Risk of declining quality and productivity due to labor shortages and hiring difficulties
First written in FY2023. 1 of 4 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2026: 27 of 104 companies on the "Worse" side.
- FY2026AdvancedAnnual report
「In fiscal 2025, the company worked to ensure thorough awareness of its human rights policy and, in accordance with the risk identification steps described above, established a framework for identifying significant human rights risks across the group and for conducting human rights due diligence.」
The response to the previous risk of labor shortages and hiring difficulties was developed into human rights due diligence covering working conditions, health and safety, harassment, foreign workers, and child and forced labor, among other areas. - FY2025RaisedAnnual report
「Human Rights Response (Working Environment) (A rank)」
The issue was expanded from the risk of lower quality and productivity due to labor shortages and hiring difficulties to “human rights response (working environment),” including health and safety, working hours, harassment and human rights due diligence, and was classified as an A-rank, highest-priority risk. - FY2024-Q3RestatedAnnual report
「During the nine-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」
The company states that there have been no material changes to existing risks, and continues to treat the risk of lower quality and productivity due to labor shortages and hiring difficulties as an existing risk. - FY2023First statedAnnual report
「If recent labor shortages and hiring difficulties result in lower labor productivity or employee quality, product and service quality may deteriorate, occupational accidents may occur, and the brand image may decline, potentially affecting the group's operating performance and financial position.」
Labor shortages and hiring difficulties were identified explicitly as a standalone risk for the first time, with potential effects on productivity, employee quality, product and service quality, occupational accidents and brand image described. Enhancing training programs and promoting brand awareness were identified as response measures.