Business Ethics and CSR in Japan: Background and Recent Developments

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Business Ethics and CSR in JapanBackground and
Recent Developments

• Mitsuhiro Umezu, Ph.D.
• Keio University, Tokyo

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Overview

• Section 1 Business Ethics and CSR Movements In
  Japan Since 1990
• Section 2 BE CSR Education in Japanese
  Universities
• Section 3 Example in Keio University

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Section1Tradition of Ethics in Japan and JABES

• Long History of Ethics in Japanese Commerce.
• In 1993, about 30 scholars and business persons
  started Japan Society of Business Ethics Studies.
• As of April 2009, JABES members exceed 450.

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BERC as the center for corporate ethics officers

• In 1997, Business Ethics Research Center (BERC)
  was established.
• It started with 14 corporations and now 110
  corporations are members of this organization.
• Shiseido, Fuji Xerox, Fuji Film, TEPCO, Toyota,
  Aeon, Acom,
• Chugai, Mitsubishi Estates, NEC,
• Panasonic, Nikon, etc.

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Recent Development of Institutionalization of
BE(Keio Univ. COE Research 20042007)
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CSR in Japan

• Long History of CSR in Japanese commerce
• 3 CSR booms in post-WWII Japan
• Most recently, 2003 was the new beginning of CSR
  movement in Japan

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CSR boom in JapanNumber of Newspaper Articles
Asahi, Yomiuri, Mainichi, Sankei, total
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Evaluation of Japanese Business Ethics and CSR

• Remarkable improvement in terms of
  Institutionalization of Business Ethics
• Term Compliance is more popular
• The 3rd boom of CSR is visible

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Critical Comments on Japanese Business Ethics
CSR

• Superficial attempts at business ethics
• Limits of compliance
• Passive and defensive attitude
• Conformism
• Copy-Cat Lack of Originarity
• Check-box mentality

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Section 2BE and CSR Education in Japan

• Importance of BE CSR education
• In 1996, only 22 universities offered Business
  Ethics
• (Kanagawa Univ. research by Mizutani, Umezu and
  Okabe)
• In 2005, 43 Universities offered Business
  Ethics (Keio Univ. Research) .
• This is only 9.3 of all Japanese universities.

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Comments on Business Ethics Education(from 2005
Keio Research)

• Slow process of curriculum change and
  development
• Majority of business persons say
• business ethics education is necessary.
• Strongly agree 53
• Agree 39

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Scholars and Students reactions

• 78 of Scholars agree that Business Ethics
  should be taught in Universities.
• 65.3 of students are afraid that they cannot
  make an ethical decision in a future job.

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Difficulties in Business Ethics Education

• Shortage of qualified teachers
• How to relate knowledge of ethics into real
  business world

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Proposal from Keio University Research

• Goals of business ethics education should be 4
  fold
• 1) Acquisition of fundamental knowledge of
  business ethics
• 2) Acquisition of ethical ability
• 3) Acquisition of business decision- making
  skills
• 4) Multi-stakeholder perspectives

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Methods of Teaching Business Ethics

• Lecture
• Case Method
• Internship / Project

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Examples of Expected Result of Business Ethics
Education
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Section 3BE CSR Education Examples in Keio
University

• Teaching Keio University since 1992
• Teaching Keio Business School since1995
• Started Umezu Seminar in 2003
• Started Volvic 1 l for 10 l Program in 2007
• Started Keio- UNGC Project in 2008

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Volvic 1L for 10L Program
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• How every 1L of Volvic becomes 10L of water

Selling Volvic in Japan
A part of the profit is donated to UNICEF
Support for UNICEFs project To dig wells in Mali
Maintain wells for 10 years
For every1L of Volvic purchase, safe and clean
water will be supplied
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Study Schedule
1l for 10l Period of donation
July 2ndSeptember 30th, 2007
A Customer Survey
Mali Tour
Outline of our study
Subject 1,311 people who purchased Volvic Object
Men and women from teen to 60s
Presentation at UNICEF
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1L for 10L in each country
Water issues are social problems in developing
countries. DANONE has taken action to improve
the access to water, relating to Danones sales
of Volvic.
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1L for 10L Project in Japan

• Supporting country Mali
• ProductAll Volvic products
• Time held Jul 2, 2007 Sept 30, 2007

Water conditions in Mali, Africa ?Access to
safe and clean water ?Nationwide 50
Urban regions 78 Rural regions 36 ?20 of
towns do not have access to safe and clean
water ?15 of deaths of children under the age of
5 are the results of diarrhea ?Ranked 7th
in worst death rates of children under the
age of 5 ?Women and childrens job to pump water
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Scheme of 1L for 10L in Japan
Sell Volvic
Donate the part of the profit from the sale to
UNICEF
UNICEF builds water wells in Mali, Africa
Do maintenance of the well for next 10 years
Create 10 liter of clean and safe water per a
liter of volvic sale
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Scheme of 1L for 10L in Japan
Sell Volvic
Donate the part of the profit from the sale to
UNICEF
UNICEF builds water wells in Mali, Africa
Do maintenance of the well for next 10 years
Create 10 liter of clean and safe water per a
liter of volvic sale
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Scheme of 1L for 10L in Japan
Sell Volvic
Donate the part of the profit from the sale to
UNICEF
UNICEF builds water wells in Mali, Africa
Do maintenance of the well for next 10 years
Create 10 liter of clean and safe water per a
liter of volvic sale
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Support activities in Mali 2007

• Through the 1L for 10L project ,
• UNICEF was able to
• Construct new water wells with a hand pomp (total
  20 new wells)
• Repair broken hand pomps (60)
• Teach how to maintain the wells
• Teach how to improve hygiene

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Goals of 1L for 10L Program
1. Supply 700 million liters of safe clean
water to Mali
2. Enhance Japanese awarness of water issues
in Africa
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Achieved to support more than 712 million liters
of safe clean water to Mali in Africa.
refhttp//www.unicef.or.jp/partner/event/volvic/i
ndex.html
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Mali
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Concluding Remarks

• Entire process of this project was
• quite educational
• Effect on students involvement for CSR project
  was very positive
• Importance of partnership among
• corporation, NGO/NPO, Government
• and Academia
• Importance of Ethics and Education
• NO ETHICS, NO DEVELOPMENT