Executive Summary

Corporations, Self-Interest, And Global Stability

Ryuzaburo Kaku
Chief Executive Officer of Canon Corporation
Founding Member of the Caux Round Table

December 1992

It is my belief that there are four types of corporations. The first type are purely "capitalistic companies" in which the capitalists exploit workers and everything else for their own profit. All profits are pocketed by the capitalist himself. While this type of corporation contributes to the vitality of the economy and society, its weakness lies in the inevitable friction that arises between labor and management.

In the second type of corporation, workers and management work together so that they can share in the prosperity of the company. I call this type "companies sharing destiny." There is rarely any trouble with labor unions. This type of corporation, however, runs the risk of being seen as egoistic by the larger community.

The third type of corporation redresses this problem. These are corporations dedicated to assuming "local social responsibilities." ...Some of these corporations are generous in contributing to what is good for the nation. As a result, these corporations will have few problems within the nation, but their efforts for the benefit of a specific community or country may create economic friction that could lead to international problems.

The fourth type of corporation is one that is genuinely responsible for the whole of our global society. This fourth type of corporation has no problems with labor unions; it gets along well with local community and enjoys a good relationship with the world based on co-existence and co-prosperity.

Traditionally, the corporation's role is to raise profits for the benefit of share-holders by producing and marketing goods. Today, ...I believe that it must be involved in greater issues beyond the sphere of business.

Corporations must be proactively involved in resolving the urgent imbalances of a global scale, including trade imbalances between nations, the gap between the rich and the poor countries of the world, and the generational problems including those of natural resources and the environment. They must work for the greater stability of the world.

...Today, there is only one entity, I think, whose effort to create stability in the world matches its self-interest. That entity is a corporation operating globally. ...Corporations have already entered a borderless age of doing business worldwide. Corporations will not be able to do business unless the world is peaceful, so their survival is directly linked to world stability.

It is therefore in their self-interest to serve the interests of the world. If those with reciprocal interests do not exert themselves, who else will? Furthermore, corporations have the people, the resources, and the network to create wealth around the world. In this way, corporations have a new role today in bringing about a stable and better world.

...We are either winners together or losers apart. Japan and America must put their best efforts towards resolving the global issues before it is too late. Time is ticking quickly away.

Adapted from remarks in Caux, Switzerland, August, 1992.

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