This column examines scenarios for Japanese companies to transition from prioritizing growth to pursuing degrowth, drawing on overseas precedents and presenting specific examples and policy directions, including steward-ownership, returning capital to local communities, and the 8 principles.
Drawing on overseas examples, this column examines how Japanese companies can transition to management based on degrowth. It compares Europe's institutional brakes on growth with the strong ties Japanese companies have with local communities, and explores what a transition scenario suited to Japan might look like.
The column points out that mechanisms such as steward-ownership, which legally constrain the pursuit of profit, emerged against a European institutional backdrop, while Japan has a strong foundation of lifetime employment and an orientation toward local communities. It argues that the key for Japan will be to establish mechanisms for sharing internal funds and talent with society and returning resources to the resolution of local issues.
A "social recirculation mechanism" that uses the expertise of people connected to local communities to address local issues is presented as important. Proposals include recognizing several hours of local community activity per week, side jobs, and sabbatical leave as formal systems. The idea of having employees belong to society as a whole, rather than "belong only to the company," is emphasized.
The column also considers the circulation of funds and ensuring transparency essential, citing Ecosia's practice of reinvesting all advertising revenue in climate action. It argues that Japanese companies should establish rules for reinvestment and develop accounting frameworks capable of evaluating social value in cooperation with local financial institutions.
Referring to the 8 principles of degrowth business, the column argues that Japanese companies should make use of elements such as locality, purpose, sufficiency, and conviviality while also addressing the challenges of decoloniality. It emphasizes the need to evaluate social and environmental sustainability, rather than relying solely on growth-maximizing indicators.