December 13, 2024
There have been allegations of human rights violations against workers at Kawaguchi Manufacturing Sdn. Bhd., one of the parts suppliers of Sony EMCS (Malaysia) Sdn. Bhd.
Sony is committed to uphold internationally recognized human rights of all people.
With regards to our supply chain, we have set forth the "Sony Supply Chain Code of Conduct" (the Code) and we conduct regular assessments and work with the suppliers to ensure compliance with the Code including human rights at the production sites. The Code explicitly prohibits the use of trafficked and forced labor, including exploitative labor, confiscation of passport /identification, or collection of recruitment fees, in our facilities and supply chain. As a member of the Responsible Business Alliance (RBA), we also work collaboratively with governments, industry organizations and other stakeholders in order to ensure the responsible supply chain. In cases where any violation or alleged violation of the Sony Supply Chain Code of Conduct is reported via external sources, such as NGOs or media reports, we work expeditiously and objectively to confirm facts regarding the report, including an RBA audit by a third-party auditor. If this determination confirms the reported violations at supplier plants, we promptly request to make an improvement plan. We request progress reports for implementation of these plans and check further by conducting follow-up audits as needed. Sony's policy is to review its business relationship with a supplier if a serious violation of the Sony Supply Chain Code of Conduct is confirmed or if the supplier fails to cooperate fully in an investigation or audit.
As regarding the questioned supplier, in accordance with the above policy, we have conducted the investigations including an on-site audit by a third-party auditor and our direct communications with the company. Through these investigations, we have reason to believe there were violations of the Code at the company. Accordingly, we requested the company to promptly implement corrective measures including appropriate payment to workers, proper management of working hours, and improvement of living condition of its dormitory.
Since then, we have requested the company to report on the progress of its corrective measures. However, no significant progress has been confirmed, and apparently the company's business conditions have substantially been deteriorating. In light of these circumstances, we have had to conclude to discontinue the transaction with the company. We are now shifting our focus to collaborate with RBA and some other organizations to explore reasonable support and remedies for the affected migrant workers.
