The Power of Diversity to Drive Change in Nature and Organizations [CSV Forum Report 3]

This article reports on the CSV Forum Special Edition event jointly held by Japan and China on April 17, 2021. Part 3 introduces the activities of young Chinese entrepreneur Yao Songqiao and the panel discussion held on the theme of Wellbeing Management.

Part 1: Learning Global Management from Shiseido [CSV Forum Report 1]
Part 2: Learning from Panasonic: Business Expansion Welcomed in China [CSV Forum Report 2]

Creating Shared Value from Multiple Perspectives
 

Yao Songqiao, founder of WildBound, an organization composed of young environmental activists. He promotes transformative projects for nature in collaboration with diverse stakeholders, including not only the Chinese government and Ministry of Ecology and Environment, but also the Norwegian Embassy, the World Economic Forum, and the United Nations Convention on Biological Diversity. At the start of the discussion, he introduced his activities, stating, "The combination of real experience and empowerment, the potential for everyone to become a change-maker—that is how we actually shift entire paradigms and move toward a better world."

Last year, Yao launched the "#Changemakers for nature" project. He empowers changemakers and educates and supports communities moving toward transformation, including by organizing roundtable discussions where neuroscientists, policymakers, business leaders, and young people come together to discuss sustainability.

"Young people are the future consumers and future changemakers. To achieve the SDG targets, it's crucial we collectively tackle the challenges we face and maximize their potential. Just as nature becomes stronger through diversity, businesses and societies become stronger when diverse people work together. By connecting and supporting each other, the seeds we plant grow into trees, their leaves flourish, and eventually a sustainable forest emerges. Creating shared value from the perspectives of multiple stakeholders is profoundly meaningful." He emphasized that initiatives involving not only young people but also business leaders can drive transformation across the entire ecosystem.

Yao Songqiao shared her entrepreneurial background: "As an Asian woman, I may not appear strong. Yet differences in nature and skills can be valuable in their own way. If we were in the wild, we couldn't always compete for strength. Many people doing important work in sustainable development possess flexible thinking—and many of them are women. Until now, I've focused on direct experiences like taking young people to Antarctica to support changemakers. But I've realized that much of the wisdom gained from nature can also benefit art exhibitions, community education, and businesses. It's not just about inspiring one changemaker; it can spread across generations and roles, reaching everyone."

Connecting with AND, not OR

※From here, we present the discussion in a conversational format.
(Titles omitted)

Nawa: Wellbeing is an elusive term, but I don't see it as static happiness. I think it should lead to behavioral change. Wouldn't a verb-like concept like Well-Becoming—continuously striving toward a better state—be better?

Uotani: We talk about beauty and health, but these two are connected. The focus is on holistic beauty, health, and lifestyle.

Nawa: The connection between mind and body is one of the key concepts, isn't it?

Honma: Healthy aging and supplying fresh, safe food resonate strongly in China too.

Nawa: Regarding connection, diversity cannot exist without inclusion. Amidst the "inclusion first" movement, how do you view the balance of unifying while leveraging local strengths?

Uotani: Japan, with its lifetime employment system, loves the phrase "becoming one." While admirable, this can lead to rigidity and sluggishness in a rapidly changing era. It's crucial to foster an organizational culture that leverages the strength of unity while also encouraging open, candid discussion without fear of misreading others' intentions, thereby fostering diverse ideas.

Nawa: It's an "AND" approach, not an "OR." How do you reconcile Chinese characteristics with Panasonic's identity?

Honma: Design is challenging. We've invested significant time cultivating talent who understand designs that are both distinctly Panasonic and acceptable in China. These individuals are now actively contributing. While building the value chain in China is a challenge for Japanese companies, I believe what we've achieved in the last two years isn't solely our accomplishment—it's the result of 25 years of effort by our predecessors who trained 8,000 engineers.

Post-COVID Transformation of Overseas Operations
 

Zheng: In China, values differ significantly by generation. Yet, there's a growing momentum to create sustainable living environments that transcend diversity by valuing differences while seeking common ground. Some even question whether the very term "female management ratio" constitutes a diversity violation in China.

Uotani: While I don't inherently think percentage targets are ideal, Japanese companies set goals like 30% or 50% because without them, nothing changes. Ideally, we shouldn't even use terms like "support" or "assistance" – not just for women, but also for people from overseas needing English support. Within five years, I want to create an environment where people can naturally work together without conscious thought about gender, region, employment status, or disability. I believe it's better for Japan to recognize its biases and spark more social discussions. What's crucial is that new ideas emerge from these discussions.

China as a Global Value Creation Hub

Nawa: What are your thoughts on Japanese companies learning from China's approach of speed, style, and cost?

Honma: Currently, people come from India and Asia to China to learn. China accounts for half of the world's production of white goods, so I believe building the strength to compete in the Chinese market is the minimum requirement for global survival.

Nawa: So rather than learning from China, the influence of Chinese innovation is being felt globally.

Honma: China has been changing continuously for 40 years; change is the norm there. Another difference from Japan is that the drivers of consumption are young; you won't sell unless you target those in their 20s and 30s. I don't have specific ideas on how to operate in Japan, but I think it's crucial to communicate China's dynamism to management as quickly as possible. Post-COVID, Japanese companies' overseas operations are at a turning point. Without communication, perceptions will increasingly diverge. While Japan needs to understand local dynamics, local judgment remains crucial.

Uotani: We recently announced China as our second headquarters. We're focusing not just on China as a market, but as a global hub for value creation. Going forward, we may see cross-border models where planning and ideas originate in China, while Japanese brands are manufactured in Japanese factories – essentially reversing the traditional approach.

Stopping global fragmentation: The aspiration from I to WE

Nawa: How can the movement from I (individual) to WE (community/coexistence) spread in a society drifting toward individualism and division during the pandemic? Will the younger generation lead this?

Yao: When people with different perspectives and approaches collaborate across various roles—schools, companies, initiatives—they gradually learn to accept one another. Cultivating the sense of connecting with the different is crucial. This extends beyond human relationships to feeling connected with diverse life forms within the natural environment.

Nawa: Could it be that the ambition to improve the world is weakening somewhat among young people in Japan?

Uotani: Japanese youth will take action if they're told it's okay to fail. What's vital is an organizational culture that liberates those who are earnest, who want to improve their company or society but feel frustrated by their inability to do so. Creating programs where anyone—employees and outsiders alike—can raise their hand and act immediately on their aspirations fosters a sense of accomplishment and camaraderie, building cross-organizational connections. The inspiration born from this inevitably translates into business gains. Furthermore, since stock prices reflect expectations, proactive communication with overseas investors is crucial. Long-term investors sometimes ask about your life philosophy. Here too, the purpose Mr. Nawa speaks of is essential.

Nawa: Recently, we've increasingly rephrased CSV management as purpose-driven management.

Zheng: In China's C-CSV (Co-creating Shared Value) framework, two elements are indispensable: compassionate love and establishing mechanisms that support business activities, not just design.

This concludes the three-part special edition report on the CSV Forum. Looking back,

1. Shiseido Global: People-centered diversity management builds the dynamism for medium-to-long-term business growth
2. Panasonic China: Business Development Achieving Both Exemplary Social Value and Business Growth
3. Entrepreneur WildBound: Advancing Collaborative Initiatives to Drive Positive Change for the Natural Environment

Despite differing regions, products, and positions, a common thread emerged: how they significantly grew their respective companies in just a few years.

• Carrying forward the founding vision, contributing to the wellbeing of people and society with a long-term perspective
• Leveraging regional and individual strengths to connect and harness diversity as a strength
• Avoid central control; allow for failure and delegate authority so the field can execute without hesitation

This intensive three-hour forum revealed essential requirements for sustainability and global management.