Company Ranking12 out of
Hitachi Ltd. (Hitachi), an electronic equipment company supplying to companies such as Hewlett Packard Enterprise and Intel, ranks 12th out of 40 companies. It discloses more information on its forced labor policies and practices than its peers on all themes except worker voice and remedy and is the highest scoring of the eight Japanese companies assessed. It has increased its score by five points since 2016 by joining the Responsible Business Alliance (RBA) and adopting the RBA code which prohibits worker-paid recruitment fees as its supplier code of conduct. It has also started to train its suppliers on modern slavery and requires first-tier suppliers to cascade its standards to lower-tier suppliers. The company has an opportunity to improve its performance and disclosure on the themes of recruitment, worker voice, and remedy.
HOW DO THEY COMPARE?
The comparison tool allows companies' results to be easily compared. Up to two additional companies can be selected and compare against each other as shown below.
THEME & 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 accross the seven themes. For each themes, a company can score a total of 100 points.
Commitment and Governance
This theme evaluates a company's commitment to addressing forced labor, supply chain standards, management processes and board oversight, training programs, and engagement with stakeholders.
|Commitment||100 / 100|
|Supply Chain Standards||80 / 100|
|Management and Accountability||75 / 100|
|Training||75 / 100|
|Stakeholder Engagement||75 / 100|
Traceability and Risk Assessment
This theme measures the extent to which a company demonstrates an understanding of its suppliers and their workforce by disclosing relevant information, and assesses and discloses forced labor risks across its supply chains.
|Traceability and Supply Chain Transparency||0 / 100|
|Risk Assessment||75 / 100|
This theme assesses to what extent a company adopts responsible purchasing practices and integrates supply chain standards into supplier selection and supplier contracts. It also assesses the degree to which a company cascades their standards down its supply chains.
|Purchasing Practices||30 / 100|
|Supplier Selection||50 / 100|
|Integration into Supplier Contracts||0 / 100|
|Cascading Standards Through the Supply Chain||100 / 100|
|Recruitment Approach||0 / 100|
|Recruitment Fees||75 / 100|
|Monitoring and Ethical Recruitment||0 / 100|
|Migrant Worker Rights||50 / 100|
This theme measures the extent to which a company engages with workers in its supply chains, enables freedom of association, and ensures access to effective and trusted grievance mechanisms.
|Communication of Policies||25 / 100|
|Worker Voice||0 / 100|
|Freedom of Association||0 / 100|
|Grievance Mechanism||10 / 100|
This theme evaluates a company's process for auditing suppliers (including whether it performs non-scheduled visits, reviews relevant documents such as wage slips or contracts, interviews workers, and audits lower-tier suppliers) and providing disclosure on the outcomes of supplier audits.
|Auditing Process||80 / 100|
|Auditing Disclosure||/ 100|
This theme measures the extent to which a company has corrective action plan processes for non-compliant suppliers and ensures remedy is provided to workers in its supply chains who are victims of forced labor. Publicly available allegations of forced labor in a company's supply chains which occurred in the past three years, and how a company has responded to and addressed those allegations, are also assessed as part of this theme.
|Corrective Action Plans||25 / 100|
|Remedy Programs and Response to Allegations||0 / 100|