Causes and Prescription for Lack of Creativity in Japanese Firms: Consideration from the Perspective of Sustainable Management

Abstract

In recent years, expectations for management to incorporate the concept of sustainability have proliferated. Sustainability is a company-wide initiative; therefore, corporate functions and management play an essential role. However, it is difficult to ascertain whether sustainability is being treated as a critical growth driver in corporate functions and top management. This study aims to clarify this issue and help Japanese companies find better ways to address sustainability, increase their corporate value, and achieve sustainable growth in the future. Empirical evidence taken from several surveys of companies and investors reveals significant perception gaps between investors and companies. Based on the results, several corporate reforms are suggested, including activating discussions on the board to integrate sustainability and management strategies. To hold high-quality discussions, the board must have a management team with high standards. This study also points out the importance of top management’s proactive involvement in sustainability activities and the necessity to develop systems for selecting and training such a management team.