FOREWORD

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Today, businesses are expected to extend their attention beyond stockholders, customers, and employees to include other stakeholders such as the community and environment. The concept of corporate social responsibility (CSR) emerged from such expectations and now consists of transparent organizational management; careful consideration of the global environment, human rights, and employment; and, in particular, compliance with ordinances, regulations, and laws.

Broadly defined as a “responsibility for business corporations to observe the social rules and contribute to the society within their scope,” CSR can lead to more sustainable corporations by encouraging good relationships with society. Although it appears natural to expect corporations to conduct business in a manner that maintains good relations with various stakeholders and improves the environment, it is not easy for all to achieve the required level of CSR.

Establishing CSR is not a simple task, nor is it free from risks and problems. CSR requires support not only from shareholders and investors but also from customers, employees, and communities. One conclusion drawn from both successful and failed examples of attempts to practice CSR is that top management must have a strong belief in the role of CSR within the organization. A lack of such belief has often led corporations to lose brand value and a good corporate image built up over many years. Bankruptcy may be even result.

Establishing sound CSR systems needs the involvement of a wide range of stakeholders, such as workers, customers, and shareholders as well as the community. Workers’ rights must be respected, and customers’ needs must be satisfied. Shareholders’ dividends must be guaranteed, and the community must be convinced of the merit of corporate activity. CSR weighs all these divergent interests and tries to strike an appropriate balance among them. I hope that the sharing of their experiences by the excellent speakers at the Top Management Forum held in March 2005 and now published in this volume will provide you with opportunities to study CSR so that your corporation can achieve long-term higher productivity and competitiveness.

I would like to take this opportunity to express my deep gratitude to the distinguished speakers at the forum. We were fortunate to have Professor Iwao Taka of Reitaku University as a keynote speaker and Mr. Hideo Suzuki from the Japanese Ministry of Economy, Trade and Industry as a special speaker. Both reminded the audience that the issue of CSR is relevant to all countries, developed or developing.

I also wish to express our thanks to the Japanese government for financial support and to the Japan Productivity Center for Socio-Economic Development for its assistance in organizing the forum.

I hope that readers will gain new insights from this publication on how CSR should be interpreted and implemented in the ever-developing global economy.

Shigeo Takenaka
Secretary-General
Tokyo, April 2006