EDITORIAL: Business and politics

Hiromasa Yonekura, chairman of Nippon Keidanren (Japan Business Federation), and Yukio Edano, secretary-general of the Democratic Party of Japan, agreed Tuesday on the need for more policy discussions between the nation's powerful business group and the ruling party.

We hope the new Kan administration and the business organization will create a forum for healthy and vigorous debate on policy issues.

We also want to see Nippon Keidanren take bold steps in defining itself as an institution constantly striving to make policy proposals that resonate with ordinary citizens.

Yonekura became the public face of the Japanese business community in late May. He wants to establish Nippon Keidanren's deep involvement in policy proposals. At the same time, he wants the organization to distance itself from corporate donations--a rule that was established by his predecessor, Fujio Mitarai.

The euro crisis triggered by the Greek government's debt woes is threatening to crush the recovery of the world economy. Intensifying global competition is hurting the bottom lines of Japanese companies and choking job growth in Japan.

If the Japanese economy is to overcome these hardships and regain vitality, Yonekura needs to assert himself by speaking out more.

Nippon Keidanren and the DPJ have not held sufficient in-depth discussions on policy issues. Now that it has disengaged itself from the political ties built on donations, Nippon Keidanren is in a better position than before to articulate its opinions and proposals on behalf of the business community.

This is not to suggest that the business community should snuggle up to the government or the ruling party. But the chief executives of companies, which are the engine of economic growth, have the right to make proposals and requests concerning the government's economic policy.

Needless to say, their proposals concerning issues that have direct bearing on people's lives, such as tax, public finances, employment and social security, should not be aimed solely at raising corporate profits.

There have been growing calls from business leaders to enhance the nation's social safety net. We urge the business community to keep coming up with policy proposals that respect the positions of various stakeholders and win wide support for serving the interests of the entire nation.

In a news conference, Yonekura expressed concern about the government's target of cutting Japan's greenhouse gas emissions by 25 percent from 1990 levels by 2020. He said the goal is too high.

But Nippon Keidanren should display greater zeal about promoting the development of green technologies that can help stem harmful climate change and protect the environment.

Yonekura, who stresses that Nippon Keidanren should "walk in tandem with the people," should not forget this credo.

In this age of globalization, Japan's business community is expected to play a greater role in the international arena.

During a visit to China in May, executive members of the business organization agreed with Premier Wen Jiabao and other leaders in Beijing to promote technological exchanges in the areas of environmental protection and energy conservation.

Such private-sector exchanges between Japan and other Asian countries, including China, will help lay the groundwork for economic cooperation initiatives in East Asia. This includes free trade agreements.

Yonekura emphasized that Japan needs symbiosis with the rest of the world. He pledged to work for closer cooperation with other Asian nations and called on the government to accept more foreign students.

Let us keep tabs on his efforts to achieve these goals. If the business community is to increase its social and political influence, it is important that its members practice healthy corporate management while their top executives are respected by employees and society as a whole.

Constant efforts for better corporate behavior would lead to solid policy proposals that force people sit up and listen.

--The Asahi Shimbun, June 10