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      OPEN

      Human Rights and LaborHiring and Treatment of Human Resources

      We strive to create an attractive, motivational workplace environment for employees.

      Basic Policy

      Canon believes that in order to become a truly excellent global corporation, each employee must be an “excellent person.”

      In line with its human resource measures, Canon is building a corporate culture that encourages an enterprising spirit by guaranteeing respect for the values of ambition, responsibility and mission, as well as fair and impartial assignments, evaluations, and treatment based on merit. At the same time, we are focused on developing our next generation of leaders.

      Guiding Principle of the Three Selfs Spirit

      The San-ji (Three Selfs) Spirit has been a central guiding principle for Canon since its founding. The three “selfs” refer to 1) self-motivation: proactively taking the initiative; 2) self-management: conducting oneself responsibly and with accountability; and 3) self-awareness: knowing one's position, roles and circumstances.

      Canon encourages all Group employees to embrace the San-ji Spirit as they pursue their work with a positive and forward-looking attitude, and promotes this approach at Group companies worldwide.

      Guiding Principles
      Three Selfs Adhere to the principles of self-motivation, self-management and self-awareness in day-to-day activities
      Meritocracy Make vitality (V), specialty (S), originality (O), and personality (P) daily pursuits
      Internationalism Strive to become a culturally sensitive, internationally minded, sincere and active person
      Familism Strengthen trust and understanding of others and work together in a spirit of harmony
      Health First Live by the motto “healthy and happy” and work to cultivate character

      Hiring and Retaining Talent

      Canon seeks to hire and retain talent that can drive globalization and innovation in its businesses with the ultimate goal of sustainable growth. With this in mind, we follow a uniform policy for hiring, job placement and human resource development.

      In 2018, Canon Inc. and Group companies in Japan embarked on a vigorous recruitment program, resulting in the hiring of 1,153 employees in total. Canon also has established various programs and systems, such as a career matching system to support the continued employment of each and every employee so that they remain motivated and can maximize their skills and abilities over the long term. We regularly conduct employee surveys and work to improve employee satisfaction. Thanks to these initiatives, Canon Inc. boasts one of the highest retention rates in the industry. As part of maintaining high job satisfaction, regular employee surveys are conducted by Canon U.S.A., Canon Europe and Canon Group sales companies based in Asia.

      Promoting Globalization of Executive Management

      As part of promoting the development of globalized management, Canon appoints appropriate personnel, regardless of nationality, as presidents, executive officers, and managers of subsidiaries in each country and region where it operates.

      Canon China actively promotes local employees to managerial positions as part of developing business operations. Local appointees occupied 76% of all managerial positions across the region in 2018, up from 38% in 2013.

      Creating Local Employment Opportunities at Production Bases

      In order to help stimulate local communities and economies through job creation, we focus on local employment when establishing or expanding production bases.

      For example, Canon Prachinburi (Thailand), which started operations in 2013, has hired approximately 4,900 people locally, and Canon Business Machines (Philippines) employs approximately 5,600 local residents (as of December 31, 2018).

      In addition, our production bases in Asia have created over 60,000 local jobs since 2007.

      Canon ensures that its employees are paid substantially more than the local minimum wage.

      Fair and Impartial Compensation System

      Salary Linked to Duties and Performance

      Canon Inc. has introduced a position-based pay system to evaluate and compensate individuals fairly and impartially, regardless of gender or age.

      In this system, remuneration is based on duties and performance. Basic pay scales incorporate the level of position in the company based on responsibilities and other factors. An employee's achievements as well as work-related processes and performance during the year are evaluated to determine annual remuneration. Bonuses reflect individual achievements and company performance.

      This system is being applied across the Group worldwide, and has already been adopted by the majority of Group companies in Japan and manufacturing subsidiaries in Asia. Systems for determining compensation based on duties and performance have already been established at Canon U.S.A. and Canon Europe, along with other Group companies in those regions.

      Regarding basic salary amounts and increases as well as calculation and payment of bonuses, a committee meets with the Canon Workers' Union three or four times a year to check whether remuneration is being paid in accordance with the rules of the labor agreement. The minutes of these meetings are made available to all employees. The committee also facilitates discussions between labor and management on the implementation and improvement of the compensation system.

      Employee Benefit Programs

      Canon offers various employee benefit programs, covering each stage of life from hiring to retirement, enabling employees to lead comfortable and enjoyable lives.

      For example, as well as providing staff canteens and sporting facilities, Canon funds or subsidizes programs and clubs that bring together people with shared interests to foster better workplace communication. We host various events for employees and family members that incorporate the local culture and customs of each region. In addition, employee benefit programs have been developed in line with each Group company's needs.

      With a view to securing their futures, in addition to national social insurance programs, employees of Canon Inc. and Canon Group companies in Japan are eligible for added benefits that include a corporate pension plan as well as membership in our welfare association and health insurance society. Canon Inc. also offers a voluntary employee stock ownership plan, a savings plan and group life insurance policies, among other benefits.

      Corporate Pension Plan

      At Canon Inc., we offer employees the defined-benefit Canon Corporate Pension as a form of performance-based pay—a role- and grade-based retirement system—to supplement their public pension and contribute to a more comfortable retirement. A company-run pension fund manages pension assets so employees do not need to provide any additional funds. Other Group companies in Japan have also set up their own corporate pension plans.

      Canon Inc. also offers a defined-contribution pension plan with matching contributions, which, coupled with the defined-benefit pension plan, provides solid financial security.

      Reducing Total Work Hours

      Canon works diligently to ensure that employee work hours comply with the laws of each country and region where it operates, targeting reductions in hours where appropriate.

      For example, at Canon Inc., we encourage workplaces to ban overtime in principle and to review work practices. We have also taken measures such as encouraging employees to take paid leave. Annual hours worked per employee were 1,737 in 2018, a reduction of 62 hours compared with the equivalent figure of 1,799 hours in 2010 when we initiated efforts to reduce working hours.

      Flexible Work Styles

      We promote flexible work styles in line with national and regional employment customs.

      For instance, in 2005, Canon Inc. formulated an action plan following the guidelines of Japan's Ministry of Health, Labour and Welfare. Based on this plan, we are encouraging the adoption of flexible work styles while helping employees achieve work-life balance, and taking steps to aid the development of the next generation.

      Promoting Flexible Work Styles

      Canon Inc. has a number of leave programs that enable employees to take time off flexibly to respond to their personal circumstances. These include a time-unit leave program in 30-minute increments that is available for reasons such as childcare, injury or illness, as well as an open vacation program in which employees can take five consecutive days of vacation once per year. Such programs are designed to promote a flexible approach to working.

      In April 2018, we launched the sixth phase of the action plan outlined in the table on the following page. This phase spans the three-year period to March 2021.

      Action Plan Phase VI (from April 2018 to March 2021)
      Action Plan Measures Results as of the End of 2018

      (1) Promote use of work-life balance programs with aim of raising participation rate.

      • Regularly check the performance of employees using work-life balance programs, and have VIVID*1 and the Workstyle Innovation Committee work together to consider and implement specific measures before March 2021.
        *1 VIVID: Vital workforce and Value Innovation through Diversity, a company-wide horizontally integrated organization for promoting diversity.
      • Confirmed that, in addition to female employees, who have made up the majority of those taking advantage of these programs, the trend for use of these programs by male employees is on the upswing.

      (2) Promote workstyle reform further by encouraging workstyles that do not rely on overtime work, continuing efforts to promote use of paid leave, and maintaining an appropriate level of total work hours.

      • Using total work hours as an indicator for work-life balance, bolster measures to encourage use of paid leave and maintain an appropriate level.
      • Prohibited overtime work, in principle, throughout the year.
      • Implemented earlier work hours from July–September in a campaign to promote work-life balance, and continued efforts to promote workstyle reform. Provided employee benefits program for encouraging self-development during the earlier work hours.
      • Total work hours company-wide decreased by 62 hours compared to 2010*2.
        *2 The year that activities to reduce total work hours commenced.

      (3) Continuing from Phase V, carry out community contribution activities open to participation by children—who are the future of our communities—through social contribution activities.

      • Continue reaching out to local regions and communities and implement appropriate initiatives from April 2018 to March 2021.
      • Continuously conducted throughout Japan the following community contribution activities for children
      1. Unique tutorial program for children, including lessons on lens-crafting and environmental education outreach programs
      2. Junior Photographers photography classes
      3. Support for girls soccer (Canon Girls-eight, Canon Girls-Camp)
      4. Tag rugby lessons and rugby lessons, etc.

      Supporting Working Parents/Care Givers

      To enable employees to focus on childcare responsibilities with peace of mind, Canon Inc. offers an array of programs that go beyond the legally stipulated minimum requirements, including a childcare leave program that enables employees to take leave until their child reaches the age of three, and a system for reducing work hours to support childcare, making it possible for employees to reduce their workday by up to two hours until their child has finished the third grade of primary school.

      In addition, to support the work-life balance of those in our local community, Canon Inc. established Poppins Nursery School Tamagawa. Located on our property adjacent to the Shimomaruko headquarters, the school is certified by the Tokyo Metropolitan Government and open to local residents. Approximately 40 children are enrolled at the school.

      We provide various support systems to help employees caring for aged relatives, including nursing care leave, sympathy money, and a system for reduced work hours to support nursing care, enabling employees to reduce their workday by up to two hours a day to fulfill family care responsibilities.

      Hotlines have been set up at each of our operational sites to handle employee inquiries about these systems.

      In addition, Canon Inc. conducts surveys on flexible workstyles to assess the circumstances and needs of employees, aiming to create a flexible workplace environment.

      Supporting Employees' Volunteer Activities

      In recognition of the growing interest in volunteer activities, Canon Inc. established a volunteer leave system in 1994.

      Under this system, employees wishing to participate in volunteer activities certified by the company may take up to one year of leave (two years and four months in the case of JICA Japan Overseas Cooperation Volunteers).

      Worker-Management Relations

      At Canon Inc. and Canon Group companies in Japan, worker-management relations are founded on the principle of prior consultation, that is, finding solutions through thorough discussion. Candid discussions between management and the labor union are held whenever policies that affect wages, working hours, safety and health, and benefit programs are to be implemented.

      Every month, Canon Inc. convenes a Central Worker/Management Conference with the Canon Workers' Union* to exchange opinions and information spanning a range of subjects. The CEO and senior management attend the monthly conferences.

      • *The Canon Workers' Union consists of employees from Canon Inc., Canon Marketing Japan, Fukushima Canon and Ueno Canon Materials.

      Additionally, special committees have been established to consider wages, working hours, safety and health issues, and benefit programs. Based on these conferences, new systems are established and policies enacted. As of the end of 2018, combined employee membership in the Canon Workers' Union totaled 27,103, representing 81% of Canon Inc.'s workforce.

      Group companies in Japan hold a similar conference, which they refer to as the Canon Group Workers' Union Conference (Canon Inc. representatives also attend). This conference brings together 19 Group workers' unions and executives from 21 Group companies. In 2018, reports on the current situation of both labor and management throughout the Group as a whole were presented. As of the end of 2018, there were approximately 55,000 employees in unions that belonged to the Canon Group Workers' Union Conference.

      In accordance with the labor laws of each country and region in which we operate, Canon continuously maintains proper labor relations based on thorough dialogue between labor and management at Group companies outside Japan.

      Canon will continue to implement changes based on mutual understanding and trust with the Canon Workers' Union in its pursuit of continuous development.

      Minimum Notification Period for Changes in Work Duties

      Canon Inc. has established a minimum notification period clause within its labor agreement to ensure that personnel transfers do not negatively impact the lives of employees.

      Employees receive official notice of personnel transfers at least two weeks in advance for temporary assignments and at least one week for other types of transfers. Employees who need to relocate due to the transfer are officially notified up to four weeks in advance.

      Additionally, Canon Group companies inside and outside Japan have established minimum notification periods in accordance with the laws and regulations of the countries and regions where they operate.

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