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Diversity and Inclusion Management of Japanese Multinational Corporations: Its Effectiveness and Implications

In: Transformation of Japanese Multinational Enterprises and Business

Author

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  • Soyeon Kim

    (Gakushuin University)

Abstract

Diversity and Inclusion (D&I) has gained strategic significance in business. This chapter notes the strategic importance of D&I and investigates Japanese multinational corporations (MNCs)’ D&I management. By integrating the corporate social responsibility (CSR) and financial data of the target companies, the study diagnoses how the companies implemented D&I management and the effectiveness of their efforts. The analysis results for the 420 listed Japanese MNCs show that MNCs see D&I management as valuing and respecting individual differences to add value to their business by stressing the statements of “respecting humans and maximizing individuality” and “creating values” as the directions of their D&I management. Also, the diversity issues of the companies are focused mainly on gender, nationality, and age. Notably, findings proved the financial effect of D&I management, particularly gender D&I management. The finding indicates that gender D&I management that promotes more female managers enhances companies’ growth potential by increasing their total revenue and operating profits. Identifying the direction and issues of D&I management and its effectiveness, the chapter contributes to enhancing the understanding and development of D&I management among Japanese MNCs. The findings of the study will hopefully stimulate the advancement of future relevant research.

Suggested Citation

  • Soyeon Kim, 2024. "Diversity and Inclusion Management of Japanese Multinational Corporations: Its Effectiveness and Implications," Springer Books, in: Shige Makino & Yasuro Uchida & Tamiko Kasahara (ed.), Transformation of Japanese Multinational Enterprises and Business, pages 265-280, Springer.
  • Handle: RePEc:spr:sprchp:978-981-99-8616-3_9
    DOI: 10.1007/978-981-99-8616-3_9
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