This post continues from part 1: an interview with Yusuke Yamashita, lecturer and researcher on CSR and business ethics in Japan. In this second part he shares his views on the development of CSR in Japan up to now and gives recommendations on what can be done to improve this development.
What role does Corporate Social Responsibility have for the Japanese business community?
At first, most Japanese companies were indifferent to CSR. However, when pollution and environmental problems became big social issues in the 1970s, companies were forced to do something. Originating from this background, until about the 1990s Japanese companies mostly saw CSR as a way to respond to environmental topics.
Nevertheless, Japanese companies were also confronted with other problems than just environmental.As globalization expanded, from the year 2000 onward the need for a more proactive way of CSR and business ethics became clear in Japan as well.
These days, I think that most Japanese businesses think of CSR as part of a strategy to improve a company’s image and of risk management. I don’t think that Japanese people really understand clearly the difference between CSR, business ethics and compliance.
At the same time, the number of Japanese companies that are cooperating with their stakeholders and striving to solve social problems is increasing.
Most companies in Japan are tackling the following three points when they talk about CSR:
1) Risk management (as a way of company protection)
2) Positively influencing the financial performance through improving corporate reputation
3) Philanthropy as a way of resolving social issues
These points are very important for companies now. Yet, this doesn’t constitute an integrated approach of CSR. I think the concept of business ethics in these three points is very weak.
Contemporary CSR in Japan is mostly about dealing with solutions to social problems in Japanese society. However, it is not sufficiently concerned about the social issues in management of Japanese businesses.
Business ethics is about a business becoming a thoroughly ethical being as it is the only way to prevent fraud or scandals occurring in a company. Risk management in itself doesn’t require this type of fully integrated ethical awareness. But business ethics does require of companies to fully integrate this in realizing a better way of doing business. This is the difference with risk management.
I think that a deeper understanding of the concept of CSR will also lead to an increase of efforts in business ethics in the Japanese business world. Despite CSR becoming more included in the Japanese corporate world, there are still many occurrences of fraud and scandals. But I think that more and more Japanese people will want companies to make integrating business ethics a priority over their philanthropic activities.
In your view, what is the main CSR-issue that needs more attention in Japan (either from government, business or consumers)?
I think that there are very little government policies on CSR in place in Japan right now. On my own website, I have published a proposal for 17 policy issues on CSR.
To summarize, these points include a proposal to establish a “CSR Minister” to the government, to establish a CSR Agency, to establish an independent CSR consulting and whistle-blowing contact point and various additional points on stakeholders, tax incentives and transparency.
I will elaborate on a few points of these below.
In Japan there is a “Consumer Agency” (消費者庁) with a responsible minister but I believe we need a CSR Agency and a CSR minister.
Stakeholders are not only consumers and therefore it is necessary that the government has policy in place to also respond to other stakeholders in a suitable manner.
The government should also proactively present all relevant guidelines so that each company can make their individual practice of CSR and business ethics policy into the most appropriate to their business.
The government should support CSR initiatives of companies for example by reducing the tax burden.
However, the government shouldn’t only think about the corporate benefits, but has to be a neutral intermediary between business and stakeholders.
Finally, there is the issue of the National Contact Point of the OECD Guidelines. In Japan there are several ministries that are in charge of the NCP, but this makes it very difficult to understand which section has responsibility for the NCP. This responsibility should be centralized at one section.
Many thanks to Yamashita-san for participating in this blog interview and by sharing his ideas with me in so much detail. どうもありがとうございました！
This series was started by participation in Blog Away NL Maand #2, initiated by Karin Ramaker