Responsible Business and Migrant Workers: The Case for Japanese Companies

International business activities are evaluated in light of international standards, in addition to compliance with the laws and regulations of the countries where they operate. Consequently, business enterprises themselves are faced with a need to identify and address human rights-related risks in their operations, including in relation to migrant workers employed in their supply chains. 

This blog explores how Japanese companies operating in Thailand can keep up with these requirements. 

Changing Business Environment 

Global brands are increasingly implementing responsible recruitment and employment policies, catering to the emerging needs of conscious consumers who want to buy ethical products. Companies are adapting to a recent trend towards legislating to eliminate forced labour and exploitation in global supply chains. 

In 2022, the European Commission proposed a Directive on Corporate Sustainability Due Diligence, which would require large companies operating in the EU market, including Japanese businesses, to proactively understand and manage adverse human rights impacts in their supply chains, even if these risks occur outside of Europe, including in Thailand. 

This momentum for change has also been felt in Thailand. Thailand was the first country in Asia to adopt its National Action Plan (NAP), which outlines government and business responsibilities to protect and respect human rights and remedy wrongdoings experienced by workers or communities. The plan aligns with the United Nations Guiding Principles on Business and Human Rights (UNGP), a key framework guiding the responsible business conduct globally. 

The Government of Japan (GOJ) also formulated its NAP 2020-25, which encourages Japanese companies, including those operating overseas, to address human rights-related risks in their supply chains. Subsequently, GoJ adopted the Guidelines on Respect for Human Rights in Responsible Supply Chains. 

How do migrant workers fit into this?  

Migrant workers are the backbone of global supply chains. An estimated 169 million people move for work, many of them at increased risk of exploitation. There were an estimated 28 million people in forced labour globally in 2021, with migrant workers being three times more likely to become victims of exploitation. 

Migration remains a key feature of Thai society. As of 26 December 2022, there were over 2.7 million registered migrant workers employed in lower-wage occupations in Thailand from Cambodia, Lao People’s Democratic Republic, Myanmar, and Viet Nam, with the largest representation coming from Myanmar. However, the actual number of migrant workers in Thailand is likely much higher due to irregular migration channels. Agriculture, construction, domestic work, fisheries, food, hospitality, manufacturing, and sex work are among the sectors most reliant on migrant workers. 

Despite contributing between 4.3 to 6.6 per cent to the Gross Domestic Product (GDP) of Thailand (ILO and UNDP, 2017), migrant workers continue to face challenges: unethical recruitment, excessive and unjustified recruitment fees, underpayment or non-payment of wages, forced overtime, lack of access to social protection, poor working conditions and discrimination.  

What does it mean for Japanese companies? 

UNGPs, the key framework guiding Japanese NAP, clearly state that businesses should take additional precautions to understand, address and mitigate risks migrant workers are facing. From an ethical perspective, this is the right thing to do. From a business perspective, doubling efforts to proactively address risks to migrant workers means keeping up with the business trends to remain competitive in the global markets and at the same time to better manage business risks. 

Many employers in South-East Asia rely on networks of private recruiters and labour providers. The risk to companies without full visibility of their supply chains, including the recruitment and employment of migrant workers, has also increased exponentially. Unethical recruitment often leads to forced labour. Being associated with allegations of forced labour can damage a company’s reputation.  

In its Migrant Worker Guidelines for Employers, the International Organization for Migration (IOM) recommends businesses to prioritize four key areas: migrant-centred organizational policies, Human Rights Due Diligence (HRDD), effective remediation and engagement with migrant workers. Prioritizing these four areas is important for companies, especially Japanese businesses operating in Thai industries known for relying heavily on migrant workforce. 

With Japanese businesses making up a significant proportion of foreign investment in Thailand, there is a unique opportunity for these companies to promote human security for migrants within their workforce, while contributing to the realization of outcomes defined in the Business and Human Rights National Action Plans of both Thailand and Japan. 

IOM’s Migration, Business and Human Rights Asia initiative supports governments in protecting the rights of migrant workers, helps businesses respect those rights, and also helps governments and businesses to provide migrant workers with effective remedies. IOM has worked with international brands, such as Fast Retailing, IKEA, adidas, VF Corporation, among others — reaching more than 600,000 migrant workers employed across supplier facilities in Asia and the Pacific. IOM has achieved this by collaborating with 18 brands and associated suppliers and labour recruiters, carrying out over 15 migrant-centred human rights due diligence assessments, reaching more than 560 private sector actors, delivering trainings to over 2,800 brands, suppliers and recruiters and providing nearly 100 tools, reviews, digital solutions and other resources to enhance business policies and practices in a management systems-based approach. 

In Thailand, with financial support from the Government of Japan, IOM will be offering support to Japanese businesses aimed at enhancing their capacities to respect and protect the rights of migrant workers in their supply chains. This forms part of IOM’s programme to address the needs of vulnerable migrants in Thailand, across the humanitarian, development and peace nexus.