Changing overwork culture: Stakeholder management for employee wellbeing and social sustainability in large Japanese companies

Effectively addressing overwork culture in business remains a challenge, despite growing concerns about its negative impacts on employee wellbeing and productivity. This paper investigates corporate social responsibility (CSR) initiatives and stakeholder management promoted by large Japanese companies to address overwork culture. Based on interviews with managers and stakeholders from 31 companies, the study reveals that despite being part of CSR, overwork reduction initiatives often come into conflict with entrenched institutional pressures. These pressures are embedded in a cultural‐cognitive and institutional context that prioritises quality and cooperation over individual productivity. We argue that improving stakeholder relationships is vital for developing a healthy and productive workstyle and for reactivating institutional dynamics that are fundamental to employee wellbeing, productivity and broader social sustainability. By clarifying the role and processes of stakeholder management, this paper contributes to the discourse on overwork and CSR, offering new insights into how to effectively address overwork culture.