Fair Employment and Working Conditions

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Basic Policy

The Otsuka group conducts employment-related activities, such as recruitment, assignments, performance evaluations, promotions, and transfers, in line with the Otsuka Group Global Code of Business Ethic, which adhere to human rights and labor laws and regulations and are based on fair employment policies. We work to make it possible for employees to achieve their individual potential by building a fair, open, and equal workplace, without unfairly evaluating employees based on their race, skin color, country of origin, sex, sexual orientation, gender identity, religion, nationality, age, marital status, whether they are pregnant or not, or whether they have a disability. In addition, we conduct self-evaluations and HR interviews and operate a whistleblower system to eliminate coercive and forced work and prevent child labor by confirming the age of applicants when recruiting.
As for remuneration, we pay at least the legally required minimum wage for each country and region and work to appropriately manage wages so that wages are fairly paid and to ensure same pay for same work by comparing compensation for similar roles in each region. In Japan, when finalizing work details and changes in positions for regular workers using such systems as reduced hours and part-time workers, we comply with the Act on Improvement etc. of Employment Management for Part-Time and Fixed-Term Workers so that there are no unjustified gaps in compensation with regular employees.

Approach

Engagement with Employees

Employee Representation System

The Otsuka group has introduced an employee representation system in where the opinions of employee representatives are sought when drafting and revising labor-management agreements and work regulations. At each workplace, employees either put their hand up as candidates or are recommended as representatives. These employee representatives are asked for their opinions on such matters as labor-management agreements and work regulations.

*Labor unions
Otsuka group employees in some regions are members of labor unions.

Employee Stockholding Partnership Plan

The Otsuka group has introduced an employee stockholding fund as part of the employee benefits. Employees of group companies in Japan may opt to join the plan and buy even small amounts of Otsuka Holdings’ shares on an ongoing basis from their monthly salary and bonuses, and receive an incentive that is 10% of their contribution. The group has also introduced an incentive plan that is granted on the achievement of performance targets in the Medium-Term Management Plan with the aim of further enhancing employees’ motivation to contribute to the corporate value.

Employee Engagement

At the Otsuka group, we recognize that all departments and business must have a single orientation to raise corporate value and build a strong organization. In addition, we stress the cultivation of a sense of unity within the organization by having employees understand the group’s overall values and vision. Having set employee engagement as an indicator related to human capital, one of our material issues, we promote collaboration to strengthen the overall organization’s creativity and problem-solving skills through such initiatives as organization diagnosis, reforms, and employee training based on group-wide taskforces.
At each group company, we are working to create a comfortable workplace through improvements to the organization culture based on employee engagement surveys and employee satisfaction survey, and related initiatives have included launching an internal whistleblowing system and conducting surveys on and implementing measures to combat bullying and harassment.

Wage Gap between Men and Women

For recruiting, evaluations, promotions, assignments, allowance requirements, and similar issues, the Otsuka group offers compensation based on individual roles and skills, results, evaluations, and growth regardless of sex, nationality, age, or other attribute. At the group, we work to comprehensively promote diversity, equity, and inclusion and undertake continual human resource development.

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