Japanese companies, such as Kao and Shionogi, will start looking into their supply chains to ensure that there are no human rights violations, including the use of slave labor.
Cosmetics maker Kao plans to launch an investigation into palm plantations and pharmaceutical firm Shionogi aims to do the same at its materials production sites in India, Nikkei has learned.
Businesses have come under growing pressure from investors to conduct thorough due diligence on their suppliers to ensure that there are no human rights abuses. Companies now face serious reputational damage if they do not right those wrongs.
Kao will start within this year to engage directly with 5,000 of their palm oil plantations in Southeast Asia. Palm oil is widely used in daily products, from food to cosmetics and detergents. The dialogue will focus on finding out if forced labor is used and to ensure fair working conditions. Kao plans to conduct the research together with an Indonesian palm oil manufacturing company.
The original full article can be found at asia.nikkei.com