Nov. 26. 2004 / Yamada 1

“Corporate Social Responsibility in Japan -- Focused on Environmental Communication”

Yamada Shuji

Bunkyo University

Nov. 26. 2004 / Yamada 2

Purpose of this Presentation

to show the tendencies of introducing CSR into Japanese management

to explain the history of conceptualizing CSR in Japanese backgrounds

to make clear the importance of communication with all interests for establishing CSR

Nov. 26. 2004 / Yamada 3

Management with CSR

CSR ： becoming popular (MoE, 2004)CSR in Managemant (MoE, 2004)

48.2

27.6

19

Yes

preparing

No

% (N=2795)

Nov. 26. 2004 / Yamada 4

CSR Section in CompaniesCSR section (MoE, 2004)

18

23.8

41.8

9.6

44.3

0 5 10 15 20 25 30 35 40 45 50

Yes

only staff

Yes+staff

preparing

No

% (N=2117)

Nov. 26. 2004 / Yamada 5

Duty of CSR SectionDuty of CSR section (MoE, 2004)

80.1

44.1

43.6

27

18.1

15

14.7

6.3

0 10 20 30 40 50 60 70 80 90

compliance

environment

risk management

safety and cleanliness

external communication

investor relation

personnel management

others

% (N=381, MA)

Nov. 26. 2004 / Yamada 6

Reason : CSR & Managementreason for CSR management (MoE, 2004)

59.2

56.6

49.7

36.8

6

2.5

0 10 20 30 40 50 60 70

avoid total social risks

risk management

mutual trust with stakeholders

brand image

finance

others

% (N=2117, MA)

Nov. 26. 2004 / Yamada 7

Reason : Without CSRreason for no CSR management (MoE, 2004)

62.5

17.8

9.5

6.9

0 10 20 30 40 50 60 70

don't knowabout CSR

unnecessary

expenxive

others

% (N=539)

Nov. 26. 2004 / Yamada 8

Merit of CSRevaluation by CSR (MoE, 2004)

40.7

39

6.2

8.3

0 5 10 15 20 25 30 35 40 45

meaningful for corporatebrand

necessary as EU or US

unnecessary

others

% (N=2795)

Nov. 26. 2004 / Yamada 9

Report Publishingtype of report (MoE, 2004)

6.6

1.9

34.2

40.6

7.1

1.5

0 5 10 15 20 25 30 35 40 45

Sustainability report

CSR report

Environmental report with CSRpart

arranging for including CSR part

no need to include CSR part

don't know about CSR

% (N=743)

Nov. 26. 2004 / Yamada 10

Companies and Environmental Pollution in Japan

1960’s - 70’sserious pollution and disease : “Kog

ai”energy shortage : “Oil Shock”measures : appropriate sections an

d technologies – for energy, material supply, anti-pollution etc.

Nov. 26. 2004 / Yamada 11

Companies and Its Responsibility

“Kogai” -- most stimulus experience

　　　　　　↓environmental （ =anti-polluting ）

measures

　　　　　　↓“Corporate Ethics”

(Fukukawa, 1997)

Nov. 26. 2004 / Yamada 12

“Kogai” and Internal Management

luck of internal management

　　　　　　↓ industrial accidents

　　　　　　↓“Kogai” (=external pollution)

(Iijima, 1995)

Nov. 26. 2004 / Yamada 13

Internal Management and Responsibility

internal management　　　　　　↓workers’ welfare, safety and

cleanliness of workplace, enough communication etc.　　　　　　↑precondition of good external

management

Nov. 26. 2004 / Yamada 14

Regulation Method in 1970’s

Japanese economic success and environmental protection

initiative by administrative sectionsregulation or control methodnoise abatement, tremble control,

air pollution, sewage management etc.

Nov. 26. 2004 / Yamada 15

Negative (Passive) Corporate Responsibility

(to much) expensive compensation to the victims

better to avoid pollutingaccept regulationspassive companies’ measures“negative corporate responsibility”

(Nogami, 1997)

Nov. 26. 2004 / Yamada 16

Amount of Damage

MoE(2002)

<million yen>

Actual amount of damage with

compensation (/year)

Total amount of expense for anti-pollution (/year)

Yokkaichi Air-Pollution

21,007 14,795

Minamata Disease 12,631 123

Itai-Itai Disease 2,518 602

Nov. 26. 2004 / Yamada 17

Regulation Method and Technological Success

Japanese environmental successcontrol their business under

regulationswith end-of-pipe technologiesenvironmental protection

-- anti-pollution level

Nov. 26. 2004 / Yamada 18

Corporate Responsibility to Corporate Social Responsibility

in late 1980’s“environmental boom”“Sustainable Development”paying attention to environmental

risks

Nov. 26. 2004 / Yamada 19

Environmental Measures

treat all of the possibilities of environmental degradation

“Environmental Charter” -- from top management (1993)

“Voluntary Action Plan” (1994)ISO14000’s (1996)

Nov. 26. 2004 / Yamada 20

Relation with Subsidiaries : E-Guideline or Request

Environmental Guidance or Request to Subsidiary Companies (MoE,2004)

33.7

11.9

10.4

19.1

20.9

0 5 10 15 20 25 30 35 40

to allsubsidiaries

to mainsubsidiaries

nowconsidering

nothing

nosubsidiaries

% (N=2795)

Nov. 26. 2004 / Yamada 21

Sprout of Corporate Social Responsibility

new measures for Environmentdisclosure (Information)environment or sustainability

information (reporting)

Nov. 26. 2004 / Yamada 22

Environmental Communication

in late 1990’shaving good relations with communi

ty people or NGO/NPOs

　　　　　　↓the best way to fulfill their CSR

Nov. 26. 2004 / Yamada 23

Case Study : Communication of Electric Power Company

Electric Power Co.Electric

Power Co.

consumer as NPO

members

consumer as NPO

members

NPO“C” + renewable

power plant

NPO“C” + renewable

power plant

power rate+ green fund

power supply

power rate + sell power + message

Nov. 26. 2004 / Yamada 24

Environmental Management and Communication

new technolo

gy

new products

consumer’s

intention

new system

new channel

citizen’s initiative

case A ○ × ○ ○ ○ ×

case B × ○ ○ × × ○

case C × × ○ ○ ○ ○

Nov. 26. 2004 / Yamada 25

Findings

new technology or new products -- one of the key, but not enough

intention, system, channel and citizen’s initiative as social resources -- should be newly developed

company and its stakeholders -- collaboration intermediate groups -- help exchanging

information and motivating citizen’s initiative

Nov. 26. 2004 / Yamada 26

Communication Process

communication help expanding their profitable achievement

easily touch with the consumer’s needs or demands

intermediate groups : NGO/NPOs

　　　　　　↑ interpreter of the actual market

Nov. 26. 2004 / Yamada 27

CSR and Communication

success for introducing a CSR concept

key words

　　　↓mutual complementation intermediate groupscitizen's initiative

Nov. 26. 2004 / Yamada 28

Summary

CSR concept -- best mix

　　　　　　↓management resourcessocial resourcesenvironmental resources