CSR in Japan:

What is social responsibility in Japan?

Professor Katsuhiko Kokubu

Graduate School of Business Administration
kokubu@kobe-u.ac.jp

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 CSR in Japan
Japan is one of the leading country in
CSR.
Many companies establish CSR
division/units and publish sustainability
report.
How does theJapanese cultural context
affect the CSR practices?

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The number of companies publishing
sustainability reports in Japan

Source: Ministry of the Environment, Japan

 Japan Business Federations Charter of
Corporate Behavior
1. Develop and provide socially beneficial and safe goods
and services for consumers.
2. Engage in fair, transparent and free competition.
3. In addition to communicating with shareholders, disclose
corporate information actively and fairly.
4. Respect diversity, character and personality of
employees and ensure a safe and comfortable working
environment.
5. Proactively initiate measures in acknowledgment of
environmental issues.

(Charter established Sept. 14, 1991; 5th version released

Sept. 14, 2010)
 Japan Business Federations Charter of
Corporate Behavior
6. Actively engage in community involvement activities.
7. Resolutely confront antisocial forces and organizations.
8. In line with the globalization of business activities,
contribute toward the development of the local economy
and society.
9. Top management recognizes that it is its role to realize
the spirit of this Charter.
10. In case the Charter is violated, top management should
clarify that it will take charge to resolve the situation, and
promptly make full public disclosure.
Japanese style of management
Various characteristics of Japanese style
of management influence CSR
- carefully codified work standards
- emphasis on creating harmonious
- relations among workers lifetime
The power of government relatively
stronger, but the pressures from external
stakeholders weaker.
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 Traditional philosophy on
CSR in Japan
Sanpo-yoshi : Three-way satisfaction:
benefits to the seller, to the buyer and to
the local community

Ohmi shonin (Famous

merchant in Edo and
Meiji era)

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 CSR in Panasonic
Top Message
Long before the word CSR was in side use, Panasonics activities
were already guided by our management philosophy which states
that a company is a public entity of society. Our founder, Konosuke
Matsushita, often said that, Companies and society are not
separable, but rather are a single entity.
I hope that all employees at Panasonic will look into their own
corporate consciences, and act in ways that contribute to
sustainable growth in society. By always behaving with this kind of
sincerity, the Panasonic Group aims to continue to contribute to
society and be trusted by society.
Fumio Ohtsubo
President, Panasonic Corporation
Panasonic CSR Report 2010
Mr Kounosuke Matsushita, Founder of Panasonic
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 Comparison of ISO 26000 and
Japanese CSR activities
Sample: 50 largest Japanese companies
CSR reports.

Investigating whether or not the issues in

ISO 26000 was disclosed in the report.
The results was based on Fujichika (2010)

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 Research sample

TOYOTA MOTOR, Mitsubishi, ITOCHU, MITSUI & CO., Hitachi,

HONDA MOTOR, Marubeni, SUMITOMO, NISSAN MOTOR,
Panasonic, TOSHIBA, JAPAN TOBACCO, Seven & I Holdings,
AEON, Tokyo Electric Power, FUJITSU, NTT DOCOMO, Sojitz,
NEC, NIPPON STEEL, KDDI, Mitsubishi Electric, CANON,
DENSO, Mitsubishi Heavy Industries, JFE Holdings, Sharp,
COSMO OIL, Kansai Electric Power, BRIDGESTONE, East Japan
Railway, Mitsubishi Chemical Holdings, Kirin Holdings, Chubu
Electric Power, FUJIFUILM Holdings, Mazda Motor, AISIN SEIKI,
SHOWA SHELL SEKIYU, RICOH, YAMADA DENKI, Sumitomo
Electric Industries, Nippon Yusen, Kobe Steel, Tohoku Electric
Power, KAJIMA, SUMITOMO CHEMICAL, DAIWA HOUSE,
SHIMIZU, Dai Nippon Printing, NIPPON EXPRESS
(50 Companies)

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 Seven core subjects in ISO 26000

Organizational governance
Human rights
Labour practices
The environment
Fair operating practices
Consumer issues
Community involvement and development
 Organizational governance

core Number of
6.2 Organizational governance %
subje ct companie s
6.2.3 Decision-making processes and structures 33 66%

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 Human rights

core Number of
6.3 Human rights %
subject companies
6.3.3 Due diligence 14 28%
6.3.4 Human rights risk situations 0 0%
6.3.5 Avoidance of complicity 0 0%
6.3.6 Resolving grievances 30 60%
6.3.7 Discrimination and vulnerable groups 33 66%
6.3.8 Civil and political rights 4 8%
6.3.9 Economic, social and cultural rights 30 60%
6.3.10 Fundamental principles and right at work 22 44%

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 Labour practices

core Number of
6.4 Labour practices %
subject companies
6.4.3 Employment and employment relationships 6 12%
6.4.4 Conditions of work and social protection 20 40%
6.4.5 Social dialogue 22 44%
6.4.6 Health and safety at work 39 78%
6.4.7 Human development and training in the work place 44 88%

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 The environment

core Number of
6.5 The environment %
subject companies
6.5.3 Prevention of pollution 42 84%
6.5.4 Sustainable resource use 44 88%
6.5.5 Climate change mitigation and adaptation 49 98%
Protection of the environment, biodiversity and
6.5.6 41 82%
restoration of natural habitats

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 Fair operating practices

core Number of
6.6 Fair operating practices %
subject companies
6.6.3 Anti- corruption 14 28%
6.6.4 Responsible political involvement 2 4%
6.6.5 Fair competition 26 52%
6.6.6 Promoting social responsibility in the value chain 31 62%
6.6.7 Respect for property rights 14 28%

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 Consumer issues

core Number of
6.7 Consumer issues %
subject companies
Fair marketing, factual and unbiased information and
6.7.3 11 22%
fair contractual practices
6.7.4 Protecting consumers' health and safety 33 66%
6.7.5 Sustainable consumption 10 20%
Consumer service, support, and complaint and
6.7.6 34 68%
dispute resolution
6.7.7 Consumer data protection and privacy 25 50%
6.7.8 Access to essential services 4 8%
6.7.9 Education and awareness 12 24%

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 Community involvement and
development

core Number of
6.8 Community involvement and development %
subject companies
6.8.3 Community involvement 49 98%
6.8.4 Education and culture 48 96%
6.8.5 Employment creation and skills development 11 22%
6.8.6 Technology development and access 9 18%
6.8.7 Wealth and income creation 6 12%
6.8.8 Health 12 24%
6.8.9 Social investment 44 88%

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The rate of response in each core
subject

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High response rate issues

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Low response rate issues

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 Issues not in ISO26000 but a lot of
companies address

Number of
Issues not treated in ISO 26000 %
companies
The Solution of social issue through core business 50 100%
Environmental management system 50 100%
Risk management 45 90%
Quality contorol of product and service 42 84%
Employee's healthcare 39 78%
Investor relations 36 72%
Enviromental accounting 35 70%

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 Differences between issues emphasized by Japanese companies and
issues in ISO26000
Issues emphasized by
Japanese Companies
Community involvement
The solution of social issue Climate change mitigation and adaptation
through core business Education and culture
Environmental management Sustainable resource use
system Social investment
Risk management Human development and training in the work
place
Quality control of product and
service Prevention of pollution
Protection of the environment, biodiversity
Employees healthcare
and restoration of natural habitats
Investor relations Health and safety at work
Environmental accounting Consumer service, support, and complaint
The rate of response: and dispute resolution Health
Protecting consumers health and safety Education and awareness
Discrimination and vulnerable groups
Decision-making processes and structure
Promoting social responsibility in the value
chain
Economic, social, and cultural rights
Fair competition
Consumer data protection and privacy
The rate of response:
Issues in ISO26000
Human rights risk situations
Avoidance of complicity
Responsible political involvement
Civil and political rights
Access to essential services
Employment and employment relationships
Wealth and income creation
Sustainable consumption
Employment creation and skills development
Fair marketing, factual and unbiased
information and fair contractual practices
Anti-corruption
Due diligence
Respect for property rights
Conditions of work and social protection
Social dialogue
Fundamental principles and right at work
The rate of response:
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 Conclusion
Japanese companies disclosed much information
on the environment and internal issues.
Some issues in Human rights, Labour practices,
Fair operating practices, Consumer issues are not
disclosed very much.
This means Japanese companies do not receive
much stakeholders pressures on these external
issues. Internal oriented CSR
ISO 26000 may enlarge Japanese companies
and stakeholders recognition on CSR issues.

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