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Dialogue with Stakeholders

To better understand how social conditions and the business environment are changing and to reflect those changes in our initiatives, JAL engaged in dialogue with Mr. Takeshi Shimotaya in March 2019 on the global supply chain of the aviation business.

Mr. Takeshi Shimotaya
After working for a major heavy industry manufacturer from 1991, he moved to the United Kingdom in 2007, and earned an MSc in Environmental Assessment and Management from the University of East Anglia, and an MBA from the University of Lancaster. He founded the ASSC in 2017.Heis working to solve environmental and social problems in the supply chain.

Takeshi Shimotaya
The Global Alliance for Sustainable Supply Chain
Executive Director

Setting Clear Standards

While supply chain management requires a multifaceted perspective, social issues in particular require respect for human rights and the right to work and an order of priority according to guiding principles on business and human rights. This requires you to think of the obvious risks to people involved in your supply chains. You need to understand that, if these risks eventuate, they could also pose a risk to your company, and have a solid understanding of what should really be prioritized. When prioritizing initiatives, I think it is important you clarify the basis on which priorities have been set, for instance, whether you select are as where JAL buys an extensive range of services or products with higher transaction values, or areas with higher human rights risks in the country where you operate. I also think it is important that, once clarified, this should be clearly described in JAL Group policies.

Required Initiatives

The key to addressing human rights and labor issues in supply chains is to listen to the views of workers, community members and other people who are rights-holders but are unable to complain directly or to express their views to the company. To achieve this, you need to create highly effective grievance mechanisms for handling complaints or opinions. By selecting and auditing those suppliers found in the analysis of self-assessment questionnaires as requiring further auditing, you could verify conditions of workers, community members and other people involved. However, since auditing all suppliers is impossible, you need to build a user-friendly mechanism to receive complaints directly from workers and be able to implement remedial measures quickly when human rights violations are revealed. In addition, when building such a mechanism, a major factor in enhancing its effectiveness will be third-party intervention, creating a situation that protects any workers expressing complaints or opinions from being disadvantaged by reason of such expression.
As for environmental issues on the supply chain, action is needed to deal with single plastic related to Ocean plastic pollution, a prominent issue in recent years which countries have begun regulating. Consideration will also need to be given to the procurement of raw materials, including paper.

Conclusion

The JAL Group is already investigating and shedding light on human rights issues. Once these human rights impact assessments have been conducted, it is essential that human rights due diligence be undertaken from high priority areas where there is significant risk, even if there are difficult obstacles to overcome. While it seems likely that supply chain issues will be ranked high in priority, it is important in supply chain management to clearly convey JAL Group's philosophy on respecting human rights and your Supplier Code of Conduct to tier 1suppliers and to exercise your influence (leverage) in seeking action from tier 2 and subsequent suppliers further upstream. Holding a series of study and training sessions to develop a deeper understanding for supply chain management both inside and outside JAL, and readily disclosing Group information should also serve as a valuable initiative in enhancing corporate loyalty.

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