ILO Drives Rights Integration in Japanese SMEs with Practical Case Studies and Industry Collaboration

Masakiyo Wakabayashi, President of the Japan Sharoushi Federation, emphasized that the case studies showcase how Sharoushi are working directly with enterprises to tackle real-world challenges.

The International Labour Organization (ILO) is stepping up efforts to embed human rights into business operations across Japan’s small and medium-sized enterprises (SMEs), launching two new collections of case studies that translate global standards into practical, on-the-ground action.

Developed in collaboration with the Japan Federation of Labour and Social Security Attorney’s Associations (Japan Sharoushi Federation) and the Japan Electronics and Information Technology Industries Association (JEITA), the new guides aim to bridge a critical gap: helping SMEs operationalize responsible business conduct (RBC) and human rights due diligence (HRDD) within increasingly complex global supply chains.

Turning Global Standards into Practical Action

As expectations grow worldwide for companies to uphold human rights across their operations and value chains, SMEs—despite representing over 99% of businesses in Japan—often face resource constraints and lack clear guidance on implementation.

The ILO’s newly released guides directly address this challenge by offering real-world, replicable examples from Japanese SMEs that have successfully embedded human rights considerations into their business models.

The two publications—“Responsible business conduct in small and medium-sized enterprises: Examples of Collaborative Practice with BHR Promotion Labour and Social Security Attorneys” and “Sustainable Procurement Partnership: An Industry-Wide Initiative and Case Studies of SMEs on Responsible Business Conduct”—highlight actionable strategies, demonstrating that meaningful change is achievable even with limited resources.

“By sharing practical examples from enterprises—particularly concrete, workplace-based approaches and lessons learned—we hope this will serve as a starting point for each company, as well as for broader efforts across supply chains,” said Yuki Kobayashi, ILO Programme Coordinator.

Role of Sharoushi: Bridging Policy and Practice

A defining feature of the initiative is the central role played by Labour and Social Security Attorneys, known in Japan as Sharoushi. These professionals act as critical intermediaries, helping SMEs navigate labour regulations, improve workplace practices, and implement human rights standards.

Masakiyo Wakabayashi, President of the Japan Sharoushi Federation, emphasized that the case studies showcase how Sharoushi are working directly with enterprises to tackle real-world challenges.

“They demonstrate practical efforts in addressing field-level issues alongside businesses,” he said, expressing confidence that the resources will guide SMEs in implementing human rights practices effectively.

Industry-Wide Collaboration Gains Momentum

The initiative also underscores the importance of collaboration between large corporations and SMEs through platforms such as the Sustainable Procurement Partnership (SPP), led by JEITA.

Taira Akiyama of NEC Corporation highlighted that coordinated industry action is essential to address shared challenges and drive sustainability across supply chains.

By aligning procurement standards and expectations, large firms can incentivize and support SMEs in adopting responsible business practices, creating a ripple effect throughout entire industries.

Real-World Examples Show Path Forward

The case studies provide a diverse range of practical approaches, reflecting the varied capacities and sectors of SMEs:

• Nikko Denki Tsushin Co., Ltd. (NDTC) introduced cross-departmental initiatives, engaged younger employees, and used staff surveys to identify and address workplace issues.

• Motomura Confectionery Co., Ltd. focused on strengthening internal systems, including revising employment regulations and establishing whistleblower hotlines.

• Withceed Hospitality Management Inc. began with LGBTQ-friendly initiatives to support inbound tourism and expanded into broader human rights measures, including support for foreign workers.

These examples highlight a common theme: progress begins with incremental, achievable steps rather than sweeping transformations.

“Human rights initiatives are not special activities. There is no need to aim for perfection—it is important to start with what is possible,” said Kazuo Yamanaka, President of NDTC.

Knowledge Sharing Through Dialogue

To mark the launch, the ILO hosted a multi-stakeholder webinar on 24 March, bringing together SMEs, industry leaders, and Sharoushi practitioners to exchange insights and practical experiences.

The discussions focused on how enterprises can integrate human rights into daily operations, from workplace policies to supply chain management, while also addressing challenges such as limited capacity and regulatory complexity.

The webinar also showcased how initiatives like the SPP, combined with expert support from Sharoushi, are helping to create an enabling ecosystem for responsible business conduct.

Part of a Broader Regional Strategy

The initiative forms part of the ILO’s broader project, “Building Responsible Value Chains in Asia through the Promotion of Decent Work in Business Operations (Phase II),” funded by Japan’s Ministry of Economy, Trade and Industry (METI).

The programme spans four Asian countries and aims to promote inclusive, sustainable enterprises by strengthening capacity among businesses and key stakeholders, including governments, employers’ organizations, and workers’ groups.

A Model for Inclusive and Sustainable Supply Chains

As global supply chains come under increasing scrutiny—from regulators, investors, and consumers alike—the ILO’s approach offers a scalable model for integrating human rights into business practices, particularly among SMEs that form the backbone of most economies.

By combining practical tools, professional support, and industry collaboration, the initiative demonstrates that responsible business conduct is not only achievable but essential for long-term competitiveness and sustainability.

With growing momentum behind human rights due diligence frameworks worldwide, Japan’s SME sector—supported by initiatives like this—could play a pivotal role in shaping more ethical and resilient global supply chains.