Every end of the year, the Japan Kanji Aptitude Testing Foundation chooses one kanji letter, or a Chinese character which represents and symbolizes the year of Japan by pubic voting. Sadly in last year, 2007, it was “nise” that means fake, sham, and not genuine but intended to seem real. The reason this pessimistic character was chosen is in this year, many companies’ “nise” scandals were found out one after the other. This paper will argue that corporate behavior in Japan is too frequently immoral and unethical because of the highest priority of profit, ignorance of ethical education in business school in Japan, and their too strong anxiety for consumer’s preference.
Since last year, Japan’s food industries’ false labeling scandals tumbled out one after the other ; Australian beef sold as Japanese, mixed rice labeled as single variety, expiring date of souvenir cookies labeled longer than one which was supposed to be, the produced dates changed to the future’s dates, and so on. Only in October, nearly 30 companies scandals related to false labeling came out. These scandals shocked consumers hard and became social issue as food safety and its trust. After these scandals, some companies went bankruptcy. The other companies are trying to recover consumer’s trust; for example, many companies redesigned or established their moral and ethical standards.
In spite of that, a study of corporation ethics or business ethics is new, so education system of it is still in the process of research and developing. According to report of Prof. Hino’s team in Aichi University of education, 17 out of 33 business schools and management graduate schools in Japan open a corporation ethics course. 4 of them have also a CSR, Corporation Social Responsibility, or compliance class which is related to corporation ethics. 6 schools make it a required subject (two of them make it an elective required one. On the other hand, in the United State, all 10 surveyed schools have the course but it is a required subject at 3 schools.
When it comes to food, it is said that Japanese people prefer well-known brand companies or producing districts, and domestic productions. As a specific example, Kobe beef which refers to one kind of beef raised according to strict tradition in Hyogo Prefecture is really popular and if only beef with Kobe-beef label is sold, people just want it without caring the beef itself. Also, we consumers tend to feel freshness and healthy when the expiring dates is short because of a food artificial additive. One food industry worker said, “we have a technology like an evacuated system and keep products fresh without a food artificial. In spite of that consumers do not know about it and avoid buying them if the expiring dates are longer than their expectations.” There seems to have many problems on these companies. Even though they must have known what is wrong and right based on their moral and ethics, why did they ignore it?
Firstly, the companies pursue an immediate profit too much. Actually, it is essential on business that companies work hard for cutting down on expenses and promoting sales as much as they can. However, when its priority goes above their consciousness of moral or ethics, the dishonest acts which neglect consumers happened. False labeling scandals
Secondly, Japanese education system of corporation ethics is not enough because a study is new and the requisite facility training is absent, another subjects in a curriculum of business school already overcrowded, or some people argue that students over twenty or thirty years old need not have an ethical education. Consequently, many of business persons do not have ethical education and work without any fundamental knowledge and principle concept. It can be said a serious cause of immoral and unethical acts of companies.
Thirdly, companies have too much anxiety for consumer’s prefecture. Then, what are the solutions? I will argue them from three aspects of the causes which are corporations’ attitude to pursue only profit, insufficiency of ethical education and companies too much anxiety for consumers.
Firstly, They need to have view that is not how to exploit money from society, but hoｗ their products or service contribute to their society. A famous management consultant and university professor, Peter Drucker stated that what is important is that management realize that it must consider the impact of every business policy and business action upon the society. It has to consider whether the action is likely to promote public good, to advance the basic beliefs of our society, to contribute its stability, strength, and harmony. (Drucker 342) As a result, companies become aware of the value of keeping compliance and winning consumers’ trust. Seeing management for a long span, this awareness makes much more profit than pursuing an immediate profit. Concretely, in order to do it, I suggest companies redesign or establish their moral and ethical standards and form the section to work to keep them. For reference, Nippon Meat Packers set up a Quality Assurance Division, a Corporate Ethics Committee, and a Safety & Testing Office after their scandals and now they are recovering consumer’s trust.
Secondly, the education program of business schools should emphasize on not only management techniques but corporation ethics also. According to Piper, students who are in their twenties and thirties, are at a critical stage in the development of their perceptions about capitalism, business practice, leadership, and the appropriate resolutions of ethical dilemmas in business. (Piper 5)
Thirdly, companies should not be worried about consumers’ preferences and should tell their products as they are.
Food is really closely related with all people’s lives and health, however, its information on which we relay consumers can depend is only a label of the package. That means all labels should be honest and trustworthy.
