Social Governance

How Japan Has Adopted the Notion of Well-Being

Published on: 25 May 2022 08:00 AM
by KnowESG

Japan is focusing on a growth strategy that prioritizes well-being and not only profit. The country is undergoing an all-encompassing transformation in how society and the economy function.

The people, their cultures, and the respect for the environment are to be considered in their concept of "new capitalism". Investing in people, who are rising to be the most important resource, is the way to the sustainable future Japan’s Prime Minister Fumio Kishida is envisioning. In fact, a WeForum report on ESG metrics identifies "people" as one of the ESG indicator's pillars, along with health and well-being.

Japan is ranked at the lowest level among G7 countries, but it is willing to double its efforts, also by scientific means, to make a change. The Moonshot initiative by the Secretariat for Science, Technology and Innovation of the Cabinet Office is predicting the creation of "a spiritually rich and dynamic society by 2050 by increasing mental peace of mind and vitality."

The National Research and Development, Japan Science and Technology Agency (JST) is also involved in research on the Creation of New Services Based on Technology for Measuring and Evaluating People's State of Happiness.

In modern Japanese society, the demand for the consideration of sustainability in more than one domain is increasing. The whole country is awakening to the new resolutions on which the new perspective will be built; the young population is inspired and motivated to create a more prosperous society. To promote societal well-being, it is essential to examine and revise policy areas such as social security, health, and public health.

Finally, in business, diversity and inclusive well-being, which stand for the "S" in ESG, are what will shape the business strategies and ideas of tomorrow. There is also ongoing research into the mechanics of well-being and assessment methods. Reliance on ESG principles in business is what will shape quality employees who are motivated to perform better, while the opposite direction can hinder productivity. Well-being is becoming part of organizational and human resources strategies.

Rakuten is an example of a company that implemented guidelines and checklist tools for "collective well-being" and appointed a Chief Well-Being Officer (CWO) to keep on developing such initiatives in the company.

Happiness Planet is a start-up company launched by Hitachi which values human "capital." The company is relying on biological and behavioral data to close the gap between the policies being run in the firm and the performance of the employees and their behavior. The aim is to engage workers and measure their engagement.

Source : WeForum