Next is Women: Companies Are Changing

Are there any of you thinking about changing jobs, or perhaps feeling like we are living in a hopeless era?

But, just a little longer.

Really, just a little longer.

Can't you hear it?

The sound of footsteps as companies change!

Japanese companies are changing.

Next April, the Tokyo Stock Exchange will change.

The categories of First Section, Second Section, JASDAQ, and Mothers will disappear, and their names will change to Prime, Standard, and Growth instead. This means not just the names, but the classifications themselves will change.

And, this change is linked to "how women work"!

That said, it is not as if the TSE is directly promoting the advancement of women. It means companies will change in response to the TSE's changes.

An Important Assortment

There is a reason why the TSE is changing.

There are many stock exchanges around the world. New York, London, Frankfurt, Paris, Shanghai, Hong Kong, Germany, and many more... And there is competition among them. That is why the assortment of stocks is important for an exchange. The TSE is renewing itself for that competition. Yes, this is a renewal primarily aimed at overseas investors!

Ambiguous

The speech given by Kenzaburo Oe at the Nobel Prize in Literature ceremony was ambiguous. In Japanese, this would be 'aimai'. 'Aimai' me in Japan. An ambiguous me in an ambiguous country.

Ambiguity is a part of this country's culture and also one of its virtues. However, in the global arena, this can sometimes be a disadvantage. In fact, this was happening at the Tokyo Stock Exchange (TSE) as well. The traditional TSE First Section, Second Section, JASDAQ, and Mothers had become ambiguous and opaque. Of course, what investors demand is the disclosure of accurate information. Without it, they cannot make sound decisions. That is why they were struggling to gain popularity. Therefore, the TSE began to reorganize its lineup of companies.

The goal was to increase transparency and highlight a transformed TSE by reclassifying the market. This meant that reforms to appeal to investors had begun.

Global Standards

As a result, the TSE is now making strict demands on companies. What it is seeking is governance on par with overseas standards. This is a high hurdle for traditional Japanese companies.

The details of this are written in "Corporate Governance"*.

It means that a company must establish a system for making transparent, fair, prompt, and decisive decisions while considering the positions of shareholders as well as customers, employees, and local communities. In other words, listed companies are required to disclose information to such stakeholders. This standard, known as corporate governance, is what is being required of listed companies for the purpose of that information disclosure.

Of course, this also includes content related to women.

For example,

[General Principle 2] Listed companies should... fully recognize that they are the result of the provision of resources and contributions by various stakeholders, and should strive to cooperate appropriately with these stakeholders.

It states,

(SDGs)... (TCFD) the number of endorsing organizations is increasing, etc... there is a growing awareness that sustainability (ESG...) is an important management issue.

It is written as follows.

Furthermore,

[Principle 2-3] Listed companies should appropriately address sustainability issues, including social and environmental problems.

It states,

...respect for human rights, consideration for employees' health and working environments, and fair and appropriate treatment...recognizing that addressing sustainability issues is an important management task that leads not only to risk reduction but also to revenue opportunities... they should deepen their consideration to actively and proactively engage with these issues.

It states.

Furthermore,

[Principle 2-4] Listed companies should promote the ensuring of diversity, including the promotion of women's active participation within the company.

It states,

Listed companies should disclose their thinking and voluntary and measurable goals regarding ensuring diversity in the appointment of core personnel, such as the appointment of women, foreign nationals, and mid-career hires to managerial positions,
as well as the status of these efforts.

It states.

Yes, this Corporate Governance Code is the global standard.

Reference: * "Corporate Governance Code: For the Sustainable Growth and Medium- to Long-Term Enhancement of Corporate Value" https://www.jpx.co.jp/news/1020/nlsgeu000005ln9r-att/nlsgeu000005lne9.pdf

The Japanese way will not work.

In other words, going to the "Prime" market, which has the highest rating on the Tokyo Stock Exchange, means that the conventional way of doing things in Japanese companies will no longer suffice. The Tokyo Stock Exchange is serious. This is also to attract domestic and international capital. That is precisely why they are restructuring the market and demanding that listed companies adopt governance on par with overseas standards.

In short, to be selected for Prime, one must clear strict criteria. Looking at it another way, if you can make it to Prime, you become a company that represents Japan. That is also a major benefit for the company.

Furthermore, externally, the Prime market with its strengthened governance is regarded as a globally standard company, which increases credibility. By doing so, investment from overseas may increase, and stock prices and corporate market capitalization may rise.

Also, there are many activist shareholders in the world, and what they value is also this governance.

The Tokyo Stock Exchange is making market rules the global standard. That is why Japanese companies are changing.

And there is one thing we must not forget. Japanese companies have a major characteristic. That is, when large companies change, that change eventually spreads to small and medium-sized enterprises. This society has such a characteristic.

In conclusion

In short, Japanese companies will change, driven by the shifts at the Tokyo Stock Exchange. It also means that they have reached a point where they have no choice but to change. Global markets and social trends are now such that one can no longer turn a blind eye to global standards.

Corporate Governance is like a contract. It includes matters related to women, and both SDGs and ESG also encompass issues concerning women. Once a company discloses information, it must uphold it. That is the company's social responsibility.

I would like to talk about the changes at the Tokyo Stock Exchange and women's work styles in a little more detail next time.

Japanese companies will change. To those of you who have given up, thinking that society is hopeless, I still want you not to give up. Japanese companies will change. The day will surely come when equal opportunities are given to women as well.

That is precisely why I believe we ourselves need to change.

Thank you for reading until the end!

#CorporateGovernance
#TokyoStockExchange
#PrimeMarket
#EqualOpportunitiesForWorkingWomen

[Planning] I am writing articles about women's work styles and ways of life. Here is the list! (As of November 4, 2021. Includes some past articles.)

🌟Corporate Edition
The changes in women have become visible!
Next is Women: Companies Will Change
Can you, and can your partner, escape the "culture of your workplace"?
The future of your workplace: An era where companies are chosen by investors

🌟Marriage and Long Working Hours Edition
"Hansard": A British couple and us
The "North Wind and the Sun" that "marriage" taught me

🌟Legal Edition
"Equal Pay for Equal Work": Adopting a law that was possible in other countries 57 years ago... is that what it means?
"Equal Employment Opportunity Law" / Behind its birth
If you have noticed what has been created
My memory is indifferent to the times / Gender equality & Ruth Bader Ginsburg

🌟Gender Gap Edition
In 2021, are you inside the home or outside?
Japan's FACTFULNESS: The persistent divide
The reason why women's wages do not rise
Gender Gap / The truth that lies between what is spoken and what is not

🌟Women at Work Edition
Reunited after 20 years: How 'working' made them shine
The path for women keeps narrowing / The constraints of age and attributes
Re: Even if we reach an era where we don't have to work, I still believe that 'to work is to live'
Before we categorize 'workers' / There should be no barriers for working women
People who are 'thoughtful and attentive'

🌟Japanese Housewives Edition
Is there something wrong with being a Japanese housewife?
Catching the tail, that's the beginning! / By the way, what is a housewife?

🌟Childcare Edition
Common wisdom about child-rearing that troubles moms / The 'three-year-old myth' was indeed just a myth

🌟Nursing Care Edition
Let's send air hugs on note💖💖 From family, and back to family again
Long-term care. If you can be 'okay on your own,' that is the ultimate freedom
There are uphill climbs in nursing care too⤴

🌟Education Edition
Bringing out the invisible. Can education save women? And from there to the SDGs

🌟Consciousness Edition
Things I want to let go of forever
Monologue: 'Estate Organizer'

🌟 Audio Distribution: Stand.fm Edition
If the Tokyo Stock Exchange changes, Japan and the way women work will surely change too!!
What companies aim for is growth! Companies are not... bound by Japanese culture, after all.
How are we supposed to use this law? #EqualPayForEqualWork
If that person hadn't been there... A person who changed the world.
If someone has built a barrier, I want to rethink women's job hunting once more.
Isn't it about time we became free from things that were created for us?
When did it become invisible... even though we shouldn't have been that different?
Sharing from various angles! Finally, I've started running!