Obayashi Corporation

Tokyo, Japan

ISIN: JP3193800009

Obayashi Corporation is a major Japanese construction company known for its extensive involvement in building and civil engineering projects across various sectors, including infrastructure development, commercial buildings, and residential construction. The company focuses on innovation, integrating cutting-edge technology and sustainable practices into its construction processes.

CCI Score

-12.39

-4.40% July 22

Latest Event

Obayashi Joint Venture Secures Guam Defense System Contract

On July 17, Obayashi Corporation's joint venture with Granite Construction was awarded a $158 million contract for a Guam Defense System Project, linking the company to major defense infrastructure development.

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ENABLER

Obayashi Corporation is currently rated as an Enabler.

-10 to -19 CCI Score

Companies in this segment facilitate authoritarian practices while claiming neutrality. They provide resources or support that indirectly bolster oppressive regimes, thereby undermining democratic accountability without overtly endorsing the regime.

Latest Events

JUL

17

2025

Obayashi Joint Venture Secures Guam Defense System Contract
-30.00

On July 17, Obayashi Corporation's joint venture with Granite Construction was awarded a $158 million contract for a Guam Defense System Project, linking the company to major defense infrastructure development.
OCT

02

2023

CEO Steps Down Amid Bid-Rigging Scandal
-33.39

Obayashi Corporation’s CEO resigned following allegations of bid rigging, raising concerns over the company's ethical business practices and transparency.
-40

Business Practices and Ethical Responsibility

July 22

The CEO's resignation in the wake of a bid-rigging scandal highlights serious ethical lapses within Obayashi Corporation. Such practices undermine transparency, fair competition, and overall corporate accountability, all of which are crucial for a healthy, democratic business environment.

Obayashi CEO steps down over scandal - Financial Times
JAN

01

2023

Obayashi Human Rights Due Diligence Initiative
54.20

Obayashi Corporation detailed its comprehensive human rights due diligence process based on the United Nations Guiding Principles. The initiative includes a PDCA cycle for identifying and mitigating negative human rights impacts, improvements in occupational health and safety, and annual supply chain surveys to gauge and enhance ethical practices.
+70

Labor Relations and Human Rights Practices

July 22

The initiative shows a proactive approach to enhancing labor conditions and protecting worker rights by adopting a structured PDCA cycle aligned with the UN Guiding Principles. This measure significantly supports human rights within the company’s operations, reflecting positive business practices.

Initiatives to Respect Human Rights
+70

Supply Chain Ethics

July 22

The process incorporates regular supply chain assessments and questionnaire surveys to ensure ethical practices among suppliers, addressing human rights risks effectively. This demonstrates a commitment to supply chain ethics and responsible business conduct.

Initiatives to Respect Human Rights
SEP

30

2021

Survey Reveals Inadequate Human Rights & Supply Chain Practices
-27.32

A survey conducted by Human Rights Now between July and September 2021 evaluated major Japanese construction companies, including Obayashi Corporation, and found that although some progress has been made, both human rights and supply chain policies are insufficient when compared to international standards.
-40

Labor Relations and Human Rights Practices

July 22

The survey indicates that while Obayashi Corporation acknowledges its human rights responsibilities, its practices regarding labor relations and overall human rights policies do not fully meet international norms as outlined in the UN Guiding Principles on Business and Human Rights.

Japan: Human Rights Now studies construction companies on human rights policies and their implementation including in supply chain
-40

Supply Chain Ethics

July 22

The survey also highlighted shortcomings in Obayashi Corporation's supply chain practices, pointing out that the measures currently in place fall short of international human rights expectations.

Japan: Human Rights Now studies construction companies on human rights policies and their implementation including in supply chain
OCT

22

2018

Obayashi Fined for Bid Rigging in Maglev Project
-25.45

Obayashi Corporation was fined $1.8m by the Tokyo District Court for colluding on bids for work packages on the Tokyo-Nagoya maglev rail project, admitting its involvement in bid rigging and promising prompt preventive measures.
-50

Business Practices and Ethical Responsibility

July 22

Obayashi Corporation's admission of bid rigging and subsequent fine reflects a serious breach in ethical business practices. Collusion undermines fair competition and trust in market processes, demonstrating a behavior that is counter to the transparency and accountability expected from responsible companies.

Obayashi and Shimizu fined $3.4m for maglev bid rigging