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COMPARISON TOOL

Murata Manufacturing 21/100

(TYO:6981) 16 of 20 (2016)

Murata Manufacturing Co. LTD. (Murata Manufacturing) ranks sixteenth on the benchmark overall. Despite publicly demonstrating its awareness and commitment to addressing human trafficking and forced labor, the company provides limited disclosure of its programs and activities for mitigating these risks in its supply chain. Murata Manufacturing is encouraged to disclose its policies and practices in the areas of worker voice, including supplier workforce engagement and grievance mechanisms, and with respect to traceability and risk assessment, its supplier monitoring and remedy programs.

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21 /100

2016 Ranking: 16 of 20

HOW DO THEY COMPARE?

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21

Murata was evaluated both in 2016, when it ranked 16th out of 20 companies, and in 2018, when it ranked 26th out of 40 companies. The company's score decreased from 21/100 to 19/100 as a strengthened methodology makes it harder to achieve the same score. However since 2016, it has moved from the bottom quartile to the third quartile and improved on several indicators. While in 2016 it disclosed it did not engage with stakeholders on forced labor, it now discloses that it participates in the Responsible Minerals Initiative and the Japan Electronics and Industries Association, and states that both initiatives address forced labor. Further, the company improved by disclosing that it has established a human rights and labor committee that delivers forced labor training to production workers at least once a year.

METHODOLOGY

19

The average score for the sector was 32/100, compared to 39/100 in 2016. The drop in score is due in part to the increase in number of small and mid cap companies from 20 to 40, as well as the changes made to the methodology that strengthened it. The 20 companies benchmarked in both 2016 and 2018 saw their average score improve from 39/100 to 40/100, which is notable given the changes to the methodology.

2018 BENCHMARK

2016

21

Murata was evaluated both in 2016, when it ranked 16th out of 20 companies, and in 2018, when it ranked 26th out of 40 companies. The company's score decreased from 21/100 to 19/100 as a strengthened methodology makes it harder to achieve the same score. However since 2016, it has moved from the bottom quartile to the third quartile and improved on several indicators. While in 2016 it disclosed it did not engage with stakeholders on forced labor, it now discloses that it participates in the Responsible Minerals Initiative and the Japan Electronics and Industries Association, and states that both initiatives address forced labor. Further, the company improved by disclosing that it has established a human rights and labor committee that delivers forced labor training to production workers at least once a year.

METHODOLOGY

2018

19

The average score for the sector was 32/100, compared to 39/100 in 2016. The drop in score is due in part to the increase in number of small and mid cap companies from 20 to 40, as well as the changes made to the methodology that strengthened it. The 20 companies benchmarked in both 2016 and 2018 saw their average score improve from 39/100 to 40/100, which is notable given the changes to the methodology.

2018BENCHMARK

THEME AND INDICATOR SCORE

The benchmark methodology has seven themes, selected to capture the key areas where companies need to take action to eradicate forced labor from their supply chains. There are a total of 22 indicators across the seven themes. For each theme, a company can score a total of 100 points.

Commitment and Governance

The company's top-level commitments on forced labor, supply chain standards, management processes, training programs and stakeholder engagement

OVERALL 39
INDICATORS
Awareness and Commitment
100
Supply Chain Standards
20
Management and Accountability
50
Training
25
Stakeholder Engagement
0

Traceability and Risk Assessment

The extent to which the company traces its supply chain and conducts forced labor risk assessments, and discloses information about these processes.

OVERALL 13
Traceability and Risk Assessment
25
Transparency
0

Purchasing Practices

The company's awareness and action on purchasing practices that can exacerbate forced labor risks, and its process for selecting suppliers, integrating standards into contracts and cascading them down the supply chain.

OVERALL 25
Purchasing Practices
0
Supplier Selection
50
Integration into Supplier Contracts
0
Cascading Standards through the Supply Chain
50

Recruitment

The company's approach to reducing exploitation by recruitment agencies and eliminating workers' payment of fees for their jobs.

OVERALL 33
Recruitment Approach
25
Recruitment Fees
25
Recruitment Audits
50

Worker Voice

The extent to which the company proactively communicates with workers through the supply chain, enables freedom of association and ensures access to effective and trusted grievance mechanisms.

OVERALL 10
INDICATORS
Communication of Policies
0
Worker Voice
0
Worker Empowerment
0
Grievance Mechanism
40

Monitoring

The company's process for auditing (including whether it includes non-scheduled visits, document review, worker interviews) and disclosure about the audit process and findings.

OVERALL 13
Auditing Process
25
Audit Disclosure
0

Remedy

The extent to which the company has corrective action plans for non-compliant factories, as well as processes for remedying workers who are victims of forced labor, and reports on remedies provided.

OVERALL 13
Corrective Action Plans
25
Remedy Programs
0

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