In developing our business globally, Ryohin Keikaku complies with international human rights standards including the United Nations Global Compact, and acts with integrity in all of our business activities in accordance with the laws and regulations of each country and region that govern labor conditions and human rights.

The Ryohin Keikaku Group respects and supports the "Rights of the Child and Business Principles" and does not use children as labor force. A "child" is generally defined as a person under 15 years of age, or who has not completed compulsory education in that country or region, or who is under the applicable legal minimum age for employment, whichever is higher. We prevent the occurrence of child labor by thoroughly checking the age of our employees at the time of employment.

The Ryohin Keikaku group firmly prohibits forced labor, including political repression, punishments for political views, and restrictions on the movement of employees, etc.

The Ryohin Keikaku Group does not discriminate on the basis of race, color, gender, religion, political opinion, national origin, social origin, age, disability, sexual orientation or gender identity, union member or not, or any other status in hiring or employment decisions. Decisions regarding personnel matters, such as hiring, wages, benefits, training opportunities, duties, raises, penalties, and terminations, are based solely on the employee's abilities and performance.

We pay a wage that is higher than the minimum wage level stipulated by the laws and regulations of the country/region or by the local customs. We will also strive to provide better wages and benefits within the range appropriate to the circumstances in each country or region.

We guarantee the rights of our employees to organize and participate in labor unions and other organizations of their own free will without fear of intimidation or retaliation. We also ensure that they have the right to negotiate as a group.

The Ryohin Keikaku Group respects the integrity of its employees. We will not allow any of our employees to be physically, sexually, or psychologically harassed or subjected to verbal abuse. We conducted two training sessions for FY2023, for management employees to recognize harassment in the workplace, to raise awareness of harassment prevention, and to further recognize and prevent the risks that lead to mental health problems from harassment.

We ensure a safe and healthy working environment that does not put employees at risk. To this end, we provide safe drinking water and proper sanitation, lighting, temperature control, ventilation, changing rooms, etc. for our employees.

We make sure to comply with laws and regulations related to labor standards, safety, health, etc. and take into account the physical and mental health of each and every employee. We also strive to maintain a healthy, safe, and hygienic work environment and prevent industrial accidents. In addition, we make sure to comply with international standards and local laws and regulations in terms of working hours, rest periods, and vacation time and promote a working style that does not require overtime. In the unlikely event of a disaster, accident, or other problem occurring in the workplace, we will strive to minimize the damage and thus work quickly to prevent its recurrence.

At Ryohin Keikaku, in order to encourage employees to take annual leaves and public holiday leaves, all employees are required to register their annual leave plans via the attendance management system at the beginning of the year, and the plans will be reviewed and approved by the managers. The Human Resources department will monitor the registration status, and remind employees and managers if the plans are not properly submitted or the days of registration is insufficient. Employees will then take leaves according to their plans, and the Human Resources department will use the attendance management system to monitor the progress, and make sure that all employees take proper leaves as required by laws and regulations.

Ryohin Keikaku has established a Labor, Safety and Health Committee to investigate and deliberate matters related to the health and safety of business sites and the health management of its employees. A director and executive officer has been appointed as the chairperson of the committee, and a system of safety oversight has already been established by the Board of Directors. The Labor, Safety and Health Committee meets monthly with health and safety managers, occupational physicians, employee and union representatives in order to discuss and resolve specific issues such as store and office safety management, employee health management and mental healthcare, etc.. In addition, stores with 50 or more employees (excluding part-time workers) are required to have a Labor, Safety and Health Committee. The committee would be spearheaded by the store manager or an occupational physician appointed for each region, and meetings will be held on a monthly basis in general.

Ryohin Keikaku has established the "Ryohin Keikaku Group Hotline" as a whistle-blowing system to prevent serious problems associated with corporate activities, including compliance violations, corruption, human rights issues (including harassment), and any other activities that violate (or may violate) the "Group Compliance Code of Conduct".

This system is available to all employees of the company and its domestic and overseas subsidiaries, including directors, employees (including contract employees, partner employees, and part-time workers), and temporary employees.

Employees may report and consult anonymously. Privacy of those who report or consult with us is protected, and we prohibit any adverse treatment of persons consulting with or reporting to the hotline.

Any person may make a report to the Hotline by telephone, email (including those using an anonymous system), or in person.

The results of all investigations, with the exception of the names of whistleblowers, will be reported to the President and CEO, and, if necessary, internal procedures may be taken as provided in the Rules of Employment, including the formulation of measures to prevent recurrence, the issuance of work orders and instructions, and disciplinary action and other personnel measures, as well as necessary external measures such as press releases, media relations, and criminal charges.

In addition, we have provided harassment training for employees in management positions in Japan. The training also discusses the definition of harassment, examples of harassment, preventive measures, and what to do when such incident occurs.

A total of 184 consultations were received in FY 2023.

In the event that the Ryohin Keikaku Group receives any guidance on labor standards violations, we will immediately report them to the executive officers and audit committee members. At the same time, we will discuss the corrective actions with related departments, set deadlines for correction and monitor the improvement progress accordingly. Besides, we will share the non-compliance or good practice examples with the whole company to raise awareness and prevent recurrences.

In FY2023, there were no findings from the administration regarding labor standards.

We will continue to actively promote reforms in working styles as well as other initiatives in order to maintain a sound and appropriate working environment that conforms to labor standards, and make further improvements.