SUSTAINABLE MANAGEMENT OF JAPANESE ENTREPRENEURS IN PRE-WAR PERIOD FROM THE PERSPECTIVE OF SDGS... AND ESG

This book features 13 Japanese entrepreneurs who made a significant contribution to the development of society from 1868, when modernization in Japan began, to the 1950s, after World War II. They worked on solving social issues at the time through their businesses and succeeded in creating social value by solving social issues and economic value through the development of their businesses. The business philosophies they practiced have been passed on to their successors, and the companies they founded are now providing value to consumers around the world. Those 13 entrepreneurs anticipated the integration of solving social issues into corporate management, which modern companies are expected to realize under the umbrella of the Sustainable Development Goals (SDGs) adopted by United Nations in 2015. Their trajectories provide a wealth of practical knowledge necessary to survive in a changing society and provide many valuable lessons for modern companies and their managers. Aiming to Be Companies Selected by Future Generations Philosophy of SDGs: Toward a World Where No One Is Left Behind Global Trends in Responsible Management Creating Shared Value Decarbonization Era Is Changing Business Accelerating ESG Investment and Growing Importance of Non-financial Information Financial Markets Drive Decarbonization Businesses Required by a Sustainable Society Rebuilding Trust Acknowledgments Contents List of Figures List of Tables Part I: Management by Philosophy Chapter 1: Teigo Iba: A Pioneer of Management Aimed at Creating Shared Value 1 Introduction 2 Younger Days 3 Joining Sumitomo 3.1 Saihei Hirose 3.2 The Decision to Join Sumitomo 4 The Modernization of the Besshi Copper Mine and the Occurrence of Smoke Pollution 4.1 The Introduction of Modern Mining Technology 4.2 Occurrence of Smoke Pollution 4.3 Environmental Protection Activities at the Besshi Copper Mine 5 A Management Philosophy Intending Sustainability 5.1 Management Gaining Sympathy from Society 5.2 The Social Responsibility of Managers References Chapter 2: Masaya Suzuki: Management Through “Itoku-shori”, Aiming for a Sustainable Society 1 Critical Biography of Masaya Suzuki 1.1 The Early Life and Younger Days 1.2 Days in the Ministry of Home Affairs 1.3 Joining Sumitomo 1.4 General Manager at the Besshi Copper Mine 1.5 Inaugurated as Sumitomo’s President 1.6 Deepening of the Management Philosophy 1.7 Diversification of Business and Modernization of the Organization 1.8 Suzuki’s Later Years 2 Analysis of the Essence of Masaya Suzuki’s Management 2.1 The Fundamental Solution to the Smoke-Pollution Problem at the Besshi Copper Mine 2.2 Establishment of Sumitomo’s Business Philosophy 2.3 People Are the Most Important Resource References Part II: Integration of Economy and Morality Chapter 3: Ryoichiro Okada: Aiming for Integration of Economy and Morality 1 Ryoichiro Okada’s Thoughts on Morality 2 Acceptance of Modern Enlightenment Thought 3 Okada’s Activities as a Social Entrepreneur 3.1 Educational Work 3.2 Banking 3.3 Spinning Industry 4 The Significance of “Zaihon-Tokumatsu” Thought References Chapter 4: Meizen Kinpara: The Pioneer of Social Business 1 Early Days 2 The Essence as a Social Entrepreneur 2.1 Tenryu River Flood Control Project 2.2 Reforestation Business 2.3 Hydrophobic Business 2.4 Project to Protect Ex-prisoners 3 Meizen’s Footsteps as Entrepreneur 3.1 Transportation Industry 3.2 Lumber Industry 3.3 Banking 4 Meizen Kinpara’s Management Philosophy References Chapter 5: William Merrell Vories: Toward a Socio-Economic System for Mutual Support Based on Stewardship 1 Early Life and Formation of Thought 1.1 Parents 1.2 From Childhood to Entrance to University 1.3 Faith in Puritan and Missionary Mission 2 Christian Activities at the Shiga Prefectural Commercial School 2.1 Bible Class 2.2 Formation of YMCA and Opposition to Missionary Activities 3 The Establishment of the Omi Mission 3.1 The Night Before the Birth of the Omi Mission 3.2 What Omi Mission (Omi Christian Mission) Aimed For 4 The Business Structure of Omi Mission 4.1 Outline of Business Organization 4.2 Architectural Design Business 4.3 Mentholatum Business 5 Emergence of Social Business 5.1 Establishment of Omi Sanatorium 5.2 Education 6 The Significance of Omi Mission References Part III: Value Creation Through Innovation Chapter 6: Jokichi Takamine: From Bioscience to the Intellectual Property Business 1 Early Life 2 From Bureaucrats to Entrepreneurs: Establishment of Tokyo Artificial Fertilizer Co. 3 R&D activities and Entrepreneurship in the US: Discovery of Takadiastase and Adrenaline 3.1 Development of the Takamine Brewing Method 3.2 Discovery of Takadiastase 3.3 Extraction of Crystal of Adrenaline 4 Later Life 5 Conclusion References Chapter 7: Sakichi Toyoda: No Product, No Invention 1 Early Days 2 Development of the Power Loom 3 Establishment and Failure of the Toyoda Loom 4 Completion of the G-type Automatic Loom 5 Conclusion References Chapter 8: Michio Suzuki: Customer-Oriented Business Strategy Utilizing Knowledge 1 Early Days 2 Success as an Automatic Loom Manufacturer 2.1 Establishment of Suzuki Looms 2.2 Establishment of the Suzuki Brand 3 Entering the Motorcycle Business 3.1 Hardship from the Management Crisis 3.2 Development of the Completed Motorcycle 4 Progress to a Mini Car Manufacturer 4.1 Conflict Over the Automobile Manufacturing Business 4.2 Completion of Suzuki Suzulight 4.3 Leading Mini Vehicle Company 5 Conclusion References Chapter 9: Shojiro Ishibashi: Pioneer of Automobile Tire Manufacturing in Japan 1 Early Days 2 From Family Business to Full-Scale Business 2.1 Transformation of Business Domain 2.2 Product Development and Marketing Strategy 3 Challenge to Made in Japan Tires 3.1 Establishment of Bridgestone Tire Co., Ltd. 3.2 Bridgestone Management During the War 4 Regeneration of Bridgestone and Technological Innovation 5 Outcomes of Business Diversification 5.1 Challenges and Setbacks in Automotive Development 5.2 Withdrawal from Motorcycle Business 6 Out from Family Business and Modernization of Management 7 Conclusion References Part IV: Management that Enhanced Human Capital Chapter 10: Magosaburo Ohara: The Pioneer of CSR Who Challenged the Realization of Labor Idealism 1 Early Life 1.1 A Series of Setbacks and Awakening 1.2 Participation in Social Activities 2 The Essence of Magosaburo Ohara’s Management 2.1 Organizational Reform of Kurabo Industries 2.2 Conversion to Aggressive Management 2.3 Development of Rayon—Establishment of Kurashiki Silk Fabric (Kuraray) 2.4 Banking 2.5 Electric Power Business 3 Challenges to Social Issues 3.1 Succession of Orphan Relief Business 3.2 The Ohara Institute for Social Research 3.3 The Institute for Science of Labour 3.4 Kurabo Central Hospital 3.5 The Ohara Museum of Art 4 Magosaburo Ohara’s Management Philosophy: Labor Idealism References Chapter 11: Tsurukichi Hatano: Creating Value Through Effective Human Resource Management 1 Early Days 2 The Road to Entrepreneur 2.1 Encounter with the Silk Industry 2.2 Activities as the Head of the Silk Industry Association 3 Birth of the Gunze Silk 3.1 From Association to Company 3.2 Efforts to Improve Quality 3.3 A School for Factories 4 Creating Corporate Value Through Mission-oriented Management 4.1 Tsurukichi Hatano’s View of Religion and Management Philosophy 4.2 Quality Recognized by the World 5 Conclusion References Part V: Creating Social Solutions Chapter 12: Kenkichi Kagami: Founder of Insurance Business in Japan 1 Birth of Non-life Insurance—Marine Insurance Born from Merchants’ Wisdom 2 Birth of Non-life Insurance Business in Japan 2.1 A Similar System to Non-life Insurance 2.2 Establishment of Tokio Marine Insurance Company 3 The Occurrence of Management Crisis 3.1 Competition with Rival Companies 3.2 Special Characteristics of Non-life Insurance Management 4 Kenkichi Kagami 4.1 History 4.2 Joining Tokio Marine Insurance 5 Rebuilding Insurance Business in London 5.1 Going to the UK (1894–1898) 5.2 The Conditions of UK Insurance Business 5.3 Enactment of Insurance Business Law and Change to Annual Calculation Method 5.4 Kagami’s Reform Concept 6 Kenkichi Kagami’s Management Philosophy References Chapter 13: Tsuneta Yano: Established a Life Insurance Business Through Mutualism 1 Creation and Development of Modern Life Insurance 1.1 UK 1.2 Germany 2 History of the Life Insurance Business in Japan 3 The History of Tsuneta Yano 4 Encounter with Life Insurance 5 Establishment of the Dai-ichi Life Mutual Company 5.1 Encounter with Mutualism 5.2 Drafting the Insurance Business Law 5.3 Establishment of Dai-ichi Mutual Life Insurance Company 6 Tsuneta Yano’s Management Philosophy 6.1 Yano’s Management Philosophy 6.2 Yano’s Management Philosophy Described in His Books 7 Conclusion References Index “This volume is an important contribution to the field of corporate social responsibility. It confirms that CSR is not a solely a Western concept, but one which has been embedded in Japanese business culture for over a century. By linking socially-responsible actions to various schools of thought, this book not only provides an historical basis for Japanese CSR, but also points the way to re-discovering these principles in a modern world.” --Dr. Lori Forman, Professor and Development Advisor, and former Visiting Professor at Keio University This book features 13 Japanese entrepreneurs who made a significant contribution to the development of society from 1868, when modernization in Japan began, to the 1950s, after World War II. They worked on solving social issues at the time through their businesses and succeeded in creating social value by solving social issues and economic value by the development of their businesses. The business philosophies they practiced have been passed on to their successors, and the companies they founded are now providing value to consumers around the world. Those 13 entrepreneurs anticipated the integration of solving social issues into corporate management, which modern companies are expected to realize under the umbrella of the Sustainable Development Goals (SDGs) adopted by United Nations in 2015. Their trajectories provide a wealth of practical knowledge necessary to survive in a changing society and provide many valuable lessons for modern companies and their managers. Masaatsu Takehara is a specially-appointed associate professor, Faculty of Sustainability Studies, Hosei University, Japan. He completed his doctoral course at the Graduate School of International Social Sciences, Yokohama National University. Naoya Hasegawa is a Professor at Faculty of Sustainability Studies, Hosei University, Japan. His research focuses on business and sustainability, entrepreneur history. He obtained Ph-D at the Graduate School of International Social Sciences, Yokohama National University. He serves as Sustainability Senior Advisor at Sapporo Holdings Co., Ltd