Respect for Human Rights

Core Principles

Promotion System

The Otsuka group regards respect for human rights as a prerequisite for all of its business activities. The group has set up the Otsuka Holdings Human Rights Task Force (TF) under the supervision of the Otsuka Holdings Human Rights Promotion Leader, and established Human Rights Teams in the main operating companies.* The TF comprises members from Otsuka Holdings’ Corporate Management Department (in charge of administration and human resources), Internal Control Department, and Sustainability Promotion Department. In addition, through training programs for management and employees in Japan and overseas, as well as awareness-raising activities such as internal communications, the group promotes respect for human rights throughout the group and its value chain.
Group-wide human rights initiatives and identified issues are reported annually to the Sustainability Promotion Committee. Significant risks are reported to Human Rights Promotion Leaders and the Otsuka Holdings Board of Directors as part of its governance structure that links to management decision-making. The TF also implements programs on respect for human rights throughout the supply chain to promote group-wide human rights due diligence (HRDD) and to raise awareness of human rights through training and company newsletters aimed at top management and all employees in Japan and overseas.

• * Otsuka Pharmaceutical, Otsuka Pharmaceutical Factory, Taiho Pharmaceutical, Otsuka Warehouse, Otsuka Chemical, Otsuka Foods, and Otsuka Medical Devices

Key matters reported to the sustainability promotion committee in 2025

• Targets, progress, and challenges related to the group's material sustainability issues
• Progress in addressing material issues at major operating companies and sharing of best practices across the group
• Progress of initiatives to enhance employee engagement and efforts to cultivate the group's organizational culture

Initiatives Regarding Respect for Human Rights

In 2019, Otsuka Holdings and the main operating companies* conducted human rights assessments. Based on the results, the Otsuka group has established the "Otsuka Group Key Human Rights Issues" as a commitment to our stakeholders. The group continuously works to identify, prevent, and mitigate negative impacts on human rights.

• * Otsuka Pharmaceutical, Otsuka Pharmaceutical Factory, Taiho Pharmaceutical, Otsuka Warehouse, Otsuka Chemical, Otsuka Foods, and Otsuka Medical Devices

Related to Management and Employees

As a signatory of the United Nations Global Compact, the Otsuka group is committed to the elimination of forced labor and the abolition of child labor, with the aim of creating a workplace environment that respects human rights. To maintain fair and open workplaces, the group strictly prohibits discrimination and harassment. As a total healthcare company, the Otsuka group strives to provide workplace environments in line with the principles of health and productivity management, in which both management and employees are encouraged to take the initiative in developing and maintaining their own health.

• Otsuka Joins UN Global Compact
• Otsuka Signs Statement of Support for Women’s Empowerment Principles

Related to Our Patients and Consumers

The Otsuka group contributes to the health and well-being of people worldwide through the creation of innovative products and services. As a total healthcare company seeking solutions to health-related issues, the group recognizes its responsibility to patients and consumers by always prioritizing product quality and safety and reinforcing the supply chain. When issues regarding products or services become apparent, relevant departments collaborate to collect and analyze information and develop appropriate responses, enabling the continuous provision of better products and services to valued customers.

• Otsuka Group Quality Policy
• Basic Approach and Policy for Sales and Promotion in the Pharmaceutical Business
• Otsuka Group Marketing Communication Policy
• Voluntary Declaration of Consumer Orientation

Related to Our Business Collaborators

In keeping with the principles of the United Nations Global Compact, the Otsuka group shares its concerns regarding human rights, labor, the environment, and anti-corruption with business partners and engages in ongoing dialogue and consultation to ensure respect for human rights across the entire supply chain.

• Otsuka Group Procurement Policy (5 languages)
• Otsuka Group Sustainable Procurement Guidelines (5 languages)

Related to Society

The Otsuka group believes that efforts to address environmental issues are closely linked to human rights concerns and proactively and continuously engages in initiatives that contribute to local communities and society at large.

• Otsuka Group's Environmental Policy/Activity Guidelines

Related to Our Stakeholders

To fulfill its responsibility to respect human rights, the Otsuka group recognizes the importance of ongoing dialogue and proactively seeks opportunities to engage with diverse stakeholders. The group is also working to establish contact points and grievance mechanisms to address any human rights issues that may arise.

The Otsuka group supports the principles of the United Nations Global Compact and prohibits child labor throughout its business activities and value chain. The group also works to prevent adverse impacts on children’s rights and continuously identifies, assesses, prevents, and mitigates related risks through its HRDD processes.
Beyond the elimination of child labor in Japan and overseas, the group respects children’s rights to survival, protection, development, and participation. Supporting the healthy development of children, who will shape the future, is an important initiative that is closely linked to the Otsuka group’s corporate philosophy and business activities. The group promotes a wide range of initiatives to respect children’s rights.

Commitment to Children’s Rights

The Otsuka group goes beyond efforts to eliminate child labor in Japan and overseas by also respecting children’s rights to live, be protected, grow, and participate in society. Supporting the healthy development of children, as the leaders of the next generation, has been embedded in the group’s corporate philosophy and business activities since our earliest days. The group remains committed to supporting and respecting the human rights of children through its activities.

Examples of Activities

• OTSUKA Health Comic Library (Otsuka Holdings)
• Educational and Nutrition Activities (Otsuka Pharmaceutical)
• Heat Illness Prevention Activities for Communities and Schools (Otsuka Pharmaceutical)
• Support for Library Construction and Literacy Education in Developing Countries (Otsuka Warehouse, Japanese only)
• Educational Materials for Elementary School Students (Otsuka Foods, Japanese only)

External Collaboration

The Otsuka group, as a signatory company of the UN Global Compact, is part of the Human Rights Due Diligence Working Group¹, Human Rights Education Working Group², Supply Chain Working Group, and WEPs Working Group³ of Global Compact Network Japan (GCNJ), and together with other participating companies and organizations, obtains knowledge that can be used in the Otsuka group's initiatives.

• 1Promotes the efforts of each company through lectures by experts, progress assessments of company initiatives, workshops, group work and other activities to learn together about human rights due diligence initiatives based on the United Nations Guiding Principles on Business and Human Rights.
• 2Deepening the understanding of human rights education and creating educational tools that can be used internally by all employees through teaching basic knowledge of the United Nations Guiding Principles on Business and Human Rights, lectures by experts, case studies from other companies, and interaction between participants.
• 3Participating companies engage in activities and share information useful in their own concrete initiatives, using as reference the seven WEPs principles, which contribute to enhancing the international competitiveness of GCNJ signatory companies and improving gender equality in Japanese society.

Human Rights Due Diligence

To fulfill its responsibility regarding respect for human rights, the Otsuka group identifies adverse human rights impacts in its business operations and conducts HRDD to prevent and mitigate any impact, as outlined in the United Nations Guiding Principles on Business and Human Rights.
In 2025, Otsuka Holdings conducted assessments* involving its employees. While no major human rights risks were identified, the assessments highlighted potential risks related to harassment and excessive working hours. Having reported the results to top management, the company is now working to strengthen its human rights education and training.
Otsuka Warehouse also conducted assessments in 2025. In response to these findings, the company established a Human Rights Promotion Department reporting directly to the President to address long working hours and harassment, while also conducting mindset training for executives and managers and introducing an online reporting channel.
Otsuka Pharmaceutical plans to roll out the assessments, starting with headquarter functions and other departments, from 2026. For HRDD risks identified or suggested by the assessments, the company will implement practical measures and continually review outcomes through regular briefings and other methods.

• * An assessment designed to visualize organizational culture and behavioral characteristics by quantitatively identifying the level of corporate human rights risk based on human rights risk classifications under Ministry of Justice guidelines, while also measuring psychological safety and unconscious bias as contributing factors behind such risks.

Establishment of human rights redress mechanisms

The Otsuka group places great importance on dialogue with all stakeholders regarding adverse human rights impacts related to its business activities and responds to concerns in good faith while drawing on the expertise of independent external experts. The group has established the Otsuka Group Global Speak-Up Policy and works to enhance the transparency and effectiveness of its reporting and consultation mechanisms. Each group company maintains internal reporting channels based on its whistleblowing system, which are available to all employees, including contract and part-time employees. The group also provides channels through which business partners, healthcare professionals, patients, and members of local communities can raise concerns or provide feedback. The operation of these channels is regularly reported to the Board of Directors. By building relationships of trust with stakeholders, the group seeks to strengthen the foundation for sustainable business operations. When reports or consultations are received, the group conducts fair and appropriate investigations and fact-finding, implements corrective and remedial measures as necessary, and takes preventive actions based on root-cause analysis to prevent recurrence. Through these efforts, the group is committed to continuous improvement and the prevention of recurring issues.

Whistleblowing Hotline

Internal Whistleblowing Hotline

The Otsuka group has established an internal reporting system, including a whistleblowing hotline, at each group company to ensure that any illegal acts, including bribery and violations of policies, laws, and regulations, can be promptly identified and addressed. The system is available not only to full-time employees but also to contract, dispatched, and part-time employees. In addition, external reporting channels, including those provided through law firms and other third parties, are available and can be accessed safely and anonymously.
Information about whistleblowers and their reports is strictly managed. To prevent any reprisals, such information is shared only with those who need it in order to investigate the matter and take corrective action. The operation of internal reporting systems across group companies is regularly reported to the Board of Directors of Otsuka Holdings. Furthermore, Otsuka Holdings has established the Otsuka Holdings Group Hotline, which accepts reports and consultations regarding matters that could have a significant impact on the entire group or that may be difficult to address through the contact points at individual group companies.

External Inquiries and Whistleblowing Hotline

Otsuka Holdings and major group companies have established a whistleblowing hotline that accepts inquiries and opinions from external stakeholders and general customers.

- Inquiries Regarding Otsuka Holdings

• Contact Us

For inquiries to each Otsuka group company, please visit the respective company's website.

- Consultation and Speak Up Line for business partners (anonymous consultations and reports are also accepted)

• Speak Up Line for Business Partners