SUSTAINABILITY・CSR

Human Rights Policy

1. Our commitment to respect human rights
   We believes that respect for human rights is the foundation supporting all of our business activities. In the increasingly complex business environment, our company faces a variety of human rights challenges,. We recognize that actively respecting human rights is directly linked to ensuring the sustainability of our business operations.
   Furthermore, in accordance with our “Code of Conduct for Officers and Employees” and the “Sustainable Supply Chain Policy,” we have promoted fair and sound business practices. Respect for human rights is essential to realizing a prosperous society both materially and spiritually, and to advancing our business activities in an open and just manner.
   Based on these principles, our company has established the “Human Rights Policy” (hereinafter referred to as the Policy) and remains committed to continuing our efforts to respect human rights moving forward.
2. Scope of application
   This Policy applies to all persons working for MC Fashion. This Policy is shared with our group companies, and we will work together to ensure our adherence to this Policy, as well as to respect human rights throughout our business operations.
3. Outreach to business partners
   We recognize the importance of respecting human rights not only within our own business activities but also throughout our value chain. We will work together with our business partners, including our suppliers, to respect human rights in line with this Policy.
4. Support and respect for international norms
   We support international norms on human rights, including the International Bill of Human Rights (Universal Declaration of Human Rights and International Covenants on Human Rights), the Declaration on the Fundamental Principles and Rights at Work of the International Labour Organization (ILO), the United Nations Guiding Principles on Business and Human Rights.We comply with the local laws and regulations of the countries and regions in which we operate. In cases where there is a conflict between internationally recognized human rights principles and the laws and regulations of the country or region in which we operate, we will seek ways to honor the international principles.
5. Human Rights Due Diligence
   We conduct human rights due diligence to identify, prevent and mitigate adverse impacts on human rights and engage with affected stakeholders where relevant. We pay special attention to vulnerable or marginalized individuals and strive to identify actual or potential adverse human rights impacts that our business activities have caused or contributed to.
6. Human rights issues related to business activities in our group
   We recognize the following as major human rights issues related to our business activities and will work to address them.

   (1) Prohibition of discrimination
   We prohibit any discrimination based on race, ethnicity, creed, religion, gender, gender identity, sexual orientation, nationality, age, origin, mental or physical disability, illness, or any other grounds.
   

   (2) Prohibition of inhumane treatment
   We do not tolerate any forms of inhumane treatment including mental or physical abuse and harassment.
   

   (3) Providing a safe and healthy working environment
   We provide our employees with a safe, and healthy working environment.
   

   (4) Respect for freedom of association and right to collective bargaining
   We respect the right of employees to organize and to bargain collectively as a means to facilitate dialogue among employees and management regarding, but not limited to, working conditions and wage levels.
   

   (5) Securing appropriate working hours and wages
   We properly manage our employees’ working hours. We compensate our employees at least the statutory minimum wage, and endeavor to pay at least the living wage.
   

   (6) Prohibition of all forms of forced labor
   We employ all of our employees at their free will and prohibit the use of forced labor.
   

   (7) Prohibition of all forms of child labor
   We do not employ children under the minimum working age and prohibit any forms of work that impairs their physical and mental development.
   

   (8) Rights of indigenous peoples and local communities
   We respect the rights of indigenous and local people as defined by the laws and international arrangements of the countries and regions in which we operate. We will take measures that our business operation will not cause or contribute to cause threat to the rights of indigenous and local people.
   

   (9) Environment
   We aim to foster an inclusive society where individuals with diverse values and personalities are respected and have equal opportunities to participate and contribute
   

   (10) Diversity, Equity & Inclusion
   We aim to foster an inclusive society where individuals with diverse values and personalities are respected and have equal opportunities to participate and contribute.
   

7. Remedy
   When we identify that our business activities have caused or contributed to adverse human rights impacts, we will remediate such impacts through legitimate processes.In case if adverse impacts were directly linked to our operations, products, or services by a business relationship, we will endeavor to correct and remedy the situation by using our leverage.
8. Grievance mechanism
   If the business activities of the MC Fashion induce a negative impact on human rights or if involvement in such becomes clear, we will strive to remedy and rectify that through appropriate procedures and dialogue.
9. Education and capacity building
   We will provide the necessary training and capacity building to ensure that our officers, employees, suppliers, and other business partners understand the importance of respecting human rights and put it into practice.
10. Information disclosure
    We ensure transparency by regularly and appropriately disclosing information on our human rights efforts and their progress.
11. Stakeholder engagement
    We engage with relevant stakeholders through sincere and constructive dialogue to understand, improve and address human rights issues.
12. Governance and management system
    Our human rights efforts are overseen by the officer for sustainability and CSR, discussed in the relevant departments, and then reported to the Board of Directors.

Principles

Preservation of the global environment and sustainability are the most important issues for us. We are fully conscious of the impact on the global environment from the product and service provider’s point of view, and as we expand business, our top priority is consideration of the impact on the global environment.

Course of Action

1. Consideration of Natural Resources
   We are cognizant of the impact on the environment from our business activities. We strive to understand and manage the impact accurately and properly, and continuously strive to make improvements.
2. Compliance with environment-related laws and regulations
   We comply with environment-related laws and regulations implemented by central and local governments, and third party we agree with.
3. Efficient use of natural resources and energy, and contribution to sustainable society.
   We strive to conserve resources and energy, reduce waste , improve energy efficiency and lower environment burden, while contributing to eco-friendly and sustainable society by promoting practical use and reuse of natural resources.
4. Commitment and disclosure of environmental policy
   Familiarize and educate employees with our environmental policy, and make it available to the public.

Policy

MC Fashion (“MCF”), has established the MC Fashion Policy for Sustainable Supply Chain Management, a policy which outlines actions to address human rights, labor rights, and environmental issues in the supply chain. This policy serves to convey MCF’s fundamental perspective to its suppliers around the world, and expects all suppliers to understand, embrace and abide by it.

1. Forced Labor
   Suppliers shall employ all employees of their own free will with no employee being subject to forced or bonded labor.
2. Child Labor
   Suppliers shall not employ people under the minimum legal working age of the country in question.
3. Safe and healthy Working Environments
   Suppliers shall work to provide employees with safe and healthy working environments.
4. Freedom of Association and Collective Bargaining
   Suppliers shall respect the right of employees to associate freely and engage in collective bargaining as methods of negotiating working environments, wages and other matters with employers.
5. Discrimination
   Suppliers shall strive to ensure equal opportunities in the work place and shall not engage in discrimination with regard to recruitment and employment practices.
6. Abuse and Harassment
   Suppliers shall respect employees’ human rights and must not tolerate abuse or any form of harassment.
7. Working Hours
   Suppliers shall ensure that employees’ working hours and use of leave entitlements are appropriately monitored and that excessive overtime labor is prohibited, so as not to infringe upon any statutory regulations.
8. Suitable Remuneration
   Suppliers shall pay employees at least the statutory minimum wage, endeavor to pay at least the living wage, and shall not unreasonably reduce wages.
9. Anti-corruption
   Suppliers shall engage in fair business practices, avoid corruption including bribery and extortion, and comply with applicable laws and regulations.
10. Environment
    Suppliers shall endeavor to protect the environment and consider the impacts of their business activities on local communities and ecosystems, while paying special attention to energy use efficiency, climate change issues such as greenhouse gas emissions, sustainable use of resources, waste reduction, and air, soil and river pollution.
11. Information Disclosure
    Suppliers shall disclose information with respect to the aforementioned matters in a timely and appropriate manner.

Monitoring

MCF conducts regular surveys of suppliers to monitor the status of their compliance with basic policies and to strengthen communication with suppliers.

Furthermore, MCF visits suppliers to confirm the status of their activities when it determines that site visits are necessary based on the regions where suppliers are active and their business activities.

Response to Compliance Violations

If a violation of the basic policies is confirmed, MCF will demand that the relevant supplier implement corrective measures and will provide guidance and assistance to the supplier as necessary.

If MCF determines that the supplier is unlikely to implement corrective measures even after providing continuous guidance and assistance, MCF will review its business relationship with the relevant supplier.