How businessman in 21 century should be

1. Preface
Businessman are struggling with big wave of revolution for coming 21 century.
Those are collapse of the bubble economy, long term depression which nobody see solution, the arrival of the information technology society, the arrival of the aging society, the wave of the restructure movement.

I had been engaged in overseas plant construction for 17 years as an electrical engineer when overseas construction boom occured in oil produce country which originated in the petroleum shock in 1973.
For that time, I had an opportunity to communicate with the person in the developed country mainly European as the competitor and the people in north Africa, the Middle and Near East, the Southeast Asia as the client.
I had been kept a doubt such as un-transparency business habit, though on the other side I had experienced many useful things through the job.
Overseas Japanese plant construction lost the competition power rapidly due to the strong yen which proceeded rapidly after the plaza agreement in 1985.

In consequence I changed for the domestic service, too, and disappointed at the un-transparency business habit which didn't change so much with the developing country was being rampant.
Technology progress, rise in the capital labor ratio, the labor productivity rise power are growth factors by the new classical school's economic growth theory.
In spite of technology progress was important, a tendency spread out like the developed country of giving priority to a monetary compromise with the immediate effect over it, and I was afraid of the future economic growth even in Japan.

The misgiving became an actual thing by the shameful shape that the disgraceful affair of the banking agency managing staff occurred in succession for 1998 years by whether as well to be defective management constitution which became clear by the collapse of the bubble economy.
It became clear that Japanese management system such as life time employment system, the seniority system wage and the union based on the enterprise couldn't be adopted in the big competition age such as big bang, though it gained very high reputation in the bubble economic time.
Nobel economics prize for 1998 was given to Professor Shim, Indian-British who proposed adding an ethics element to the economic growth theory.
The conversion which makes the qualitative growth based on high ethics from the quantitative growth standard so that the behavior standard of the businessman is being asked from this thing as well.

2. From the profit priority to the ethics priority
There is a custom that a bribe is presented to the official of the developing country and so on to advance a business negotiation favorably when an enterprise tries to participate in the developing country market.
There is a background such as defect of law system, late office work, cheap official's salary, poor investigation ability and so on. That's why both persons who present bribe and receive it think it as undoubted right.

It is made the target of the punishment in the United States when an enterprise gives the bribe in the foreign country by the law of preventing overseas rot.
But other developed countries entrust it to the local law when their enterprise gives a bribe to developing country though bribery inside the country is made the target of the criminal law.*1
However, many businessman of the developed country don't think it pleasant habit.

6 countries in Asia, China, Indonesia, Philippines, India, Thailand and Pakistan ranked in worst-ten by "world rot occasion rank" (41 countries ・ area object) that it was collected in August, 95 by German non-government organization transparency international.
As for the project business battle of these developing countries that I myself was engaged as well, a connection with the influential statesman often decides a contract.
Therefore, it wasn't rare case that business activity by way of giving success reward of a certain ratio through the leading agency person.
In spite of that it succeeded in the contract for a while, it was not rare to have pocket money required, too, with the lawful means like the foreign currency exchange which the exchange rate order difference (The difference between an official rate and actual rate are big) was used for.
There is a miserable background that is overlooked, same relative crowds the person when one person in the family succeeded in life because the salary which is too low, and the unemployment rate are high and there are few employment opportunities.
We can't absolutely brand them as the "evil" with a reason to say so with the standard of the developed country.

A matter is Japan. Japan ranked 11th in Asia in the list which is worse than the Singapore.
It is not a thing by the circumstance such as the low income which is characteristic of the developing country, but a problem is in the generalization of the unfair behavior based on the supreme principle of the profit.

The idea of the honest poverty of old Japanese that even if poor respectable behavior is taken disappeared together with the economic growth from the Japanese society.
Especially remarkable point to the enterprise managing staff is a problem because it became clear by the disgraceful affair of the a series of banking agency managing staffs in 1998.
In other word, such talented people succeed in life and honest talented people were treated coldly generalized.
It is said that such things are big cause connected with the decline of the whole vitality of enterprise and decrease competition power mainly development of technology.
The profit of organization which businessman belong tended to take precedence over it in the closing society of the life-time employment system, the seniority system .
and it brought about that lack of an important point of view which how should be enterprise activities as a social public institution.

3. From the educational background principle to the scholarship principle
It can be said that it was the age of the quantitative economic growth that industrialization society by the change to the machine power of the human power spread out to the whole world in 20 centuries.
On the other hand, it will be said that 21 century will be qualitative economic growth based on the computer oriented society which convert human brains to the computer.
Economic growth, securing of the employment, the improvement of the income were realized by the diffusion of the industrialization society.
It created the needs of advanced development of technology along with the environmental pollution countermeasure, the exhaustion countermeasure of the energy resources, the aging society countermeasure at the same time.

The characteristics of this development of technology require high and wide interdisciplinary technology such as fusion between natural science, cultural sciences and social science, and also fusion between electrical engineering, mechanical engineering, chemistry and construction.
It can't cope with these requirements any more for such a reason with the conventional learning system.
It comes in Japan as well with American life learning society to try the latest and advanced learning always though it will be far behind to USA.
The principle of the competition didn't function under the life-time employment system which a life was decided as with the educational background in the entrance into a company, and the result that the whole morals of the organization declined conversely was brought about.
Therefore conversion to the scholarship principle from the educational background principle is a pressing need.

On the other hand the arrival of the information-oriented society has brought a big revolution to the enterprise since the Industrial Revolution to remove limitation of time, a place, the organization.
Limitation of the time and the place were released due to the appearance of the Internet and Intranet that information exchange became possible for 24 hours.
It became possible that the reduction of the middle administrative post and flat organization because of that information send at the same time to all the terminals in the network.
Though it is promoted that a working system from conventional group organization service to the individual service such as satellite office service and at-home service, a foundation is accomplishment ability based on the high scholarship.

4. Big competition age --- Arrival of the severe society for the weak person
All the Japanese such as mass communication, a political party and government praises the restructure of the enterprise highly.
A superior business company reduce 30% of people in the company, a first class manufacturer dismiss peoples of 5,000 workers and so on.
Don't you think it somewhat strange?
The actual condition is that the number of people dismissal.
The dismissal of the employment is advanced easily though the first of the economic policies is supposed to become stable employment.

Though collapse of Soviet Union in 1991 was a victory of the capitalism toward the communism, the appearance of the American-type competition society is not only good for the weak.
The sound criticism power disappeared during the time when nobody notice.
Severe society comes to the weak though the height of prosperity age of the Socialist Party and the labor union, a national assembly and mass communication must have been taken up greatly as a social problem.
The effort of raising individual ability personally becomes necessary all the more.

5. Summary
The four ones of the economic development related to the factor can show as the figure No.1, those are a degree of rot of the enterprise behavior, the height of the ethics, the need of the information presentation and the high level of scholarship.*2
It tries to draw locus which shows relations with economic development and four element as follows: a degree of rot of the enterprise behavior and the economic development in the first quadrant, the height of the ethics, the scholorship level and rot of the enterprise behavior in the second quadrant, the need of the information presentation and the relations of the economic development in the fourth quadrant.
The enterprise behavior based on unfair business promotes economic development a certain level with the traditional quantitative growth type. But, it becomes trade off in a certain point due to the technical delay, the increase in the defective credit, and economic development slows down suddenly.
Information presentation isn't done very much with this type.
A qualitative growth type acts based on the high ethics and the advanced scholarship level continue the growth securely though an economic growth rate is low.
Take the higher behavior of the ethics, and information presentation is fully done.
It is probably the "figure which the Japanese businessman in the 21st century should be in" that businessman should behavior return to the idea of the honest poverty proved by the high ideology of old Japanese that take proper behavior even if poor.

Figure No.1 The model of the ethics and development in enterprise behavior

A degree of rot of the enterprise behavior

Reference
*1 Quote from 3 pages "the movement of international control of bribe business negotiation" in Nippon keizai shinnbunn (Japanese economic newspaper) on May 8, 96.
*2 Refer to 31 pages "the politics economics of the development and the distribution" in Nippon keizai shinbun (Japanese economic newspaper) on November 15, 95.

Apr.1999 Y.Noguchi

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