SANPO-YOSHI AND IKIGAI – REDISCOVERED BUSINESS PHILOSOPHIES EXPLAIN HOLISTIC ESG
Historically, trade broadly shaped Japanese business culture. Today we can see the various trading houses that play an important role connecting Japanese companies with the world. This culture can be traced back to merchants from the Omi Province, today’s Shiga Prefecture. Originally walking from village to village, offering their goods, over time, these merchants invested in their infrastructure and soon began branching out into international trade. With the beginning of Japan’s politics of isolation, they had to refocus again on the national market and update their strategy to expand their service portfolio, including banking, hotels and chain stores.
Thanks to this expansion, they gained wealth and prosperity. To ensure the sustainability of this development, the Omi traders developed the concept ‘Sanpo-Yoshi’, which can be translated as ‘benefit for all three sides’. Trade not only has to be beneficial for the vendor and customer, but also a third party: society. They included a group which did not normally have a seat at the table when the dealings were done. This classic philosophy aligns with the idea that with great power comes great responsibility.
Accepting such responsibility led to sustainable business, and with this, the optimisation of the organisation’s long-term value. Today, it can be found inside a growing business concept, aiming to include responsible corporate citizenship in financial accounts: environmental, social and corporate governance (ESG).
Oct-Dec 2021 Issue
Patrick Henz