The Future Relationship Between Corporations and NPOs

The number of NPOs, which stood at around 20,000 organizations in 2005, now exceeds 50,000, and the relationship between corporations and NPOs has also changed during this period.
Emi Nagasawa, who pioneered the coordination of partnerships between NPOs and the business community as a coordinator for Keidanren's 1% Club from its early days, and Kenji Shiroto, a former Dentsu Inc. executive officer who spearheaded the "Communication Skills for NPO" program—part of Dentsu Inc.'s social contribution activities aimed at enhancing NPO communication capabilities—discussed the future of corporate-NPO relations. We also heard about the current state of NPOs from Yoshifumi Tajiri, Managing Director of the Japan NPO Center, and Haruo Miyagi, Representative Director of ETIC.

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The NPO Perspective: A Catalyst for Reexamining Corporate Essence

Nagasawa: The Keidanren 1% Club (*1) was established in 1990, leading companies to strongly recognize NPOs (*2) as partners in their social contribution activities. During the 1995 Great Hanshin-Awaji Earthquake, there was a growing recognition that there was much to learn from NPOs.

Shirato: That was precisely when I visited Mr. Nagasawa. He advised me, "You should visit organizations actually working in the disaster areas and hear their stories."

Nagasawa: The Great Hanshin-Awaji Earthquake was a major turning point that changed the relationship between companies and NPOs.

Shirato: It shifted from a relationship of giving and receiving support to one of mutual learning and growth, if you will. Twenty years have passed since then. With your cooperation, Mr. Nagasawa, I've had many opportunities to collaborate with numerous NPO members. There are so many noteworthy aspects: their perspective that deeply grasps the background and essence of issues, their relentless commitment to solving problems, and their energy for engaging those around them.

Nagasawa: From a future-oriented perspective focused on solving problems, NPOs and corporations share the same position. As partners, we should be able to work together even more closely.

Shirato: Incorporating their perspectives can reveal a corporate vision we hadn't fully articulated, uncover unrecognized challenges, and provide hints for their solutions. This also becomes an opportunity to re-examine the essence of the company.

Solving major challenges requires open and flat collaboration

Shirato: Professor Komiyama, former president of the University of Tokyo and an expert in environmental engineering, also said, "Big challenges can only be solved together; no one can solve them alone." Diverse stakeholders must collaborate to tackle major challenges. We call this the Multi-Constituency Approach, and I believe it represents a new approach for the future.

Nagasawa: That's right. I think we're beginning to realize that for challenges difficult to solve by individual organizations or governments alone, we must pool our wisdom and resources to tackle them. The Great East Japan Earthquake was also a major catalyst.

Shirato: In the past, the image was that innovation came from a genius having a flash of inspiration. But in today's world, where so many challenges are emerging both domestically and internationally, what's needed is the imagination and vision to grasp issues from a future perspective. To achieve that, rather than waiting for a genius to appear, we need diverse people to connect in an open, flat structure and confront the challenges together.

Nagasawa: Recently, NPOs have frequently conducted initiatives called Future Sessions. Corporate participants present challenges they wish to tackle in their business, looking several years ahead, and then exchange ideas with diverse people.

Shirato: While companies are accustomed to making plans and forecasts through mid-term management plans, these often tend to favor their own interests. Bringing in NPO members as guides can provide different perspectives and insights. For corporate growth, this might seem slightly less efficient or slower, but it allows companies to re-examine sustainable growth rooted in the essence of their business. Companies should value this aspect more.

Now is the time for creative solutions that break through constraints and contradictions

Nagasawa: When I present examples of Japanese corporate-NPO collaborations at international conferences, they often draw attention and praise—people are surprised to learn such partnerships exist. Japan can even propose and present solutions to the world. What's crucial for their future relationship isn't just mutual respect, but maintaining a certain tension: the NPO's inherent role of monitoring and warning corporations, and the corporate side genuinely listening to that. Another key is capturing cutting-edge social needs and jointly creating new ventures.

Shirato: Regarding outcomes born from this relationship, a major challenge lies in how to evaluate "quality" rather than efficiency or quantity. How to leverage creative power—imagination and conceptual ability—is also crucial. I once heard a client executive say, "Creative means breaking through impossibilities and contradictions" (laughs). Furthermore, going forward, we need to consider new money flows and even how money is generated. I believe different money flows than before could potentially spark new ideas. I feel there are still many possibilities lying dormant between corporations and NPOs.

*1 An organization where companies and individuals voluntarily commit to spending at least 1% of their operating profit or disposable income on social contribution activities.
*2 Abbreviation for "Non-Profit Organization." A general term for private, non-profit organizations whose purpose is to achieve a social mission.

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"From one-way support recipients to collaborative partners working together on projects"

The relationship between companies and NPOs is evolving beyond one-way support like donations. Increasingly, companies are linking their own business activities with NPO initiatives, creating mutual benefits. For example, a confectionery company developed products suitable for children with diabetes. By partnering with an NPO supporting these children, they strengthened their distribution channels and successfully delivered the products to children who needed them. More companies are collaborating with NPOs from the product development stage. A new initiative involves programs where shareholder benefit products are donated to NPOs. One confectionery company confirmed donation preferences with each shareholder, matched the company's contribution dollar-for-dollar to the total shareholder donations, and delivered the confections to children with disabilities via an NPO, earning high praise from shareholders.

Partnering with NPOs offers the potential for stronger and broader impact than companies acting alone. If you are interested in building new relationships with NPOs, we recommend consulting one of the approximately 300 NPO intermediary support organizations nationwide or the Japan NPO Center. They can provide information and advice on NPOs across all sectors. Start by learning about NPOs.

Japan NPO Center www.jnpoc.ne.jp/

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"The Potential as a Partner Shaping a Company's Future"

Social entrepreneurs and innovation-driven NPOs are increasingly recognized by companies as partners who can unlock future possibilities. However, unclear approaches and benefits often prevent action. So where should one start? Even if concrete business collaborations aren't immediately visible, companies can begin by expanding connections through activity support as part of their CSR efforts. It's also crucial to encourage individual employees' social activities and establish internal pathways for proposing new ventures or social projects. Now is the time to broaden connections, however small, and for both sides to build collaborative experience. I believe that organizations with vision and resolve, those that move forward proactively, will be the ones that shape the future and sustain growth.

"How does my company contribute to society?" "What is the meaning of work?" Young people's values are shifting dramatically. Globally, we see trends where the most talented individuals become social entrepreneurs, and those expected to drive change are moving to NPOs. As we consider the new role of companies in this era, connecting with social entrepreneurs and NPOs who possess a venture mindset is now essential.

ETIC. www.etic.or.jp/

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NPO Support Program "Tips for Effective Communication"

"Communication Tips" is Dentsu Inc.'s social contribution initiative supporting NPO communication skills enhancement. For NPOs, communication skills are fundamental and indispensable for uniting the organization, expanding understanding and cooperation, and advancing activities. Based on original materials, Dentsu Inc. employees serve as instructors, delivering the program in a workshop format. To date, over 110 sessions have been held nationwide, with approximately 4,500 participants (as of March 2015). This year, its 12th year, the textbook is scheduled for renewal.

"Tips for Effective Communication" www.jnpoc.ne.jp/tsutaeru/