April 2016 to March 2017

Authors/Persons in charge:
Naomi Endo (Chief Fellow, Institute for International Socio-Economic Studies)

 After so called “Lehman shock”, the financial crisis of September, 2008 the recognition and perception of stake holders such as shareholders and investors has been changed on the manner of corporate management. The excessive dependence on financial capitalism has been reviewed and management environment surrounding the corporates has changed. It is widely requested to define the new corporate management.

 Accordingly the concept of CSR (Corporate Social Responsibility) is getting changed and the important key word is “Sustainability”.

 In this report we firstly outline the global trend and movement of CSR and the perception or consciousness of stakeholders. The trend is changing that much more emphasis is getting placed on creation of sustainable value while still keeping the fundamental concept of CSR. We can observe the change  through latest experiments, trend and changes of interest among consumers, citizens and investors.

 It is required that Japanese companies evolve their management to establish themselves as “corporate to create sustainable value” by challenging strategically the materiality (essential management responsibility ) which have big impact in the value creation in mid-to-long term and also in the sustainable growth of the company and society. It is also required that the Japanese companies monitor and recognize rightly and properly the trend and background of the perception and consciousness of stakeholders (especially investors and the government authorities).

 This kind of management style is called as “Sustainable value creation management”

 In the 2^nd part of this report we listed up our proposals and suggestions based on the results and findings of our research and study of essences to conduct “Sustainable value creation management”. The essential conditions or the essences of “Sustainable value creation management” is to develop business model where the management is flexible to cope with the changes of business environment based on the long-term view and also is firm in making any management decision.
 Consequently the business model is to secure the sustainable growth with every possible consideration and care to stakeholders.

 Our proposal was summarized in 6 points as “Management model for sustainable value creation management.