METI × Dentsu Inc. Dialogue: Why is DEI necessary for companies and organizations?

Why is DEI (Diversity, Equity, and Inclusion) necessary for companies?

Amid growing calls for DEI, many companies may be implementing it formally while its "purpose" remains unclear.

METI published the " Diversity Management for Strengthening Corporate Competitiveness (Diversity Report) " in April 2025.

This report particularly emphasizes the perspective of "enhancing the competitiveness of Japanese companies" through achieving DEI. It communicates the importance of diversity management to a wide range of business professionals, including corporate executives, while compiling and disseminating various insights.

The report defines diversity management as follows:

By moving away from a state of high homogeneity, companies can foster an environment where diverse talents possessing the knowledge and experience necessary for realizing management strategies can thrive, and by cultivating an organizational culture that supports this, they can generate innovation and lead to value creation.
(From Diversity Report p.4, "Message to Management")

As Chief Diversity Officer (CDO) of Dentsu Japan, Atsuko Kuchiba, who works daily to realize DEI across the entire Dentsu Group in Japan, spoke with Tomoko Soma, Director of the Economic and Social Policy Bureau at the Ministry of Economy, Trade and Industry (METI), who compiled the report. They discussed challenges and solutions for promoting diversity management in Japanese companies.

(From left) Tomoko Soma, Director of the Economic and Social Policy Bureau, Ministry of Economy, Trade and Industry; Atsuko Kuchiba, Chief Diversity Officer, dentsu Japan

<Table of Contents>
▼The 2025 Diversity Report Focuses More on "Competitiveness"

▼ "Diversity of Knowledge and Experience" Becomes Key to Corporate Survival

▼Transforming Corporate Culture Through Both Top-Down and Bottom-Up Approaches

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2025 Diversity Report Focuses More on "Competitiveness"

Kuchiba: First, could you briefly explain what this report is?

Soma: It synthesizes discussions from the "Corporate Management Research Group on Linking Diversity to Competitiveness," launched last fall. Our intended readers are executives at companies seeking to drive innovation and enhance their international competitiveness.

Kuchiba: While Japanese companies are currently working on DEI, I hear many still treat it as a formality. Against this backdrop, I felt this report consistently sends a strong message: "Moving forward, we must link DEI more directly to strengthening corporate competitiveness." Compared to the 2017 " Diversity 2.0 Action Guidelines," why is there a greater focus on "competitiveness" now?

Soma: The Ministry of Economy, Trade and Industry (METI) has long pursued various policies under the concept of "Diversity Leading to Corporate Value." Compared to 2017, human capital management has now become quite established among Japanese companies. Legal revisions have also occurred, and disclosure of information regarding DEI initiatives has progressed. However, when examining data from the perspective of whether the goal of "linking DEI to competitiveness" is being achieved, the competitiveness of Japanese companies still cannot be said to be high. Furthermore, surveys of Japanese corporate executives reveal that many perceive challenges in the "people" aspect.

Against this backdrop, we convened a study group of experts to discuss "How can we achieve diversity that truly enhances competitiveness, which is our fundamental goal?" This report presents the outcomes of that study group.

Kuchiba: In the report, there was a page summarizing various corporate concerns, and it felt very raw and relatable (laughs). It made me realize, "Ah, companies everywhere are struggling with the same points." So, the Ministry of Economy, Trade and Industry (METI) believes that DEI itself directly impacts Japan's overall national competitiveness?

Excerpt from Diversity Report P.21

Soma: That's correct. However, this sense of urgency isn't limited to METI; it exists across the entire government. Various ministries, including the Ministry of Health, Labour and Welfare, are tackling this issue according to their respective functions. Within this framework, METI's role centers on the theme of "enhancing corporate competitiveness." Yet, companies are interconnected with society, and challenges cannot be solved solely through corporate activities alone.

By publishing reports like this, METI hopes to advance DEI across global corporations, SMEs, and all workplaces and job sectors, ultimately driving progress in DEI for society as a whole.

Kuchiba: As someone promoting DEI, I keenly feel every day that progress won't happen unless society moves forward together. For example, there's the cluster of "female employees balancing work and childcare." As a single company like Dentsu Inc., there are limits to what we can influence. It's difficult to address the work patterns of their partners after they return home. This stems from the broader consciousness, values, and social structures of Japanese society as a whole.

Soma: In Japan, women still bear a disproportionate burden of household labor, and the government recognizes this as a problem. To address it, they're promoting measures like encouraging men to take paternity leave. The Ministry of Economy, Trade and Industry (METI), in collaboration with the Tokyo Stock Exchange, selects listed companies supporting women's advancement as "Nadeshiko Stocks." They're also promoting policies centered on the theme of "dual-income, dual-career parenting."

Kuchiba: Regarding women's advancement, the annual "Gender Gap Index" is shocking. Japan excels in areas like "Education" and "Health," ranking among the world's top performers. However, it consistently ranks much lower in "Politics" and "Economy."

Soma: Precisely, that high ranking in "Education," right? If people who have received a solid education cannot fully contribute in society, that represents a loss.

"Diversity of Knowledge and Experience" is the key to corporate survival

Kuchiba: Another major difference from 2017 is the strong emphasis on the term "diversity of knowledge and experience."

Soma: From the perspective of corporate competitiveness, we felt it was more compelling to focus not only on attributes that are easily visible from the outside, like gender or disability status, but also on the knowledge and experience of each individual themselves. While this concept was included in the 2017 guidelines, the phrase "diversity of knowledge and experience" itself is a term used in the context of human capital management. It's also a key term in the " Human Resources Version of the Ito Report 2.0" issued by the Ministry of Economy, Trade and Industry. We felt using terminology aligned with that would make the message easier to convey.

Of course, diversity in aspects like "gender" and "disability status" is also crucial. Different backgrounds mean different experiences and different perspectives on various matters.

Kuchiba: Unfortunately, focusing solely on attributes can still lead to the perception that "diversity initiatives are only for women or people with disabilities." By framing it as "diversity of knowledge and experience to enhance corporate competitiveness," we thought it would be easier for people to understand. That is also the essence of it.

When explaining this to employees within our group, I say: "For 125 years, we've thrived by creating new value that didn't exist in the world through creativity and ideas. To keep growing in that realm, it's about how much we can multiply our potential by collaborating with people who have different perspectives and experiences. That is our competitive advantage."

Then, as a first step toward that, I mention that diversity includes minority attributes like gender. However, some people feel there's a disconnect between these two points.

Soma: That's truly challenging. If I had to point to one thing, it would be the perspective of "inclusion." Within DEI, diversity is based on the premise that "people are inherently diverse," while inclusion is "for all those diverse people." It's not just for minorities.

The essence of inclusion is ensuring every individual, regardless of their attributes, can voice their opinions and fully utilize their abilities. This perspective of "every person is different" is truly crucial. For example, it's problematic if someone says something like, "Now, please speak from a uniquely female perspective," because that actually binds people to their attributes (laughs).

Kuchiba: That just makes you think, "What is that?" (laughs).

Soma: That said, while we can't completely dismiss attributes, there are tendencies where women and men perceive society differently. Foreign employees also see things differently than Japanese employees. Since experiences and perceived inconveniences vary by attribute, considering Japan's social structure, tailored responses for each attribute are necessary, right?

Having a certain degree of diversity in attributes within an organization is reasonable for achieving diversity in knowledge and experience. After all, half of the people living in society are women, so creating an environment where they can fully utilize their abilities and thrive is just the starting point.

Kuchiba: The goal isn't simply to diversify attributes; rather, diversifying attributes naturally fosters diversity in knowledge and experience, which in turn drives innovation. Inclusion is for everyone; it's crucial for enabling everyone to utilize their abilities.

While there's currently a backlash against DEI overseas, I believe Japan hasn't even completed one full cycle compared to truly diverse nations. This report's statement that "the country will continue its commitment to DEI" feels reassuring and encouraging for companies advancing DEI despite their anxieties.

Soma: The fundamental goal of enhancing corporate and national competitiveness remains unchanged, so I hope we continue advancing this firmly. We live in an era of rapid change, and Japan faces ongoing population decline. As more companies expand globally, I believe that without diversity in knowledge and experience within organizations, neither " " nor any form of innovation will be sustainable.

Transforming corporate culture through both top-down and bottom-up approaches

Kuchiba: Where do you see the challenges in Japanese companies' DEI initiatives?

Soma: I believe all companies are solidly handling the foundational aspects of information disclosure and legal compliance. However, there's a significant difference between companies that merely disclose information and those that add their own value to that disclosure. While many companies meet numerical targets, such as hiring numbers, for various attributes, whether this truly translates into "inclusion for everyone" that enhances competitiveness varies widely in practice.

Alongside this report, we're publishing tailored strategies and concrete actions addressing corporate challenges. However, we've discussed with the study group members that "we don't want this to become a checklist of actions to complete sequentially." Since every company's business environment, strategy, and everything else is different, we also included a message encouraging them to select and combine actions based on their specific circumstances.

Excerpt from Diversity Report P.23

Kuchiba: These "actions" were the most educational for me, and as someone actively promoting DEI daily, I strongly resonated with them. I'd like to delve into a few points. First, Action 2: "Establishing a Promotion Framework." It mentions "building a bottom-up promotion framework."

Excerpt from Diversity Report P.26

Kuchiba: Since taking on my current role advancing DEI in January 2024, I've strongly felt that "it won't work unless we drive it through both top-down systems and rules, and bottom-up efforts."

Creating systems top-down or setting numerical targets isn't actually that difficult if you're determined to do it. But bottom-up—instilling DEI in each individual employee to build the company's true culture—is the most crucial part. If we can't achieve this, it ends up being just formalistic DEI.

Soma: Yes, I think many companies face the same challenge.

Kuchiba: After a year of work, one solution I've identified is designing DEI initiatives to fit the strengths of our own employees. The strength of our group's employees is that each person has ideas, and many possess an inherent passion and drive to get things done. To leverage this strength, we run an initiative called "DEI Park."

Twice a year, we select leaders from about 140 companies within the Dentsu Group in Japan and bring them together. There, they learn the basics of DEI while also identifying "what DEI challenges exist in their own organization." They then develop their own ideas, plans, and actions to address these challenges and implement them within their own teams. As a result, over 200 initiatives are born from the bottom up every six months!

Soma: That's great!

Kuchiba: It's not only highly unique but also deeply tied to each organization's specific challenges. I feel that when people working together on the front lines say, "Let's do this together," it has far greater momentum and a much larger impact on the organization's culture than when top management simply declares, "Let's do this," and implements a uniform initiative.

Soma: DEI truly is about "transforming corporate culture." It means DEI principles permeate every corner of the organization, changing individual behaviors. What I particularly liked hearing was that instead of a group-wide approach, you identify challenges and develop actions "by organization." After all, the realities on the ground are completely different for each individual unit.

Regarding top-to-bottom communication, some companies create forums for presidents, executives, and employees to exchange views. While these sessions are often held to disseminate management strategy or build culture, they actually overlap significantly with DEI initiatives.

Kuchiba: We also create forums for exchange. When we explicitly label them DEI sessions, people who feel dissatisfied or marginalized attend. They express their anger and speak their minds openly. At those moments, I think, "Everyone, look! These are the people in our organization!"

Soma: Meaning they weren't visible to everyone.

Kuchiba: Exactly. I see great value in making these previously unseen individuals visible and having them voice their opinions in such forums. Especially regarding senior employment, there are diverse perspectives.

Soma: Senior employment is also a major DEI theme. This relates to how "generational diversity" contributes to corporate competitiveness. Amid Japan's rapidly declining population, the perspective of how to enable seniors to thrive is crucial.

<Continued in Part 2>

・dentsu Japan's DEI site is here
https://www.japan.dentsu.com/jp/deandi/

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