ABSTRACT
As the importance of corporate social responsibility (CSR) is recognized in Japan, Japanese companies have begun considering diversity and inclusion (D&I) issues in business. This chapter utilizes the stakeholder salience theory and the institutional theory to examine how governmental public policies encourage corporate D&I initiatives in Japan. In the Japanese context, employee and worker unions are seen as the most salient stakeholders. Employees have power, legitimacy, and urgency for their companies, as they are the source of competitive advantage as human resources, and there are expectations of lifetime employment from Japanese society. This employee-oriented context influences Japanese companies' D&I initiatives. Existing studies have pointed to issue salience as a factor that drives corporate behavior. The declining birthrate and aging population are recognized as the most serious social problems in Japan; therefore, the relationship between public policies related to them and corporate behavior was evident in this study.
