The case underscores significant shortcomings in Panasonic Energy's supply chain ethics. By prematurely severing ties with Kawaguchi without ensuring proper remediation measures or engaging with affected workers, the company is seen as complicit in facilitating a supply chain that allowed for exploitative labor practices and gross human rights abuses.

Sony, Panasonic Accused of Worker Exploitation in Malaysia

Allegations of forced labor, inadequate compensation relative to recruitment fees, and the practice of withholding passports constitute a severe violation of labor rights. This reflects poorly on the company's ethical and human rights practices within the Business Practices and Ethical Responsibility category.

Foreign Workers to Sue Sony and Panasonic Over Forced Labor

The Panasonic Group’s decision to reimburse recruitment fees for workers affected by forced labor practices indicates a positive remedial action within labor relations and human rights practices. Although the measure comes in response to prior violations by a manufacturing partner, the initiative to address and try to remedy adverse human rights impacts is a step in the right direction from an anti-fascist, pro-worker perspective. Nonetheless, the reactive nature of the response suggests there is room for further improvement in ensuring the full protection of worker rights.

Panasonic response re alleged insufficient remedy to Kawaguchi workers

The update highlights serious concerns in Panasonic's labor relations and human rights practices. The company's delayed response to repaying recruitment fees to former Kawaguchi Manufacturing workers, in the face of forced labour allegations, indicates shortcomings in its duty to uphold fair labor standards. Although an alternative payment method is being implemented, the initial delay and operational challenges point to a problematic handling of worker remediation, thus negatively impacting its labor rights record.

Panasonic update to Kawaguchi case - Business & Human Rights Resource Centre

The company's investment in reshaping its production process, including setting up new plants in Nevada and Kansas, aligns with economic nationalism. This move supports a restructuring of economic power that can facilitate authoritarian trade policies, even if indirectly.

Cutting China supply top objective: Panasonic Energy

The company's decision to revise its supply chain away from China in response to U.S. tariffs has a dual impact. On one hand, pivoting toward domestic manufacturing could enhance labor oversight and reduce potential human rights risks associated with foreign supply chains. On the other hand, the move appears primarily driven by economic and tariff mitigation motives rather than an overt ethical commitment. From an anti-fascist perspective, while this shift may indirectly support more ethical domestic practices, its underlying motivation is largely economic, yielding a modest positive score.

Panasonic Energy Aims to Revise Supply Chain Strategy Amid U.S. Tariffs

The decision to cut out China-sourced materials is a clear adaptation to Trump-era economic policies and tariffs. While it is presented as a business strategy to mitigate costs and secure supply chains, it also reinforces nationalist and protectionist trends that have been linked to xenophobic and authoritarian practices. From an anti‑fascist perspective, aligning business operations so closely with politically charged, nationalist policies makes the company complicit in broader authoritarian dynamics, negatively impacting its ethical and global supply chain responsibility.

Panasonic's Bold Move: Cutting China Out of the U.S. Battery Supply Chain by 2025

The company's move to cut its China-based supply chain in favor of U.S. business interests comes as a direct response to Trump's proposed tariffs. While this may be seen as a strategic business decision, from an anti-fascist perspective it reinforces nationalist and protectionist policies that risk aligning corporate practices with authoritarian economic measures. This decision could contribute to exclusionary economic practices and exacerbate global divisions.

Panasonic Energy says cutting China supply for U.S. business a 'No.1 objective'