Bandai Namco Holdings, Inc.

Recreational Products

Headquartered in Japan

Bandai Namco Holdings is a major multinational entertainment and toy manufacturer with a documented sustainability program including climate targets (50% emissions reduction by 2030) and supply chain labor certifications (ICTI, SMETA) for toy production. However, the company faces credible allegations of harmful labor practices toward its own employees in Japan, with reports that approximately 200 of 1,300 employees were transferred to 'expulsion rooms' in 2024 to pressure voluntary resignation—a concerning gap between stated labor commitments and actual workplace conditions. Additionally, 2017 investigations documented labor abuses in Chinese supplier factories.

ICTI Ethical Toy Program ↗
SMETA ↗
Renewable energy
Net-zero target
Waste reduction
No forced labor
No child labor
Supplier code of conduct
DEI policy

How Bandai Namco Holdings, Inc. scores

Three pillars, scored independently. Higher is better.

Environmental

45

Likely fair
Labor

45

Likely fair
Compliance

47.1

Likely fair

Reported concerns and allegations

Reports and allegations from named sources, linked so you can read them yourself. Being listed here doesn’t mean a claim is proven.

Labor abuses documented in Chinese toy factories

China Labour Watch investigative reports (2017) documented low wages, excessive overtime, dangerous work environments, and humiliating living conditions in Chinese factories supplying Bandai. ICTI certification of these factories has been criticized by human rights groups as inadequate.

China Labour Watch, Shop Ethical! ↗
Employee pressure to resign via 'expulsion rooms'

Bloomberg reported in 2024 that approximately 200 of Bandai Namco Studios' ~1,300 Japanese employees were placed in controversial 'chasing-out rooms' with no tasks, reportedly to encourage voluntary resignation.

Bloomberg/Benzinga ↗
Discrimination and harassment lawsuit

In 2015, former employee Tony Le filed a lawsuit against Bandai America Inc. and Bandai Namco Holdings USA alleging discrimination, harassment, and wrongful termination. Le alleged that non-Japanese employees experienced verbal abuse in Japanese, condescending gestures, and discriminatory treatment.

Kotaku / My News LA ↗
EU geo-blocking fine

In 2021, the European Commission fined Bandai Namco 340,000 euros (along with Valve and five other game publishers a total of 7.8 million euros) for using geo-blocking to prevent EU consumers from shopping around for video game deals. Bandai Namco cooperated with the investigation and paid the reduced fine.

Shop Ethical ↗
ICTI Ethical Toy Program credibility concerns

While Bandai Namco is an ICTI Ethical Toy Program member, human rights groups including SOMO and China Labor Watch have criticized the program, with investigators finding serious labour rights violations occurring in ICTI-certified factories.

Shop Ethical! ↗