Respect for Human Rights and Diversity Initiatives

The Sanken Group’s Basic Policy on Human Rights and Labor

The Sanken Group endorses internationally recognized human rights standards and principles, including the United Nations Guiding Principles on Business and Human Rights, the International Bill of Human Rights, the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work, and the Children’s Rights and Business Principles. In line with these frameworks, we are committed to respecting human rights across all of our business activities.

In November 2022, the Sanken Group established the “Sanken Group Human Rights Policy” and revised our Code of Conduct, which has been communicated and disseminated to all group companies in Japan and overseas. These policies provide the foundation for promoting consistent standards of human rights and labor practices throughout the Group.

Through our products and services, we aim to contribute to the physical and mental well-being of people and to the realization of a sustainable society. We seek to ensure that all individuals working within our operations and across our supply chain are provided with conditions that uphold dignity, equality, and respect.

Sanken Group Human Rights Policy

In recent years, as economic activities have continued to expand, diversify, and become increasingly globalized, the importance of respecting human rights has grown as a social expectation for companies. In response to this expectation, Sanken Corporation and the Sanken Group, in accordance with the United Nations Guiding Principles on Business and Human Rights, set forth our fundamental approach to human rights through our Human Rights Policy.

Initiatives to Respect Human Rights

To further strengthen our commitment to respecting human rights, the Sanken Group provides regular training on harassment prevention for employees and management. In addition, we conduct CSR surveys and other assessments related to human rights for our business partners, and request improvements where issues are identified.

Going forward, we intend to strengthen efforts across the entire Group to identify potential human rights risks, extract key issues, and implement appropriate responses. Matters related to the promotion and protection of human rights are reviewed and discussed by the Sustainability Committee, as well as its subordinate Governance Subcommittee and Social Subcommittee, and are reported to management as part of our governance framework.

Human Rights Due Diligence

1. １． To respect the human rights of individuals affected by our business activities, the Sanken Group established the “Sanken Group Human Rights Policy” in November 2022. In line with this policy, we are working to establish a human rights due diligence process and are advancing human rights impact assessments.
   In fiscal year 2024, we identified key human rights issues within our domestic operations as part of these efforts.
2. ２．  Based on the results of our human rights impact assessment, the Sanken Group identified occupational health and safety, harassment, and excessive working hours as material human rights issues for the Company, taking into account the business environment and the potential occurrence of such issues in our domestic operations.
3. ３．  In advancing our human rights initiatives, the Sanken Group recognizes the importance of incorporating the perspectives of rights holders. Accordingly, we strive to engage in dialogue and consultation with relevant stakeholders to ensure that their views and concerns are appropriately considered.
4. ４．  Going forward, in addition to implementing measures within our domestic operations, the Sanken Group plans to conduct human rights impact assessments for our overseas subsidiaries and suppliers. Through these efforts, we will continue to promote human rights due diligence on an ongoing basis.

Initiatives to Improve the Work Environment

With regard to improving the working environment, the Sanken Group focuses on key themes including the appropriate management of fundamental working conditions, the creation of a safe and secure workplace, and the promotion of employee health. We are committed to fostering an environment in which all employees can fully demonstrate their capabilities, work with motivation and vitality, and experience personal growth.
Based on these principles, we promote initiatives in the areas of safety management, health promotion, diversity advancement, and work style reform.

These initiatives are promoted through the establishment of the Safety and Health Promotion Team and the Diversity Promotion Team under the Social Subcommittee, which operates as a subordinate body of the Sustainability Committee. Through these teams, the Sanken Group advances continuous improvements in the working environment and employee well-being.

Response to Bullying and Harassment Cases

To prevent inappropriate conduct, including bullying and harassment, and to ensure early detection and corrective action, the Company has established an internal whistleblowing system that guarantees confidentiality and anonymity. This system is operated with the support of an external, independent third-party organization, enabling employees to raise concerns and seek advice with confidence.

In addition, the Company provides training for managers on the prevention of bullying and harassment, appropriate handling of consultations, and proper responses when incidents occur. Through these efforts, we seek to enhance awareness of harassment prevention in the workplace and to ensure the consistent implementation of fair and appropriate management practices.

Diversity, Equity & Inclusion

The promotion of diversity in our company and in domestic Group companies is one of the management strategies to become a strong company capable of sustainable growth.
Regardless of attributes such as nationality, culture, gender, age, disability, work history, and values, we will strive to create a work environment in which employees can exercise their abilities to the fullest by respecting each other, recognizing each other, and maintaining fairness, with the aim of creating new values.

Values to be cherished by the Sanken Electric Group

We aim to ensure that all employees (regardless of nationality, sex, age, or occupation) understand the purpose of diversity and that each employee is equally respected. In order to achieve this, we value the following ideas.

• Let's respect and recognize each other.
• Let's say positive words for each other to grow.
• Value work-life balance.

Implementation of management training

As part of our diversity promotion activities, in February 2023, we conducted "Diversity, Equity and Inclusion Management Training" for managers, starting from the management level of the Sanken Group. 69 managers, including those at the management level, attended the training.
The program continued in fiscal 2023 for 205 managers. Since fiscal 2018, we have provided training to managers at our head office and domestic group companies to help them understand the concept of diversity and practice management that eliminates unconscious bias.

Expansion of male child care leave system

Since April 2023, the Sanken Group has been working to improve its system by enabling male employees to take 1 month of paid leave for childcare leave. In addition, e-learning has been implemented to encourage male employees to take childcare leave.
The Sanken Group had 2,861 participants (Attendance rate: 96%. As of June 2023).

Support for Female Careers

Based on the "Development Plan" prepared by superiors and selected members, supervisors are provided with regular training progress and follow-up on plans. Members are provided with support for knowledge acquisition and network formation by external lecturers, thereby creating a strategic environmental for growth.

Interview with male employees

The mental work-life balance provided by the new step of taking childcare leave

At the end of 2019, the chief daughter was born, and my family composition became four, i.e., the wife, the first boy of an un-school child, and the first daughter. At first, my wife looked after the two children, but it was no longer possible to ask for assistance from our parents living far away due to the burden on their bodies immediately after giving birth and the consequences of the the COVID pandemic, the coronavirus pandemic, so I decided to take childcare leave.
When I was considering taking childcare leave, I was worried about my evaluation of my work by taking long term leave. However, my cousin took long childcare leave (6 months), and after consulting with my father, I felt that "my family is important" rather than worrying about the evaluation and reputation of my neighbors. I decided to take childcare leave.
I returned to work for the first time in six months, 2020, but there were no problems I was first worried about, so I feel that the choice was correct when I was able to return to work without having to take child-care leave.
Actual parenting is physically and mentally more burdensome than I had expected, but I feel that the fact that I was able to share my parenting responsibilities due to taking childcare leave will be extremely meaningful, above all, in my future relationship as husband and wife.

Interview with the first female executive in the Sanken Group

"It's not spring if just one flower blooms. Every flower blooms and a good scent floats in the garden."

In March of this year, I had the opportunity to listen to a lecture by President Yuko Yamanaka of Hosei University.
"The main content is ""diversity.""" In this context, It is important to avoid discrimination, such as race, gender, and ethnicity, and to respect individuality. If various people are present and good places are gathered together, new creations can be created and good grades can be achieved. I deeply agree with this.
Looking back on the development of Dalian Sanken Electric, we have made use of "the speed of China," "the rigor of Japan," "boldness of men," "careful consideration for women," and "diversity."

This time, I became the first female director in the Sanken Group, and I feel deeply about this.
The Sanken Group has a philosophy of promoting diversity, and I will contribute to the development of the Group by fully demonstrating my own characteristics. My name is written as "Lotus Flower". Lastly, I will introduce Chinese poetry.

"It's not spring if just one flower blooms. Every flower blooms and a good scent floats in the garden."