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The current state of diversity in Japan

from the viewpoints of CSR and demographic change

2010/5/28

Civil society of the EU and Japan working together on global challenges

SUZUKI Akiko (The Institute For Human Diversity Japan)

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Introduction: Institute for Human Diversity Japan

� Two global issues threatening the sustainability of our society- Climate Change → Global Warming- Demographic Change → Aging Populations, Declining Birthrates

� Creating sustainable communities requires:An environmentally conscious society to respond to climate changeA society that nurtures human diversity to respond to demographic change

� Keywords: SR (Social Responsibility) and Human Diversity

� Introducing the InstituteThe Institute is focused on positioning human diversity as a source of strength for communities and organizations. From a private and non-profit perspective, the institute is active in case studies, holding seminars, and creating a framework to encourage communication between companies and communities. Established in 2007 (Representative: Taro Tamura)Research fellows (4), Part time research assistants (30)

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Achievements�CSR/SR

- Communication support activities tying together companies and communities- Survey of CSR Reports by Companies Listed on the First Section of the Tokyo Stock

Exchange (2006 - Present)- Community CSR seminars (Jointly held with community NPO centers, 2006 - Present,

20 locations throughout Japan)- Administration of the Project to Create a Japanese Edition of Shopping for a Better

World

� Multicultural Community Building and Demographic Change

- Consulting services for local government multicultural community building policies- Planning and dispatching instructors to training and seminars

Research in "Responses to Recent Trends in Demographic Change" by the Sasakawa Peace Foundation (2008 - Present)

�Human Diversity- Research and activities aimed towards promoting human diversity in communities

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Contents

1. Demographic Change in Japan2. CSR/SR3. Diversity management in Local

Government4. Activities by a diverse group of service

providers throughout the community5. The response to demographic change

throughout Asia

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1．Demographic Change in Japan

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1-1 Trends in Population(Source: Ministry of Health, Labour and

Welfare,2006;numbers after 2006 are estimated)

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1-2 Change in OECD working-age populations over period 2005-2020

THG1

Slide 7

THG1 Thomas Groendal; 12/05/2010

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1-3 The rate of working population amongst women according to age

USA, Japan,

Korea, Germany,Sweden

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2．CSR/SR

The current conditions and key issues facing Japanese companies as seen in the CSR Reports Survey

～ Falling Behind on Diversity ～

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2-1 CSR/SR

�CSR Reports Survey

• We have carried out these Surveys of CSR Reports from Companies Listed in the First Section of the Tokyo Stock Exchange along with the CANPAN CSR Plus Management Office over 4 years since FY 2005.

• We examine the level of disclosure across 48 basic areas of CSR Reporting and display the results in a viewable database.

http://canpan.info/csr/

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2-2 Progress in CSR by Japanese Companies

� Inferior to the global average on "the environment"– As a result of progress in ISO 14000 certification, approximately 80% of the top

100 Japanese companies by sales volume produce an "Environment Report"– It has become a requirement for manufacturers to disclose environmental

product information to the companies purchasing from them. The number of local government bodies adopting an environmental impact management system as a part of their bidding structure has expanded.

� Poor performance on "social" issues– Very few companies have yet begin to touch upon issues such as human

diversity and work-life-balance.– Disclosure remains insufficient about the hiring of persons with disabilities and

the percentage of female managers.– Top Japanese manufacturers have been graded poorly in one of the two top SR

indexes, FTSE4 Good, where they are not represented in the human rights category.

Kind to the environment and customers while being hard on employees and the community

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2-3 The demand for change in Japanese CSR

�The ratio of companies disclosing information other than "environmental information"

Note: Companies disclosing CO2 and GHG emissions data 486/557（87.3％）

Companies disclosing progress towards zero emissions 452/557 （81.2％）

Companies disclosing paid holidays, child-care, nursing-leave 241/557 （43.3％）

Companies disclosing the ratio of women employees 179/557 （32.1％）

Companies disclosing guidelines on employee diversity 59/557 (10.6％）

→In non-environmental areas, anecdotal evidence without disclosure in the form of numerical data is common.

� Even on the local government level, efforts have stalled at the bare minimum.

Note: The ratio of women managers (FY 2007 Gender Equality Bureau Cabinet Office)・Average at prefecture level governments 5.1%・Average at government-ordinance-designated cities 7.7%

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1.38 1.40

0.51

2.99

0.33

1.19

0.22

1.41

2.14

1.05

2.11

0.97

1.39 1.25

1.52

2.71

0.68

1.03

0.21

1.37

2.07

0.90

2.16

0.96

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2009

2008

2-4 CSR information of 557 companies , 2009

Source: canpan csr+ http://canpan.info/csr_list_search_en.do

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2-5 Disclosure rate for diversity related topics, according to research on the CSR reports

Source: canpan csr+ http://canpan.info/csr_list_search_en.do

Rank

Disclosing

Companies

CriteriaFY 09

DisclosureFY 08

Disclosure

2-1　　　　Human rights problems24 182 2-1-01: Comprehensive guidelines for human rights 32.7% 33.3%

40 48 2-1-02: Disclosure regarding human rights in the supply chain 8.6% 5.5% ↑↑↑↑31 92 2-1-03: Creation of a guideline and manual regarding harassment 16.5% 18.4% ↓↓↓↓40 48 2-1-04: Implementation of human rights training for all employees 8.6% 10.7% ↓↓↓↓

2-2　　　　　　　　Workers' rights45 20 2-2-01: Guideline for recruitment 3.6% 2.9%19 241 2-2-02: Information on the utilization of paid holidays, child-care, and nursing leave 43.3% 38.6% ↑↑↑↑9 354 2-2-03: Support of employees’ work-life balance 63.6% 53.6% ↑↑↑↑40 48

2-2-04: Information about the rate of participation in labor unions and labor-management communication

8.6% 7.8%

2-3　　　　Preventing forced labour

47 8 2-3-01: Guideline regarding the recruitment of foreign workers 1.4% 0.7%

33 89 2-3-02: Efforts to prevent unpaid overtime, etc. 16.0% 16.7% ↓↓↓↓46 16 2-3-03: Efforts to prevent the exploitation of contract workers, etc. 2.9% 2.4%

47 8 2-3-04: Cooperation towards fair trade with developing countries 1.4% 1.6%

2-4　　　　Eliminating discrimination in the workplace

38 59 2-4-01: Guidelines on employee diversity 10.6% 11.7%

14 281 2-4-02: Disclosure about the employment of handicapped workers 50.4% 46.7% ↑↑↑↑25 179 2-4-03: Percentage of women in management and the workforce 32.1% 31.9%

16 267 2-4-04: Support for giving a second chance to young and middle-aged workers 47.9% 46.2% ↑↑↑↑

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2-6 Diversity initiatives in Japanese companies have the following characteristics:

1. Diversity initiatives are less developed than environmental initiatives.

2. Efforts to improve work-life balance centered on child-rearing support form the core of diversity initiatives.

3. Women are the most common beneficiary of diversity initiatives.

4. Development is comparatively weak towards reducing working hours and improving supply chain management.

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3. Diversity management in Local Government～From the Level of Diversity Survey of Local Governments～

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3-1 The Survey of Efforts toward Diversity Oriented Policies by Prefectural and Metropolises

Total Score FemalePeople withdisabilities

ForeignNationals

Full Marks 50 13 13 13

All local gov. 27.93 10.57 7.02 4.8

Gov. Designated Cities 29.33 10.93 7.53 6.13

Prefectural gov. 27.21 10.38 6.69 4.1

100 66.6 43.5

100 66.8 53.7

100 64.8 43.5

in gov. designated cities 3.98 1.06 1.45 1.86

in prefectures 3.89 0.93 1.34 2.37

The average rating per category and standard deviation for "Femaleｓ," "People withdisabilities" and "Foreign Nationals" in the Level of Diversity Survey

(Source: Level of Diversity Survey of Prefectural and Government Ordinance-designated City Governments, by the Institute

for Human Diversity Japan, created based on page 36 by the author for data from October, 2008)

scores when we take female's score as 100

All local gov.

Gov. Designated Cities

Prefectural gov.

Standard deviation

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� It is necessary to change categorization of “female” “people with disabilities” and “foreign nationals” for planning policies

→ Necessary to draw a diversity strategy

■■■■It is necessary to build a consensus and policies by multistake-holders

■It is especially urgent for Japan and Asia to recruit various people for the policy making process

■It is important to make an international comparison of diversityoriented policies by a common evaluation index or make principles of recruitment and information disclosure.

3-2 Future Perspectives on Diversity Management by the Government

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4. Activities by a diverse group of service providers

throughout the community

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The future of CSR/SR

Companies cannot take responsibilityfor all of society‘s needs

A joint effort by the whole community� Need can be met through coordination with specialized NPO/NGO� The value of the community can be increased through activities by multistakeholders

Work in the area of diversity is a particularly high priority.

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5．The response to demographic change

throughout Asia

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5.Changes in the total fertility rate for East and South Eastern Asia

1.54.05.5Cambodia

1.43.65.0Nepal

1.23.24.4Bangladesh

1.24.75.9Laos

1.12.33.4Vietnam

1.12.43.5Mongol

1.13.14.2Philippines

0.92.83.7Malaysia

0.82.33.1Indonesia

0.83.03.8India

0.51.21.7South Korea

0.51.31.8Singapore

0.51.92.4Sri Lanka

0.32.02.3North Korea

0.21.92.1Thailand

0.21.31.5Japan

Reduction20041992

Source: WHO, Core Health Indicators (1992), World Health Report 2006 Statistical Annex (2004), Chinese National Census Results

<Reference>

0.311.681.00Taiwan

00.960.96Shanghai

1.031.222.25China

Reduction20001990

Declining populations

caused by decling

birthrates and aging populations

are a shared Asian crisis!