This article is an excerpt from our research publication SJ3: The pathway to regenerative business. A Japanese version is available on Note.
Introduction
Kumiko Hori has served as the Head of the Asia-Pacific region responsible for overseeing UBS’s social contributions for 16 years. She began her career as a researcher at the Human Rights Protection Bureau of Japan’s Ministry of Justice. Since 2000, which is often regarded as the year where CSR began to take a foothold in Japan, she has dedicated herself to researching and studying methods to assist Japanese companies in addressing human rights challenges that align with international standards.
This includes areas such as children’s education and gender discrimination. Having previously worked in the CSR and environmental divisions of a Japanese company, she embarked on the mission to holistically reshape the corporate culture at UBS, with a focus on making significant contributions to local communities and fostering DEI. We asked Hori about her extensive experience of making a positive impact and how she tailored her approach from country to country.
Creating social impact by empowering and supporting people
What’s the most memorable project you were responsible for during your tenure at UBS?
That would be a project in the wake of the Great East Japan Earthquake. Right from the start, our focus was to empower individuals with a forward-looking perspective spanning five to ten years. After a disaster of this magnitude, it is so important to regenerate and restore affected communities, and enhance their long-term resilience. That’s why we chose to really listen deeply, to the needs and voices of local residents. By understanding their needs and supporting their journeys to recovery, we managed to foster a transformative shift in attitudes and behaviours. At the same time, we also put an emphasis on strengthening the growth of the broader civil sector as a whole, including intermediary organisations and other infrastructure.
Protecting the rights of local people to pursue their own happiness is paramount; if the benefits are one-sided and the community is ignored, then this is just exploitation. By being open and approachable, we have been able to earn people’s trust and we feel that we are finally beginning to see the effects and results of our work.
You’ve worked on a number of projects across Asia. How have you overcome cultural differences?
It has been important to acknowledge and appreciate the unique cultural differences and historical backgrounds of the West, Asia, and Japan.
For example, in Japan, it used to be common for companies to divide their workforce into ‘Sogo-shoku’ (management track) and ‘Ippan-shoku’ (clerical positions), with women overwhelmingly working in ‘Ippan-shoku’. This may be perceived as gender discrimination in other countries, especially when looking at the wage gap between men and women. However, this system was originally created to protect employees through agreements with labour unions. This is just one example of how — even when examining the same social issues — it is important to understand context.
Attempting to resolve these issues by simply imposing one’s culture or values will likely only yield superficial outcomes, and may not achieve enduring behavioural change within organisations. This is also true for the SDGs and ESG, which have become universal standards championed by the UN, but there are gaps in social values depending on where you are. That’s why we need to understand local contexts and also continue to examine whether simply achieving numerical targets will actually achieve a sustainable transformation.
Programs to increase employee engagement
What are the keys to increasing participation in volunteer programs?
When I first became involved in the field of social impact, there was not much familiarity with volunteering in Japan, Korea, and China, and volunteering even had a slightly disingenuous image.
In order to raise awareness and understanding of volunteerism within companies, I emphasised the significance of addressing societal issues beyond the scope of donations alone, explaining that volunteering can also play a powerful role in tackling these challenges.
Additionally, we tested a hypothesis about the benefits that volunteering can bring to companies — with data showing that volunteering can enhance company loyalty and lead to improved performance. While our intention is not to directly associate volunteering with company profits, there are important organisational benefits that come with it too.
Why is volunteering effective in increasing employee engagement?
I think it’s because of the learning experience. We always try to provide unique and enriching volunteering experiences, where employees can learn and grow. When you immerse yourself in the local community and grow together, you start perceiving social issues as deeply relevant to your own experience.
What does successful employee engagement look like to you?
It is a state where employees can expand their networks, communicate with and get to know one other, and act with empathy. By taking these steps, we can grow relationships that serve as the basis for co-creation, and we can also reduce the likelihood of problems and lost opportunities arising.
For example, if you can leverage your horizontal network when faced with a challenge, you can tap into a wealth of expertise, helping to generate creative solutions and prevent lost opportunities. When everyone, whether customers or colleagues, enjoys relationships that are based on equality and mutual respect, they tend to share a common outlook on the future and exhibit a willingness to tackle challenges together. Volunteering and other similar activities provide opportunities to build these relationships.
In this context, it is also important to have a diverse team structure. While it may take time to establish, the resulting level of performance is undoubtedly higher. As customers and company management appreciate this approach, employees become more motivated, ultimately leading to the creation of a positive feedback loop.
Achieving true sustainability
How do you see the current state of sustainability in Japan?
In Japan, there seems to be a prevailing perception that the SDGs are merely a passing trend. We are supposed to be working on organisational, social, environmental and global sustainability to transform our economy and society. If we act simply to pursue trends or profits, it becomes only a means to an end.
However, I recently sense a shift is underway. In the past, only a handful of companies considered social impact or ESG investments. Nowadays, there is a widespread conviction that ESG perspectives are indispensable, in the way they influence financial performance, investment decisions and management strategies.
Moreover, instead of the conventional, vertical approach revolving around environmental, social, and governance, I believe it’s time to reconsider and reevaluate ESG activities through a new lens that allows for better integration. Similarly to employee engagement, when companies and stakeholders are interconnected, organisations and individuals flourish, leading to economic prosperity. I firmly believe that this kind of symbiotic relationship will drive meaningful community impact, while simultaneously elevating the company’s standing in society too.
From an international perspective, how are Japanese companies approaching these issues?
It is disheartening to hear that Japan, once known as an environmental leader in the 1990s, is now subject to criticism for lagging behind by three decades. Working in a global company, I have also noticed that there is a cultural difference in Japan when it comes to commitment.
For instance, when examining global companies that declared zero emissions or carbon positivity goals a decade ago, it becomes clear that many of them have fallen short. In contrast, Japan has a tendency to abstain from making grand commitments when the path to achieving those goals is challenging, but once a commitment is made, a sincere and concerted effort is dedicated to follow through.
Japan stands to gain immense benefits from cultivating a greater openness to learning from failures and setbacks. We should conscientiously choose and prioritise sustainability initiatives that align with our unique values, integrating them in a strategic way into our businesses.
What untapped resources do you think can be harnessed in the future?
We have a tremendous opportunity to strengthen collaboration between companies and different sectors, building synergies that can drive innovation and progress. In Japan, there is currently limited mobility of individuals across national government, public sector, NGOs, NPOs and companies.
As the population declines and the birthrate falls, social issues will continue to worsen and economic growth will likely stagnate. This means that the role of each individual in society will become all the more important. If we can create a system where people can move fluidly and cooperate with one another, we can encourage resilience at both the individual and community levels.
From disaster recovery to corporate sustainability initiatives, Hori’s approach to project design has consistently generated major societal impact. Firstly, when it comes to employee engagement, individuals from all levels must align their efforts and support one another as they pursue a shared goal. Furthermore, embracing the power of co-creation with individuals from diverse backgrounds can greatly amplify a company’s societal impact. This kind of collaborative approach can become a positive cycle of personal and organisational growth, building a strong foundation for long-term success. By integrating these approaches and philosophies into the very core of their businesses, companies can pave the way for sustainable progress in the years to come.
Fabric is a Strategic Design and Sustainability consultancy helping businesses move towards more innovative, sustainable futures. Based in Tokyo, we’ve been consulting with global and local companies since 2004. We have extensive experience bringing together design thinking, sustainability, and human insight to deliver good strategy for clients.
