hankyoreh

By Lee Hyun-sook, Research Fellow of the Hankyoreh Economic Research Institute

Professor Kanji Tanimoto of Hitotsubashi University, a leading scholar in the study of Corporate Social Responsibility (CSR) has made meaningful contributions to the discussion over Social Enterprise (SE). What has been a driving force behind Prof. Tanimoto’s concern for the enterprises focusing on social interests rather than CSR of large corporations?

With driven writings and speeches, Prof. Tanimotoa has explained his position with two main points. First, he believes a co-operation model must urgently be found between large corporations and medium-small social enterprises. Second, overseas development support programs such as the ODA of Japan should materialize SE model as its key strategy.

Tanimoto will present cases of partnership between social enterprises and large corporations in Japan at the “Asia Future Forum 2010” from December 15-16 at Ritz Carlton Seoul. Inquiry: 82-70-7425-5237. http://www.asiafutureforum.org

Tanimoto: I have been researching “Business and Society.” “CSR” discusses changing roles and responsibilities of business activities on social and environmental issues, and challenges to reconstruct the relationship between business and shareholders. Social enterprises tackle the social and environmental problems which are treated or cannot be treated in CSR field. They do not just criticize the behavior of big corporations but to constructively tackle the problems and create innovative business plans within the local and global community. Some social enterprises initiate unique collaboration with big corporations to bring about innovation. We expect new possibilities in this field.

Tanimoto: In general we have a failure and limitation of big government in Japan as well as the other welfare states. For about one decade, we have been facing discussion of who and which sector should have a role and responsibility for the common good. Voluntary sector provides us possibilities and limitations as well. Social enterprises present an alternative way to tackle the problems among the public sector, business sector and volunteer sector, and create new businesses and systems to promote social services and create employment. People are beginning to expect new activities from them.

Tanimoto: Social enterprise in Japan is just in a preliminary stage and not supported by legal enforcement. They are operated not only by non-profit organizations but by small and medium enterprises in a variety of fields; not only support for the employment of the elderly/homeless/people with disabilities, but community redevelopment in local areas, environmental protection, international support for underdeveloped countries, for instance, fair-trade and so on. One of the challenges of social enterprise in Japan now is low visibility and unfamiliarity of their activities in market society.

Tanimoto: Three years ago, I chaired the Social Business Research Council at the Ministry of Economy, Trade and Industry and published a report on social enterprise analyzing the present situation and clarifying the challenges to develop in Japan. After the following three years, the ministry has organized a support organization at the national level. But I think that this top down initiative and budgetary handouts does not work well. Some big corporations support and make collaboration with social enterprises. In a field of BOP business, a dozen of companies create good results to develop a new social business in developing countries.

Tanimoto: I think the NPO Law which inspires non-profit corporation in Japan does not directly promote social enterprises. We don’t have a law promoting social enterprises yet. I think that we need an institutional support to enhance the social entrepreneurship. We have many public supporting systems for small and medium enterprises and venture companies in central/local government. I think it is easier for government to expand the range of the institutions for social enterprises than to make a new legal framework.

Tanimoto: Yes, it is possible and shall be applied. I think we need a new way to support people in underdeveloped countries, directed not from the top down but from the bottom up. It is important to empower and cultivate people’s entrepreneurship in local community to boost up small businesses by micro-finance and management support. How to make combination models of social enterprise/BOP businesses and IDC is a key to develop further the supporting program in underdeveloped countries.

Professor Kanji Tanimoto graduated from Kobe University and headed the Forum of Business and Society (FBS) in Japan. Professor Tanimoto is currently a professor at Hitotsubashi University and a visiting professor at Freie Universitat Berlin (2010).

Website http://obata.misc.hit-u.ac.jp/~tanimoto/