The Era of Business Engaging in Dialogue with Society

CSR and CSV are often implemented not based on a company's management philosophy or vision, but merely as a "reactive response" to demands from society or shareholders. In reality, most CSR or CSV personnel within Japanese companies exist independently from the company's core business. It is rare for these initiatives to be implemented as a fundamental part of the business, tied to its philosophy or vision.

Ultimately, both CSR and CSV were merely communication actions serving as "reactive responses" for companies seeking societal recognition of their existence. This differs from the concept of "dialogue" consistently emphasized in this column. "Dialogue" refers to the act of fostering emergence from a holistic perspective that views the parties involved as part of a larger, mutually influencing system.

Awareness of the Ecosystem's Holism

To elevate business and society to the level of dialogue, a crucial shift is required in the business perspective. Let go of the previous paradigm of observing and understanding peripheral society from within, centered on one's own business. Move your perspective itself out from your own company and place it on the side of the surrounding society.

This simultaneously means becoming conscious of the wholeness of the surrounding society's ecosystem. To use the human body as an analogy, it's not about viewing other organs like the brain or kidneys from the perspective of the heart; rather, it's about placing your viewpoint on the whole human body and understanding the heart's existence within that context.

Similarly in business, we must view the existence of our own business from the perspective of the entire societal system. When we see the full picture of the ecosystem, a new form of "dialogue" within business becomes visible.

Consider replacing the human body with an ecosystem and the heart with your business. Both the human body and society can be viewed as single systems.

Let me share a concrete example. In the German city of Bochum, there is a social bank called GLS Bank. A social bank is a financial institution specializing in lending to businesses addressing social issues, such as those in the environment, education, and agriculture. For instance, in Germany, following the 2011 Great East Japan Earthquake, momentum for renewable energy grew. Amidst this, this bank rapidly increased its lending and expanded its business. GLS Bank is also said to have significantly influenced the expansion of renewable energy in Germany's ongoing shift away from nuclear power, even before this period.

GLS Bank operates under the management philosophy of being "a bank for people." Beyond specializing in loans for solving social issues, it also advocates to depositors that "depositing your money with a bank carries social responsibility." Depositors, resonating with this philosophy, deposit their money to help create the kind of society they wish to leave for their children and grandchildren. Depositors benefit from a system that transparently discloses the details of funded projects. GLS Bank also provides events and community-building opportunities to connect them.

GLS Bank operates as a social bank neither to fulfill social responsibility nor to generate high profits through social ventures. Its core management perspective focuses on the ecosystem as a whole. GLS Bank exists as one necessary function within this ecosystem, engaging in dialogue with society. Its view is that profits are necessary as a means to sustain its operations.

As we enter the VUCA era, social challenges like environmental issues, inequality, and healthcare/education problems grow increasingly complex. Business is inseparable from solving these challenges. An era where businesses consciously engage with the ecosystem's wholeness and dialogue with society is fast approaching.

The author of this column, Hiroyuki Egami, depicts how a paradigm shift in the financial industry is emerging from "dialogue" in his book published in July, 'The Bank That Engages in Dialogue: A Future Vision of Finance Drawn by Frontline Leaders'. The themes explored in this "dialogue" are rich and varied, including "leadership," "decentralized management," and "the essence of money." Even if you are not directly involved in the financial industry, we highly recommend picking up a copy.