The SUGI Pharmacy Group conducts business activities aiming to contribute to a society full of smiles by
supporting healthy and rich lifestyles of people in local communities.
In order to practice its management philosophy “We contribute to local communities through our sincere,
kind services; We help many more people smile, hoping for the happiness of each employee, hoping for the
happiness of each customer, and hoping for the happiness of everybody,” the SUGI Pharmacy Group has
established a human rights policy to promote initiatives to address human rights issues.
※An excerpt from the Human Rights Policy is shown below
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1 Endorsement of international norms and respect for human rights
Having understood human rights as stipulated in the International Bill of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work and having endorsed the Guiding Principles on Business and Human Rights adopted by the United Nations and other international norms, the SUGI Pharmacy Group will implement initiatives to respect human rights in accordance with these international norms. In addition, the SUGI Pharmacy Group will comply with the laws and regulations of the countries and regions in which it conducts business activities. If there is an inconsistency between internationally recognized principles of human rights and the laws and regulations of the countries and regions in which we conduct business activities, we will explore a means to respect the internationally recognized principles of human rights to the maximum extent.
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2 Governance and promotion system
The SUGI Pharmacy Group will promote initiatives to respect human rights through the Sustainability Committee, an advisory body to the Representative Director & President.
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3 Human rights due diligence
Based on the Guiding Principles on Business and Human Rights approved by the United Nations, the SUGI Pharmacy Group conducts human rights due diligence in order to identify, prevent, and mitigate any adverse impact on human rights and explain the measures it takes.
Employees in charge within our Group regularly meet with external experts to stay fully updated on the latest trends and technical knowledge. Leveraging these insights, they proactively engage in formulating sustainability questionnaires and identifying, preventing, mitigating, and addressing human rights risks.Regarding the evaluation of the supply chain (business partners), contract manufacturers of our internally developed products have conducted self-checks based on questionnaires on a priority basis from the perspectives of business importance and non-substitutability.
We will also implement collaborative initiatives for improvement in steps through site visits to the offices and plants of our business partners and/or audits of them.The Group has been conducting human rights due diligence since FY2024 with the aim of respecting human rights throughout its supply chain and contributing to a sustainable society.
In FY2025, we expanded the scope to include overseas private brand (PB) business partners in addition to domestic ones, conducting sustainability surveys with all 265 PB business partners as of July 2025 (response rate: 82.7%).The surveys cover not only all of the internationally important human rights issues, such as compliance with our Business Partner Code of Conduct, forced labor, human trafficking, child labor, freedom of association, and discrimination, but also a wide range of ESG-related risk items, including management of GHG emissions and wastes, systems for accepting foreign technical trainees, health and safety of employees, information security, and ethics and compliance.
Based on the survey results, we conduct individual investigations for companies deemed to have a high potential risk, requesting corrective action and verifying the results if significant human rights risks are found. In FY2025, no significant human rights risks were identified.
For manufacturing sites related to private brand products, including overseas factories, we conduct continuous on-site audits to ensure proper employment management and occupational health and safety for foreign workers, as well as to confirm the absence of critical non-compliances, such as forced labor or child labor.Establishing a Resilient Supply Chain
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4 Engagement with stakeholders
The SUGI Pharmacy Group strives to understand, address, and resolve human rights issues while maintaining ongoing dialogue with relevant stakeholders in order to address human rights issues from the perspective of stakeholders that are impacted by them.
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5 Reporting contact and complaints handling (development of a relief mechanism to address human rights violations)
For the purpose of preventing and correcting systematic or individual violation of laws and regulations or misconduct, the SUGI Pharmacy Group has established an internal reporting system and operates it in accordance with applicable internal regulations. The Group has established a compliance consultation channel as an internal reporting channel within the Group and at an external law firm. Through this channel, employees can report their concerns anonymously or otherwise. Any disadvantageous treatment of reporters is prohibited. Also for external stakeholders, the Group has established a customer consultation desk to secure their access to appropriate relief and will create a relief mechanism for any human rights violations against all stakeholders.
SUGI Pharmacy Group’s internal reporting system
In order to increase the recognition and understanding of the abovementioned system, we have ensured that contact information for the system is displayed at our stores and offices, and we have also distributed the Compliance and Disaster Countermeasure Pocket Book. By such promotional activities, we endeavor to establish a sound reporting system. The internal reporting system was renamed the “Workplace Concerns Consultation Hotline” in FY2021 to create an environment where employees feel able to use it more freely.
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6 Education and awareness-raising
The SUGI Pharmacy Group provides all employees with education and awareness-raising opportunities that are necessary for the implementation of the Policy.
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7 Monitoring and information disclosure
The SUGI Pharmacy Group will monitor the initiatives to address human rights issues on an ongoing basis and correct them as necessary. The Group will also regularly disclose information on its initiatives to address human rights both internally and externally.
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8 Cooperation with internal and external experts
The SUGI Pharmacy Group will implement the Policy, including human rights due diligence and the creation of a relief mechanism, in cooperation with internal and external experts and based on their expert insights.
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9 Initiatives to address human rights issues
The SUGI Pharmacy Group will focus on addressing the following issues
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1Securing adequate wages
The Group will comply with statutory minimum wages and will not unfairly reduce wages.
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2Proper management of working hours
The Group will manage working hours and rest periods properly and work to establish a work schedule that does not rely on overtime hours.
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3Provision of a safe, hygienic, and healthy working environment
The Group will strive to provide a safe, hygienic, and healthy working environment to ensure that employees can work actively in a safe and rewarding workplace.
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4Respect for the right to social security
The Group respects the right to social security provided under health insurance, pension, and social welfare programs.
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5Prohibition of inhumane treatment
The Group will not engage in and prohibits any inhumane treatment of people at the workplace, including harassment (sexual harassment, power harassment, maternity harassment, moral harassment, etc.) that gives mental distress to and offends others, and negatively impacts the work environment.
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6Prohibition of forced labor and human trafficking
The Group prohibits forced labor and human trafficking.
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7Prohibition of child labor
The Group will not employ anyone under the legal minimum working age.
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8Respect for freedom of association
The Group will not violate the freedom of association of employees.
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9Prohibition of discrimination against foreign workers
The Group prohibits discrimination against foreign workers in terms of wages, working hours, and other working conditions on the grounds of their nationality.
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10Prevention of defamation and invasion of privacy relating to AI and other technologies
The Group will prevent defamation, invasion of privacy, and discrimination that go with the widespread use of the Internet, ICT, and AI.
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11Protection of privacy and personal information
The Group will not arbitrary, unduly, or illegally intervene in the private life, family, residence, or communication of people or disclose factual information about their private lives, non-public information, or any other information that an ordinary person would not desire to be disclosed. In particular, the Group will not acquire, store, publish, or provide to a third party any personal information without obtaining its owner’s consent.
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12Securing quality and safety of products and services and consumers’ safety and right to know
The Group will strive to improve the quality and safety of products and services and prevent any accident in order to secure true customer satisfaction. In the event of any accident or problem relating to its products and services, the Group will ascertain the facts and act promptly regardless of the significance of the matter. In addition, the Group does not tolerate any misrepresentation in product labeling and respects consumers’ right to know.
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13Prohibition of discrimination
The Group will not in any event engage in and does not tolerate any discrimination based on race, gender, religion, creed, nationality, bodily features, disease, educational background, age, or other unreasonable grounds.
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14Prohibition of gender discrimination
The Group prohibits discrimination against minorities in terms of sexual orientation or gender identity, such as LGBT.
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15Respect for freedom of expression
The Group will not violate people’s rights to have, seek, receive, and communicate an opinion without being interfered with by others.
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16Respect for the rights of indigenous peoples and local residents
In conducting business activities, the Group will not violate the rights of indigenous peoples and local residents.
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17Consideration for the environment and climate change
In conducting business activities, the Group will consider the environment and climate change so as not to harm the environment or cause air, soil, or water pollution.
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18Respect for intellectual property rights
The Group will not violate the intellectual property rights of individuals or other companies.
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19Prohibition of bribery and corruption
The Group prohibits its officers and employees from providing or receiving gifts, loans, rewards, remuneration, or other benefits as an incentive to induce acts of others that fall under fraud, illegal act, or a breach of trust, and from using delegated authority for their own personal benefit, in the course of business activities.
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20Respect for human rights in the supply chain
The Group does not tolerate and will strive to prevent any human rights violations arising in its supply chain.
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