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Japan for Sustainability Newsletter #190
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June 29, 2018

Japan for Sustainability (JFS) is a non-profit communication platform to
disseminate environmental information from Japan to the world, with the
aim of helping both move onto a sustainable path.

See what's new on our web site: http://www.japanfs.org/en/
E-mail: info@japanfs.org

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In the June 2018 issue of the JFS Newsletter:

- "Nai-Mono-Wa-Nai": Ama Town's Concept of Sufficiency and Message to the
World

- 'Good Companies in Japan' (Article No.4): 'Eightfold Satisfaction'
Management for Everyone's Happiness

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"Nai-Mono-Wa-Nai": Ama Town's Concept of Sufficiency and Message to the
World
https://www.japanfs.org/en/news/archives/news_id036106.html

Junko Edahiro, chief executive of Japan for Sustainability, delivered a
presentation at a parallel session on June 14, 2018, at the 16th Annual
Meeting of International Society for Quality-of-Life Studies
(http://www.isqols2018.hk/), held in Hong Kong. This month's JFS
newsletter will introduce her presentation, titled "'Nai-Mono-Wa-Nai':
Ama Town's Concept of Sufficiency and Message to the World."

What is This Concept of Nai-Mono-Wa-Nai?

Human activities are far exceeding the capacity of the Earth to support
us, and this excess is leading to climate change and other environmental
problems. Despite this, most people still tend to believe in the
growth-based economy. I believe that developed countries in particular
seriously need a perspective on happiness supported by a new sense of
values.

From that perspective, a town on a small, remote Japanese island offers
us an important concept that could make a big difference in the world.
Ama Town on the island of Nakanoshima in Shimane Prefecture has a
population just under 2,300 people, and in 2011 the town adopted the
slogan of "Nai-Mono-Wa-Nai."

"Nai" means "nothing" or "not" and "mono" is "thing." Directly quoted,
this paradoxical phrase in Japanese is something like saying, "A thing
that is not here is not here." But actually it has two meanings. The
first meaning is a simple statement: "What is not here ... is not here"
and, the underlying message is, "We don't have it here, so just accept
the situation." A second meaning is that,"There is nothing that is not
here." Did you get that? In other words,"Everything ... is ... here."
You may think that all of this sounds very contradictory. But let me
show you how this concept works in practice in Ama Town.

Nai-Mono-Wa-Nai and Ama Town

Ama town is on the small island with 33.5 square kilometers with
beautiful rice paddies and sea. The town is almost self-efficient in
staple food, fish and to some extent vegetables. But Ama has no
department store, no convenience store, and no movie theater.

There are no fancy bars and clubs for the young people to enjoy in Ama.
Thirty years ago, youth group activities became very active because of
it. Rather than lamenting about not having something, they said "If
there is nothing fun to do here, let's create it." And so they started a
series of their own initiatives, like creating their own beer garden and
organizing a tug-of-war competition for the whole island and much more!
whatever they are lacking.

This means sharing a lot of time together and sharing both the joys and
pains. So when they achieve something they have a big sense of
achievement, and this fosters solid relationships of mutual trust. This
really means good "connections" between people, and those connections
are like a platform that leads to tackling the next challenge. It is out
of nai-mono-wa-nai that creativity, innovation, and strong connections
are born, and these human interactions create a dynamic community
without depending on money or external input.

Next example, vending machines: At a typical ferry terminal in Japan,
like many train stations, you will see a long line of automatic vending
machines selling beverages and other products. But when you arrive in
Ama Town by ferry, not a single vending machine is there to greet you.

A new ferry terminal was built in 2002. At the time a decision was made
not to install any vending machines. They do offer convenience and
efficiency, but Ama was determined to encourage face-to-face sales,
which require more effort and interaction.

For the town, it is not "efficiency" that is important, but rather,
"interactions" and "encounters" with fellow islanders and island visitors.
And that is why there is no vending machine at the ferry terminal.
However, it is exactly because of it, there is a lot of talking, smiling,
and energy.

The High School Miryokuka Project

Another episode that symbolizes Nai-mono-wa-nai is the High School
Miryokuka Project, which could be translated as "project to improve the
appeal, attraction or charm of the high school." Ama town is home to the
Dozen High School. This is the only high school in the Dozen region
which has three island towns.

The number of its students was dropping as the islands' population
declined, and there were concerns that the school would have to close if
the trend continued. If that happened population would further drop with
many implications for the local economy and future.

At the time, there was a strong assumption that a small island school
had only disadvantages compared to schools on the mainland. But to
escape from the threat of a school closure, the Dozen High School
Miryokuka Project launched in 2008, decided to turn their disadvantages
into advantages.

They don't have many things, that big cities have, then why not to make
full use of this situation and what they have. They have nature,
traditional culture, local industries that big cities don't have as well
as local challenges unique to local towns. The Dozen High School is now
trying to make a greater use of the local challenges facing the island,
such as population decline, a dramatically declining birth rate and
aging population, and financial pressures. Since these issues are Japan's
nationwide challenges, the Dozen High School is in a position that help
to develop the human resources for pioneering a new future for Japan.

It is exactly because they had the spirit of nai-mono-wa-nai that this
counterintuitive thinking was possible.

Dozen High School and its unique education have attracted much attention
from around the country. By creating a program to actively accept
students from elsewhere to study here on the island, they found that
students would come from all over Japan as well as abroad. Today the
program is so popular that it is quite competitive to get in. The number
of students registered here literally took the form of a V-shaped
recovery. It was an epic turnaround from the threat of a school closure.

Nai-Mono-Wa-Nai in Day-to-Day Life

There are also many examples of nai-mono-wa-nai in day-to-day life.

- There are no babysitting services, but neighbors will take care of
local kids any time.
- There are no "disco" clubs, but all of the townspeople can dance the
traditional dance along with the "Kinyamonya" local folk songs.
- There are no security companies, but people do look after each other,
so no one worries about that.
- There are no flower shops, but lovely flowers are growing outside many
homes.
- There are no movie theaters, but there are many local video nights.

As you know, Japan is facing a sharp population decline and the
population of AMA Town dropped from nearly 7,000 in 1950 to below 2,300
today.

But today with these initiatives and development, Ama has become a
popular town for young people who want to migrate to this island. The
total population is still declining due to natural attrition, but the number
of people moving here to live is on the rise .

The secret attraction for these people is the spirit of nai-mono-wa-nai.

Three Messages or Benefits of Nai-Mono-Wa-Nai

From the experiences of Ama Town, I think we can find three messages or
benefits of nai-mono-wa-nai.

(1) Positive acceptance

Move from the defeatist thought of "We don't have it here, but we just
have to live with the situation." to "We don't have it, and that's OK." Not
forced acceptance but this positive acceptance is the starting point
and the basis of nai-mono-wa-nai.

(2) We have everything that is important

Second point is a sense of sufficiency. "We already have everything
that is important." There are no babysitters on the island. But you can
always ask others in your neighborhood to help watch the kids. There
are no big stores to sell everything imaginable. But if you ask your
neighbors for a particular tool, it will always turn up. This is all
possible because of the capacity to be self-reliant, willingness to
share and to make or create whatever you need. Ama Town has an enormous
amount of social capital, because many townspeople know each other and
have shared many experiences.

(3) Enjoy the "process" of creating things together.

The third factor here is the attitude of "together, let's create
whatever we are lacking and enjoy the process!"
A society of mass consumption offers a convenient lifestyle but it is a
society that has forgotten the joy of creating something together,
instead of just buying it. When I look at what is happening in Ama Town,
I realize that in a mass-consumption society it is hard to get a
sustained sense of happiness and that feeling of abundance that comes
from realizing that what you have really is enough.

2017 Wagatoko, Wagakoto Survey

So, how is the concept of nai-mono-wa-nai taking root in Ama? In 2017 we
conducted an independent citizens' survey called the Wagatoko, Wagakoto
Survey (about personal perceptions and world views). This survey was an
attempt to consider what happiness means in Ama Town, and to measure it.
Using concepts such as the framework of Bhutan's Gross National Happiness
index, the survey looked at things like the rate of household food
self-sufficiency and the frequency of sharing in the community. I also
did a similar study at the national level so we could compare findings.

Regarding nai-mono-wa-nai about 60% of all the respondents had a
positive impression of the concept. The survey asked how satisfied they
are with their lives today, and about 75% of the respondents from Ama
Town answered that they were "satisfied" or "somewhat satisfied," 20
percentage points higher than the results of national survey (at 55%).
In response to a question for working people, about 70% from Ama Town
replied that they were "very motivated" or "motivated" at work, much
higher than the national results (about 47%).

When asked, "During the past year, did you share something with others
in your community," 70% from Ama Town replied that they "shared often" or
"shared occasionally," much higher than the national results (about 38%).
When asked, "During the past year did you speak to someone about your
community," 57% from Ama Town responded that they spoke "many times" or
"sometimes," much higher than the national results (about 21%). When
asked, "During the past year did you support the activities of someone
else in your community," 43.5% from Ama Town replied "Yes," much higher
than the national results (about 19%). These results are a good indication
of how nai-mono-wa-nai works in practice in Ama Town.

Happiness and Nai-Mono-Wa-Nai in Developed Countries

The ecological footprint of humanity today is the equivalent of 1.7
planet Earths. In particular, the footprints of developed countries are
enormous, and if people around the world had the same lifestyles as
people in Japan [and other developed countries], we would need almost 3
Earths. However, if the scale of economic activity gets above a certain
threshold, the level of happiness will not necessarily increase, even
with further economic growth. The "Easterlin Paradox" looks at this
phenomenon.

Despite this, studies by my Institute for Studies in Happiness, Economy
and Society (ISHES) found that many people in Japan still believe
economic growth is absolutely necessary.

For our planet Earth and for people's happiness, developed countries
need to free themselves from the models of mass production, mass
consumption, and forever chasing after economic growth. I think the
nai-mono-wa-nai concept of Ama Town is a new model that can help us
accomplish that.

Thank you very much for your attention.

Written by Junko Edahiro

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'Good Companies in Japan' (Article No.4):
'Eightfold Satisfaction' Management for Everyone's Happiness

The JFS newsletter has introduced a selected series of examples of good
companies in Japan, referring to the book "Jizoku Kano-na Shihon Shugi"
("Sustainable Capitalism," written in Japanese) by Kazuhiro Arai,
director and asset manager of Kamakura Toshin, a Japanese investment
company. In the final article of this series, we introduce other good
companies that were not included in the categories we have introduced
thus far.

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With the Government on Its Side: The Yamato Group

In 2011 when the Great East Japan Earthquake occurred, the Yamato Group,
centered around Yamato Transport Co., a major parcel-delivery company in
Japan, helped its employees who wished to provide voluntary aid work to
support the affected area.

Immediately after the earthquake, employees working in the affected area
delivered relief supplies, which were arriving one after another, on
their own initiative. In spite of a gasoline shortage, they delivered
parcels unrelated to their business operation using their company's
trucks. Meanwhile, the headquarters immediately organized volunteers to
cooperate in delivering relief supplies, and, in collaboration with the
Self-Defense Forces, let its employees continue to deliver supplies as
part of their routine work.

The group also lobbied the government to use all of the group's
donations for specific purposes. As soon as the earthquake occurred, it
decided to donate 10 yen (about US$0.09) per parcel delivered. The total
amount came to about 14.2 billion yen (US$126 million) in 2011,
accounting for 40 percent of its annual profit. Direct donations, however,
are taxable, so Makoto Kigawa, then president, negotiated with the
Ministry of Finance to make the group's donation tax exempt as an
exception.

At first, the ministry frowned on the idea, though it understood the
group's aim. Nonetheless, Kigawa continued negotiating persistently.
Finally, the ministry created a tax-free donation system by devising a
donation scheme. It worked like this: the Yamato Group would donate
money to a newly-established public interest incorporated foundation,
then the foundation would donate the money from Yamato and ordinary
citizens to organizations needing aid, to be selected by a third-party
panel. Kigawa explained the situation on his own initiative and successfully
gained understanding from corporate investors at home and abroad.

Making use of its accumulated know-how in parcel delivery, the group has
recently been cooperating with many municipalities in the fields of
safety confirmation/monitoring systems for the elderly and shopping
support systems for depopulated areas.

Forsaking Profits: Cybozu Inc.

Cybozu develops and sells groupware that provides many services by
itself, including mail service, schedule management and message board
services. The company has hammered out a policy to put social
reinvestment above profit. For that purpose, the company declared it
would not make a profit. This came as quite a shock to its stakeholders.
The company takes the stance that it will not worry about a fall in its
stock price, but expects those who empathize with this policy to invest
in the company.

In 2006 when Yoshihisa Aono, the current president, assumed office, the
company was having problems with its work schedule, which included
weekends and midnight work on a routine basis. This resulted in a 28
percent employee turnover. Aono planned to offer various workstyles and
personnel systems according to the needs of individual employees. He
continuously established new schemes including a childcare leave scheme
and choices over each worker's own work hours. The president himself set
an example by taking childcare leave. As a result, turnover decreased to
four percent.

Making good use of such experiences, the company reinvested its profit
into social activities such as workstyle education, for example,
producing cartoon films over working mothers' difficulties and how to
improve workstyles.

Recycling Accomplished by Workers with Disabilities: FP Corporation

FP Corporation manufactures and sells simple food containers such as
foam trays for supermarkets and delicatessen shops. In addition, the
company has developed a unique recycling system and technology with
which it collects used food containers when delivering its products, and
recycles foam trays, transparent plastic containers and PET bottles.

The company and its group companies employ about 400 workers with
disabilities as regular workers. The ratio of disabled to all workers
there is 14.56 percent, and three out of four of the workers with
disabilities are severely disabled, yet they provide the power to run
the recycling process. Hisao Katsuta, president of a special affiliate
of the company, says that he waits for workers with disabilities to make
progress, and that even if they have no adaptable potential now, they
will become able workers if he maintains his patience.

Voluminous foam trays are costly if transported a long distance for
collection. To reduce transportation costs, the company has established
recycling plants around the country and hires people with disabilities
locally, aiming for mutual development with local communities.

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In this article we have introduced three examples of "good companies":
one that challenged the national government, negotiating for support to
disaster-affected areas; one that is striving to address nationwide
issues concerning workstyles; and one that actively employs people with
disabilities as a primary workforce.

Finally, we would like to introduce "happo-yoshi" (eightfold satisfaction),
a management style advocated by Kazuhiro Arai in his book.

The concept of "happo-yoshi" combines the merits of traditional Japanese
business ethics, commonly referred to as "sampo-yoshi" (triple satisfaction)
with the Western concept of creating shared value (CSV). "Sampo-yoshi"
was the business motto of the merchants of Omi (present-day Shiga
Prefecture) during the Edo period and since, which focused on benefiting
three parties, namely the seller, buyer and society. It embraces the
view that business should benefit both sellers and buyers, and that the
products should be useful to society as a whole.

Creating shared value (CSV), on the other hand, is a framework for
creating economic value while simultaneously addressing social needs and
challenges through business activities. Since both CSV and "sampo-yoshi"
aim to reconsider management styles that seek only maximum profits, they
lead in a similar direction.

The eight parties in "happo-yoshi" are corporate managers, employees,
suppliers/creditors, shareholders, consumers, communities, society and
the nation. When "sampo-yoshi" was expanded to "happo-yoshi,"
significant attention was given to the finite nature of natural
resources. Natural resources, or the "stock" of the earth, have greatly
decreased while capitalism infinitely pursues wealth with a focus on
"flow." The more efficiently capitalism works, the more resources will
be lost in the future.

To achieve lasting business activities, companies need to continue their
operations while preventing the earth from becoming spent. Thus, they
should take a wider view of their stakeholders, with an eye on the earth
environment and the whole world, in addition to the stakeholders defined
by "sampo-yoshi" and CSV. That's why "happo-yoshi" includes society and
the nation.

A management style that creates shared value for eight parties, namely
corporate managers, employees, suppliers/creditors, shareholders,
consumers, communities, society and the nation, and makes all these
parties happy -- it sounds like a dream. The "good companies"
introduced in this series, however, are realizing such "happo-yoshi." We
hope that the number of these unique "good companies" will continue to
increase in the future.

'Good Companies in Japan' (Article No. 1): Valuing Employee Happiness
and Trust
https://www.japanfs.org/en/news/archives/news_id035984.html
'Good Companies in Japan' (Article No. 2): Seeking 'Happiness' for All
Stakeholders
https://www.japanfs.org/en/news/archives/news_id036022.html
'Good Companies in Japan' (Article No.3): Seeking Ways to Develop
Societal Contribution along with Core Business
https://www.japanfs.org/en/news/archives/news_id036062.html

Edited by Noriko Sakamoto

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Japan for Sustainability Thanks You for 16 Years of Support: New Articles to End in July
https://www.japanfs.org/en/information/jfsnews/jfsnews_id036090.html
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Since our launch in 2002, Japan for Sustainability (JFS) has provided
the world with information from Japan to add momentum to efforts to
create a truly happy and sustainable future. Now, after much
consideration, the management team and secretariat of JFS have decided
it is time to end our active operations. As a result, we will stop
writing, delivering and posting new articles at the end of July 2018.

We do plan to keep most of our online content available for at least the
next three years on the JFS website.

For further information, please read the following webpage.
https://www.japanfs.org/en/information/jfsnews/jfsnews_id036090.html

Thank you for your interest and support! We sincerely hope that Japan
and the world will continue on the path toward a sustainable future, and
we wish you success in your own efforts.

Our warmest regards,
Japan for Sustainability

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[JFS Web Site Additions of the Month]

- Japan for Sustainability Says "Thank You!" for 16 Years of Support
(2018/06/06)
https://www.japanfs.org/en/information/jfsnews/jfsnews_id036090.html

- This month's cartoon:
"Eco-supporters" (2018/06/04)
https://www.japanfs.org/en/manga/manga_id036087.html

- JFS Newsletter No.189 (May 2018)

'Yumekaze' Wind Turbine Project Connects Metro Consumers
and Regional Producers:
Seikatsu Club Consumers' Co-operative(2018/06/15)
https://www.japanfs.org/en/news/archives/news_id036094.html
Shaping Japan's Energy toward 2050 Participating in the
Round Table for Studying Energy Situations(2018/05/31)
https://www.japanfs.org/en/news/archives/news_id036082.html

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