This paper focuses on Yuhan Corporation, which is one of the most respected companies in South Korea. This corporation always regards a company as a "public institution of society," and works toward business for society. We research how the business ethics of Yu Il-han, who is the founder of Yuhan Corporation, has been formed through reviewing his background. This paper reveals the following two points. 1) Yu Il-han does not conduct business with clear business ethics in mind, but rather his management philosophy has been interpreted as pioneering in Korean business ethics. 2) His business ethics was formed within his personal background and social background. The former has roots in the philosophy of enlightenment based on Christian thought through his father Yu Gi-Yeon. The latter is grounded in a situation of poverty and increasing momentum toward an independent homeland under colonial occupation at the time.
The purpose of this study is to explore the characteristics of compliance practices at Japanese companies' overseas subsidiaries. The study examined the compliance practices at the Singaporean subsidiaries of companies A, B and C. The results of the study were (1) that the compliance practices at the Singaporean subsidiaries of the three companies resemble those of the parent company and (2) that compliance training based on themes meeting local requirements is organized. This means that Japanese-style compliance practices are adapted when they are implemented at an overseas subsidiary.
The demand for the practice of CSR has increased substantially since ISO26000 (SR standard) was published, and calls for corporate governance (CG) to be strengthened both within and outside Japan are becoming more urgent. However, the relevance of CSR to CG has not been adequately clarified in the literature or in practice. Therefore, in this study, we describe and compare the SR standard with the CG code in Japan to understand their relationship. We find that the CG code lacks the viewpoint of "integrating social responsibility throughout an organization" included in the SR standard. Therefore, this concept of integrating social responsibility throughout an organization should be added to the CG code. We suggest including the following two measures to the CG code and corporations in Japan: introducing provisions related to this concept into "the responsibility of the board of directors" and establishing an optional social responsibility committee within the board.
The purpose of this study is to investigate the following two points about companies who disclose information about CSR by administering a survey to their employees. First, the CSR communication and primary factors that promote the motivation and CSR activity of employees were examined. Second, the primary factors supporting the potential of CSR communication management were examined. For the former, the following factors were identified: CSR communication based on fair processes, and a high evaluation of the company's CSR communication by employees. For the latter, the following factors were identified: good management of the company's CSR communication, good understanding of the benefits of CSR communication management, and a high evaluation of the company's CSR communication by employees. These results are helpful for improving the effectiveness of CSR communication and management.
This paper intends to clarify the mechanism of CSV (creating shared value) as a socially responsible business (SRB), which is expressed as the strategic corporate responsibility, put forward by Porter and Kramer. CSV is based on the logic of Porter's strategic positioning approach. Through enlargement of shared value, CSV pursues the maximization of profit of both business and society by a positive feedback mechanism. CSV emphasizes the business view that involves social benefit and/or profit, is orientated toward the maximization of the right kind of profit, and suggests to integrate CSR into business strategy. However the purpose of CSV is not to promote CSR. CSV is only utilizing some elements of social dimensions in which CSR has been regarded as important, to reinforce the strategic position for getting a competitive advantage. For CSV, CSR is only the means to reinforce the uniqueness of the strategic positioning.
The importance of financial reporting and non-financial reporting is increasing in recent years. Amid ongoing globalization of economy, management and the market, there is a demand from institutional investors. Companies integrate financial and non-financial information, it began to disclosure as a new integrated report. However, companies are hardly able to disclose the negative information, which may have become banausic report. Companies have established internal systems of order to maintain good relations with stakeholders, and management and employees there is a need to tackle in unison.
To prevent corporate accidents and corporate scandals, employees in the organization should promptly report on an own fault to the superior. Up to now, only "reporting culture" had been pointed out as a factor to promote the reporting behavior. The purpose of this paper is to clarify a new factor to promote the reporting behavior. First of all, the component of the cost of reporting and not reporting was clarified based on the decision making process of the reporting behavior of the employee in the organization. The result of the analysis shows the recording system is a factor to promote reporting behavior. Moreover, it was pointed out that the reporting culture was a factor to reduce the cost of reporting, and the recording system was a factor to increase the cost of not reporting.
This article clarifies the concept of creating shared value (CSV) and poses the following research question: Is CSV or shared value strategy ethical? The concept of CSV was proposed by Porter and Kramer in 2011. Since then it has become popular in US and spread to Japan immediately. This strategic framework is to create major new opportunities for company's profit and competitive advantage at the same time as it benefits society. However, from the viewpoint of business ethics studies, CSV and SV strategy are ethically unconvincing: Legal system does not always protect or promote the interests of local communities, and business corporations have an ulterior motive when they help others in need. (This work was supported by Japan Society for the Promotion of Science [JSPS] KAKENHI [Grants-in-Aid for Scientific Research], Grant Numbers 26380453 and/or 25380466.)
This paper reports the results of a survey study on business ethics in Japan conducted in 2014 and compares the results with two other surveys that were conducted in 1994 and 2004. During the last two decades, Japanese corporations have made great efforts in institutionalizing ethics that parallel the growing interest in business ethics in Japan. Like in the previous two studies, the latest data shows that little has changed in Japanese business managers' views of ethics that include their propensity toward situational ethics and the importance of company policy in their ethical decision-making. However, the current data shows long-term changes in their views such as (i) decline of unethical industry practices, (ii) higher priority to personal ethics in ethical decision, and (iii) indications of ethical rigorousness in some fictitious cases.
The purpose of this study is to consider the UN Global Compact in the light of universal values and management philosophy. The UN Global Compact and its principles incorporate values of environmental sustainability, protection of human rights, fair treatment of workers, and elimination of bribery and corruption. They would be universal values. Previous studies have pointed out that management philosophy is an important factor impacting the corporate behavior. This study examines the possibility that principles of UN Global Compact are related to the management philosophy of particular company.
This study aims to visualize often-complicated corporate crises holistically by modeling in a way to classify factors which may ferment stakeholders' negative emotions. The model developed in this paper consists of four factors; (1) corporate reputation, (2) degree of damage, (3) crisis responsibility, and (4) crisis response. Also it is divided into three macro stages; pre-crisis, crisis, and post-crisis. The quantitative research, analyzed by use of pairwise comparison, identified substantial volume of influences toward stakeholders' negative emotions from all the four factors. It indicates that their negative emotions are affected by not only a crisis itself but also by pre-crisis and post-crisis situations. The research implies that a company's response after revelation of an incident is the most influential factor for their emotions. The model should enable researchers and practitioners to identify involved crises systematically, as well as to study multiple cases comparatively at once.
The purpose of this study is to develop the Index for evaluating Management Performance of companies employing persons with disabilities. At first, through the case study of the companies employing persons with disabilities, I construct 'Management Performance Evaluating Index(Draft)' consists of 4 concept of the Balanced Scorecard(BSC) and 20 index. And, I examined of structural validity using structural equation modeling (SEM). The results of the SEM showed the Comparative Fit Index (CFI), Goodness of Fit Index (GFI), adjusted Root Goodness of Fit Index (AGFI) and Mean Square Error Approximation (RMSEA) of the 'Management Performance Evaluating Index(Draft)' was verified (GFI=.919, AGFI=.834, RMSEA=.065, TLI=.906). Based on this result, 'Management Performance Evaluating Index' of companies employing persons with disabilities was developed.
In 2001, Ajinomoto sparked a Muslim boycott in Indonesia. In 2014, Cadbury had a similar problem. These incidents clearly showed that there exists a risk of boycotts even if companies have received Halal certification. In order to identify measures that companies can take to reduce boycott risk in the Halal food market, this study clarifies the differences of the two boycott incidents in terms of Islamic business ethics. In order to achieve this, first, ethical and unethical conduct in Islamic business is described in general. Second, with these rules in mind, two boycott incidents are analyzed. In conclusion, what companies can do to control boycott risk is first to understand Islamic business ethics appropriately. Second, they can establish effective internal control systems which the market can appreciate.
In recent years, despite calls for higher ethics in corporate management in China, various incidents that cause serious damage to health continue to occur. Several factors contribute to such incidents in complex ways. In this paper, we assumed that the occurrence of such incidents was due in part to Chinese corporate governance, and investigated the underlying problems. China's corporate governance is in compliance with international legal systems and appears to have no problems. However, the results of comparative studies with corporate governance in the United States, Germany and Japan, various case studies, and interview surveys, have identified the harmful effects caused by the political party-corporation relationship. The improvement or elimination of this relationship is a future challenge to achieve better corporate governance, which calls for drastic measures, including cutting off the relationships between the party and corporations, while respecting China's distinctive state framework.
The purpose of this paper is to investigate the reason why the UK becomes the leader of CSR. In order to examine this matter more closely, I will first study prior researches and show the frameworks to analyze the CSR in relation to government policy. Then I will analyze the relationship between CSR and the UK government policies based on three case studies. The policy of the Thatcher government brought about spiraling unemployment and inner-city decay in the early 1980s. Business leaders, who received huge benefits from the government policy at that time, aggressively pursued the CSR through the participation of BITC in order to acquire the social license to operate. The Blair government, which pushed forward the Third Way policy, actively encouraged with CSR in order to strengthen the competitiveness of UK global businesses. Good examples are the case of ETI (supermarket chains, closing retailers) and EITI (extractive industries).
This paper examines business ethics education in Japanese universities and makes a comparison with that in Harvard Business School. Firstly, it was revealed in articles posted on 'Business ethics education classes in Japanese Universities' in "Business Ethics" from 1997 to 2014, which were reported by teachers themselves (57 undergraduate schools and 22 graduated schools) that debates and case studies were the main method of teaching in the majority of graduate schools whereas lectures were the main method of teaching in the majority of undergraduate schools. In both cases, the teaching materials were based on major ethical theories and covered many company scandals. Secondly, the business ethics education was revealed to occupy a very important position in Harvard Business School. In conclusion, business ethics should be extended to cover cases in which companies perform good works, and the subject should become compulsory in higher education.