The Relationship between Japanese Work Culture and ESG Scores

Written by Charles Chen / Edited by Sam Chen

In an era of widespread attention to ESG (Environmental, Social, and Governance) issues, the College of Management’s International Business MBA Program proudly invited Professor George Y. Wang from Soka University in Japan to deliver a lecture on the Japanese work culture and its impact on corporate social responsibility scores.

In his lecture, Professor Wang delved into the unique aspects of Japanese work culture, including the phenomenon where "employees hesitate to leave before their superiors." This trait not only reflects the hierarchical nature and strictness of the Japanese workplace but also highlights the lack of balance between personal life and work among employees. Furthermore, Professor Wang addressed the urgency felt by Japanese students to enter the workforce, pointing out that many rush into their careers without sufficient exploration and self-awareness. This often leads to inappropriate career choices, affecting their career development and personal satisfaction.

The 'Governance' dimension of a company's ESG score is negatively impacted by the issues above, as noted by Professor Wang. ESG evaluations weight workplace culture and employee welfare heavily, and Japanese businesses' success in these areas may have an impact on both their overall scores and profitability. Long-term business success is also supported by a corporate culture that fosters work-life balance and supports employee development. Such a culture also increases employee happiness.

Professor Wang's lecture served as a reminder to students and scholars to seriously consider the importance of workplace culture and personal career development. Additionally, it encouraged corporate leaders to consider ways to strengthen their policies in order to raise their ESG ratings and support sustainable development. This lecture not only provided in-depth insights into Japanese workplace culture but also offered valuable considerations on how companies can fulfill social responsibilities in a globalized context.