The Japan Labor Flash No.19
Email Journal July 15, 2004

Statistical Reports
Recent Statistical Survey Reports …etc
Current Topics
Corporate codes and guiding principles steadily changing …etc
Public Policies
The Ministry of Health, Labour and Welfare study group proposes the
introduction of a long leave program extending to one year or more …etc
News Clippings
Working status of women changing …etc
Special Issue
Business recovery not delivering more jobs: What to do?


Statistical Reports

-Recent Statistical Survey Reports June 2004-

Features
Income and Its Distribution Survey (2002)
Report on Employment Service (May)

http://www.jil.go.jp/english/estatis/esaikin/2004/e2004-06.htm


Current Topics

-Corporate codes and guiding principles steadily changing-

Japanese companies attach particular importance to corporate codes
/mottoes and guiding principles. In July, the Japan Productivity Center
for Socio-Economic Development conducted a survey on how corporate
mission statements as well as codes and guiding principles are being
utilized. The aim was to learn about the contents of various companies'
corporate codes/mottoes and guiding principles as well as their
management philosophies, and to see how the companies are utilizing
them in the context of the management environment that has been changing
dramatically in recent years.

Some of the survey's characteristic findings are as follows.

As many as 26% of all the companies surveyed have reexamined their
corporate codes/mottoes and guiding principles during the past five
years after 2000, suggesting that they were compelled to do so in
the wake of the series of corporate scandals that occurred and the
growing emphasis on adopting environmentally-friendly policies.

The largest number of corporate codes/mottoes and guiding principles
included the slogan "Coexistence with society," while 28.5% emphasized
"Customer-oriented business." In contrast, only 6.1% cited "Respecting
their employees."

Of all the companies surveyed, 65% had codes of conduct related
to corporate ethics. Over 65.3% of the companies were highly interested
not only in corporate ethics but had also laid down specific rules and
regulations, while 52.8% had instituted corporate ethics-related codes
of conduct after 2001. These companies have established an official
organization to ensure that the codes are complied with.

A majority of the companies fulfilled their corporate social
responsibilities, or CSR, in the environmental preservation sector.
Their high degree of interest in environmental issues reflects the
trends of the times, in which environmental issues have come to influence
the company's main line of business. Moreover, it clearly reveals how
companies are under pressure to cope with a variety of environmental
issues that have been drawing attention in recent years, such as the
volume of carbon dioxide emitted, acquisition of ISO certification,
and product recycling.


Public Policies

-The Ministry of Health, Labour and Welfare study group proposes the
introduction of a long leave program extending to one year or more-

On June 30, the Ministry of Health, Labour and Welfare study group
compiled a report on the introduction of a program that enables corporate
workers to take extended vacations lasting one year or more after having
worked for a set period of time. Eligible workers can use the vacation
to take part in community and other social activities or for self
-enlightenment purposes, such as studying or improving their skills and
knowledge. Even though these employees receive no salary during their
vacation period, in principle, the report proposes that the ministry
help those companies that are allowing their employees to take long
vacations by (1) providing assistance by paying a part of their salary
or establishing a financing system, and (2) implementing measures to
provide these workers with living expenses or other means of support.

The concept behind the establishment of this program is as follows:
"For Japan to build an economic society capable of sustainable future
growth, each individual must remain motivated throughout his or her
life, fully demonstrate his or her skills and abilities, and engage
in creative work. In other words, the goal is to create a society that
allows an independent individual to choose his or her way of life and
work under his or her own initiative, and to continue working, feeling
secure and satisfied with the job. To do this, it is important to provide
these people with opportunities to reconfigure their lives in the context
of their careers, and to stimulate and revitalize their future styles
of life and work."

Until now, almost no Japanese companies have offered programs like
this to their employees, so workers with such aspirations had no choice
but to quit their job. The proposed extended vacation program allows
employees to take a leave of absence for one year or more and to
subsequently return to work. If such a program is really introduced,
it will certainly be a breakthrough.


News Clippings

-Working status of women changing-

A growing number of Japanese working women are taking up jobs in
other countries, primarily in the Asian region. Some recruitment
companies have set up an exclusive department in Japan to help these
women find jobs without having to leave the country first. Getting a
job in Asia is becoming a realistic option for many women.

A survey by the Ministry of Foreign Affairs shows that the number
of Japanese nationals who stay overseas for extended periods and work
has been on the rise each year. Similarly, the proportion of women
has nearly doubled from 5.9% in 1989 to 11.7% in 2001.

The Ministry reports an increase especially in the number of women
who are proficient in English and are looking for jobs in Asia to
utilize their skills. The relative ease of obtaining a working visa
compared with Europe and the US, and the comparatively relaxed
eligibility requirements (a university degree and a minimum work
experience of 3 years, for example) are also spurring these trends.

Tempstaff Co., Ltd. began their business of recruiting people to
work in Hong Kong and Singapore in April 2003. Singapore is an extremely
popular place of work because of its public safety and the large number
of women already in the workforce. Of all the countries in Asia, it
characteristically has the largest number of job offers for women.

Now that the lifetime employment system has collapsed and young
people's views on work have changed, it may become commonplace in the
not too distant future for people to travel to Asia to look for jobs.
(Yomiuri Shimbun, June)


-Kagome introduces a program that encourages employees to submit
their career plans-

Kagome Co., Ltd. will introduce during the next fiscal year a program
that encourages all their approximately 1,100 career-track employees
to submit their personal career plans to the company. The employees
will be asked to describe in their plans the sort of work they wish
to be doing some years in the future, when they intend to quit the
company, and other specific information. At present, employees' wishes
to be promoted are simply confirmed during periodic interviews with
their immediate superiors and other occasions. The proposed program
aims to allow the personnel department to keep track of how each worker
wishes to proceed with his or her career, and to make use of the
information in personnel appointments and assignments.

This new career plan program will be implemented separately from the
existing program of managing employees' goals for each fiscal year.
The employees will consider the type of work they want to do while
working with Kagome, and draw up specific plans, such as "plan beverage
products five years from now, do sales work ten years from now,
experience investor relations (IR) fifteen years from now, retire
twenty years from now," for example. They will then submit these plans
to the departments in charge such as the personnel department.
(Nihon Keizai Shimbun, June)


Special Issue

-Business recovery not delivering more jobs: What to do?-

The Minister of Economy, Trade and Industry Shoichi Nakagawa
submitted the 2004 edition of the White Paper on International Economy
and Trade to a June 29 Cabinet meeting, which approved it.

The White Paper, entitled "Towards a new value-creation economy,"
focuses on the most recent economic recovery period and points out
that increased corporate profits are not leading to a rise in employee
remuneration. It also confirms that there is an increase in the number
of business categories that are not seeing increased employment. The
reason why the changes in the macro GDP are not being linked to job
creation, the White Paper concludes, may be because companies now
decide on prices by following personnel strategies that focus on
suppressing labor costs.

Continued on;
http://www.jil.go.jp/english/archives/emm/2004/no.19/businessrecovery.html