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olympus

Home / Posts Tagged "olympus"

Tag: olympus

Why work for a Japanese company? (#1) Corporate Social Responsibility

For most Japanese companies, despite recent changes to corporate governance and the occasional scandal, the main motivation is the long term survival of the firm, not shareholder value maximisation.

Obviously you have to make some money to invest back into the company to survive, but above all longevity means being a good citizen in the environment and communities you operate in. There are some exceptions to this of course, but by and large, Japanese companies are pretty sincere about corporate social responsibility, to the point where I used to joke when I worked in corporate communications in a Japanese IT company, that if we didn’t watch out, our mission statement would be identical to every other Japanese technology company’s mission statement as it could be summarised as “contributing to society through innovation”.

So if you are looking to work for a company that will be supportive of your wish to make a positive contribution to society, then you may find Japanese companies congenial places to work.

Some are more active in CSR than others, so when Toyo Keizai has published its latest rankings by industry, we matched these to our Top 30 Europe, UK and Germany largest Japanese employers rankings and put them in rank order as below.

As Toyo Keizai points out, it is easier for manufacturers to score highly in their CSR rankings, which is why they dominate the top 50 overall, and also why Toyo Keizai publishes rankings by industry, to ensure like for like comparisons are made.  Banking and financial services are not included in their analysis. Toyo Keizai explains its scoring system (in Japanese) here.  It has around 150 criteria, across the categories of diversity (gender, age, disability), environment, corporate governance and social contribution.

  • Fujifilm – #1 overall and #1 in pulp/paper/chemicals
  • Canon #4 overall and #1 in electronics and fine engineering
  • Denso #8 overall and #1 in automotive
  • Ricoh #9 overall and #3 in electronics and fine engineering
  • Konica Minolta #12 overall and #4 in electronics and fine engineering
  • Honda #14 overall and #2 in automotive
  • Nissan #17 overall and #3 in automotive
  • Daiichi Sankyo #25 overall and #1 in pharmaceuticals
  • Toyota #28 overall and #4 in automotive
  • Fujitsu #30 overall and #9 in electronics and fine engineering
  • Astellas #34 overall and #2 in pharmaceuticals
  • Sumitomo Rubber 36th overall and #2 in oil/rubber/glass/ceramics
  • Mitsubishi Corporation #42 overall and #1 among trading companies
  • Lixil 44th overall and #1 in metal products
  • Sony #45 overall and #12 in electronics and fine engineering
  • Nidec #49 overall and #13 in electronics and fine engineering
  • Takeda #50 overall and #4 in pharmaceuticals
  • Sumitomo Electric Industries #52 overall and #2 in metal products
  • Itochu #55 overall and #2 among trading companies
  • Panasonic #57 overall and #15 in electronics and fine engineering
  • NYK #58 overall and #1 in logistics
  • Japan Tobacco 60th overall, 3rd amongst food companies
  • Brother Industries #71 overall and #16 in electronics and fine engineering
  • Sumitomo Corporation – #73 overall and #3 amongst trading companies
  • NTT Data #75 overall and #4 in telecommunications
  • Olympus #84 overall and #17 in electronics and fine engineering
  • Dentsu #95 overall and #2 out of service sector companies
  • Sumitomo Heavy Industries #138 overall and #11 amongst machinery companies
  • Calsonic Kansei #138 overall and #18 in automotive
  • Fast Retailing (Uniqlo) #531 overall and #19 out of 20 amongst retailers

 

 

 

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Top 30 Japanese employers in France -reflecting France’s traditional strengths

Le quatorze juillet seems a good moment to announce our new Top 30 Japanese companies in France.

The total number of employees covered by the 30 largest Japanese employers in France is 35,000 – lower than the totals employed by the Top 30 in Germany (56,000) and the UK (80,000) but the automotive sector is still dominant with nearly half of the Top 30 being automotive or having some automotive business.  Obviously some of the larger employee groups are related to manufacturing workforces – Toyota, JTEKT and NTN for example.

M&A’s have played a part too – NTN, a bearings company, acquired French company SNR Roulements (which was part of the Renault group) in 2006.  Toyota Tsusho acquired CFAO in 2012 – a trading company with over 10,000 employees in Africa.  Fast Retailing added French brands Princesse Tam Tam and Comptoir des Cotonniers to its retail group alongside Uniqlo.

As you might expect, food and drink companies also feature – Nippon Suisan acquired Cite Marine, and Suntory has its Orangina Schweppes brands based out of France. Ajinomoto is also headquartered in France for the region.

The other key sector is technology, particularly imaging – Canon, Ricoh,Toshiba, Konica Minolta, Olympus and Fujifilm.  Once again, each country’s historical comparative advantage is clear (cars, food, films for France, engineering for Germany and cars, finance and other services for the UK) showing how trade and integrated markets encourage specialisation.

Rank Company France employees 2016
1 Toyota 3,475
2 Ricoh 3,335
3 JTEKT 3,212
4 NTN 4,200
5 Fast Retailing 2,300
6 Canon 2,077
7 Toshiba 1715
8 Konica Minolta 1,250
9 Bridgestone 1,036
10 Horiba 971
11 Nippon Suisan 911
12 Suntory 900
13 Sanden 850
14 Nissan 800
15 Toyota Tsusho 653
16 Ajinomoto 600
17 Yamaha Motor 571
18 U-Shin 553
19 Fujifilm 550
20 Asahi Glass 550
21 Shiseido 550
22 Amada 519
23 Dentsu 485
24 Toray 456
25 Fujitsu 450
26 Olympus 450
27 Otsuka Pharma 449
28 Toyota Boshoku 440
29 Kubota 353
30 NTT 350
TOTAL 35,011

 

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Japanese automotive companies represent 1/3 of top 30 Japanese employers in the UK

Fujitsu continues to be the largest Japanese employer in the UK despite recent restructuring.  We’ve added Sumitomo Rubber to the list, following its recent acquisition of UK tyre wholesaler and retailer Micheldever.  Along with Kwik Fit, another UK tyre dealer and car servicing company is owned by Itochu at #3, this means that over a third of the companies in the list are automotive or have a substantial automotive component to their business.

We’ve also revised upwards our estimate of the total number of Mitsubishi Corporation employees, having confirmed from various sources that its main subsidiary in the UK, Princes, the foods company, has around 3000 of its 8000 employees in its UK operations.

The top 30 now cover around 80,000 of the 140,000 employees that Japanese companies in the UK employ.  Individual profiles of each company, including trends in employment, regional headquarters, European organisation and CSR and diversity analyses are available – please contact pernilledotrudlinatrudlinconsultingdotcom

Rank Company UK employees 2016
1 Fujitsu 9,905
2 Nissan 7,657
3 Itochu 6,697
4 Honda 4,565
5 Ricoh 3,702
6 Mitsubishi Corp 3,482
7 Hitachi 3,317
8 Toyota 3,233
9 Sony 2,937
10 Canon 2,744
11 Dentsu 2,571
12 Nomura 2,468
13 NSG 2,167
14 Mitsubishi UFJ Financial Goup 2,100
15 Denso 1,925
16 NYK Group 1,919
17 Mitsui Sumitomo & Aioi Nissay Dowa 1,867
18 Yazaki 1,846
19 Calsonic Kansei 1,729
20 SoftBank 1,700
21 Sumitomo Rubber 1,574
22 JT Group 1,473
23 Sumitomo Corporation 1,366
24 Fujifilm Holdings 1,292
25 Brother Industries 1,174
26 Olympus 1,157
27 Fast Retailing 1,100
28 Unipres 1,095
29 Konica Minolta 1,055
30 NSK 866
TOTAL 80,683

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Top 30 Japanese employers in Germany in 2017 includes Takata at #3 – who’s about to become Chinese…

The bankruptcy of Takata and acquisition of its assets and operations by a Chinese owned US based company Key Safety Systems is not perhaps the most auspicious moment to announce our new Top 30 Japanese employers in Germany – where Takata, for the time being, is at #3.  Its substantial presence in Germany (in contrast to the UK, where it has no operations at all) is due to the acquisition of Petri AG in 2000.

Another Japanese company which should perhaps be classified as Chinese (or rather, Taiwanese) is Sharp.  Since Hon Hai/Foxconn’s acquisition, Sharp has radically reorganised itself in Europe.  There is Sharp Devices Europe, headquartered in Munich, with what was Sharp Laboratories and is now renamed a Design Centre in Oxford UK and Sharp Business Systems Europe, headquartered in the UK along with the Information Systems unit, with Visual Solutions in Munich and Energy Solutions in Hamburg.  Sharp Telecommunications in the UK is being closed down.  Sharp’s white goods brand (microwaves etc) is now under license to the Turkish company Vestel but there was a rumour last year that Sharp under Foxconn wanted to buy the brand back.

Many of the other large Japanese companies in Germany are also the result of acquisitions, like Takata – Musashi Seimitsu acquired Johann Hay in 2006, Lixil acquired Grohe/Josef Gartner 2011-2013, Panasonic acquiring Vossloh in 2000 etc.

Comparing to the UK Top 30 – there are some similarities – Fujitsu at the top and Sony, Ricoh, Canon, JTI and Hitachi all featuring.  No doubt the list will be revised as we uncover more companies, but it does seem that there are not quite so many employees per large company in Germany as there are in the UK.  This might be partly to do with the car factories – Honda, Nissan and Toyota and their associated suppliers in the UK – and also the trading companies such as Itochu, Sumitomo Corporation and Mitsubishi Corporation have acquired larger companies in the UK than they have in Germany.

Rank Company Germany employees 2016
1 Fujitsu 5,000
2 Sharp 4,226
3 Takata 3,311
4 Lixil 3,200
5 Musashi Seimitsu 3,140
6 Panasonic 2,935
7 Olympus 2,573
8 NSG Pilkington 2,500
9 Konica Minolta 2,399
10 NTT Data 2,300
11 Canon 1,842
12 Ricoh 1,804
13 Daiichi Sankyo 1,705
14 JT International 1,699
15 Nidec 1,394
16 Sumitomo Heavy Industries 1,386
17 Sony 1,372
18 Mitsubishi Hitachi Power Systems 1,352
19 Toshiba 1,287
20 Yaskawa 1,281
21 Takeda 1,262
22 Astellas 1,037
23 Toyoda Gosei 1,034
24 ARRK 955
25 Nintendo 900
26 Nissan 835
27 Renesas 831
28 Toyota Industries 830
29 Hosokawa Micron 760
30 Hitachi 742
TOTAL 55,892

For a 2022 Top 30 Japanese companies in Germany, see our blog post here.

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The Olympus scandal – has anything changed since then?

Unfortunately Michael Woodford did not answer the question in the title of the talk, which he gave to the Japan Society this week.  It was pretty much the same talk I heard 3 years ago, only even more melodramatic and self dramatizing.  But from what he said, I assume his answer would be that nothing has changed, if  loyalty to seniors in Japanese companies continues as an excuse to cover up fraud. And certainly, with the recent frauds and cover ups in Toshiba, Asahi Kasei and Toyo Tire and Rubber, it’s hard not to worry that there is something rotten at the heart of Japanese corporate governance.

Woodford rather let his (understandably bitter) personal feelings towards former Olympus Chairman Kikukawa get in the way of two key points I felt.  Firstly that Kikukawa was in turn covering up for his predecessor and his predecessor’s predecessor’s mistakes – it was not just about preserving his prestige and his (for a Japanese President surprisingly high) salary.  So many Japanese corporate scandals turn out to have roots in previous generations, making it extremely difficult and perilous for successors to do anything about them, as the Japanese people sitting near me at the dinner afterwards pointed out.  Secondly, that Kikukawa was able to get all the other directors and employees in the know to collude, not just out of their personal loyalty to him, but their fear that if the fraud was exposed, the consequences of the shame upon them and on Olympus would mean the end not only of their careers but of the company and all its 1000s of employees’ livelihoods.

The fact that Olympus survived is actually a vindication of Woodford’s approach, of public confession and resignations. But he is so insistent on making himself out to be a martyr, abused by “uncle” Kikukawa and threatened by yakuza, who nonetheless loves Japan (he kept insisting), that he rather lost the governance argument in all the embroidery of his story.

I asked him at the dinner afterwards if, rather than be a lone crusader, he had tried to get any of the Olympus directors that he says he knew as friends for 30 years or his other corporate friends in Japan (he was alerted to the fraud by a Japanese senior executive in another company) to advise him what to do, even work with him to get the problem sorted, but he said they all told him to shut up.  Actually, I felt a sneaking sympathy towards them by the end of the evening.

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Octopus balls to Tokyo – why it matters where your company is from in Japan

Most countries have rival cities – usually the official capital city versus other cities which consider themselves to be the real business, historical or cultural heart of the country – think London versus Manchester or Birmingham, Berlin versus Dusseldorf or Frankfurt, Rome versus Milan, Madrid versus Barcelona.  Japan is no exception and the rivalries go way back into history.

Kyoto used to be the capital of Japan, before Tokyo (or Edo as it was then) began to usurp it in the 17th century.  If you ask Japanese people today about Kyoto, they joke that Kyotoites still think Kyoto is the real capital of Japan, and the Emperor is just temporarily visiting Tokyo (he moved there in 1868, when Tokyo became the official capital) – and will return one day.

Tokyo literally means the Eastern Capital and is part of the Kanto region, where the ruling feudal Tokugawa shogunate was based from the 17th century.  Kanto means East of the Barrier (usually considered to be the Hakone checkpoint) and Kansai – the region where Osaka, Kobe and Kyoto are based – means the West of the Barrier (originally the Osaka Tollgate).

Before Kyoto’s reign as capital for a 1000 years, Nara (also in the Kansai region) was the capital and seat of the Emperor but is now a quiet backwater, more visited by tourists than business people.  Kobe is the other main city in the Kansai region – a port with a strongly cosmopolitan feel and very close to Osaka geographically.  Whilst Kyoto remains aloof and quietly superior (and has some very successful high tech companies of its own such as Kyocera and Nidec), the real battle now in business culture is between Osaka and Tokyo.

Osakans see Tokyo as standardizing, dull and full of bureaucrats and view Osaka (which historically had very few samurai but plenty of merchants) as the real money maker, with vastly superior food.  Many of Japan’s celebrities, comedians and musicians come from the Kansai region too.

So what does this mean for corporate cultures?  Osaka companies often have merchant roots – the joke goes, when you meet an Osakan, you don’t ask “how are you” (ogenki desuka) but “how’s business” (moukarimakka).  To which the correct response is “bochi bochi denna” – a wonderfully vague way of giving nothing away, like saying “plodding along nicely thank you”.  Osaka companies are brash, tough negotiators and mean with the money.  “They’d skin the fleece off a gnat” said one British engineer to me, describing his colleagues in the Osaka HQ of a consumer electronics company.

Tokyo companies are gentlemanly but at the same time highly political.  You need to have a good understanding of their organisation, the factions and the individual relationships to understand how to get things done.  Mitsui and Mitsubishi, both Tokyo based corporate groups, are distinguished by the saying “Mitsui  is people – Mitsubishi is the organisation”.  It’s hard sometimes to understand how exactly this is different, but it seems to boil down to the idea that if an individual is powerful enough at a Mitsui group company, they can get things done, whereas at a Mitsubishi group company, the whole organisation has to support an action.

The other main corporate groups, Sumitomo and Itochu, are Kansai based companies.  Both have strong “mercantile” roots – Sumitomo in metals trading, hard-nut, conservative and domestically focused and Itochu – strong in fashion and consumer goods, and seen as the more maverick, progressive and international in outlook.  The regional cultural differences don’t seem to have been that strong between Sumitomo and Mitsui as various mergers have taken place between their respective member companies, particularly in financial services.   However regional cultural differences have definitely had an impact on Astellas Pharma, the product of a merger between Yamanouchi (Tokyo) and Fujisawa (Osaka).  Apparently many Fujisawa employees were horrified that Yamanouchi was going to be the dominant partner in the merger.  Fujisawa had a strong tradition of innovation and had regarded Yamanouchi as “Mane-nouchi” (Mane = imitation) – a bunch of play-safe Tokyo bureaucrats.

Those who know Japan well will have spotted that there is an important region missing from this analysis – Chubu.  Literally and metaphorically this is the midlands of Japan.  Just like the Midlands in the UK it is the historic heart of the car industry.  Nagoya is the main city, and teased just as Birmingham in the UK is for being ugly and soullessly modern.  The area has the last laugh though, as it is the most wealthy in Japan – thanks to the enduring success of Toyota (so mighty their home town was renamed Toyota City) and its corporate group of suppliers such as Denso.

So, where are the top 30 Japanese companies in Europe from?

Kanto/Tokyo based companies:

• Asahi Glass
• Astellas (but Fujisawa originally Osaka)
• Canon
• Daiichi Sankyoshutterstock_36509791
• Fujifilm
• Fujitsu
• Hitachi
• Honda
• Kao Corporation
• Mitsubishi group
• Mitsui group
• Nissan
• Nomura (but was Osaka originally)
• NTT group
• NYK group
• Olympus
• Ricoh
• Sony
• Toshiba

Kansai based companies:
• Horiba (Kyoto)
• Nidec (Kyoto)
• Nippon Sheet Glass (Sumitomo Group)
• Omron (Kyoto)
• Panasonic (Osaka)
• Sharp (Osaka)
• Sumitomo group (Osaka)
• Takeda Pharma (Osaka)

Chubu based companies:
• Denso
• Seiko Epson
• Toyota

Chugoku (Hiroshima etc) based companies:

• Fast Retailing/Uniqlo

 

 

 

 

 

 

 

Top 30 Japanese companies in Europe 2021

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What changed at Olympus for the employees after the scandal

Nikkei Online have interviewed several employees (article in Japanese) at the Japanese camera and medical equipment manufacturer about their experiences in the two years since the financial scandal broke.

Many employees say they could not quite believe it had happened at their company at first, and felt shame going on sales calls, so hid the the company logo on carrier bags that they took to hospitals.

Olympus had a dominant position in endoscopes so gave very few discounts.  “Now I understand why your prices are so high” said one customer after the scandal broke. Others said that if connections to gangsters were proven, then they would not be able to agree to a contract, so many sales deals were delayed.

Inside the company, news was usually known before any announcement, but now there was a total lack of information.  People were checking their mobile phones all the time to find out what was going on.

What kept them going was sense of mission – without a stable supply of endoscopes, medical treatment would stop.  Most doctors said it was not the employees that were to blame but the executives, and many wrote letters to the company to say so.  Olympus was known in Japan for working closely with customers to improve its technology for the patient and was known as a trustworthy company, so dealers also stuck by them.

“In the West, where compliance was more emphasized, there was a negative effect on sales, however” says the Nikkei.

The main change has been more at the management level.  The new CEO, Hiroyuki Sasa, has made a point of visiting all operations in Olympus to explain the new strategy (disposal of non core businesses, alliance with Sony).  Employees commented that unlike previously, where they did not really understand the strategy of company, they finally now had a plan they could comprehend.

The concern over what to do with the traditional core but loss making camera business continues, but there is a sense that the crisis is over, and governance has been improved, with 8 of the 13 directors being external and actively questioning strategy in board meetings, rather than the board being the one man show of previous regimes.

As for the long term impact on employees, one woman says that she has now realised you cannot rely on companies, and it is up to her to improve her skills and take care of her career. Another says the crisis gave them a renewed sense of purpose and raison d’etre.  “It was just stupid incident.  We should not rely on our management and just focus on doing our own jobs properly”

 

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Last updated by Pernille Rudlin at 2022-06-22.

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