Held on August 23, 2024

Panel Discussion

Panelists:

Mr. Ryusuke Tanaka

Programme Officer, International Labour Organization (ILO) Office for Japan

Ms. Hiromi Takizawa

Regional Director of Human Resources, Japan, Korea and Micronesia, Hilton

JTB

The panel discussion was conducted in Japanese. The following is a translation by JTB Corp.

One major trend concerns overseas legislations that affect Japanese companies. In Europe, human rights due diligence has become mandatory. Also, trade measures have been introduced in the US. Well-known laws include the import ban of forced labor products called the "Uyghur Forced Labor Prevention Act".
In addition, monitoring from ESG investors is becoming robust. Long-term investors tend to investments in companies' sustainable business activities, and demand that companies address human rights as a central issue of business sustainability. For example, they act as shareholders to demand actions to companies when working conditions in the supply chain deteriorate, leading to the infringement of rights to organize or bargain collectively, or forced labor. Consumers are also demanding sustainable corporate behavior particularly in the aspect of human rights, which is called "ethical consumption." Often times, boycotts and other campaigns become the option of consumers to demand proactive actions from companies.
JTB's business extends well over the globe. There are many countries in the world where democracy and liberalism are not as firmly established as in Japan, and where human rights are neglected. When conducting business in countries facing conflict situations, companies are exposed to public scrutiny on whether they are complicit in human rights violations committed by a conflict party.
Then, what should a company be mindful of when it comes to addressing human rights? There are three points.
The first point is that corporate responsibility is not limited to legal obligations. It is because in some parts of the world, laws are not in place, or even if they are, they are not enforced due to bribery or corruption, resulting in governance gaps and human rights abuses. Companies should be reminded of not only legal responsibilities but also the responsibility to fulfill the social expectations towards business.
Second is to observe the international standards. Where national laws and regulations are inadequate, the international human rights and labor standards are the basis for business to act responsively.
The third point is to base its actions on an external view - "how the company's action is perceived by society." The internal decision of the company may differ from the views and expectation of the stakeholders. Even if the company thinks it is doing a right thing, it will not fulfill the social responsibility if it negates stakeholders' views and expectation. Meaningful dialogue needs to identify what actions the stakeholders wish for the company to take. Social expectation may extend to JTB's action to use its leverage to address human rights violations that occur anywhere in its supply chain and value chain as questions of complicity.
In the travel industry, business operations involve a wide range of transactions and business relationships. When we look into how workers and local communities are involved in this relationships, human rights come into our sight.
For example, there are salient issues in the travel industry drawing global attention. One of them, called "trafficking in persons," is particularly eminent. Vulnerable groups, especially women and children, are often trafficked to other countries by brokers for sexual exploitation or illegal work. The international community and NGOs expect travel industry including JTB to identify human rights violations on the ground, including trafficking in persons, sexual exploitation through pornography, export and import of drugs, and such referred to as "worst forms of child labor," and report such incidents to society.
The point is to enhance our sensitivity to serious human rights risks. Each of us should be aware of these topics and speak up for remedy, even if we are not able to resolve this perfectly. Also, we should engage in meaningful dialogues and work together with external partners. JTB's employees, who interact with business partners, actually have opportunities to learn about the working conditions of those working outside of the company. Not hiding but speaking up about those risks for mitigation will in turn lead to the trust from the society and fulfillment of the company's social responsibility. It should have an enabling environment where people can speak up with courage, like a culture where supervisors can encourage their staff by saying, "It's okay to speak up."
In sum, the point of my talk today was about the importance of human rights and how each individual's proactive mindset leads to a trust from society and business sustainability.

Moderator（Kazaguchi）：Next, I would like to ask Ms. Takizawa about the initiatives implemented at Hilton.

To fulfill this promise, we have a unit called Diversity, Equity & Inclusion, which leads the efforts to create such an environment.
There are three pillars in this effort. The first is to create an inclusive environment and culture where everyone can work comfortably and play an active role in various places. The second is talent. We have hotels all over the world, where people of diverse races work. Therefore, we have a support system to ensure that people of all races, including sexual minorities, can succeed in various places. The third is marketplace, which is about working on how we can contribute to the world through our relationship with our suppliers.
I would like to talk about one of our specific initiatives in the aspect of culture: the Team Member Resources Group. This is a group activity in which members participate on a voluntary basis, and team members lead the activities in their initiatives. Currently, there are nine groups. In Japan, we now have the Women's Team Member Resources Group and the Pride Team Member Resources Group. In the third quarter of this year, groups such as Generations and Abilities will be introduced. Each group is sponsored by senior leaders, such as vice president. We create opportunities to meet directly with these leaders to exchange ideas and discuss how to make it easier for team members to work. In terms of talent development, we host the Women in Leadership Conference and other events to discuss career development and work on establishing a mentorship program.

Moderator（Kazaguchi）：It is really wonderful that the Resource Group is based on a system where everyone voluntarily raises their hands and participate. Next, Ms. Nishimatsu, please tell us about the efforts of the JTB Group.

that they do not only have positive impacts. There may be negative impacts, for example, environmental impacts such as CO2 emissions, and overtourism disrupting the enriched lives of local residents. Furthermore, as Mr. Tanaka mentioned earlier, people who suffer from disadvantageous working conditions or treatment might be linked to our exchanges.
Our vision of sustainability is to expand the positive value of exchanges while minimizing the negative impacts. We also have identified three materialities, all of which are human-centered: Enriching the Human Experience, Nurturing Our Surroundings, and Engaged Partnering through people. The topic of human rights is critical in our promotion of sustainability.
Since JTB is not a company with physical assets, we have long maintained a firm policy, "people are our capital." We have a DEIB (Diversity, Equity, Inclusion, Belonging) team separately from the Sustainability team, and an executive officer is assigned to the DEIB team.
However, our current challenge is that we have not yet established a systematic approach. We are exploring what global measures we can take to meet market expectations, while first participating in various certifications and initiatives. We have just begun conducting human rights due diligence by employees of JTB Corp. in Japan.
As a company whose capital is its people, we tend to work long hours, which has always been an issue. Regarding harassment, we recognize once again that there are employees who work with such feelings, and that harassment can occur between employees, with customers, or with business partners. We are currently conducting basic training to correctly understand the issues and to improve the situation.
Moving forward, as I mentioned earlier, we would like to further systematize our efforts, expand them to all our employees worldwide and to supply chain, and ensure that these human rights initiatives take firm root.

Moderator（Kazaguchi）：Ms. Nishimatsu mentioned that JTB Group as a global company will expand its efforts globally. From this perspective, I would like to hear from Mr. Kaneko, who works with employees in various countries, about initiatives in other countries.

Europe is a melting pot of races, with 50 different nationalities, 30 different languages, and 70% women.
In this context, on international festival days such as International Women's Day and Cultural Diversity Day, for example, we try to build momentum by bringing related items to the office and wearing attire associated with the day. Furthermore, from the perspective of information disclosure, we share such efforts as "Diversity Posts" on LinkedIn and other social media.
In my own experience, Japanese people are in the minority in foreign countries. Therefore, I strive to first learn the culture and customs of the country where I work, and understand the differences between them and those of Japan. I believe that is the most important thing to do. Thailand, where I worked most recently, is a leading gender-free and LGBTQ-friendly country. For example, during job interviews, discussing gender or age is a taboo, and these details are not even mentioned on resumes. That was the way things are done as a matter of course, and I worked with a mindset of truly respecting the individuality and diversity of each employee, and maximizing each person's strengths.

Moderator（Kazaguchi）：As I listened to Mr. Tanaka's talk earlier, I realized that it is very important to listen to stakeholders' voices about what they are really struggling with, even amidst the various different laws across countries. From this perspective, I think the Hilton's Resource Group is a very effective forum for collecting the voices of those directly involved in issues.

Takizawa：The Team Member Resources Groups are voluntary groups, and we are not forcing people to participate. If team members do not have the passion for it, they are reluctant to participate or speak up. It took us a very long time to motivate them. However, since senior vice presidents also participate in the group, team members' voices gradually reached decision-makers, and their requests have been realized. This increasingly raised team members' awareness, and the actual experience of having their opinion truly accepted has fostered an environment where it has become easier to express views and opinions.

Moderator（Kazaguchi）：When voices are raised in such a community, the top management is committed to making sure that they will be realized and takes actions. When this cycle works at a great extent, it drives progress.

Tanaka：Commitment is crucial. Without actions by top management, individuals will not have the courage to speak up for human rights. It is important for the top management to take actions with a firm confidence that their encouragement brings about benefit for the company and to keep their promises, if they made them.

Moderator（Kazaguchi）：Ms. Nishimatsu, what do you find to be the most challenging aspect?

Nishimatsu：As discussed earlier, in the midst of tourism industry's supply chain, which is very extensive and deep, someone may be in trouble through our business. How can we identify that or encourage people to tell us about that? This is not just about creating a mechanism; we need to figure out our approach. That is our biggest concern.
The talk on the Hilton's initiative, particularly about the voluntary participation, firm commitment by top management, and the presence of community that crosses over vertical walls of businesses and divisions, could serve as a hint for us.

Moderator（Kazaguchi）：Hilton has highly advanced initiatives on human rights, but do you still find any new discoveries?

Takizawa：Yes. To give a recent example, there is a resource group exchange on how to further expand employment of people with disabilities, and the conference showed that Europe and other places are quite advanced in this area, and have people with disabilities working at the front desk. We are just starting to make some progress in discussing how to realize this in Japan as well.

Moderator（Kazaguchi）：Mr. Kaneko mentioned the word "minority." In everyday life, we rarely have the opportunity to perceive ourselves as a minority, don't we?

Tanaka：Japan faces challenges in promoting diversity. People often hesitate to voice their opinions to avoid hostile situation with others, or leave things unsaid assuming "it goes without saying." However, trying to have a dialogue to know each other is obviously important.
The goal of the dialogue should be to understand the other person's "situation". Human rights violations often arise from differences in "situation". Violations are eminent when the "situation" cannot be changed by will, such as gender or race. Risk to human rights prominently arises when those in stronger positions abuse the vulnerability of those in weaker positions. Putting yourself in the other person's shoes, and always having a sense that you could find yourself in that situation tomorrow would be a key to take appropriate actions.

Moderator（Kazaguchi）：We have heard many valuable insights from all of you. I would like each of you to share your takeaways from today, and any actions you wish to implement moving forward.

Kaneko：I am reminded that we need to consider the other persons' position, put ourselves in their shoes, and then move forward with various things. As for myself, I intend to be more conscious of my commitments.

Nishimatsu：While we will continue to place importance on internal dialogues, I also realized once again that we should immediately begin to engage in ongoing dialogues with NGOs and other external parties, and learn about how JTB is viewed from the outside. At the same time, we would like to work together with diverse people to figure out how each of our employees can properly speak out about what they find.

Takizawa：I got a sense that our efforts are truly connected to business, so I would like to further expand our efforts within the company and conduct awareness raising activities to make the efforts feel more relevant to everyone.

Moderator（Kazaguchi）：It was discussed that it is important to respect individuals in addressing human rights, and that, in addition, working on human rights is a key factor in strengthening our business and company. Lastly, I would like to ask for your advice on what we should keep in mind as we address human rights on a daily basis.

Tanaka：Today, what I found admirable is that human rights are still valued among us even in this highly competitive business environment.
Finding a win-win solution with stakeholders is a crucial element when we explore respect for human rights. This is because companies always coexist with the society. Society comprises various stakeholders, including investors, business partners, workers, and local communities, along with their supply chains. Business cannot operate without trust from society. To maintain business continuity in society, we should establish a win-win relationship that also brings shared benefits.
While addressing the adverse impact on human rights, it is also crucial to empower workers to be self-motivated to seek their purpose in work and life, which will in turn contribute to the company's growth.

Moderator（Kazaguchi）：I sincerely hope that each of us will continue to reflect on, speak up about, engage in dialogue, and collaborate on the topic of "Business and Human Rights."