Supply Chain Management (Labor)

The Bandai Namco Group recognizes that its business activities could potentially affect human rights. We recognize our responsibility to respect the human rights of all our stakeholders, including employees, their families, and business partners. Toward this end, we promote an understanding of human rights across the entire supply chain.

Previously, we implemented risk management for each business segment. However, in order to identify, prevent, and mitigate negative impacts on human rights related to the Group’s business activities, we will build a human rights due diligence mechanism and continuously manage risks using a risk-based approach. In October 2022, we engaged a third party to conduct human rights due diligence covering our main businesses. This third party identified high-potential human rights risks in the manufacturing sector in East Asia and Southeast Asia among the Group’s businesses. In the fiscal year ended March 31, 2024, we implemented a risk analysis of all our businesses both in Japan and overseas. Moving forward, we will strive to prevent the occurrence of potential human rights issues and address any issues we have already identified.

The Group is committed to maintaining and improving supply chain management in each business segment, and implemented the following initiatives in fiscal 2023.

Bandai and Bandai Spirits conduct Bandai Factory Audits (BFAs), which integrate quality audits and Code of Conduct (CoC) audits, at nearly all overseas final packaging plants that manufacture products for the Japanese market (approximately 300 companies in fiscal 2023). Additionally, we verify CoC items through reports from third-party CoC standards such as the Sedex Members Ethical Trade Audit (SMETA) and the International Council of Toy Industries (ICTI).
The basic policy for BFAs is the Bandai CoC Declaration, which calls for strict observance of standards concerning forced labor, child labor, working hours, wages and allowances, punitive action, and discrimination. Audits are conducted in accordance with our original BFA manual. Additionally, we hold supplier conferences to share information with our business partners, working together to improve legal compliance and working conditions, including the prevention of forced labor and modern slavery. Bandai Spirits conducts audits of factories that have not been certified based on BFAs or third-party standards in accordance with its own Bandai Spirits Minimum Requirements Audit Report to confirm human rights requirements.
Additionally, Bandai (Shenzhen), which provides production and quality management for major products destined for Europe and North America, conducts transactions with factories certified by third-party organizations such as the ICTI Ethical Toy Program and SMETA. These certifications include prohibitions on forced labor, human trafficking, and child labor. All primary factories for products for Europe and North America that Bandai (Shenzhen) transacted with in fiscal 2023 were certified.

Bandai Namco Amusement carries out transactions only with suppliers for which it has confirmed do not engage in illegal acts in the areas of forced labor, child labor, working hours, wages and allowances, punitive action, discrimination, and environmental protection. Also, regarding plants that assemble arcade game products with which we initiate a new business relationship, we conduct interviews on confirmation items including the working environment. We also conduct audits of new and existing factories that we do business with, as necessary. (In fiscal 2023, audits were conducted on one new factory and one existing factory that we do business with).

To inform and disseminate the Group’s philosophy and approach to human rights among employees, including Group officers, we conduct awareness-raising activities as appropriate.

To ensure compliance with laws, ethical behavior, and internal regulations, the Bandai Namco Group has established the Bandai Namco Group Compliance Charter, which serves as a code of conduct for directors and employees of the Company and its subsidiaries. We have distributed in-house posters across the entire Group, including overseas locations, clearly stating the Compliance Charter. At the same time, we distribute the Bandai Namco Group Compliance Book, a practical guide, to all directors and employees.

Additionally, the Group conducts compliance awareness surveys for directors and employees and works to disseminate the philosophy outlined in the charter through various in-house training programs, including e-learning and new employee training.

Furthermore, believing that promoting executive management’s understanding is vital to strengthening human rights measures in the Group, we hold study sessions on human rights for directors of Bandai Namco Holdings. We also hold seminars and e-learning for employees on topics such as sustainability, work-life balance, the LGBTQ community, and disabilities to raise awareness of human rights and foster a culture of sustainability within the Group.

Bandai Namco Music Live conducts compliance training for exclusive artists and related personnel in order to protect the value of its artists and fulfill its social responsibilities. The company hosts special training and seminars to raise awareness of compliance, relearn social responsibilities and general common sense in music and entertainment, and raise the awareness and capabilities of employees managing artists.

The training was held once in fiscal 2023 under the company’s legal department. More than 40 people participated, including directors, management staff, and exclusive artists. In fiscal 2024, the content was updated, and the course is being held three times in total.