"Business and human rights" has become a clear and urgent issue for all Japanese companies to address, as among other things, the Corporate Governance Code revised in 2021 refers to "respect for human rights" and as a result, the Japanese government formulated the "Guidelines on Respecting Human Rights in Responsible Supply Chains" ("METI Guidelines") in 2022.
Currently, all Japanese companies are required to formulate human rights policies, conduct human rights due diligence, and establish grievance mechanisms based on the METI Guidelines, the UN Guiding Principles, and other policies for their respective business sectors based on guidance provided by international organizations such as the OECD and ILO. In addition, they are also required, among other things, to take measures to respect human rights when negotiating contracts with their business partners, and in the case of M&A transaction, to investigate possible adverse impacts related to human rights by a target company and to incorporate the results of the investigation into their M&A contract terms. This trend means that Japanese companies are strongly expected to take responsible measures to respect human rights.
The practice of "business and human rights" requires unique skills and approaches that are different from other legal practice areas, such as knowledge of Japanese and foreign regulations, as well as international human rights legal standards and puts an emphasis on stakeholder dialogue.
U&P advises clients on the development of human rights management systems. In addition, in crisis situations for a client, for example, where there is suspicion of human rights violations in a supply chain involving the client, U&P provides the client with highly specialized and practical advice. We combine our extensive experience in corporate crisis management practice and our professional knowledge of various laws, guidelines, and international human rights legal standards related to the "business and human rights” field. In particular, in cases requiring a global response, we are ready to cooperate with local law foreign firms by utilizing the international law firm networks with our member partners in Multilaw, ELA, and LAW.