing and guidance, all three companies improved to middle-risk or low-risk. On the other hand, the new company established in 2018 did not fully realize Epson's policy and management level, and became a high-risk.
•There still remain some companies not fully understood the intent of the questions, so the Head Office will provide further explanation and education for them.
•The Head Office provided a guidance about the Epson Group's basic policies, rules, and guidelines to affiliates, so most of the affiliates improved their understanding.
•Some of affiliates had not communicated the Epson Group's basic policies, rules, and guidelines to their employees or had not established their own objectives or action plans (in the areas of labor, safety and health, the environment, and suppliers). The Head Office will provide instruction and support to these affiliates and promote action across the Epson Group.
High risk company
|One company that was established in 2018 was not adequately apprised of Epson's policies and management requirements yet.||The Head Office will establish a communication policy, explain requirements, and provide support.|
The Head Office and the company deemed high-risk will draft and execute plans to address issues to bring it up to the middle-risk or low-risk levels by March 31, 2020.
Security Personnel Trained in Human Rights
Seiko Epson outsources security operations to security companies and asks them to train those employees in human rights policies or procedures. In FY2017 we conducted a CSR self-assessment questionnaire to confirm that thoses suppliers, as well as other suppliers of indirect materials, provided human rights training to those people.