Basic approach

Nippon Paint Group has formulated its own policy and Global Code of Conduct, referring to international standards and guidelines regarding sustainability, such as the International Bill of Human Rights, the OECD Guidelines for Multinational Enterprises, and ISO 26000. Based on the laws and regulations of countries around the world, the Japan Group aims to eliminate discrimination based on factors such as race, religion, gender, age, sexual orientation, disabilities, nationality, and to become a company where people can fully demonstrate their individuality and capabilities. In addition to respecting the basic human rights of individuals regarding all of our stakeholders, we do not discriminate or commit acts in violation of human rights, and we abide by the principles of the United Nations Guiding Principles on Business and Human Rights, and the Declaration on Fundamental Principles and Rights at Work issued by the International Labour Organization (ILO) in conducting our actions. Specifically, we guarantee the prohibition of forced labor, discrimination, and inhumane treatment; elimination of child labor; protection of young workers, adequate wages; appropriate management of working hours; and the right of employees to organize (freedom of association and collective bargaining).

Policy Implementation Structure

The Nippon Paint Group has clearly stated in the Nippon Paint Group Global Code of Conduct that we respect the human rights of employees and stakeholders.

Due diligence in human rights

Actions of the Japan Group

The Group companies in Japan utilize self-diagnosis (the UN Global Compact SAQ Survey) provided by UN Global Compact Network Japan to facilitate awareness of supply chain risks, in an effort to survey and understand the status of various ESG-related supplier activities. This survey assesses the level of an organization’s initiatives with regard to corporate governance, human rights, labor, the environment, fair corporate activities, quality/safety, information security, supply chains, and coexistence with local communities.

Actions of DuluxGroup (responses to the Modern Slavery Statement)

For the past two years, DuluxGroup has published its Modern Slavery Statement in compliance with Australian legislation. DuluxGroup is committed to identifying, assessing and addressing modern slavery risks within its operations and throughout its supply chain. Modern slavery is a serious violation of a person’s basic human rights. DuluxGroup opposes modern slavery in all its forms, and respects and supports the human rights and freedoms of workers within our operations and throughout our supply chain.
Modern Slavery Statement

Labor practices

Opening of a harassment help desk

In 2020 Japan Group set in place a harassment prevention policy and launched the "Harassment Help Desk," an in-house advice service specializing in harassment. These contact points were established separately to the “NPHD Group Hotline”—which allows people to report possible compliance violations—in order to offer an in-house consulting contact to allow employees to seek advice easily, even if they are unsure that certain behaviors constitute harassment. To prevent harassment and foster harassment-free working environments, we provide appropriate feedback while giving due attention to preserving the privacy of employees who make reports and that of the people involved.
In fiscal 2021 there were nine incidents of people consulting the harassment help desk, with each incident dealt in a prompt, appropriate manner. We also utilize a range of tools such as employee training, surveys of all staff, and analysis of stress check results, and work to assess risks and prevent problems related to labor issues.

Nippon Paint Holdings Harassment Prevention Policy

1. Harassment is a human rights issue, and is an act that harms the dignity and personality of the other party. We will not permit or overlook harassment.
2. We will seek to resolve any incidences of harassment promptly and appropriately. We will preserve the privacy of those who consult us and those who cooperate with us in checking facts, and will never place them at a disadvantage.
3. We will respect the individuality and diversity of others, and will continue to pursue create healthy working environments that allow everyone to work as a team with peace of mind.

Compliance Textbook

In 2017, Japan Group created the “Nippon Pain Holdings Compliance Guidebook” (digital version) to improve compliance awareness among employees and officers. In 2021 we added new content on diversity and inclusion and appropriate use of IT systems and tools, and changed the name to "Compliance Textbook," and provided this new edition to all employees and officers. This textbook includes sections on appropriate management of working hours and fair evaluation of human resources, introduces the rules and regulations to which employees must pay particular care, and features explanations of case studies and cases that employees of paint and coating companies may encounter. In addition, the Compliance e-Mail Newsletter is sent out to all domestic Group employees, etc. once a month, and an internal site providing legal and compliance information has been set up. In these ways, activities are continuing in order to increase awareness of labor issues and compliance.

Thorough implementation of labor standards

Japan Group have put a range of systems in place in order to promote appropriate labor practices. Our thinking and initiatives regarding labor standards such as wages and working hours are made public at each Group company so that all employees working for us in Japan and internationally can understand them, and we have also concluded a collective agreement with the labor union. In order to engage in constructive dialog between management and labor, we hold labor-management dialogs and committee meetings between company management and representatives of the labor union, facilitating regular exchanges of opinions on the business environment and improvement to various systems, as well as discussions on wages, lump-sum payments, and occupational health and safety.
Additionally, we endeavor to ensure that labor standards are well understood, and working conditions such as remuneration, work hours and holidays, occupational safety and health, benefits, and service rules are always explained at orientations for employees when they join the company, and are now always available for reference on the company intranet. Labor standards for Japan are published on the intranet in both Japanese and English to ensure that they are understood. We have created an environment that allows employees to use internal reporting systems to report any violations that may occur, and we disclose the number of reports made annually.
See here for details of the internal reporting system.

Management of working hours

In addition to complying with Agreement 36 (Labor-Management Agreement relating to Overtime Work and Work on Days Off) and other rules and regulations, Japan Group monitor employee working conditions and hours at the management, human resources, and workplace level to promote appropriate management of working hours. Work management e-learning and seminars are held for all employees at least once annually to alleviate and prevent overwork, protect their mental and physical health, and ensure that they are able to utilize their abilities to the full.

Fair wages

Our basic policy is to comply with the labor laws and regulations of countries around the world, and to pay wages in excess of the minimum level required to achieve a stable lifestyle. The average yearly salary for fiscal 2020 at Nippon Paint Holdings was 8.32 million yen. We have included the concept of "equal pay for equal work" in the Compliance Textbook, a move is intended to eliminate the unfair disparities in treatment arising from differences in the employment status of regular and non-regular employees, and to prevent such disparities from occurring.