Creative Capitalism

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As you may note, I have been invited this year to a few, but very special occasions to speak on global issues and the fundamental changes underlying such social movements toward ‘One Inclusive Society’ (Reference 1 , 2 , 3 ).

One of a major focus In these speeches is changing faces of capitalism, thus CSR or ‘corporate social responsibility’ and I quoted Mr. Bill Gates for his phrase ‘Creative Capitalism’.  You may wonder what he means by the words.

In a recent issues of TIME magazine, it features a special interview of Mr. Bill Gates ‘How to Fix Capitalism’ where he discuss his concept of creative capitalism as he sees the status of the world reflecting the past century.  It is a very interesting personal, yet powerful argument for business leaders, consistent I believe with what I tried to convey in my speeches.

I would appreciate your giving some thoughts on such a concept and activity reflecting your business or whatever you do and plan to do.

Mr. Bill Gates will be in Tokyo in November.

Brilliant Female Researchers with Red Roses

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As I had introduced before, the well-known cosmetics company, L’Oreal, presides over a program called "For Women in Science" (As this website is very pretty, browse it) in collaboration with the UNESCO and appeals its existence to the world.  This year the program has celebrated its 10th anniversary at Paris in the spring.  The prizewinners until now were invited and Congratulatory meeting was held.

3 years ago, Japan has also launched a program to award young female researchers living in Japan.  I attended the commending ceremony and congratulatory party last year.  Also this year, wonderful people were commended and their family members, teachers and fellow researchers attended the ceremony.  It was a very splendid gathering and I was glad to see it.

4 brilliant people were selected for this year. We shared a cheerful, pleasent time together.

A women’s magazine, Marie Claire, has also participated in this activity and presented red roses (Photo) to all the winners.  I met Dr. Noriko Osumi, whom I worked with 2 days ago in Okinawa and her mother who is also a famous scientist.

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Ms. Bando, a chief of gender equality bureau of cabinet office, mentioning that percentage of female scientist in Japan is the lowest among OECD countries, encouraged the audience for further effort.  I was responsible to propose a toast and spoke on various topics like, though, Gender Development Index of woman in Japan is within top 10 in the world, Gender Empowerment Index of woman is as low as about 40th in 70 countries in the world.  This difference is due to the male oriented society which is not competency based.  There may be some hint in understanding the basic difference between male and female in Japan, in what we saw of (male) baseball and (female) softball at this year’s Beijing Olympic. In that sense soccer, wrestling and judo, etc. as well. Please think about it.  I think actually here lies the problems of Japanese society.

I would like to express my appreciation to all the winners, family members, fellow researchers, people involved in the selections and all related people for their hard work.

At any rate, we can see a strategy of a world class enterprises when such prizes are awarded.  Each winner, over a period of years, will act as an ambassador of L’Oreal and will fulfill wonderful duty of moving the mind of men and catching the hearts of women in the world and act as advertising tower of the sponsor enterprise.  I think there is no such a splendid and beautiful advertising media as this.  I expect Japanese enterprises to think more strongly about social contribution from this viewpoint.  This is what social responsibility (CSR) of the enterprises is all about.

Singapore, Okinawa and energy of young people

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After "Obon" (a vacation season in Japan relating to celebration of ancestors), I went to Singapore for the meeting of board of directors of A*STAR, from Aug. 20th to 22nd.  The venue was newly established Fusionopolis (The opening ceremony will be held in October).  Finally, an ambitious attempt of uniting biotechnology with science and engineering field has started.  On 21st, the day of meeting of board of directors, an awarding ceremony for contributors took place with high spirits in the evening. Minister of industry was also present as a Guest of Honor.  There was really motivation and vigor.  Many young people, both researchers and clerical workers, have also taken an active part.

Then I went to Okinawa on 24th.  Had participated in the "Asian Youth Exchange Program". The original idea is from our proposal, where about 80 youths (age 14 to 17) from various Asian countries and Japan (from Okinawa and mainland) spend three weeks together in Okinawa and interact with each other.  "Haisai Diary" of the program’s website was full of cheerful photographs and reports.  I think the basic spirit of this program can be read from my message also.

I participated in "Scientist Symposium" on that day.  Dr. Noriko Osumi who is doing brain research in Tohoku university, Dr. Tsuchiya, known for coral research is Director of Science Department in Ryukyu University (I am thankful for his kind assistance in The21st Pacific Sience Congress last year.  Now, he has become executive director of this scientific society), Dr. Ishiwatari who was involved in the development of "OlycetNet", at Sumitomo Chemicals, an epoch-making mosquito net effective for malaria, have participated in this meeting.  Dr. Shiomitsu of Ochanomizu University was the chairperson.  Students who have participated were energetic, seemed to be in good spirits which made me very happy.  Of course, the common language was "Broken English".

Some university students also helped.  They were foreign students of Ritsumeikan Asia Pacific University, which is located in Oita.  Exchanges like this at the young age widens outlook, acknowledges differences, and raises friendships more than anything else.  I am excited about what their future brings after 10 years, 20 years.  It’s thrilling.  I would like to see more of such activities like exchange home stay on summer vacations etc. start voluntarily in schools across the country.

Dr. Osumi went to the airport immediately after finishing the panel.  She posted her blog in the evening of the same day, which is very fast.  Photographs as well as the writing were good.

I went to see "Eisa festival" celebrated on the whole Okinawa Island with Mr. Fukui, head of Okinawa General Bureau supervised by the Cabinet Office.  Especially, "Ryukyu-Country festival Taiko" was excellent(photo1-3).  After that, I was invited for dinner.

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Thanks to all for your help and support.

Executive personnel management- simple questions from an outsider?

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I was interviewed by Nihon Keizai Shinbun for a column called "Airspace violation".  It is an interview report and aims to have a person present open questions about things other than his/her profession.   Although I had several themes in my mind, I decided to talk about personnel management of enterprises.  The article appeared in the morning edition page 5 on Aug. 4th, 2008, under the heading of " ‘Tenures’ are not appropriate for executives.  Decide according to their performance and actual results." The article is as follows. Gist of my remarks are in the quotation marks.

■ We understand that you have doubts about "Tenure" of business executives?
"I hear that there are many enterprises which have customs or byelaws that set presidents’ tenure as 2 terms of 4 years or 3 terms of 6 years.  But does it make any sense?  I hardly think that the governance of Japanese enterprises so far was good enough just because they have a tenure system. "

■Current trend is to shorten the tenure of top managements of large industries. Along the trend, many enterprises are shortening the term of office of CEO from 2 conventional years to 1 year.
"If manager’s term of office is set short, he/she won’t consider the business on long term scales.  Suppose some problem occurs during the tenure.  I suspect that it will not be solved by he/her but will be transferred to their successor."  "Same things happen in governments as well as universities, the field where I come from.  As government officials are replaced one after another the problems go on passing to the successors.  Since tenure of deans and president of university is short, talent training cannot be planned from long term perspectives."

■On the other hand, there are adverse effects if the tenure is prolonged and also criticisms about "problems caused by aged people".
"For ‘problems caused by aged people’, you can simply set young presidents in their 40s.  Then even after serving for 10 years, his/her age will still be below 60.  There are some cases, like Sharp or Hotel Okura, which had presidents in their 40s.  However, in large industries in Japan, the number of young managers is still very small.  What is required of a leader is; vision, ability of conveying the vision to the other people, intellectual and physical strength, and strong faith.  Age is irrelevant.  Younger talents should be selected."  "Nevertheless, it doesn’t mean that ‘long term control’ is always no good.  There are many founders of corporations in Japan, like Mr. Akio Morita of Sony, who demonstrated wonderful management skills for a long period of time.  There may be many employed managers who can achieve excellent results in their long term tenure."

■Problem is not the short or long length of tenure?
"The point is not to set tenure but to build a mechanism so that the ability and achievement of a manager is evaluated objectively and in case any problem arises, the mechanism must work to have him removed immediately.  But how many Japanese enterprises actually have such structure functioning? If a company can not have a person to retire till completion of his customary tenure we must say that governance does not exist."

■One more word, please.
Once you become a professor, you will be safe till retirement.  This is also strange.

■A word from the interviewer.
How should we select and evaluate the heads of management?  It is a very important issue connecting to the base of enterprise governance.  There are cases where external reporters or external directors participate in selection of the succeeding director but such advanced examples are yet very few.  How do Japanese managers answer to those simple questions about executives raised by Dr. Kurokawa? (Editing committee, Yoshiyuki Miyata）

I expect there will be various opinions, points regarding the contents of this article.  Although I spoke for a long time they had to summarize it in a little space.  Anyway, pushing theory of your own is useless in this era of global economy, especially if it is the world’s second great economic nation.  It is a matter of credibility of a business, a nation.  In this information age, governance with transparency is the basis of company’s worth. Not limited to enterprise, everything is transparent from the world even if you tried to hide.  And here lies the challenges of "Flat age".

Some of the arguments about this article have appeared at Nikkei Net PLUS.  You are able to read them by registration (free).  What do you think?

Again from New Delhi

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Here I am in New Delhi for the second time in this year(Refer 1, 2 ).  Following last year, purpose of the visit is for the Health and Welfare Minister Advisory Council meeting lead by Jeffrey Sachs as before.  The meeting was held for 2 days.  On the second day, face to face discussion between us and Dr. Ramadoss, Minister of Health and Welfare, and advisory committee was held for about 3 hours.  The minister replied clearly to the comments and questions one by one.  I felt that he had a clear recognition and plans for the problems.  You can see the report contents on the website.

The results of health services in the regions of India (rural area and slum area) for these 3 years are emerging clearly.  Also, it is expected that the budget for the health service will be increased along with the economic growth.  Medical expenses in India are 1% of GDP.  It is extremely rare and it is an exceptional country.  I expect that the services will be improved even though there are lot of problems. But the success is still far away.  I think this medical policies for rural areas in India should be more referred to by developing countries. 

Dr. Hara at Health Policy Institute Japan, accompanied me as it was in last year.  We invited my friend Ashok Khosla, President of "Club of Rome" and Dr. Sunil Chacko (whom I introduced earlier) to dinner, and we had a wonderful time together (photo 1).  Also, it was a great pleasure to have an opportunity to meet Mr. Oscar Fernandes, the Minister of Labor through the introduction by Dr. Chacko and Dr. Mishra, Pro-Vice Chancellor of Indira Gandhi Naitonal Open University (photo 2).  It was 10 o’clock in the evening, yet still lots of people were waiting to see him and his work was not over yet at all.  He is such a person, they say.

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Photo1　Dr. Khosla (in the center) with Dr. Chacko and Dr. Hara

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Photo2　From the right with Dr. Mishra, Dr. Chacko and Minister Fernandos

To medical students from Asia: Cheers for young people and 3 speeches

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There is a gathering of medical students from Asia known as AMSC (Asian Medical Students Conference).  This conference is held annually, and I was invited for the last 3 years.  I enjoy this event every time.  I like to be a part of such conference of youth organizations since they are pillars of the future human resource.  This was the 29th year and the conference was held at Tokyo.  I talked in the closing ceremony.  I heared that about 400 students have participated.  The point of my speech was the tremendous change that had occurred in these 29 years and about the globalization era.  I also talked about on "3 speeches."

The 3 speeches were, the speech given by Steve Jobs at commencement ceremony of Stanford University in the year 2005 (I told the students that "I hope and look forward that this 1 week conference become a "dot" of your career."),  speech given by Bill Gates at commencement ceremony of Harvard University in 2007 (It was about recognition of and consciousness for "Inequality" in the world and society.) and the "Last Lecture" of Randy Pausch at Carnegie Mellon University (About the childhood "Dream."  Even if you face many problems, do not forget that you all had a "Dream" to become doctors.  Refer 1, 2 ).

You can have a look at these speeches on YouTube.  Each one of them is a wonderful speech.  The "Last Lecture" of Professor Pausch became a book and Japanese translation was published just a few days ago.

It must have been a lot of work for staff students who organized this conference.  It was really a wonderful conference.

Japanese businesses go to Africa

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This year, I had many opportunities to write columns on Africa in my blog (ref. 1 ・ 2 ）.  Japanese mass media also brings up topics about Africa often this year partly because we had TICAD4 and G8 summit.  I have written in my column "Cape Town," but the "Nikkei Business," a business magazine in Japan also writes about how Japanese companies are active in this area.  Please take a look, since my comment is in it at the end. (※A free registration is necessary in order to read the whole article on NBOnline.)

It is exciting to see Japanese businesses going abroad.  I appreciate their effort very much.

“GLOBE Tokyo G8+5 Legislators Forum,” a movement initiated by politicians throughout the world

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"GLOBE Tokyo G8+5 Legislators Forum" was held in Tokyo on June 28th and 29th.  Japan was represented by Mr. Yatsu, the former Minister for Agriculture, Forestry and Fisheries of Japan.  Mr. Morley, the Minister of Environment of Mr. Blair’s regime, presided the 1st session on day 1 (I saw him at the G8 Environment Ministers meeting also), which started off with the greetings by Mr. Fukuda followed by key note speeches by Mr. Blair, the former Prime Minister of England, and Mr. Abe, the former Prime Minister of Japan.  Everybody spoke very well.

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Photo1　Greetings by Mr. Fukuda with Mr. Blair and Mr. Abe

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Photo2　Key note speech by Mr. Blair

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Photo3　Mr. Abe

Though this forum was founded in 1989, since after the Earth Summit held in Rio in 1992 it constituted mainly of the nonpartisan congress members of all the countries.  Framework for "G8 Gleneagles Climate Change Dialogue" was formed during the Gleneagles Summit held in 2005.

Video messages from the U.S. senators, Mr. McCain, Mr. Obama, Mr. Kerry, and Mr. Snowe were also played.  A common theme that their messages held was that "With the new U.S. President, the Parliament, the large-size U.S. corporations, more than 500 U.S. Mayors and U.S. State Governors participating, America will make a historic transformation towards ‘Cap and Trade’ and formation of a ‘Low-carbon Society’."  Japan, it seems, is the only country adopting a wait-and-watch policy.  It is vital that politics, the government, the corporations as well as the citizens be well-prepared.

Discussions during the forum were highly dynamic.

I had a speech on day 2 (photo4), though it was a bit difficult for me since the session was on forests and biodiversity.  I heard the request for a lecture a week before, and considering the fact that my speech was to be interpreted simultaneously in 9 languages so I decided to use the lecture that I had delivered at Kobe as a basic document, prepared a manuscript by including the above mentioned themes and circulated its copies among the interpreters as well the participants (the manuscript contained many errors since I was unable to proofread it sufficiently) before I spoke.

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Photo4　My speech on Day 2

Tony Blair and his team reports their outcomes

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On June 27th (Friday), the report "Breaking the Climate Deadlock" prepared by the team that Mr. Tony Blair represents, was presented in Tokyo.  Mr. Blair is the first person who put "climate change" in agenda at G8 summit, and also has launched "Gleneagles Process" to tackle this problem.  As a leader of the world he continues worldwide lively activities even after retiring from his post as a Prime Minister.  I have written about it before, and his purpose this time, I assume, is to announce the results of these activities and to promote them in the G8 summit.

Dsc_0158blair01Photo 1　Mr. Tony Blair

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Photo 2　With Mr. Blair and His Excellency Ngubane, Ambassador of South Africa

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Photo 3　With former prime minister Mr. Abe

On June 28th and 29th, GLOBE International, an activity of legislators of the states in G8+5 will be held.  I understand that Mr. Blair is going to give a keynote speech there also.

On the evening of 27th, a reception was organized at British Embassy in Tokyo in which many members of parliament from England were also present.  After that, I moved to Roppongi Hills to be a part of the panel with 100 young people and Mr. Miliband, Minister of Foreign Affairs.  Mr. Miliband is a 42 years old, up-coming star who is expanding the public relation activities by posting information on his personal Blog.  The panel was focused mainly on these topics, but unfortunately, the duration was too short i.e. just an hour.  I would like more of various programs like this to be organized.  You can view the sight of the panel in his Blog.

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Photo 4　Mr. Miliband and Moderator, Ms. Edahiro on the panel

Seattle, USA

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I am now in Seattle, participating in Pacific Health Summit which is held annually in June since last 4 years.  I have attended the first conference four years ago, but could not make it to the 2nd and 3rd conference due to some other schedule.

This year’s theme was "Nutrition" and I participated in a panel on "Soaring Food Prices, MDG (Millennium Development Goals)."  The host was Peter Singer from Toronto University, one of my old friends.  The problem of nutrition and food is a global challenge.  As the FAO conference held in Rome 2 weeks ago was not so successful, it may not be easy, but the topic is expected to be in the agenda of Toyako Summit to be held in July.

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Photo 1  Dr. Kondo of HPI and Dr. Sunil Chacko

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Photo 2 At the panel with Dr. Peter Singer on my right, Dr. Marc Van Ameringen, Director General of GAIN on my left(we were together in the Conference held in February.)

Recently, I am immersed in TICAD as well as G8 Summit, greenhouse, energy, poverty, development and issues in Africa, etc.   It’s nice, I see same people (refer 1 and 2 ) on one hand and also get acquainted with new people on the other hand.  The world is "flat" now and issues have become global.  I feel that challenges that Japan and each one of us will face in the future will be very big.  I also met Dr. Margeret Chan, Director General of WHO whom I haven’t seen since last year.  She is also exercising great leadership skills.

Seattle is a very beautiful city with beautiful waterfronts and woods.  The weather was fine and I enjoyed my stay very much.  I even went to see the game of Mariners using my free time.  This year their condition was not so good.  Audience was small (almost 1/4th of the capacity of stadium), and Ichiro had 2 strikeouts.  It was a boring match since the team lacked the "winning" spirit.  But applause for Ichiro was greatest in his home ground and I think he will appear in the "All Star Game" this year too (last year he was the MVP).  What a pity that Jojima was not a part of starting member!  As expected, the replacement of the manager was announced on the next day.

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Photo 3  Mariner’s Game

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Photo 4  Ichiro at bat