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Promoting CSR Activities the Benesse Way
Benesse is considering what sort of activities it should pursue, and how, in order to best fulfill its corporate social responsibility (CSR). The following are excerpts of a conversation with Ms. One Akiyama, president of Integrex Inc., who has an in-depth understanding of CSR and SRI (socially responsible investment) issues. She has provided an evaluation of Benesse's CSR report and offers some expert suggestions on what CSR activities should mean for Benesse.
Left : Kenichi Fukuhara, Representative Director, Executive Vice President and President of Corporate Communications Division
Right : One Akiyama, President, Integrex Inc.
Ms. Akiyama Profile
Ms. Akiyama is a graduate of Keio University Faculty of Economics. She currently serves as a Committee Member of the Cabinet Office Evaluation Study Group; a Member of the Selection Committee for the Residents'Town Planning Fund, at the Organization for Promoting Urban Development; a Judge for Tokyo Keizai's “Green Reporting Award;” Member of the Deliberation Committee for the Japan Internal Control Awards Integrity Award; and Editorial Committee Member of the Social Investment Forum Japan
Benesse’s Strengths Lie in its Consistent Corporate Philosophy
Ms. Akiyama
In reading the “Benesse Report,” what struck me most was how the concept that underlies the Benesse name (“living well”) has been put into practice over the years, through the activities of the Company's four main business segments. I also had the impression that the five main themes of Benesse's CSR activities have been linked very specifically to the Company's philosophy. I was impressed by the way that these five themes have been tied together, and conveyed to Benesse's customers. The theme that is embodied in the company name - Benesse - has a real resonance.
Mr. Fukuhara
We take great pride in this concept of “living well.” This past June, we had a top management conference that included the executives of all Group companies, and the theme of our discussions was “corporate philosophy.“ We spent a great deal of time and effort discussing how the Benesse Group can best express the corporate philosophy expressed in the company name, in the coming years. By having these sorts of discussions, and making sure that everyone embraces this philosophy in management, and in all of our actual business activities, Benesse is able to follow a consistent path.
Ms. Akiyama
I agree that management needs to promote this sort of consistent corporate philosophy. As a member of the deliberation committee that chooses candidates for the Japan Internal Control Awards Integrity Award - for companies that have effective systems of internal control and compliance - I was impressed by the highly effective systems and methods employed by Benesse management. If a company has both a firm philosophy and strong initiative, it usually has effective management structures as well. One of the reasons why Benesse was selected for the Outstanding Performance Prize in 2008 was that committee members were impressed by highly specific organizational structure adopted in 2007, when Benesse appointed three representative directors, and its creation of clear channels to communicate information about internal issues or problems.
Mr. Fukuhara
We certainly appreciated the recognition, but our efforts in this direction are continuing. In October 2009, we adopted a holding company structure, and we are continuing to pursue a management structure of which we can be proud.
Four Steps for Putting CSR Principles into Practice
Ms. Akiyama
The key to effective CSR efforts lies in making sure the Benesse philosophy is properly implemented, and embodied in the Company's daily business activities. There are basically four steps to put these principles into practice. The first is to “ensure that business operations make a positive contribution to society.” This is something that Benesse already does very effectively, since its operations are aimed at helping people to resolve personal and social issues. The second step is to “make sure that business activities and processes are consistent with the corporate philosophy.” This means that employees should understand and adhere to the philosophy in the course of their daily work. I think that Benesse has fulfilled this step as well, for example, through the efforts of caregivers in the nursing care division to make sure that residents have a high quality of life.
Mr. Fukuhara
The problem with the nursing care industry as a whole is that working conditions and labor standards are not consistent, and this is something that needs to change. At Benesse, though, we have reformed our personnel policies and adopted standards that help to ensure that employees can also have a high quality of life, to set an example for the rest of the industry. I think this is a key factor in making sure that they implement the Benesse philosophy in their daily work.
Ms. Akiyama
This is certainly a step in the right direction. The third step is to expand the idea of CSR beyond the scope of the Company’s business activities, and to “find ways for the Company to achieve results and contribute to society beyond the scope of daily business activities.” This step encompasses initiatives such as the unique efforts Benesse is making through its benevolent foundations. I think the Company has done a particularly good job in this area, because it has developed actual links between the two - its business activities provide the economic support to fund the foundations, and the foundations provide favorable feedback and publicity for the Company's business activities.
Mr. Fukuhara
Our charitable foundations, such as the one that supports Benesse Art Site Naoshima, are largely funded by dividends earned on the Benesse shares that the foundations hold. Therefore as long as our business operations are prospering, the foundations can go on doing their valuable work. As for the feedback from the foundations to Benesse business operations, we encourage employees to take part in their activities, and to get actively involved in their communities and social projects. This helps employees enjoy a better quality of life, and hopefully this will provide a positive impetus to business operations. We will just have to see if this positive feedback continues in the future.
Ms. Akiyama
The one issue that still needs to be addressed, as you mentioned, relates to the fourth step. And that is to “promote an attitude of social responsibility among employees, and encourage them to make contributions to society, to create impetus at the individual level.” At Benesse, I think that employees should not only take an active role in the activities of the foundations supported by the Company, but also should be encouraged, as part of their work, to identify issues that need to be addressed, and communicate these ideas to co-workers in ways that support the Company's overall effort to fulfill its social responsibility. The important thing is to encourage employees to think clearly about their role in society, what is expected of them, and what they can contribute.
Company Efforts to Address Global and Environmental Issues
Mr. Fukuhara
One of the expectations that society has, certainly, is that we all do our part to protect the environment. In March 2008, Benesse introduced changes to its Environmental Policy which place greater emphasis on this issue and seek to leverage the Company's existing strengths and capabilities in ways that will promote environmental awareness. Using the know-how we have acquired over the years through the Kodomo Challenge correspondence courses, the Company has created an “environmental show-and-tell stories” program which presents environmental themes at kindergartens around the country.
Ms. Akiyama
Nowadays, every corporation has a responsibility to address environmental issues, but the key is to decide how to employ the skills and capabilities that each company already possesses in the most effective way. I think that Benesse’s use of its know-how in the field of education to promote environmental education will give it a competitive advantage, relative to other companies.
Mr. Fukuhara
Benesse is also expanding its pre-school education programs into other regions in East Asia. In the future we hope to give our environmental education efforts a global reach by incorporating them into overseas education programs as well.
Promoting a Vision of an Even Better Society
Ms. Akiyama
One of the advantages of adopting a holding company structure, and making each of the business units an independent company, is that it is easier to respond quickly to the demands of global expansion. The key is to make sure that the Company's ideals and goals - particularly the concept of “living well” - are transplanted to each subsidiary and to each new market that Benesse enters. The Company should exert a strong coordinating force, so that the theme of promoting a better quality of life is fully expressed in all of the Group’s global operations.
Mr. Fukuhara
Exactly. As we make the transition to a holding company structure, Benesse management has adopted four “G-factors” that we want to try to control and promote: Global, Group, Growth and Governance. As the Group's vistas broaden, we recognize the importance of coordinating all Group activities, and ensuring that they adhere to the Company's basic philosophy. I think it is extremely important that our global expansion serves to promote the principle of “Benesse” - living well - throughout the world.
Ms. Akiyama
Finally, it is important that a company look ahead and maintain a clear vision of what it aims to accomplish in the future, and not simply focus on the short-term results of CSR activities. As the Company prepares its CSR report, it should try to convey this vision to readers, explain the actions it plans to take, and report on the PDCA cycle (plan・do・check・act) of CSR activities.
Mr. Fukuhara
We will certainly do our best. Our decision to adopt a holding company structure was based on very long-term planning, which envisions what Benesse will try to achieve by 2018. Naturally, this includes a vision of what sort of world we hope to promote, and a list of specific items that the Company will focus on, in order to promote that vision. In next year's report, we plan to include some insights on what sort of future Benesse wants to create, for our customers and for ourselves.
