Japanese Companies’ Supply Chain CSR in the Global Market

ABSTRACT

Global movements promoting CSR have hitherto been led by Europe and the US, and western multinational enterprises have been actively involved in developing countries from the perspective of supply chain risk management. However, because of the expectation to have domestic companies cultivated, independent standards formed, and large corporations utilized for domestic measures to fight poverty, primarily local CSR movements led by the government have begun to spread and the international structure is rapidly changing. Even Japanese companies, which have pursued an industry-led diffusion of CSR, are being called on to recognize changes in global trends and examine and implement CSR promotion strategies.

Regarding CSR efforts in the supply chain of Japanese companies, comparing a 2006 survey with this (2007) survey shows a rise in the CSR supply chain activity rate of major companies from 33% to 47%. Efforts have become widespread among almost all industries, with CSR supply chain activity progressing in the electronics, chemical and pharmaceutical industries, and followed by the food, manufacturing and assembly, and electricity and gas industries. Differences in response among the industries are attributed to the distance between the final customer, environmental and safety risks, and relationships with suppliers. There is a tendency to implement CSR activities beginning with a response to domestic businesses first, and followed later by response to high-risk overseas businesses.

Japanese companies’ strengths in supply chain CSR efforts are long-term, continuous and intimate business relationships, as well as quality control know-how cultivated by green procurement. On the other hand, a late start in efforts compared to leading western companies and communication with diverse stakeholders are weak points. To bolster the competitiveness of Japanese companies in the global market, trends and leading efforts in the international discussion on CSR should be taken into account, while CSR strategies that consider the assessment of supply-chain risks, the development of management systems that can ensure continuous improvement, and the strengthening of supply-chain communication should be examined.