101161

Nozomi Komiyama

Professor Owen

21 February 2008

How Should Japanese Food Industries Keep Their Ethics?

I. Introduction
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, their too strong anxiety for consumer’s preference to domestic products and fresh and healthy foods, and ignorance of ethical education in business school in Japan.

II.Situation
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, retired roosting chickens which the company had bought at rock-bottom prices sold as top-quality free-range chicken, the produced dates changed to the future’s dates, and so on (Tabuchi). Only in October, nearly 30 companies scandals related to false labeling came out (“Kokusan Doku”). These scandals shocked consumers hard and became social issue as food safety and unreliable labeling.

Specially, disguising foreign products as domestic one and changing the expiration dates were typical. Foods from China were often disguised as Japanese and many companies have been accused. For example, in December 2003 and July 2007, it was found that shiitake mushrooms from China were sold as Japanese (“Kokusan Doku”). Even in this month, February 2008, Tokai Denpun Company was accused that they were selling Chinese eels as Japanese (“Taiwan Chyugoku”). According to the changing expiration date, famous Cookie maker Ishiya Trading Co. falsified the dates to get rid of excess stock, while many companies reused out-of-date products. These scandals came out too frequently and customers were more flabbergasted than angry.

Considering these scandals, ethical education must be crucial. However, a study of corporate ethics or business ethics is new, so education system of it at business schools 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 in Japan have a corporate ethics course in 2006. 4 of them have also a corporate social responsibility, (CSR) or compliance class which is related to corporate ethics. 6 schools make it a required subject, and 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 only 3 schools. The situation of ethical education at business schools in both countries is not so different, but can be said that both of them seem insufficient and there is lots of room for improvement.

III. Cause
These situations seem to cause and relate to recent food scandals. Even though food industries must have known what is wrong and right based on their morals and ethics, why did they ignore them?

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 such as written above would be led by these companies which ignore moral and ethics on management and have the highest priority on profit.

Secondly, Japanese food industries’ too strong anxiety for consumer’s preference to domestic, fresh and healthy foods might cause these scandals. Corporations have several confidences such as Japanese consumers have absolute reliance for domestic productions or they prefer the shorter expiring date. Since Chinese foods’ safety was doubted in 2002 (“Kokusan Doku “), it is said that “…domestic product as a sure sign of quality” (Tabuchi). Companies worried if they labeled as Chinese, the sales went down. This conception obsessed them and led the false labeling as domestic food. Also, companies put shorter expiring dates which they believe consumers feel natural and healthy for, because they consider consumers think less food additive is proportional to shorter expiring dates. One food industry worker said, “Now we have a technology that evacuats products to keep them fresh without using a food artificial for a good while. Customers do not know about it and avoid buying them if the expiring dates are longer than their expectations.” (“Shokuhin Gisou”) It is said that to put shorter expiring date is the cause of rewriting label and reuse of productions. Companies’ anxiety and priority for consumer’s preference can lead scandals.

Thirdly, 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.

IV. Solution
Then, what are the solutions? I will argue them from three aspects of the causes which are corporations’ attitude to pursue only profit, companies too much anxiety for consumers’ preference to domestic, fresh and healthy foods and insufficiency of ethical education.

Firstly, I suggest companies redesign or establish their moral and ethical standards and form the section to work to keep them. Making the environment and atmosphere to keep compliance with laws and regulations would avoid from these unethical and immoral scandals. Indeed, for reference, Nippon Meat Packers which relabeled Australian beef as domestic one and accused in 2002, set up a Quality Assurance Division, a Corporate Ethics Committee, and a Safety & Testing Office after their scandals (“Regarding Trust” 24 ) and now they are recovering consumer’s trust. Thinking that some companies of which scandals turned out and lost consumers’ trust went bankrupt, the importance of winning consumers’ trust can be told. In this mean, to redesign or establish their moral and ethical standards and form the section to work to keep them are needed. Seeing management for a long span, makes much more profit than pursuing an immediate profit.

Secondly, they need to change their 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 realizes 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) This kind of view seems to be really sublime and taking into it to all members of companies must be hard. However, it is what the company should be. I believe it must avoid from dishonest acts.

In addition to the ethical view they ought to have, companies should not be worried too much about consumers’ preferences and should have a pride for their products. A professor of Harvard business school, Sharon Parks states that ethical choices in business involve not only the “how,” but also the “what.” She said “…, what is to be marketed may be a moral question as well.” (Parks 57) If they have confidence to quality of their products or technology for keeping them fresh or high quality, it can become possible they sell products showing as they are.

Finally, the education program of business schools should emphasize on not only management techniques but corporation ethics also. According to the other professor of Harvard business school, Thomas 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) He also says that business education must be an enterprise of both the intellect and the spirit. (Piper 4) I strongly suggest that at the spot of business education, corporate ethics and morals should regard as more important subject than that of now. It is sure that the companies’ environment for compliance or ethical education for employees is important, but at business school students need to be taught corporate ethics.

V. Conclusion
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 food industries should be honest and trustworthy. As the present situation, it can be said both at corporations and educational places, the environment to keep moral and ethical standards is not established. They have many problems such as the highest priority of profit, their too strong anxiety for consumer’s preference to domestic, fresh and healthy foods, and ignorance of ethical education in business school. However, several improvements can be seen, for example, reform of companies’ moral standards or establishment of sections working for compliance. I also suggest that what kind of view corporations should have. Obviously, it is hard to practice completely, because of short history of study of corporate ethics. However, the situation should be changed for out food safety.