Tokyo Outlook | Multicultural Innovation the Japan Way

Hideaki Ota, the Representative Director and advisor to JAPAN Forward, recently approached me with an intriguing proposal: "There's a small multicultural company in my hometown in Hokkaido that I'd like to interview. I'll write the article, so please consider publishing it on JAPAN Forward." 

This was the first time since our launch seven years ago that he made such a request. It shows just how much he wanted us to feature this company.

Without delay, we translated and edited his Japanese draft into English and published both versions.

• Taki Kensetsu Kogyo, a Small Yet Remarkable Multinational Company

Fostering Mutual Understanding

Taki Kensetsu Kogyo may be a small construction company, but it is certainly impressive. Over 40% of its nearly 70 employees are foreign workers. However, it is not a multinational corporation in the traditional sense. 

With an annual turnover of just ¥500 million JPY ($3.5 million USD), it falls short of being a global enterprise with operations in multiple countries. Instead, it is a small company with a multinational team of young employees from eight countries, including Vietnam, Bangladesh, Sri Lanka, Indonesia, Laos, India, and Myanmar.

The company's first foreign hire came in response to Japan's labor shortage. Though the initial experience did not go as planned (the hire ran away) it taught the company valuable lessons. 

Since then, Taki Kensetsu Kogyo has worked diligently to better support its foreign workers. It created a handmade guide to life in Japan and translated safety manuals into multiple languages. Additionally, it organizes international exchange events and encourages participation in local festivals to foster mutual understanding.

Challenges in Immigration

While the company seems to have found its formula, immigration remains a challenge for many regions in Japan. Communication barriers, cultural differences, and prejudice among some Japanese create tensions. Human rights awareness is another issue, including poor working conditions such as long hours and low wages.

That's why it was particularly noteworthy when the company's 39-year-old president stated, "Japanese employees must also shift their mindset. They must understand the ethnic dynamics, including tensions between different groups in various countries."

As refugee and immigration issues threaten division in the West, Ota closes his article with a question: "Will it [Japan] accept foreign workers as immigrants? I believe it's time for Japan to seriously debate this issue, as it will be crucial to the country's future."

Notable Japanese business leaders have also weighed in on the foreign labor debate. Tadashi Yanai, Chairman and CEO of Fast Retailing (the parent company of UNIQLO), advocates for accepting more immigrants as workers to enhance productivity. 

However, his position has been countered by ZOZO founder Yusaku Maezawa, sparking heated discussions online.

Finding Innovation for Social Change

But labor shortages caused by population decline are not the only issue Japan faces. The country is also at risk of natural disasters, such as the heavy rains in Ishikawa Prefecture earlier in September following the Noto Earthquake on New Year's Day. 

Moreover, Japan faces a growing geopolitical threat from China, a hegemonic state that seeks to seize Japan's territory, resources, and technology.

The next Japanese prime minister Shigeru Ishiba will need to confront these challenges, guiding the country through these risks while advancing Japan as a vibrant democracy.

So, what is the key to success? Taki Kensetsu Kogyo has demonstrated that the collaboration between Japanese and foreign workers, who now call Japan their second home, holds the potential for innovation. 

The company's model appears to offer a clue for the innovation and broader social change that Japan needs today.

Like Taki Kensetsu Kogyo, JAPAN Forward is also a multinational, multicultural team united by a love for Japan. Together, we aim to explore a uniquely Japanese approach to multiculturalism and avoid the deep divisions seen in the West.

Watch for the next issue on October 28.

JAPAN Forward is a small media outlet driven by an unparalleled passion to amplify Japan's voice worldwide in both English and Japanese. To join us in shaping our vision together or for inquiries, please call 0570-033-433 (Sankei iD) or email us at info@japan-forward.com.

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Author: Yasuo Naito, Editor in Chief, JAPAN Forward

(Read this column in Japanese.)