Tsumuraya Sustainability disclosures will be enhanced starting with the June 2023 Annual Report. Please reiterate, what does sustainability mean to your company?
Kibe As a member of society, simply surviving as a company is not enough to be called sustainable.It is important to align the company's sustainability vector with that of the earth and society.I think it is easier for the company and its employees to understand and act if they position themselves from the larger concept of the community and society.
Tsumuraya However, paying profits to external stakeholders, including shareholder dividends and investments in the environment and society, also squeezes the profits of the company itself.Most companies do not have a clear answer when asked how they balance sustainability and their mission to generate profits as a for-profit company.
Kibe If we go back to the origins of CSR, there is a debate about what corporate social responsibility is in the first place. When CSR was born in Europe and came to Japan via the U.S., the trend of CSR in Japan became more about the global environment. In the U.S., mecenate became popular, and in Europe, proper employment was considered corporate social responsibility. Not just one of them is right, and of course it is not just about the environment. We need to keep thinking, "What does sustainable mean?
Tsumuraya The meaning of sustainability differs from generation to generation. I also think that young employees and managers have different ideas about sustainability. We need to be aware that there are diverse ideas and perspectives.
Tsumuraya I have the impression that you place a high priority on your human capital policy and detailed data disclosed by operating companies on your website. How do you define human capital and what do you expect from your employees?
Kibe Obviously, a company is made up of its people. Since individual growth leads to the growth of the company, I believe that it is an important role for our management team to provide opportunities for individual growth. Individual growth means developing the ability to make a profit, becoming a respected human being, and being able to tackle everything as if it were your own personal business. I believe that creating a group of such people in our company is the shortcut to increase our corporate value, even though it may seem like a detour.
Takagi It is subjective, but as an analyst, what is most important when looking at a company is if the employees are “vigorous” or not. The keyword for organizational assets is "excitement," but I think the keyword for human assets is "vigor.”I think everyone was under tremendous pressure to prepare this integrated report for the first time, but I saw the team members working "vigorously" on the report. As a result, despite being the first integrated report, it was highly rated by GPIF, wasn't it*? I believe this approach is important. I have always felt that the company is "vigorous," and I feel this even more so now because various opportunities have been given to the younger generation since the establishment of INFRONEER.
Tsumuraya I am in the field of education, and when I meet with my students after 4-5 years, there is a clear difference in the way they have changed, grown, and stayed the same. It is partly due to their own will, but I think the difference comes from the fact that they got into a good company where they can experience and grow.
Kibe For the training of young employees, there is a mentor system (Maeda Corporation's system) called "Education Directors" who are mid-career employees and are like older brothers in three job categories: civil engineering, architecture, and administration. A team of people in their 30s and 40s work together to develop educational programs for young employees and take care of new recruits.The content of educational programs differs for each job category, but Education Directors are also considering content that will interest people outside of their specialty.The education directors are asked to understand our corporate philosophy and management plan, but also to read about the origin of various religions, such as Descartes and other philosophies, which are the basis of thought, because it is better to know the roots of why the world system is the way it is.
Takagi There is no other construction company that has such a system to learn even general education. Recently at Maeda Corporation, all executives gathered for two days and one night retreat to have a serious and thorough discussion about "human resource management."
Kibe How each one of us grows is our eternal theme.I think the level of knowledge of young people who are exposed to a lot of information now is greater than it was in the past.On the other hand, how they live their lives is not as straightforward as in our generation.So, it is fine to be a person who also values his/her personal life, or a furious businessman like in the past. It is important for everyone to understand the fact that there is more than one path and to put their own meaning into it. We will provide an environment and materials for thinking among various values, but I would like them to think for themselves how to live by the time they become mid-career employees.
Tsumuraya: Management is also human capital.How do you plan to develop management personnel?
Kibe I have been more aware of the succession plan since the establishment of a holding company.However, it requires the company to provide opportunities and the person himself/herself needs to be aware of them.We have been discussing and experimenting with ways to promote awareness as well as creating opportunities and systems that are appropriate for the times. To become aware of this, a certain degree of competition is necessary, and I hope that actively recruiting mid-career workers will also help.
Tsumuraya From the standpoint of an outside director, how do you feel about nurturing and securing mid-career workers who would become future management talent?
Takagi From my experience working for a foreign company, I think the point of discussion is how to balance the "general-purpose human assets" and "organizational-specific human assets" mentioned by Professor Katsuhito Iwai, or how to develop human resources that have characteristics of both.Foreign companies overwhelmingly have focused on general-purpose human assets, while traditional Japanese companies have tremendously focused on organization-specific human assets. However, as job changes become the norm in Japan, the number of employees seeking general-purpose human assets will clearly increase. On the other hand, the reality is that Japanese companies are differentiated by products and services produced by organizational-specific human assets that cannot be commercialized. I do not have the answer myself, but as with the governance issue, there is no right answer. But I think it is crucial to thoroughly discuss what kind of human resource portfolio is needed to realize what INFRONEER is aiming for.(General-purpose human assets are knowledge and capabilities that are applicable to any organization, while organizational-specific human assets are knowledge and capabilities that are valuable only within an individual organization.)
Kibe As I mentioned earlier, it is important to remember that there is more than one line of path for an individual because there are diverse values and orientations. In multiple lines, we will provide a place they can choose where they can demonstrate their strengths most, and we will also provide a place for those who are unaware of their strengths as well. Sometimes It must be hard for them, but in the end, innovation is born from clashes and conflicts, so we must also create such a place.Just being a mutually friendly organization will eventually fade away. Management skills are a good balance of both.There is no right answer, but it is important for us as management to be aware of this.
Tsumuraya That is true. The more advanced companies have those concerns. I think that until now, Japanese organizations (including universities) have dared to turn away from this issue.But the times no longer allow it. We must face the fact that companies are chosen by people just as people are chosen by companies.
Takagi Leaving the company is not a bad thing. I think it would be great if more and more ex-INFRONEER employees would become active in the outside world and it would spread the word that INFRONEER is a company that nurtures people. Because this will lead to more and more talented people coming into the company.
