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Sanpo-yoshi, top management personal values, and ESG performance

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  • Nguyen, Thi Khanh Giang
  • Ozawa, Tomoyuki
  • Fan, Pengda

Abstract

While ESG is a relatively recent concept, the traditional Japanese business philosophy of Sanpo-yoshi, which prioritizes harmonious relationships with stakeholders over profitability, has been deeply ingrained in Japan's corporate culture for more than three centuries and has contributed to the longevity of Japanese businesses. Despite the lasting impact of Sanpo-yoshi on Japanese corporate culture and its similarities to the ESG framework, there is a notable absence of literature examining its influence on the ESG performance of Japanese companies. With a sample of Japanese listed companies from 2001 to 2018, this study reveals that top management born in regions heavily influenced by Sanpo-yoshi are more likely to exhibit better ESG performance. The importance of national culture in elucidating the variations observed in ESG performance is highlighted by our findings, which carry significant policy implications.

Suggested Citation

  • Nguyen, Thi Khanh Giang & Ozawa, Tomoyuki & Fan, Pengda, 2024. "Sanpo-yoshi, top management personal values, and ESG performance," Journal of Behavioral and Experimental Finance, Elsevier, vol. 41(C).
    • Handle: RePEc:eee:beexfi:v:41:y:2024:i:c:s2214635024000182
    DOI: 10.1016/j.jbef.2024.100903
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    More about this item

    Keywords

    Sanpo-yoshi; Japanese culture; Personal values; ESG; CSR;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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