Initiatives Related to Respecting Human Rights

We have formulated the Morinaga Milk Group Human Rights Policy, which was approved by the Board of Directors, based on the Guiding Principles on Business and Human Rights of the United Nations and in respect to various international codes of conducts regarding human rights, such as Universal Declaration of Human Rights and United Nations Global Compact, to promote initiatives related to respecting human rights.The Director in charge of human resources at Morinaga Milk Industry Co., Ltd. is responsible for the implementation of the Morinaga Milk Group Human Rights Policy and supervises its implementation.

Morinaga Milk Group Human Rights Policy

In April 2022, we established a Human Rights Subcommittee within the Sustainability Committee and commenced human rights due diligence activities, with the aim of identifying any risks of human rights violations relating to the Group’s business activities, so that we can take steps to prevent and mitigate such risks. The Board of Directors of Morinaga Milk receives regular reports on these activities and oversees the processes and effectiveness of measures.

Initiatives of Human Rights Due Diligence

Since 2022, the Morinaga Milk Group has been conducting human rights due diligence activities to identify the risks of human rights violations associated with business activities and take preventive and mitigating measures in order to advance the initiatives for respecting human rights stipulated in the Morinaga Milk Group Human Rights Policy. From April to June 2022, with the cooperation of external experts, we identified human rights risks throughout the supply chain in our business areas and identified and evaluated potential human rights issues that should be prioritized by the Morinaga Milk Group.

Discovering and Identifying Human Rights Risks (Human Rights Risk Assessment)

The Chairman of the Human Rights Subcommittee and representatives from related departments of the Morinaga Milk Group (14 departments which include the Human Resources, Sustainability Promotion, Corporate Strategic Planning, Production, Overseas Business Strategic Planning, Dairy Farm Services, Procurement, etc.) participated in a lecture given by an outside expert on global trends in business and human rights, which was followed by a discussion on human rights issues in our business activities. Based on this discussion, we will identify potential human rights risks that the Morinaga Milk Group should prioritize through research, analysis, and evaluation by outside experts. At first, we plan to conduct on-site interviews at the Kumamoto Plan of Furijiport Co., Ltd., a Group subsidiary, in the spring of 2023 to investigate the rights of foreign workers in Japan.

Human Rights Impact Assessment

A Human Rights Impact Assessment was conducted from March 28 to 30, 2023 at Morinaga Milk Group's Furijiport Co., Ltd. Kumamoto Plant. This impact assessment evaluates whether or not the human rights of employees working at our business sites are impacted, evaluate the extent, and visualizes issues to facilitate required corrective actions. Human rights specialist Caux Round Table (CRT) was requested to conduct the impact assessment from the perspective of a third party, and involved interviewing a total of 20 employees working at Furijiport Co., Ltd. Kumamoto Plant—12 technical interns from overseas and eight temporary workers—as well as the Kumamoto Plant manager and the office manager. Members of Morinaga Milk's Human Resource Department and Sustainability Promotion Department also participated as observers. The assessment also included verification of the working environment and living environment of the technical interns. The human rights impact assessment used the Dhaka Principles for Migration with Dignity to check conditions, with the results released by CRT indicating that a comfortable work environment was provided to the foreign workers with no major issues present.

Dissemination of Our Human Rights Policy

• Education for Group Employees
  In FY2021, we provided training related to the Morinaga Milk Group Human Rights Policy for 8,188 employees at Group companies in Japan and conducted activities for policy dissemination.
  

  * This training is intended for employees of domestic group companies, temporary employees, part-time employees, and employees of subcontractors who share the same workplace.

• Education for Recruiters
  Morinaga Milk provides training to recruiters to ensure fair recruitment selection. In accordance with the Ministry of Health, Labour and Welfare’s basic principle for fair recruitment selection, we prohibit recruiters from obtaining knowledge about a candidate’s family or living conditions, respect the basic human rights of candidates, and recruit employees based on aptitude and ability. In addition, after checking over the basic principles for fair recruitment selection, recruiters try their best to ask candidates appropriate questions.

Complaint Handling Mechanism

The Morinaga Milk Group aims to respect human rights, including in the supply chain. In addition to preventing and mitigating negative impacts on the company, the Morinaga Milk Group has been examining a complaints handling mechanism (a mechanism for accepting complaints from clients and implementing appropriate corrective measures) to remedy negative impacts that have occurred.In October 2022, we introduced a complaint handling mechanism by joining the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER), which provides a non-judicial grievance platform based on the UN Guiding Principles on Business and Human Rights, and provides expert support to member companies in handling complaints.

The JaCER complaint handling platform can be used on an anonymous basis by all internal and external stakeholders who are or may be adversely affected from the perspective of human rights in their relationship with our Group. In the event that it is identified from the report related to the Group that an adverse human rights impact has occurred or the content of the report has contributed to an adverse human rights impact, we will seek to remedy the affected parties with expert advice from JaCER and other means of support. We will continue to work on respecting human rights in our business activities.

Please contact the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER) for reporting issues.

Diversity and inclusion

The Morinaga Milk Group believes it is important to not only recognize diversity, but also for employees of differing backgrounds to fully realize their individuality, potential, and abilities and to continue creating enterprise value. Morinaga Milk has published its Diversity and Inclusion Declaration and implements a variety of company-wide measures in this regard.

Promotion of diversity and inclusion

Morinaga Milk has held briefings at business sites nationwide to ensure that all employees properly understand and implement diversity and inclusion. Since 2017, Morinaga Milk has held an annual diversity forum together with other food product companies at least once a year.
In FY2022, in addition to a lecture on the theme of "Diversity and Inclusion from the Perspective of Human Capital Management," we held a career seminar for female employees and an information exchange meeting among those in charge of the childcare leave system for male employees.

Co-ALIVE, Joint Project by Food Product Companies

Support for Female Workers

To support female employees who aim to achieve further personal growth and employees who balance work and child-raising, we conduct training that includes "Female Leader Training" and “Work × Child-raising Power-Up Seminar” (also designed for employees who are fathers)." Morinaga Milk is also examining mechanisms and tools to promote the engagement of female workers who return to their workplaces after "Hagukumi period" (special name for childcare leave used internally). From 2021, the flextime system and the reduced-hours work system can be used together.

LGBTQ Help Line

Anticipating that many LGBTQ persons in the workplace may feel that coming out to coworkers or using company consultation avenues could have negatively affects, Morinaga Milk established an internal email consultation service. Morinaga Milk also enacts measures to promote proper LGBTQ awareness, such as holding study sessions on LGBTQ etiquette and formulating LGBTQ-related guidelines for Group companies. In recognition of these measures, Morinaga Milk earned the highest Gold award for two consecutive years in the 2020, 2021, and 2022 Pride Index, an LGBTQ initiative by the voluntary organization "work with Pride*" to evaluate LGBTQ-related corporate efforts.

Childcare Support System

Employees burdened with the dual demands of work and child-raising are able to actively engage in their work in various departments with support from the short-time work system, time-difference work system, etc.Morinaga Milk has had a paternity leave system since 2015 to raise awareness about the participation of male workers in child raising.In addition, for childcare leave at the time of birth (Papa Childcare Leave After Childbirth), which began in October 2022, we introduced a system that allows employees to take leave with 100% salary and bonuses, exceeding national standards.We regard the period of childcare leave as a valuable period for “raising a precious child and becoming a parent,” and we have given the period of childcare leave the special name “Hagukumi period.”In April 2022, Morinaga Milk established the Hagukumi Gift Money program which subsidizes a portion of the cost of childcare as a gift at birth or upon entering elementary, junior high or high school, and distribute our product "Baby's Bifidus" to employees who have given birth to children.By increasing the number of employees taking childcare leave regardless of gender, it is an opportunity to review work efficiency and individualization, and we are creating an environment where everyone can take a break and work comfortably regardless of the reason.In recognition of these actions, we were certified as a business that supports parenting at a high level and received the Kurumin certification mark from the Ministry of Health, Labour and Welfare.

Family Care Support System

In recent years, the number of employees working while caring for their families has been increasing. In 2017, Morinaga Milk responded to this trend by starting a system allowing employees to divide leave for family care into three separate leave periods of up to 185 days in total, a period exceeding the requirement under the relevant law. In 2018, we established the Long-Distance Travel Subsidy for Providing Nursing Care to help employees who travel far to care for family members. For employees beginning the process of balancing work with long-term family care, in 2021 we established a lump-sum payment program to cover a portion of care expenses. We also support such employees through a book collecting information concerning long-term care, seminars on balancing work and care, and other means.

Employment of People with Disabilities

Encouragement of flexible and diverse working styles

Work-life balance/Promotion of flexible working styles

Morinaga Milk has introduced programs including No Overtime Day System, My Holiday System, and Interval System to maintain and improve employees' mental and physical health. The latter program, introduced at all of our business sites ahead of a legislative mandate in 2014, secures more rest time for employees by ensuring a certain amount of off-time from the end of work, including overtime work, to the start of work on the next day.

We further introduced our Teleworking/Satellite Work System, Time-difference Work System, and Flextime System as programs to support flexible working styles. Employees can use the Teleworking/Satellite Work System, introduced in 2017, to balance work and personal life or to improve work productivity by effectively utilizing time resources, regardless of reason such as childcare or family care. In 2021, we set up a satellite space at the Saitama Branch, for use by Tokyo business site workers who live near the Branch.

By rethinking working styles in this way, we seek to ensure that employees of diverse backgrounds can fully demonstrate their abilities.

Fair and Equitable Employment

Morinaga Milk allows fixed-term contract employees to enter into an open-end employment agreement after gaining a certain amount of experience. We are working to clarify scopes of responsibility and expected roles in employee classifications, by means such as introducing a system of promotion to regular employees without a fixed period of employment, letting diverse employees play active roles. We further established an arrangement for rehiring former employees in response to requests from persons wanting to once again demonstrate their abilities at Morinaga Milk, letting them make effective use of experience and skills built up during their tenure and experience gained at other companies.

Management-Labor Dialogue

Morinaga Milk Industry has adopted a union shop system and organized the All Morinaga Labor Union as a forum for dialogue between labor and management. One-hundred percent of all full-time employees are members of the All Morinaga Labor Union, excluding managers and other types employees specified in the labor agreement.

In order for the company and the union to have mutual understanding and cooperation, the labor agreement requires holding management meetings, including joint management meetings attended by both management and union representatives (twice per year) and business site management meetings with union branch representatives. Occupational health and safety councils and management-labor councils are also held for safety measures and labor hour measures (twice per year for each). Discussions also cover wage raises and bonuses, improvement of other working conditions, etc. Finally, before revisions, etc. are made to internal regulations, a proposal is provided for discussion to the All Morinaga Labor Union. These efforts are part of maintaining close communications with the union.

Implementing health management

In order to Practice our corporate philosophy "Contribute to healthy and enjoyable lifestyles through offering unique products derived from advanced milk technology," we believe that it is of utmost importance for the employees of the Morinaga Milk Group to be healthy themselves.

By promoting health and productivity management, we will maintain and improve the health of our employees and create an environment in which each employee can work energetically, thereby increasing the value that the Group provides to society.

Well-being Statement

Basic Policy on Health and Safety

Initiatives and Goals

In promoting health and productivity management, the Morinaga Milk Group has created a Health Management Strategy Map, identified health issues, and then implemented initiatives to resolve them. We have set goals for improving lifestyle habits, making effective use of health examinations, improving health-related knowledge, and improving the organization and workplace environment as major themes for solving these problems.
We aim to be a Group where employees can be healthyemployees can be healthy and active by raising their health awareness and changing their behavior.

*1 Light exercise twice a week for about 30 minutes each time
*2 More than three 180ml servings more than three times a week
*3 A special name for a lifestyle improvement and health promotion campaign sponsored by the Morinaga Health Insurance Society
*4 Training for managers to learn how to care for the mental health of their subordinates
*5 An index indicating the risk of health problems arising from the workplace environment (national average is 100 (the lower the number, the better the condition))

Health Management Strategy Map

Key Health Management Measures

Efforts to Prevent the Onset of Lifestyle-related Diseases

• Various Types of Support
  The Morinaga Milk Health Insurance Association subsidizes medical expenses for complete health exams for employees aged 30 or older. A free mail-based screening for cervical cancer for female employees in their twenties or older is also in place since the disease can affect young women as well. From the perspective of cancer prevention, Morinaga Milk provides subsidies for complete health checkups for employees aged 50 and above and subsidies for gynecological cancer screening. In 2020, an oncologist was invited for an inhouse lecture, "Thinking about Women’s Cancer."

• Health checkup Data Coordination and Follow-ups
  Industrial health units (industrial physicians, public health nurses, nurses) and persons in charge of health management at each business site allows enhanced management of high risk persons, advocating for follow-up exams, and providing health guidance. Moreover, given the effects of oral health on overall health, we are also focusing on expanding our program of free dental checkups. Additionally, we are implementing an initiative to improve lifestyle habits using Morinaga Milk’s own supplement products for employees who are receiving specified health guidance.

  

Efforts to Prevent and Mitigate Mental Disorders

Mental health training is conducted by external EAP* institutions at Morinaga Milk and online training for management-level employees is also conducted.
Following stress checks, we carry out organizational diagnoses for all business sites, with individual follow-ups conducted by counselors as necessary.
In addition, we have partnered with an outside free mental care hotline to create an environment where people, including family members, can feel free to consult with us at any time.

Policy to Support System to Balance Ongoing Medical Treatment and Work

In order to help employees reconcile work with their medical treatment, Morinaga Milk has implemented the time-difference work system, short-time work system (working hours reduced by a maximum of 2 hours), and reduced working days system (4 days a week), so that employees requiring long-term medical treatment will feel confident to remain in their jobs. Also, the following programs have been implemented in support of employees returning to work from leave.

• In collaboration with an external organization, provide support for stability when an employee returns to work following a period away for mental care reasons
• Establish a standardized system of "Return Support Program" which includes reduced ease-in working hours
• Implement regular interviews with industrial physicians (generally for 6 months) upon return to work

Human resource development

Morinaga Milk was founded over a century ago. Throughout its history, Morinaga Milk has fostered a positive corporate culture centered on a commitment to quality. While valuing the achievements of the past, Morinaga Milk believes it is important for our employees to take steps toward the future to evoke smiles from customers, colleagues, and themselves and to continue to grow as we head into the next 100 years.

Regarding Human Resources as Capital and Human Resource Investment

In order to continue to be a business that customers choose, we believe that it is necessary to increase corporate value by simultaneously solving social issues and improving profitability.To this end, we must continue to be an organization that brings together the “knowledge” of each and every employee and creates unique value with a spirit that takes on challenges.The Group considers human resources, the source of these resources, to be important capital, and aims to create new value and achieve sustainable growth through further investment in our human capital.

Our goal is to create "a group of highly specialized, diverse, and energetic human resources"

In an employee survey conducted in 2021, employees characterized the Morinaga Milk Group as "conservative" and "solid," while many said that their ideal vision is of a Group that “has the spirit to take on challenges" and that is "ever-changing.”In order to realize that vision, we believe that it is essential for each employee to continue learning and to create an organizational culture in which diverse opinions are actively discussed.As a company that provides health value to society, we aim to contribute to the healthy and fulfilling lives of our employees and to form a highly specialized and diverse group of energetic human resources.

An Approach Toward Creating an Ideal Group of Human Resources

In order to realize the formation of the human resources group that we aim to create, it is important to approach it from both personnel and organizational standpoints. We believe that it is necessary to balance two approaches to human resource development (for "individual autonomy" and "exercising professional capabilities") and organizational development ("combining diverse values" and "creating a climate that celebrates challenges").

By instilling a culture of developing human resources at various workplaces, an ongoing cycle of training can be achieved. This is the approach to human resource development that Morinaga Milk believes is ideal, and under this style of thinking, we promote a variety of human resource development programs.
As part of these efforts, we are enhancing initiatives aimed at supporting the independence of our employees' careers. Increasing the level of career independence is viewed as being linked to a greater employee performance and sense of fulfillment, and to this end, we have been running new career development training sessions since FY 2023. We are providing the support required for employees to take a fresh look at the concept of Will, Can, Must, by building on the individual experiences they have built up, identifying ideal and worthwhile approaches, and assisting them to take action. To encourage development tailored to the changes in each individual's circumstances, we regularly release information on independent career development and e-learning programs to continue providing greater learning opportunities. An internal job posting system including more departments for internal transfers also provides more opportunities for employees to take action for independent career development.

Morinaga Milk is also focusing on developing and growing its global business with the aim of becoming a "global company that exerts a unique presence worldwide."
In addition to committing management resources, Morinaga Milk considers it vital to increase the number of and train its global human resources. To secure sufficient numbers of employees capable of playing a role on the international stage, the requirements for such people need to be clearly defined as we develop a pooling system for global human resources. Appropriate training is planned for candidates selected for each level and role to create a comprehensive global human resources training program.
The Morinaga Milk College is an internal educational institution in the Manufacturing Department tasked with transfer of technology and skills and with maintenance and improvement of quality technology, toward which it offers diverse employee educationto train various specialists with the view to maintaining and improving quality.

・Individual autonomy for human resource development
We are enhancing initiatives aimed at supporting the independence of our employees' careers. Increasing the level of career independence is viewed as being linked to a greater employee performance and sense of fulfillment. From FY 2023, we have also been running Career Development Training with the aim of providing support required for employees to take a fresh look at the concept of Will, Can, Must, by building on the individual experiences they have built up, identifying ideal and worthwhile approaches, and assisting them to take action. To encourage development tailored to the changes in each individual's circumstances, we regularly release information on independent career development and e-learning programs to continue providing greater learning opportunities.
An internal job posting system including more departments for internal transfers also provides more opportunities for employees to take action for independent career development.

・Exercising professional capabilities for human resource development
Morinaga Milk is focusing on developing and growing its global business with the aim of becoming a global company that is a unique presence.
Increasing the number of global human resources and training them is considered vital. To secure sufficient numbers of employees capable of playing a role on the international stage, the requirements for such people has been clearly defined as we develop a pooling system for global human resources.
Appropriate training is planned for candidates selected for each level and role to create a comprehensive global human resources training program.
The Morinaga Milk College is also an internal educational institution in the Manufacturing Department tasked with transfer of technology and skills and with maintenance and improvement of quality technology, toward which it offers diverse employee education to train various specialists with the view to maintaining and improving quality.

・Combining diverse values for organizational development
The Morinaga Milk Group believes it is important for creating ongoing corporate value to not only recognize diversity, but also for employees of differing backgrounds to fully realize their individuality, potential, and abilities. To this end, a range of initiatives related to diversity and inclusion are organized for combining diverse values.
See Topics "Diversity & Inclusion" for more details.

・Creating a climate that celebrates challenges for organizational development
The Morinaga Milk Group holds the internal awards system Morinaga Milk Awards (MMA) with the aim of becoming a company that is always looking to take on challenges.
MMA features multiple award categories and presentations of results, as well as awards for actions and processes to support employees pushing boundaries.
This helps to create a climate that celebrates challenges.

Online factory tour

Revitalization of communication with local communities through plant tours

Local communities are an important part for Morinaga Milk Group's corporate activities. We have developed a variety of programs aimed at meaningful communication with communities and the sustainable development of communities.

One such program is plant tours. Our aim is to give people a real sense of Morinaga Milk's safety- and reliability-based approach to manufacturing through a first-hand look at how our products are made.

While direct plant tours are currently suspended, in the hope of giving local residents who are waiting for tours to resume and distant customers who have yet to visit something to look forward to, in February 2022 we launched a new online tour of our Kobe Plant in Kobe, Hyogo Prefecture.
The Kobe Plant began operation in 2006. It manufactures about 40 products, including milk, cup-type beverages, and yogurt. The plant is also undertaking initiatives with consideration of the global environment, including the introduction of biomass equipment, wind, and solar power generation.

We will continue to strengthen such initiatives, and will work toward communication with local communities that leads to the creation of a sustainable society and toward support for the growth of the next generation.