Japan: New report reveals only 9.1% of SMEs have established human rights policy while over 80% recognise the importance of “business and human rights”
"〈2025年度第1回 中小企業経営実態調査〉人権方針を策定している中小企業は9.1％のみ重要性を認識している企業は8割超。人権意識と取り組み状況に大きなギャップ," October 2025
"Unofficial Japanese-to-English translation by Business & Human Rights Resource Centre"
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[Summary of Survey Findings]
① While over 80% of respondents recognise the importance of “business and human rights”, only 9.1% have established a policy
Although the need to respect human rights is widely acknowledged, there remains a significant gap when it comes to putting frameworks in place.
The expectations placed on large corporations are now gradually being extended to small and medium-sized enterprises (SMEs) as well.
② The main challenges in addressing human rights issues are the “lack of personnel with specialist knowledge or expertise” (36.6%) and “other management priorities taking precedence” (34.6%)
The results highlight that limited management resources often lead to human rights initiatives being deprioritised.
At the same time, many companies reported a “lack of know-how,” suggesting that the use of external expertise and the introduction of support schemes will be key to future progress.
③ More than half (56.8%) of companies reported improved employee satisfaction and retention as a result of their human rights initiatives
Specific benefits were observed, including better workplace environments and reduced staff turnover.
Human rights initiatives should therefore be viewed not as a “cost” but as an “investment in human capital”, contributing to both employee wellbeing and sustainable corporate growth.
[Survey Overview]
Conducted by: Forval GDX Research Institute
Survey period: 8 July – 8 August 2025
Respondents: Business owners of SMEs across Japan
Method: Online questionnaire with analysis of responses
Valid responses: 932
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This report examines how SMEs are responding to the growing focus on human capital, particularly in relation to “human rights”. While awareness of the concept of “business and human rights” remains limited at 27.3%, over 80% of companies recognise its importance revealing a clear gap between awareness and implementation. Around 60% of companies reported taking some form of action on human rights; however, only 15.0% had established a human rights policy, and just 8.0% had conducted employee training. These results suggest that competing business priorities and shortages of specialised personnel are among the main factors hindering progress. [...]Manabu Taira, Head of Forval GDX Research Institute