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Paul Goldsmith - PANACHE Corporation

Energy Evolving From A Company Like "Mini-United Nations"


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VII. Diversity Best Practices

―So finally we would like you to offer a message to the Japanese public about what you consider in terms of promoting Diversity or Diversity best practices.

I have been living here for 16 years and have had great time here. I have personally experienced a lot of positive prejudices, but what I still see in Japan and that may come more from the government more than from the people, but there is still certain xenophobia about foreigners in Japan. With Japan's ageing society, there is a bad need in Japan to allow more foreign workers as care workers to come in and support the elderly as Japan's population ages. But there is still this concern about allowing foreigners in who cannot communicate perfectly with older people. If I think about where I am from which is London, it is a very cosmopolitan environment. There have always been foreigners who could barely speak English or spoke English with very strong continental accents but managed to get understood. For example, London today if you go into a hotel, it is difficult to find someone British working in the hotel. Basically nearly all are foreign, European, or they are certainly not British. A lot of young Europeans come across with the expansion of the EU. A lot of young French, German, and Italians work in London. So I think Japan has to be a lot more open-minded.

―50% of the population in this country, women, have been kept as untapped resources for many, many years. Our main activity is empowering women and then, empowering society so when time comes for Japanese society to have 50% of executive female staff in every field, that is the time for foreign people to work quite easily and openly.

That is probably true. I have to say that my observation of Japanese society is that it is very tolerant of Japanese women stopping work and assuming the role of mothers and not going back to work. Or Japanese women marrying and becoming a housewife and supporting their husbands. There doesn't appear to be a social stigma or social pressure on Japanese women, young or old, to get back into the workforce.

I think when women are working in larger companies, they are often overlooked for promotions because of the concern by their male boss that this woman is going to get married, leave, and have a baby. If the environment is created so that it is easy for these women to come back and are encouraged to come back, then, more of these women will. And then, they will progress up the career ladders. I think what happens in many large companies is women are made to feel uncomfortable to continue their careers after getting married or having children.

Therefore, women tend to stop at a certain level. They don't come back into the workforce. I think it is difficult for women who have had children in large companies and come back at the same level and to continue their career. I think in the West it is a lot easier. Society in the West for many years, since the 80's, has large respect for women who are able to balance a very dynamic career with running a family as well. In Japan this has not typically been the case, and there haven't been many role models.

―To achieve that purpose, we should send brilliant women to policy-making positions. That is the important point, not just for the workers' level or technicians' level. Not only politicians but also administration, bureaucracy, and in the business circle.

Doing business in Japan, as we know, in some ways is not so attractive to women with after hour drinking, dining, and karaoke, which has been the traditional way of doing business.

―In the past, yes, you are quite right. Nowadays a company itself cannot afford to pay for drinking parties, because in most of the cases the expenses have to be paid by the company. It is very, very difficult from now on for companies.

I think that way of doing business is becoming outdated. It is too expensive and not efficient as it should be. I guess it all goes back to creating relationships. Within Panache, for years I have said to my staff that if you want to get to know your clients better, invite them for lunch. It is a lot cheaper than dinner, and there is a finite time frame.

―Even men who are 30 or 35 years old do not like to follow senior Japanese men. They want to go home. They want work life balance. They are very interested in paying attention and taking care of their own children. I think it is changing quite a lot.

They want a life outside their work. I think the current generation has a different mindset.

―In other multi-nationals especially in the financial industry, women because of the work life balance and having to look after families; for example, like Lehman Brothers and Goldman Sachs provide networking sessions with the Women's Network. These women have hardly any time and that helps them to meet other business people and they have encouraged that.

I think foreign companies are certainly ahead of their Japanese counterparts when it comes to Diversity, particularly in promoting women and encouraging women to take on responsibilities. As I said earlier on, 15 years ago foreign companies recognized women as underused resources. If foreign companies practiced what they were preaching, these women should be in senior roles now.

I think these same companies don't discriminate on gender, nationality or age. It all depends on the skills. Merrill Lynch, for example, has a woman president. It's impressive that a Japanese woman is running a foreign multi-national company. I think that sends a fantastic message to Japanese women that there is an opportunity for women to go as high as you dream. Most foreign companies, particularly American and European companies are following their head offices' dictate or the policy or mission of the head office. That is to practice Diversity, which has very strict requirements. Also they look into bringing physically challenged, and also give younger people a chance and encourage them.

―Thank you very much for your encouraging words.

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July 27, 2006
Interview : JKSK

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