Basic stance and policy

Respecting the human rights of all individuals, including employees and stakeholders both inside and outside the company, is fundamental to achieving our goals of promoting a spirit of challenge through Group and global Integration and empowering all employees and fostering growth unmatched by rivals. Moreover, we strongly recognize that respect for human rights lies at the center of all business activities. We are keenly aware of our need to deepen our understanding of—and take appropriate action on—human rights issues relevant to our activities in each country and business.

In April 2021, our Human Rights Expert Committee formulated the Aisin Group Human Rights Policy, which declares our commitment to fulfilling our responsibility with regard to human rights and is incorporated into key rules across all elements of our business, including Group companies and the supply chain.

The scope of human rights risks covered by the Human Rights Policy includes: discrimination and harassment; child and youth labor and other violations of children's rights; migrant labor and forced labor; wages (minimum wage, living wage, gender pay gap for equal work);working hours, holidays, and other basic working conditions; excessive working hours; safe and healthy working environments; dialogue with employees; diversity and inclusion; minorities (LGBTQ, persons with disabilities, etc.) and women; rights of indigenous and local communities (land, forests, water resources, etc.); use of security companies; privacy; consumers (product safety, information provision); and bribery and corruption.

We also disclose the Group's efforts to prevent forced labor and human trafficking based on laws such as the UK’s Modern Slavery Act.

Promotion Structure

We have established a framework aligned with the UN Guiding Principles on Business and Human Rights. To enhance management’s commitment, we annually convene our Human Rights Expert Committee to deliberate and decide on policies and plans. Relevant departments then collaborate to advance relevant initiatives.

Organization

Promotion Structure

Strategy

Aisin is establishing a human rights due diligence process that encompasses its supply chain. To reduce the risk of serious human rights violations, we have set the implementation of human rights risk assessment surveys and education as key indicators. Human rights risk identification surveys form the core of human rights due diligence. We conduct these surveys regularly to stay abreast of changes in the environment and the status of corrective actions. Having identified key risks, we pursue corrective measures with full disclosure to drive continuous improvement. We will share our fundamental understanding of human rights and information on the Company’s initiatives so that every Aisin employee can practice respect for human rights from their own perspective.

Related materiality issues

Materiality issues Goal (KGI) Indicator (KPI) FY2031 target value
Laying a solid management foundation Zero serious violations of human rights Human rights risk assessment survey implementation rate *1 100%
Human rights training implementation rate*2 100%

Human rights risk assessment survey implementation rate: (Number of companies conducting human rights risk surveys / Number of consolidated companies) × 100

Human rights training implementation rate: (Number of employees who received training on compliance and human rights / Number of consolidated employees) × 100

Key initiatives

Initiatives aimed at achieving zero serious violations of human rights

Human rights due diligence

Based on the Aisin Group Human Rights Policy, we prioritize risk according to severity (impact) and potential (likelihood of occurrence). Foreign (migrant) workers, including technical interns, are a top priority due to high social awareness of forced labor and other potential rights violations and because they are widely employed by the Group and its suppliers. We also confirm the status of initiatives in other key human rights areas, such as discrimination and harassment, at each company.

Aisin Group Human Rights Initiative Scheme
(based on UN Guiding Principles)

Aisin Group Human Rights Initiative Scheme (based on UN Guiding Principles)

Assessment in key human rights areas

To gauge the current status of and drive improvements in key human rights initiatives covering discrimination, harassment, forced labor, child labor, working hours, wages, dialogue with employees, safety and health, and supplier engagement, we conducted an introspective survey in FY2025 across the entire Group and 226 major suppliers. The survey’s results demonstrate overall improvement year-on-year, particularly within Japan (on a 5-point scale, overall average +0.2 points compared to FY2024). However, challenges remain in raising awareness and verifying the actual status of child labor and forced labor within Japan. Therefore, we are (1) appointing human rights promotion officers and holding study sessions across all our companies, (2) distributing checklists covering relevant human rights laws and regulations, (3) sharing and disseminating content that raises awareness. We will maintain our surveying and on-site dialogue to monitor improvement.

Initiatives Concerning Foreign Workers

Regarding foreign workers, a top priority area, we have regularly surveyed the Group-supervised technical intern training program in Japan. As of the end of March 2025, we have identified 425 trainees accepted across 15 group companies. We also run self-checks with our Group companies and major suppliers who accepting technical interns to verify training content, treatment, document management, and protective measures. Furthermore, as follow-up verification, we conducted on-site inspections following an implementation manual for proper technical intern training issued by the Organization for Technical Intern Training and confirmed that no violations occurred that led to human rights abuses. We are also advancing efforts to share understanding through exchanges with supervising organizations and to confirm the status of fees paid in home countries. Starting in FY2025, we are further expanding the scope of these initiatives to cover all foreign workers. From the perspective of preventing illegal employment, which is more exposed to the risk of human rights violations, we are issuing advisories and verifying work-related residence statuses.

Education and awareness activities

Aisin provides the following training and awareness opportunities, thoroughly enforcing respect for human rights by updating content annually.

Target Content
Executives Incorporate human rights-related content into new executive training
Human rights–related departments (HR, procurement, etc.) Hold study sessions with Group companies on human rights trends and Aisin Group policies and initiatives
Recruiters Japan: Thoroughly instruct interviewers and others on points to note through lectures
Dowa problem (Discrimination against Burakumin and other marginalized communities) Joined the “The Industrial Federation for Human Rights, Aichi”; conducted awareness activities and promotion with the “The Corporate Federation for Dowa and Human Rights Issue.”
New hires & employee promotions Japan: Implemented CSR education including the human rights field
All employees Japan: Conducted awareness activities based on accessible case studies Overseas: Incorporated human rights content into each region’s compliance training
Suppliers Issued the “AISIN Group Supplier Sustainability Guidelines” and requested endorsement through explanatory meetings
Held study sessions and shared initiatives with 226 major suppliers

Other initiatives

Collaboration with external stakeholders

We promote collaboration with external stakeholders, including dialogue with labor unions and participation in the Japan Platform for Migrant Workers towards Responsible and Inclusive Society (JP-MIRAI), such as joining cooperative corporate programs.

logo: JP-MIRAI Member

Establishment and Enhancement of Consultation Channels

We have augmented our internal consultation channels with the Aisin Global Hotline to consult with parties outside the company. Furthermore, for technical intern trainees and other foreign workers, we utilize JP-MIRAI Assist to build a specialized multilingual consultation system.

Policy on responsible mineral procurement and activities

Guidelines

To promote globally responsible mineral sourcing that considers social issues such as human rights and the environment, we are avoiding the use of minerals flagged by national-level regulations, such as the U.S. Dodd-Frank Act and the EU Conflict Minerals Regulation. We also request that our suppliers understand our approach and engage in responsible mineral sourcing activities.

Initiatives

In FY2025, with supplier cooperation, we investigated mineral usage and reported the results to our customers. We also participate in industry associations in an effort to establish effective investigative methods. We will continue advancing responsible mineral sourcing in accordance with our guidelines.

Summary of human rights initiatives and plans

Aisin has advanced the initiatives listed in the table below in accordance with the UN Guiding Principles. We will continue to make step-by-step progress on the scope and content of our initiatives through the human rights due diligence cycle.

Summary of human rights initiatives and plans

Labor–management communication at Aisin

Aisin values its people, promotes mutual trust between labor and management, and regards labor and management as wheels of a car working in mutual cooperation. These principles are fundamental to labor–management relations. We hold regular labor–management meetings to share information on policies and objectives, aiming to create a satisfying workplace. When the Company’s actions significantly impact employees, we take appropriate matters, such as providing adequate advance notice.

Lessons learned from labor dispute response in India

(1) Overview of the AHL Labor Dispute

In May 2017, employees at our consolidated subsidiary in India, AISIN Automotive Haryana Pvt. Ltd. (AHL), launched a strike demanding the establishment of a labor union. A month later, the local government issued an order banning the strike but, in protest, 288 employees resorted to force and blocked the company's main gate. The strike ended with the arrest of these employees. AHL proceeded to dismiss 175 employees who remained absent without leave despite repeated calls to return after the strike’s end. Aisin regards this as an unavoidable measure to protect the lives and safety of employees not involved in the dispute. However, this incident became the largest labor dispute in Aisin Group history, leaving both labor and management with deep scars. Aisin deeply regrets the significant concern this incident caused to our stakeholders, including the local community and business partners.

(2) Measures to prevent recurrence

Aisin Group's response

Drawing on lessons learned from past labor–management challenges, the Aisin Group takes the position that for the company to grow, labor and management must listen to each other, build mutual trust, and foster a cooperative relationship. Prompted by this AHL labor dispute, we have reaffirmed and reinforced the necessity of mutual trust and cooperative relationships between labor and management—even at overseas locations with differing labor practices. To this end, we have codified the principles outlined above that should be cherished in labor-management relations into a document titled AISIN’s Stance on Employees-management Relations and issued it to all Aisin Group companies under the auspices of the President. Furthermore, as a constituent of the Aisin Group, to raise our commitment to respect for human rights and realization of diverse work styles to unprecedented heights, we have revised our AISIN Group Principles of Corporate Behavior—a code of conduct designed to enforce our responsibility to society in line with our management philosophy and provide common guidelines for all Aisin Group companies. We have also developed an assessment tool to verify whether personnel and labor management practices align with this stance and are being implemented appropriately and are conducting rolling inspections across our global business. Issues identified during these inspections are handled via a system set up to enable immediate corrective action based on predefined rules.

Response at AHL

On August 4, 2017, President Ihara (then President of Aisin Seiki Co., Ltd.) directly addressed employees at AHL. He explained management's reflection and Aisin's stance on labor–management issues and declared a fresh start. Since then, the Company has worked continuously to improve labor–management relations by rebuilding the communication framework and taking such measures as establishing forums for labor–management dialogue, creating a highly transparent, fair, and easily comprehensible personnel system, and hosting various events. The percentage of positive responses in the employee satisfaction survey, initially at 40%, has since reached 90% (January 2019). We are striving for further improvement and are aiming for 100%.

(3) Declaration for the future

Learning from the AHL labor dispute, we are determined to ensure such a situation never occurs again across the entire AISIN Group. We will strive to become a company all employees can be proud of.

Working hours

We fully comply with the Labor Standards Act. When exceeding statutory working hours, we observe legal procedures and communicate closely with labor unions to ensure employee health and safety. To reduce hours worked, we are implementing flexible labor arrangements and aiming for 100% use of annual paid leave. We are also reviewing work practices for employees stationed overseas.

Compensation

Aisin not only complies with local laws and regulations, such as minimum wage requirements in each country and region, but also respects the principle of equal pay for equal work. Through labor–management dialog, we strive to enforce pay standards that guarantees a certain quality of life for employees and their families.

Aisin (parent) starting salaries (monthly)

Starting salaries
(April 2025, actual)
Aichi Prefecture minimum wage Tokyo minimum wage
High school graduate ¥201,000 115% 106%
University graduate ¥282,000 161% 149%
Master's degree ¥301,000 172% 159%
Doctorate ¥326,800 187% 173%

Minimum wage figures are calculated using regional minimum wages as of April 2025 (Aichi Prefecture: ¥1,077, Tokyo: ¥1,163), based on an average of 20.3 days per month and 8 hours per day. Note: There are no gender or regional pay gaps within the same qualification grade.

Employment stability

We believe that standardizing HR policies and systems across the Group is crucial for employment stability, so we promote rules and procedures grounded in laws and regulations. As a reflection of this, the turnover rate* for the four Group companies in FY2025 was 2.3%.

Number of voluntary resignations from April 1, 2024, to March 31, 2025, ÷ Number of employees as of April 1, 2024, × 100

Prevention and mitigation of other human rights risks

Based on the Aisin Human Rights Policy, the company addresses other human rights risks by adhering to internationally recognized norms and strictly complying with relevant laws and regulations in each jurisdiction where we operate. We are progressively advancing initiatives such as the following:

Examples

  • We thoroughly verify age using official documents during hiring to prevent child labor.
  • The company bears all fees related to employing temporary staff.
  • To prevent forced labor, we ensure that employees retain custody of their passports and other important documents.
  • We do not subject employees to disadvantageous treatment when they submit resignation requests.

For details on harassment prevention and internal whistleblowing systems, please refer to the Compliance section of this website.