By Taro Fujimoto/Japan Today

One fair trade organization which has been focusing on the poor in developing countries is People Tree which was established in Japan.Heading up People Tree and its parent NGO, Global Village, is founder and chief executive Safia Minney. Born to an Indian Mauritian father and Swiss mother in London, she started her career in publishing when she was 17. After working in publishing and launching her own alternative marketing consultancy in London afterwards, she came to Japan with her British husband who worked for a Japanese bank at the time and now works for People Tree full time. She worked for publisher PHP as well as for Simul Academy, which trains professional interpreters.

In 1991, Minney launched a non-governmental organization for the environment and social justice, Global Village. It began with a simple pamphlet about environmental information and Fair Trade products. People Tree currently runs two flagship stores in Tokyo and supplies 350 stockists all over Japan as well as 130 stockists in the UK and Europe. It has 40 full-time staff in Japan and 25 in the UK. The company has steadily increased its sales from 34 million yen in 1995 to 1,023,600,000 yen (Japan and UK together) in 2007.

What is People Tree’s concept of Fair Trade?

People Tree is a “social business,” a hybrid between conventional business and a charity. Looking at how we can maximize the benefits to disadvantaged people in the developing world, we have three principles as a business tool: to generate incomes for the poor in the developing world, to protect the environment, and to advocate for change in the way conventional businesses work.

How did your Fair Trade business start in Japan?

When I came to Japan, I found there were many people who care about the environment. But at that time, there was very little information on environmental products. Since the language was the biggest barrier for me, I started researching and publishing environmental information about products and services in Japan by launching Global Village. At first, it was just one sheet of paper with environmental information and Fair Trade products imported from Britain. Then we started to make products suitable for the Japanese market together with designers.

Who makes Fair Trade products?

We have partnerships with 50 producers in 15 developing countries, who mainly are members of the International Fair Trade Association (IFAT)

What kind of products do you sell?

About 50% of our products are fashion and accessories, 25% are food and 25% hand-made crafts, interiors and gifts.

Who are your customers?

Our customer base is very wide, mostly women aged between 25 and 40. I think green consumers in any developed country are mostly women who care more about the environment and social issues. They often start thinking about these issues when they have children. I think the LOHAS (Lifestyles of Health And Sustainability) idea is also one of the factrors in Japan that has helped promote Fair Trade. We are attracting male customers too by designing more products for them.

What is the social situation of Fair Trade in Japan like?

The biggest challenge in Japan is raising awareness. In Britain, about 70% of the population can articulate what Fair Trade is, while it is less than 10% in Japan. Japanese people think and talk a lot about the issues but it takes more time to act. They should just act. I think there is still too little support for the Fair Trade movement by consumers, businesses and government compared to other developed countries.
People in Japan are highly educated, very curious and self-disciplined. There is a big appreciation for natural and hand-made materials and traditional skills in Japan, which I’m very pleased about. Japan can be a leader in green consumerism. So, I think there is still huge potential in Japan to promote Fair Trade.

How do you advertise your Fair Trade products?

Many fashion and women’s magazines now cover People Tree as an international leader in Fair Trade and Fair Trade fashion.

How does the recession impact your business?

Of course it does affect us. But organic agriculture uses no oil products. We are beginning to see farmers switch to organic to save money which is good for them, consumers and the planet. There is a growing macro-economic viewpoint. We should try to invest in organic and green energy to create a sustainable economic model. In times of recession, you need to look at social businesses that take a long-term view.

What do you think about conventional companies’ CSR activities?

I think more than 90% is just a façade and 10% of CSR activities are genuine at the moment.
However, things are changing. Conventional companies need to look at the real environmental and social costs of production. Conventional businesses do not cover the real social and human rights costs, often paying less than a living wage to adults or paying so little that only children will make the products they sell. Often, environmental laws are ignored as it is cheaper to produce products that pollute the environment. This is clearly not right.

What is the biggest issue now for People Tree?

Cash flow is always a big issue. As our business grows, local producers require 50% of payment in advance with their orders. Fortunately, we’ve received a lot of support from Japanese customers and the public who have subscribed to a private issue bond to support People Tree.

What are People Tree’s future prospects?

I would like to have more stores selling People Tree products throughout Japan because more consumers will be able to find and buy Fair Trade products.

What is your management style?

I’m a team player. I work alongside my team. I explain what the big picture is and solicit people’s ideas. We work very fast. Some people found it difficult to keep up. But we have to be innovative and work quickly with designers, media and customers to help small-scale producers access the market and there are many barriers that we face together that need to be overcome.

How do you spend your free time?

If I have free time, I hike in the mountains with my family and friends. I love nature. I also do yoga everyday and am constantly designing products and campaigns in my head – even in my free time.

For further information, visit: People Tree Japan or People Tree UK
（This article is provided by courtesy of Japan Today）

“the Japanese business environment always had a certain ethic about what the corporation is and how it needs to be responsible to the community and its employees,”
- Samuel Kidder, Executive Director of the ACCJ

The fact is that job seekers and employees from different cultural backgrounds are now becoming increasingly aware what CSR means to them. Several reports recently released highlight the fact that what Japanese consider to be acceptable CSR is slightly different from what Americans and Europeans consider acceptable CSR. What potential and current employees expect from a socially responsible company has now become imperative for HR managers to understand in order to hire and retain a talented multicultural workforce.

CSR Gap between Japan, US and EU

Edelman Japan K.K. (2007), an international public relations agency, released a report on the international comparison of CSR. According to the report, Japanese think the most important issue to be addressed by global companies is “global warming” (79%), compared to 42% in the US and 56% in the EU. 57% of Japanese also think “poverty alleviation” should be addressed, while the figure is 40% in the US. “Security” is also a highly important issue in Japan (50%), whereas in the US, it is 40% and 33% in the EU.

The report also shows factors which destroy trust in companies. The biggest issue in Japan is an “environmental crisis caused by a company” (68%), compared to 37% in the US and 58% in the EU. As can be observed in the recent food scandals in Japan, “defective products/product liability” is also a major issue in Japan (68%), while 55% in the US and 46% in the EU have the same concern.

As any budding economist knows, global companies operate abroad to benefit from economies of scale. Most people, however, view the cost advantage that firms gain in a negative way, associating it with exploitation of the local environment and community. But, unexpectedly, the report shows 72% of Japanese people have a positive image about global companies, compared to 54% in the US and 53% in the EU.

“Industry-driven” CSR in Japan

Fujitsu Research Institute (Ikuta, 2008) recently published a report on CSR practices by Japanese companies in the global market, pointing out different social backgrounds of CSR in Japan, the US and EU.

In the US, CSR has been “market-driven”, which is led by pressures in the market, such as those from consumers and investors on corporate crimes. Hence, compliance, corporate ethics and philanthropy have been playing important roles in CSR in the US.

In EU countries, CSR has been “policy-driven”, which is actively promoted by governments in order to bridge market competition and social harmony. Consequently, diversified stake holders are involved in CSR and diversified CSR management tools have been created.

In Japan, CSR has been “industry-driven.” Business organizations, such as Nippon Keidanren and Japan Association of Corporate Executives (Keizai Doyukai), have created industrial guidelines in order to adapt to global markets based on the Western concept of CSR. While CSR is now seen as an important corporate activity in Japan, the pressure from domestic stake holders within Japanese companies is still weak and the Japanese government is still in its infancy trying to regulate it.

However, do not count Japanese companies out, yet. Japanese companies’ CSR strength, especially in the manufacturing industry, lies in its long-term and close relationships with trade partners and rich knowledge of quality control management.

CSR expectations between employers and employees

While CSR is now becoming a widely shared corporate idea in Japan, a rift has emerged between what Japanese employers and employees see as good CSR.

A Keidanren survey (2008) shows that those in management positions tend to see labor issues as one of the lowest priorities (18.7%), and quality/safety management of product/service as the most important social issue (80.9). Managers, especially corporate executives, tend to see CSR as a tool for improving corporate image and brand, especially in environmental issues. The Japan Trade Union Confederation (RENGO) is the largest trade union organization in Japan, representing the interests of more than 6,000,000 union members (2006). RENGO points out that different perceptions of CSR exist between employers and employees in Japan. RENGO’s report (2007) calls for more communications between employers and employees to discuss the labor relations as part of CSR to protect labor rights in Japan.

CSR as the DNA of an organization

Samuel Kidder, Executive Director of the American Chamber of Commerce in Japan (ACCJ), said in an interview with Japan Today (Jan 25, 2008) that “the Japanese business environment always had a certain ethic about what the corporation is and how it needs to be responsible to the community and its employees,” underlining the need to understand the varying perceptions of CSR in Japan, the US and Europe.

Understanding and implementing localized CSR is becoming more and more important in the global business world. CSR, which is a symbolic concept of the good, is undoubtedly different between Japanese and non-Japanese employees, and companies which realize this trend will be better suited to retain and find new talented job-seekers much better than companies who ignore CSR activities all together.

Reference

Edelman Japan K.K. (2007). “Corporate Social Responsibility: The ‘Make Or Break’ Factor For Corporate Trust in Japan.”
Available online from:
»http://www.edelman.jp/data/ideas/csr.pdf

Ikuta, Takafumi (2008). “CSR supply chain by Japanese companies in the global Market”, Research Report, No,308, January, 2008.
Available online from:
»http://jp.fujitsu.com/group/fri/downloads/report/research/2008/no308.pdf

Japan Today (2008), “Advocating US Business Interests in Japan”, Executive Impact, January 25, 2008.
Available online from:
»http://www.japantoday.com/jp/executive/286

Keidanren (2008). “企業倫理への取り組みに関するアンケート調査結果 （Survey Result on Corporate Ethics）”, February 19, 2008.
Available online from:
»http://www.keidanren.or.jp/japanese/policy/2008/006.pdf

Rengo (2007). “労働ＣＳＲ－労使コミュニケーションの現状と課題 (Labor CSR – State and Issues in the Communication in Labor-Relations)”, NTT Publications.
The abstract is available online from

»www.rengo-soken.or.jp/dio/no215/houkoku_2.pdf