Business Ethics and CSR in Japan:

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Business Ethics and CSR in Japan: Background and Recent Developments. Mitsuhiro Umezu Ph D. Mitsuhiro Umezu, Ph.D. Keio University, Tokyo ...

Business Ethics and CSR in Japan: Background and Recent Developments

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

Overview ŽSection 1 : Business Ethics and CSR

Movements M t IIn JJapan Si Since 1990 ŽSection 2 : BE & CSR Education in Japanese Universities ŽSection 3: Example in Keio University

Section1: Tradition of Ethics in J Japan and d JABES ŽLong History of Ethics in Japanese

Commerce. ŽIn I 1993 1993, about b t 30 scholars h l and d business persons started Japan Society of Business Ethics Studies. ŽAs of April 2009, 2009 JABES members exceed 450.

BERC as the center for corporate ethics officers ŽIn 1997, Business Ethics Research

Center (BERC) was established. ŽIt started with 14 corporations and now 110 corporations are members b off thi this organization. i ti ŽShiseido, Fuji Xerox, Fuji Film, TEPCO, Toyota, Aeon, Acom, Chugai Mitsubishi Estates Chugai, Estates, NEC NEC, Panasonic, Nikon, etc.

Recent Development of Institutionalization of BE (Keio Univ. COE Research 2004~2007)

CSR in Japan ŽLong History of CSR in Japanese

commerce Ž3 CSR booms in post-WWII Japan ŽMost recently, 2003 was the new beginning of CSR movement in Japan

CSR boom in Japan: Number of Newspaper Articles

Asahi, Yomiuri, Mainichi, Sankei, total

Evaluation of Japanese Business Ethics and CSR ŽRemarkable improvement in terms

of Institutionalization of Business Ethics ŽTerm “Compliance” is more popular l ŽThe 3rd boom of CSR is visible

Critical C ii lC Comments on Japanese Business Ethics & CSR ŽSuperficial attempts at business

ethics ŽLimits of compliance ŽPassive and defensive attitude ŽConformism ŽCopy Copy-Cat: Cat: Lack of Originarity ŽCheck-box mentality

Section 2: BE and CSR Education in Japan ŽImportance of BE & CSR education ŽIn 1996, only 22 universities

offered “Business “ Ethics” Ž (Kanagawa Univ. research by Mizutani, Umezu and Okabe)

ŽIn 2005, 43 Universities offered

“Business Ethics” (Keio Univ. Research) . ŽThis is only 9.3 % of all Japanese universities. universities

Comments on Business Ethics Education (from 2005 Keio Research)

ŽSlow process of curriculum change

and development ŽMajority M j it off b business i persons say business ethics education is necessary. Strongly agree 53% Agree 39%

Scholars and Students reactions Ž78% of Scholars agree that “Business

Ethics” E hi ” should h ld b be taught h iin Universities. Ž65.3% of students are afraid that they cannot make an ethical decision in a future job.

Difficulties in Business Ethics Education ŽShortage of qualified teachers ŽHow to relate knowledge of ethics

into real business world

Proposal from Keio University Research ŽGoals 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) M Multi-stakeholder lti t k h ld perspectives ti

Methods of Teaching Business Ethics ŽLecture ŽCase Method ŽInternship / Project

Examples of Expected Result of B i Business E Ethics hi Ed Education i Lecture

Case Study and C Case M Method th d

Internship and P j t Project

Fundamentals of Business Ethics

Theory and Concepts of Business Ethics, Compliance , CSR

Analytical Skills, Communication Skills, etc.

Ethical, Social and Environmental Issues, etc.

Ethical Ability

Normative Moral Imagination, Ethical Ethical DecisionTheories and making skills, etc. Concepts

Moral Imagination, Ethical Decisionmaking ki g skills, kill Practical Application skills, etc.

Business Decisionmaking skills

Theories of decision making making, Strategy

Business Decision- making skill Variety of skill, Current issues, etc.

Practical Business Experience, Business Issue Issue, etc.

Multi-

Stakeholder

Diversity of

Stakeholder

M th d Methods Goals

Section 3: 3 BE & CSR Education Examples in Keio University Ž Teaching Keio University since 1992 Ž Teaching Keio Business School since1995 Ž Started Umezu Seminar in 2003 Ž Started Volvic 1 ℓ for 10 ℓ Program in

2007 Ž Started St t d K Keioi UNGC P Project j t iin 2008

Volvic 1L for 10L Program g

How every 1L of Volvic becomes 10L of water Selling Volvic in Japan A part of the profit is donated to UNICEF Support for UNICEF’s project To dig wells in Mali

Maintain wells for 10 years For every1L of Volvic purchase, safe and clean water will be supplied

St d S Study Schedule h d l Jul Jul.

Aug Aug.

Sept Sept.

Oct Oct.

1ℓ for 10ℓ Period of donation Outline O tli of our study

Nov Nov.

Dec Dec.

Men and women from teen to 60s

Mar Mar.

Mali Tour

Subject

Object

Feb Feb.

J l 2nd~September July 2 d S t b 30th, 2007

A Customer Survey

1,311 people who purchased Volvic

Jan Jan.

Presentation att UNICEF

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 Danone’s sales of Volvic.

1L for 10L Project in Japan ŽSupporting pp g country: y Mali ŽProduct:All Volvic products ŽTime Ti h held: ld Jul 2, 2007 – Sept 30, 2007

《Water conditions in Mali, Africa》 ①Access to safe and clean water ①Access to safe and clean water ⇒Nationwide: 50% Urban regions: 78%   Rural regions: 36% ②20% of towns do not have access to safe and clean water ③15% of deaths of children under the age of 5 are  the  results of diarrhea results of diarrhea ⇒Ranked 7th in worst death rates of children under    g the  age of 5 ④Women and children’s job to pump water

Scheme of 1L for 10L in Japan Sell Volvic Sell Volvic UNICEF UNICEF builds water well in Mali, Africa b ild t ll i M li Af i 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 Do maintenance of the well for next 10 years 

Create 10 liter of clean and safe water  Create 10 liter of clean and safe water per a liter of volvic sale

Scheme of 1L for 10L in Japan Sell Sell Volvic Do maintenance of the well for next 10 years  D i Volvic f h ll f 10 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 Do maintenance of the well for next 10 years 

Create 10 liter of clean and safe water  Create 10 liter of clean and safe water per a liter of volvic sale

Scheme of 1L for 10L in Japan Sell Volvic Sell Volvic

Create 10 liters of clean and safe water per a liter of volvic sale

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 Do maintenance of the well for next 10 years 

Create 10 liter of clean and safe water  Create 10 liter of clean and safe water per a liter of volvic sale

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

Goals of ‘1L 1L for 10L Program’ Program 1. Supply 700 million liters of safe clean water to Mali 2 E 2. Enhance h JJapanese awarness off water issues in Africa

Achieved to support more than 712 million liters off safe f clean l water to Mali M li in i Africa. Af i ref:http://www.unicef.or.jp/partner/event/volvic/index.html

Mali

Concluding R ŽEntire E ti emarks process of f t

his project was quite i educational d i l ŽEffect on students involvement for CSR project was very positive ŽImportance of partn ership among corporation, NGO/NPO, Government and Academia ŽImportance of Ethic