Stakeholder Engagement and Innovation in Japan

This book focuses on the linkage between corporate social responsibility (CSR) engagement and innovation strategies in the context of Japanese firms beginning in the late 2000s. Since that time, the firms have faced transformations in their business models and CSR activities in the face of global technological competition. The novelty of this book is that it carefully identifies the channels linking CSR and innovation through employee motivation for creativity and investor awareness of environmental, social, and governance (ESG) issues. As well, the book sheds light on the role of independent sustainability rating agencies as information intermediaries in this linkage. It empirically examines whether and how internal and external stakeholder engagement influences organizational innovation capability and the impact of ESG ratings on that relationship.

This present work helps to provide a comprehensive understanding of the integration of multi-stakeholder engagement in corporate innovation strategies to survive in changing social and environmental circumstances, with insight into the role of information intermediaries in the integration process. The book has practical implications for strategic CSR to achieve social and environmental sustainability, which are particularly important in Japan.

Introduction.- Stakeholder engagement and innovation strategies overview.- Responsible investor engagement and long-term investment.- Investor perceptions of CSR firm specific risk and innovation.- Green innovation capability and financial performance.

Megumi Suto is an Emeritus Professor at Waseda University. She was a Professor at the Graduate School of Business and Finance, Waseda University, from April 2016 to March 2018, a Professor at the Graduate School of Finance, Accounting and Law, Waseda University, from April 2004 to March 2016, and a Professor at the Faculty of Economics, Chuo University from April 1993 to March 2004. She served as a Dean of Graduate School of Finance, Accounting and Law, Waseda University, from October 2008 to September 2012. She held positions as a Visiting Professor at Hitotsubashi University and Osaka University and a Visiting Researcher at Oxford University and University of Stirling. She received her Ph.D. in Economics at Keio University. Her main interest is in corporate governance and functions of financial system, and she has conducted research on corporate social responsibility and corporate governance in the context of Japanese financial system.

Prof. Hitoshi Takehara received his Ph.D. in Management Science and Engineering from the University of Tsukuba. After working at the MTB Investment Technology Institute (currently, Mitsubishi UFJ Trust Investment Technology Institute) as a researcher, he started his academic career as an assistant professor at the Institute of Socio-Economic Planning, University of Tsukuba. Since 2006, he has been a Professor at the Waseda Business School. His main research interest is in asset pricing models and portfolio management. He was President of the Nippon Finance Association from 2010 to 2013. He served as a Dean of Waseda Business School for four years, from October 2020 to September 2024.