Human Rights/Labor

The Matsuda Sangyo Group (hereinafter, the Group) Human Rights Policy clarifies our approach to respecting human rights in order to "achieve a sustainable environment, society, and economy" as the "Sustainability Policy" aims to achieve, and serves as a guideline for our efforts, forming the basis for all of our Group's business activities.

Our Group understands that the human rights stipulated in the International Bill of Human Rights*1, the International Labor Organization's (ILO) "Declaration on Fundamental Principles and Rights at Work"*2, the "Guiding Principles on Business and Human Rights"*3, the 10 principles of the United Nations Global Compact*4, and the RBA Code of Conduct*5 are the minimum standards for human rights, respects these human rights, and conducts business activities based on these principles.

Our Group recognizes that it may directly or indirectly affect human rights in the course of its business, and in order to respect the human rights of all people involved in its business, we hereby establish the Matsuda Sangyo Group Human Rights Policy (hereinafter, the Policy) and will promote efforts to respect human rights.

1. Scope of application
   This Policy is applicable to officers and employees of the Matsuda Sangyo Group. The Matsuda Sangyo Group requires everyone who is involved in our business activities to support this policy, and to adopt a similar policy.

2. Responsibility to respect human rights
   The Matsuda Sangyo Group will fulfill its responsibility to respect human rights by putting in place the appropriate remedial measures to rectify the situation, as well as preventive and mitigation measures, in cases our business activities are found to have an adverse impact on human rights arise or contribute to such adverse impact. We also encourage everyone who is involved in the business activities of our corporate group to take the appropriate steps in situations that have an adverse impact on human rights.

3. Compliance with applicable laws
   The Matsuda Sangyo Group complies with laws and regulations that are applicable in the respective countries and regions where we conduct our business activities. In situations where contradictions arise between internationally recognized human rights and the laws and regulations of the respective countries or regions, we take the approach of respecting the principles of human rights that are recognized internationally.

4. Commitment to human rights issues
   The Matsuda Sangyo Group complies with the laws of countries and regions and fulfills its responsibility of respecting human rights across all its business activities. We recognize that addressing the following human rights issues is an important element, and put thorough efforts into ensuring compliance by the officers and employees of our company, such as by incorporating respect for human rights into the Matsuda Sangyo Group Global Code of Conduct.

• We will eradicate and abolish all forms of discrimination in recruitment and employment based on race, ethnicity, nationality, creed, religion, disability, descent, gender, sexual orientation, gender identity, age, health conditions, etc.
• We do not tolerate any form of harassment, nor any behavior that is hurtful to others both physically and mentally.
• We do not tolerate forced labor and child labor.
• We respect the freedom of association and right to collective bargaining in accordance with laws that are applicable in the countries and regions where we conduct our business activities.
• We will comply with laws pertaining to wages and the working hours that are applicable in the countries and regions where we conduct our business activities, and strive to reduce excessive hours, while at the same time securing wages above the minimum wage stipulated by law.
  
  We identify human rights issues that are of particular importance to the Group through the human rights due diligence process and engagement with our stakeholders. The issues identified are reviewed regularly.

5. Human rights due diligence
   The Matsuda Sangyo Group conducts human rights due diligence periodically and continuously, for the purpose of identifying, evaluating, preventing, and mitigating the adverse impact of business activities on human rights. In cases where our business activities are found to have an adverse impact to human rights, or to contribute to such adverse impact, remedial measures are taken through the appropriate means.

6. Dialogue and consultation (engagement with stakeholders)
   The Matsuda Sangyo Group utilizes the expertise of external parties in the field of human rights in the implementation of this Policy, and at the same time, proactively engages in dialogue and discussions to identify issues and work toward improvements, with stakeholders who are actually or potentially impacted adversely by human rights. 

7. Education and raising awareness
   The Matsuda Sangyo Group conducts appropriate education and capacity building for officers and employees of the Group, and strives to implement activities to promote understanding among everyone who is involved in the Group’s business activities.

8. Reporting and information disclosure
   The Matsuda Sangyo Group discloses information on its human rights initiatives based on this Policy, through its website, reports, and other means. 

9. Governance and promotion system
   With regard to the status of compliance with this Policy and the Group’s human rights initiatives, the Sustainability Committee reports periodically to the Executive Board and Board of Director of Matsuda Sangyo Co., Ltd., and promotes human rights initiatives under the supervision of the Board of Directors. The Group has appointed a person-in-charge of the implementation of this Policy, who will be responsible for overseeing compliance with this Policy in our business activities.

10. Whistleblowing and complaint processing 
    The Matsuda Sangyo Group advocates a free and open communication culture. Employees can consult with their supervisor about human rights concerns, or report through the internal whistleblowing system established based on our Reporting Management Regulations. We have also set up external reporting contact points on our website that stakeholders within and outside the company can use to report on any violation or concerns related to the Policy for Responsible Management of Precious Metals. 
    We will work on building an effective whistleblowing and grievance mechanism to capture and address the human rights concerns of all our stakeholders in a timely manner.
    
    The Group understands that the specific issues it must address will change due to changes in society and business trends, and will periodically review this Policy through dialogue and consultation with stakeholders and external experts.

Revised: April 1, 2025
Enacted: December 16, 2022

Yoshiaki Matsuda
President, Matsuda Sangyo Co.,Ltd

*1 The International Bill of Human Rights is a collective term for three documents: the Universal Declaration of Human Rights and its codified treaties, the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights.

*2 the International Labor Organization's (ILO) "Declaration on Fundamental Principles and Rights at Work sets out the minimum standards to be observed in the workplace in five areas: freedom of association and the effective recognition of the right to collective bargaining, the elimination of forced labor, the effective abolition of child labor, the elimination of discrimination in employment and occupation, and a safe and healthy working environment.

*3 The United Nations Guiding Principles on Business and Human Rights were approved by the United Nations Human Rights Council in 2011 and serve as international guidelines on the actions expected of nations and companies in addressing the adverse human rights impacts associated with business activities.

*4 The principles were approved by the United Nations Human Rights Council in 2011 and set out the responsibilities and expected efforts of companies regarding "respect for human rights" and "access to remedies" in relation to business and human rights issues.

*5 The Responsible Business Alliance (RBA) has established standards to ensure that working conditions in the electronics industry supply chain are safe, that workers are treated with respect and dignity, and that manufacturing processes are responsible for the environmental impact.

• The following matters must be observed when employing learners (apprentices, interns, student workers).

1. Interns and student workers are only provided with tasks and practical training that complement their studies in their respective fields of specialization or new professions.
2. Follow the principle of equal pay for equal work.
3. Provide due consideration to ensure that working hours do not interfere with the learners' studies.　
4. Clear limitations are set for the training period and the number of times employees can be classified as trainees.　
5. Learners are not required or made to pay any fees for gaining or maintaining employment, agency services, joining the company, or other fees.　
6. Educational fees are not deducted from student workers’ wages.　
7. Even if there is a period when the minimum wage can be below the statutory minimum wage, such period shall be limited to either a reasonable period or less than six months, whichever is more stringent.　
8. Employment agencies or agents are not used for the recruitment, hiring, arrangement, or management of learners.　
9. Ensure that all labor is voluntary.　
10. Learners are not used only to fill labor shortages.　
11. Set a maximum duration for the probationary period when hiring apprentices, unless the employee’s wages fall below the minimum wage within the scope permitted by law, in which case the period shall be no longer than six months.

• The following matters must be observed when employing student workers.

1. Enter into a three-party agreement, including terms of employment, between the student worker (or their legal guardian), school, and the company.　
2. Student workers are covered by insurance for accidents and liability, and are covered by all other insurances required by law.　
3. Verify that workers participate actively in effective learning programs at educational institutions.

We believe that creating an environment in which all employees can thrive is essential to realizing our key goal of promoting the active participation of diverse human resources.

To promote the active participation of women, we will create an environment in which women can thrive by implementing various measures and creating systems in line with our action plan based on the  Act on the Promotion of Women's Active Engagement in Professional Life (Women's Participation and Advancement Act).

Progress of our action plan based on the Act on the Promotion of Women's Active Engagement in Professional Life

Goal ①  Increase the percentage of women among new hires to 20% or more by fiscal 2025

Goal ②  Increase the difference between the average years of service of women and men to 70% or more by fiscal 2025

Other indicators

Applicable period: FY2024 is from April 1, 2024 to March 31, 2025

*1 All wages excluding retirement allowance and commuting allowance.

*2 The percentage of male workers who took childcare leave, etc., based on the Childcare and Family Care Leave Act is 47%.

(Number of male workers who took childcare leave, etc. ÷ Number of male workers whose spouses gave birth)

We believe that these initiatives will enable more women to work for the company for longer periods, which will lead to an improvement in the ratio of female managers and a narrowing of the wage gap between men and women.

We will continue to work towards promoting women's participation in the workforce, reflecting progress in our action plans as appropriate.

Matsuda Sangyo has a labor union, and we strive to maintain healthy labor-management relationships through regular labormanagement consultations.

Through the operation of the childcare and nursing or family care leave systems and the injury and sick leave system, we strive to create an employee-friendly environment that gives consideration for the individual circumstances of employees. Based on the amended Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members, we revised our Childcare Leave Regulations and introduced a parental leave at birth system to ensure that both male and female employees are able to strike a balance between work and childcare demands. We have also concluded a labor-management agreement that makes it possible for employees to work during their leave if they wish to do so. Going forward, we will continue to work on developing an environment where the child-raising generation can work with motivation in.

The Matsuda Sangyo Group believes that strategic implementation of employee health management can contribute to the revitalization of the organization, such as by improving productivity and vitality among employees. This in turn leads to improvements in business performance and raises our value as an organization. In view of this, we enacted the Health Declaration in FY2021 and are actively engaged in health management.

The Matsuda Sangyo Group strives to maintain and improve the health of its employees, based on the fundamental philosophy of "respect for humanity and infinite human potential."
We believe that "a company's greatest asset is its people," and will always base its efforts on harmony among employees, and work to promote health management in order to create a healthy and bright workplace where all employees can demonstrate their individuality and capabilities.

Enacted: April 1, 2021

Yoshiaki Matsuda
President, Matsuda Sangyo Co.,Ltd

Under the basic philosophy of “Respect humankind; the capacity of humankind is limitless,” we establish various relevant systems, promote disease prevention and follow-up after disease onset, and promote work-life balance, among other efforts aimed at helping employees work healthily and energetically. As a result, we were selected for the 2025 Certified Health & Productivity Management Outstanding Organizations Recognition Program (Large Enterprise Category). 

【Physical health】
・ In addition to regular medical examinations, employees who are 35 years and older are recommended to undergo multiphasic health screening 
・For female employees to undergo medical examinations for diseases and conditions specific to women
・Prevention of diseases and follow-up after disease onset

【Mental health】
・Stress checks
・Harassment training
・Introduction of EAP service (Employee Assistance Program, “Consultation Service on Physical and Mental Health)
・Establishment of a harassment whistleblowing system

【Promoting communication】

Alongside upgrading the company’s internal infrastructure and launching the use of a chat tool for employees, we are also promoting internal communication by advancing internal publicity activities.

【Work systems】

To promote a balance between work and recuperation from illness and injury, childcare, providing long-term care for others, etc., we have established various systems including telecommuting system, hourly paid leave, childcare leave, and nursing or family care leave.