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The Role of General Trading Companies in Society
During the course of Japan's economic development, general trading companies, or sogo shosha, have served as a bridge between Japan and the world and contributed to the formation of the nation's industrial foundation.
Today, our business encompasses much more than just trade and distribution, extending to business investment and financing in a wide range of industries, as well as coordination and operation of businesses. With the globalization of capital and labor, the ability to do business in harmony with the characteristics and cultures of various countries and regions is becoming vital.
The businesses needed in a country or region will also change with the degree of economic development, as have industrial infrastructure such as roads and railroads, lifestyle infrastructure such as hospitals, schools and housing, the cement business that builds these facilities, and fertilizer plants for modern agriculture. Just as Japan's economic growth was once supported by the introduction of technology from abroad, technology transfers from Japan to developing countries, and expansion of businesses that create jobs in those countries, are now required.
To meet these requirements and expectations, general trading companies must play a key role in modern society by leveraging their diverse functions and the global perspective they have cultivated in their business activities to build businesses that contribute to local communities, using the most effective methods in each country and region. The Sojitz Group is committed to doing its part to promote economic development, not only in Japan but around the world.
Earning Trust by Turning Words into Action
Since its establishment in 2003, the Sojitz Group has upheld the Sojitz Group Statement, which reads, “The Sojitz Group produces new sources of wealth by connecting the world's economies, cultures and people in a spirit of integrity.”
The phrase “new sources of wealth” in this statement does not refer only to economic wealth. Our aim is to contribute to enhancing the quality of people's lives while respecting the diverse cultures and values that are rooted in each country, and through that effort, to build a mutually beneficial relationship with society.
The Sojitz Group's CSR activities are a way for us to practice this philosophy in a consistent manner. In doing so, we focus on sincerity and trust, which are fundamental to all of our corporate activities. We will always respond to social requirements by turning words into action. We believe that it is paramount that we make such efforts in order to be a company that is trusted by society.
Today, concern about the impact of corporate activities on society is higher than ever. Companies cannot continue to exist in society without giving due attention to environmental impact and respect for human rights. Fulfilling our corporate social responsibility is something we need to do continuously, regardless of economic conditions. I believe we need to instill this awareness of CSR in our employees to the extent that it becomes a source of moral support when they take action.
Helping Solve Social Issues through Our Businesses
Today, global warming is just one of various global-scale issues that are becoming increasingly serious. Experts predict that a world population of approximately nine billion people will have to be fed by the year 2050. Solving these challenges and creating an environment in which the world's people can all enjoy wealth is an urgent task for society overall. I believe the Sojitz Group can play a significant role in this effort through its business activities.
One example is our new energy business. As part of that business, Sojitz is focusing on producing bioethanol and sugar from sugar cane in Brazil. Bioethanol is attracting attention as a gasoline substitute. Producing it from sugar cane is a shorter process than using corn or other grains as a raw material, and has less environmental impact. We are also showing concern for the food problem by promoting the expansion of sugar cane plantations primarily on open pastures to avoid diverting land used to grow other grains. I believe that taking a CSR perspective in our actions is important in conducting business sustainably.
I am also strongly aware of the importance of maintaining a good balance between the contribution we make through our businesses and the activities outside our core businesses that do not directly generate profits. The latter currently include support for disaster-stricken areas and an international exchange program. Going forward, we plan to emphasize education and are considering broadening our activities to include areas such as health care. We will continue our CSR activities with a focus on sustainability and consistency, while adapting them to the needs of the times.
Taking Pride in the Company and Our Own Work
People are the lifeblood of our business and CSR activities. We have worked to build a corporate culture that facilitates two-way communication between management and employees, including creating an environment where I myself and every employee can feel free to speak up and voice our opinions. I will strongly convey a message that enables all employees to share a renewed commitment to Sojitz's CSR, and will aggressively promote CSR training and other educational programs to instill awareness of CSR. Ultimately, our goal is to make employees proud to talk about Sojitz's CSR.
I would like all employees to take pride in their own work and in the Company, and to reflect that pride in the way they do their jobs. If we build relationships of trust with people through our business, wherever we are in the world, they will want to work with us again. I believe that steadily creating such relationships will ensure that Sojitz is a trusted company.
We will continue to improve our CSR program by enhancing our communication with society and incorporating the feedback we receive in order to conduct our business activities in a sustainable manner. We invite readers of this report to share their views with us.
Yutaka Kase
President & CEO
Sojitz Corporation
