Kenkokeiei To Build A Better Future-Expanded version: Considerations on the future of Kenkokeiei-

July 19, 2021

Kenkokeiei Nonprofit Organization
Health and Longevity Industry Association
Kenkokeiei Council’s Executive Committee

■ Introduction
The term “Kenkokeiei” means investment for healthy employees and creative productivity. In 2006,
Kenkokeiei Nonprofit Organization advocated the need for "Kenkokeiei" that would integrate within corporate
management the two far-removed concepts of "health" and "management." Thanks to the support received, agreat number of managers have since tackled Kenkokeiei with assistance from central and local governments.
However, in 2021, 16 years since the project was launched, the world is facing dramatic changes that no one
could have predicted as a result of the Covid-19 emergency. As the saying goes, "everything is in a state of flux,"and it’s time to modify and evolve social mechanisms no longer in tune with the world in order to meet thechanging times.
Ever since we introduced the concept of Kenkokeiei, we never stopped working on the "creation of ‘humancapital’ through health." From the standpoint of working conditions and occupational safety, improving the levelof health care is still an important perspective in promoting Kenkokeiei. However, when considering the futureof Kenkokeiei, it is necessary to keep in mind that investing in ESGs (environmental, social, and governanceconscious initiatives), SDGs (sustainable development goals) and other areas of the circular economy will
become in the near future a globally integrative theme with a major impact on corporate management. This trend
is expected to have a significant impact on Japanese small and medium enterprises too.
While traditional Kenkokeiei had prioritized strategies for "protecting" the health of employees as part ofcorporate management, including government’s requests to comply with legal requirements and safety
considerations, in order to transform Kenkokeiei into management strategies better suited to the times, we
believe companies will have to proactively promote strategies to "create" investment in "human capital" external
to the company. While a lot has been done in Kenkokeiei over the past16 years, we have no doubt that in 2021,
as the social structure of the whole world is changing drastically, raising "human capital" as a strategic theme
will be the key to revitalizing Japanese companies. Therefore, as a contribution to the advancement of Japan, we
propose a broadening of the concept of Kenkokeiei in anticipation of the social changes of the next 10 years.

-Social demands that justify expanding Kenkokeiei1. The necessity for corporations to fulfill their responsibilities not only to shareholders but also to theiremployees and society at large, as exemplified by the transition from shareholder capitalism to stakeholder
capitalism (public interest capitalism).

2. The necessity to further revitalize society by investing in the health and well-being of employees as part ofcorporate strategies to improve the sustainability of every stakeholder, as exemplified by the SDGs.

3. The necessity to create more inclusive forms of management such as by introducing diverse work styles tomatch the diversity of employees with regard to health problems that are not immediately apparent.

4. The necessity to incorporate in management new co-creative relationships in order to secure an adequate
labor force in view of declining birthrates, including employment formats like side jobs and concurrent jobs
in which workers are shared, as well as job sharing and co-creation between companies.

5. The growing importance of improving the physical and mental health of employees as a management
strategy and the request that, managers too, in addition to corporations, fulfill safety obligations.

6. The ever-growing demand for an a ethical perspective within corporate management, as a consequence of all
the above social changes.

■ History of Kenkokeiei
Basic concept of "Kenkokeiei" at the time of its introduction"Kenkokeiei" was first advocated by the Kenkokeiei Nonprofit Organization in 2006. Its basic concept isstill unchanged. However, 16 years after its introduction, social conditions have changed dramatically, and what
we had predicted at the time has become the norm.
The Basic Law on Measures for the Aged Society was enacted in 1995, its preamble expressing the concern thatthe aging of Japan's population would rapidly accelerate. Concurrently, the Industrial Safety and Health Act
required employers to carry out medical checkups of workers by introducing penalties for those who did not, andthe findings rate during medical examinations continued to rise steadily. At the time, medical examinations weresaid to be "haphazard and perfunctory," as companies stressed legal compliance and placed emphasis on having
employees undergo health examination, but did not make sufficient efforts to take follow-up measures in case ofabnormal findings. As a result, despite the high cost of medical examinations, they couldn’t be said to be reallycost-effective.
Furthermore, it was also predicted that, as a consequence of declining birthrates and the aging of the
population, the number of elderly workers in the working population would increase and management issues
related to health and physical fitness would emerge. In consideration of the social situation, given the concernthat the impact of workers’ health on corporate management would only increase, several industrial physicians,
lawyers, marketing experts and managing directors of health insurance associations got together on a volunteer
basis and, after about four years of research, established the Kenkokeiei Nonprofit Organization in 2006, coining
the definition of Kenkokeiei shown below and proceeding to educate society about it.
Kenkokeiei means thinking about health care from a management perspective and implementing it
strategically, based on the premise that "a company can reap great results in terms of management by paying
attention to the health of its employees." Promoting health supervision and health care for employees, not only
saves money in terms of medical expenses, but also contributes to improving employees’ productivity, creativity as
well as companies’ corporate image, and it’s also important as a risk management strategy. Managers are theiremployees’ health supervisors, and we believe that developing Kenkokeiei in line with the organizational strategy
will become more and more important for future corporate management.
Kenkokeiei Nonprofit Organization (2006)

Present and future of Kenkokeiei
As we enter 2021, many companies, in consideration of Japan's aging population, have introduced reemployment mechanisms in order to secure an adequate a labor force and have even eliminated the barrier ofretirement age, creating a working environment where people can continue working even in their old age. In
order to preserve social security and revitalize the country, it has become crucial to achieve a "lifelong working
society" where senior citizens, rather than being supported, have shifted to the supporting role.
Furthermore, we have entered an era in which, as the VUCA acronym (volatility, uncertainty, complexity,
ambiguity) suggests, the future is highly uncertain, making it difficult to predict the issues that society will facenext. When a new strain of influenza emerged, soon followed by SARS (Severe Acute Respiratory Syndrome)and MERS (Middle East Respiratory Syndrome), Japan was fortunate not to be significantly affected by these
infectious diseases. However, the emergence of COVID-19 has had a great impact on our socio-economical
structure and has led to the breakdown of the medical care system. Its impact has also led to economic andemployment problems, causing an increase in the number of suicides due to economic woes and psychologicalinsecurity.
As 2025 draws near, with the baby boomer generation approaching late-stage old age (75 years or older), botha labor force shortage and the breakdown of the medical system are feared. In the same year, the number ofmanagers of small and medium-sized enterprises and small businesses over the age of 70 is estimated to reachapproximately 2.45 million. If business succession doesn’t take place, this will result in business owners’ healthproblems directly causing business closures, with the risk of a large number of unemployed workers. Moreover,by 2030, with one-third of the Japanese population aged 65 or older, the resulting labor shortage will be so dire
as to make it impossible to pay our huge social security costs. Additionally, GDP is expected to decline, and so isJapan's competitiveness. For companies to remain in business and be able to secure an adequate labor force itwill become necessary, besides creating mechanisms for older employees to continue working and achieving alife-long active society, to build a system for sharing workers by introducing new job formats like side jobs,
concurrent jobs and multiple jobs.

Broadening Kenkokeiei
Even in the middle of such social changes, the health level of workers determines the quality of work, andgood quality work further improves the quality of products, which, along with helping companies grow, also
brings great benefits to society and the global environment.
We believe that, when considering future Kenkokeiei as a corporate strategy, "human capital" will be the mostimportant theme. On this occasion, we would therefore like to share with you the idea of broadening Kenkokeiei
so that it may become the key to revitalizing Japanese companies.
Kenkokeiei means thinking about health care from a management perspective and implementing it strategically,
based on the premise that "a company can reap great results in terms of management by paying great attention to
the health of its employees.
We believe that in the future, "contributing to the development of society by turning human resources into capitalto spur corporate growth" will become more important than ever for future corporate management.
2006 Kenkokeiei Nonprofit Organization (2021)

Kenkokeiei means "contributing to the development of society by turning human resources
into capital to spur corporate growth."
Social development
Corporate growth

Sense of purpose(Well-being)

Job satisfaction(Work engagement)

Reinvesting in humancapital to create new
added value

Investing to create newcorporate value withpeople as capital

Ease of work

(Comfort and communication)

Promotion of physical and mental health(Health literacy)

occupational safety (health care)(Compliance with labor laws and regulations)

Corporate strategy based on management's ethics

Health promotion asa cornerstone■ What are management strategies based on managers’ moral sense?
The two perspectives of "health" and "management"
In Kenkokeiei, you should first set a goal as the objective of corporate strategy; however, from theperspective of this goal, few are the companies that clearly set Kenkokeiei as a corporate strategy. Why are somany companies engaging in Kenkokeiei without a clear goal? We believe this is because the term "Kenkokeiei"contains the word "health." "Health" has been considered an important universal goal in all ages, and no one inmanagement could object to the fact that employees are "healthy." However, as a result, that sometimes leads tothe misunderstanding that in Kenkokeiei health promotion itself is the goal.
The term "Kenkokeiei" was fist coined by adding "management" to "health." From a strategic perspective, the"management" perspective cannot be emphasized enough. Kenkokeiei requires managers to strategicallycombine three types of health: "human health," "corporate health" and "social health," by leveraging thecompany’s characteristics.
"People" are not consumables, they are "invested in" as human resources and must never be disposed of.
Management must not misjudge the value of "invisible assets" only because they are intangible. In order to build
the future of a company, both tangible and intangible energies are necessary; however, at the present moment,
managers are judged by their ability to nurture the important intangible energies, like creativity and productivity,that "people" possess. If the purpose of management is to secure profits from investments, it is crucial totransform the profits made from investing into intangible assets as "human capital" into future value for thecompany.

In the future work will be the resultof co-creation with people and with society.

PeopleCo-creation with people and society
EthicsCo-creation with employees"Investing in human capital"
Side jobs/concurrent jobs

Kenkokeiei

SocietyWork
Co-creation with society"Investment in social
capitalInvesting in SDGs/ESGs

■ What are management strategies based on managers’ moral sense?
Moving from "human resources" to "human capital"
In Japan, where resources are scarce, developing people as resources and transforming human resources into
capital will generate tremendous value for the society of the future. In the Warring States period, the workforce
was referred to as "legs" and "arms," while in the Edo period the word "head" was introduced; finally, with theswitch from "commodity" to "human assets," the change in the role played by people gave rise to a new society.
Kenkokeiei is the strategy of turning human resources into "capital" for the growth and development of acompany." Traditionally, in many companies, people were regarded as "human resources." This was sometimes
interpreted in the sense of "consuming the existing labor force," and in financial statements people wererecorded as "labor expenses (costs)." In terms of labor productivity, people were also regarded as "quantity oflabor input," and as a result, the goal of management was to efficiently "handle" people as a labor force(resource).
However, the way companies think about improving labor productivity has also changed. In the past, it wascommon to optimize operations and reduce the quantity of labor input by thoroughly maximizing "supervision."
Today, however, increasing added value by regarding people as capital and by improving employee engagement(a happy relationship in which companies and employees mutually contribute to each other’s growth andproduce results) has become the purpose of work style reform.
If people’s knowledge, creativity, experience and beliefs are to be the source of the new value andcompetitiveness required to transform a company, then people need to be reconsidered as capital, rather thanresources. Kenkokeiei can be thought of as a strategy to use the power of management to draw out the untapped
wisdom and diverse knowledge that each person possesses as "intangible asset," and turn them into added value
for the company. Similarly, in order to create new value, the direction of new management strategies that regard
people as capital, need to switch from the concept of "supervision," still within the conventional framework, tothe concept of investing in creation, unrelated to the conventional framework of putting people to use.
In Kenkokeiei, "Cost to Capital" becomes the strategic theme of "management." "Cost to Capital" means
converting "human resources" into "human capital." While the term "capital" has never been used in traditional
Kenkokeiei, if we are to think of Kenkokeiei as corporate innovation, we need to formulate strategies that focus
on "human capital."

Until now
people/things/money/information(Replaceable)

From now onhuman capital value(Irreplaceable)

In the practice of Kenkokeiei, companies regard employees as human assets andturn them into capital through strategic investment.

■ What are management strategies based on managers’ moral sense?
"Kenkokeiei as future investment determined under managers’ management strategy"
In modern society, where the future is uncertain and hard to predict, even when the correct answers are not insight, managers must properly determine what to do at that moment and formulate a strategy.
A management strategy can be thought of as general blueprint based on which a company positions its
business activities in the market and the people within the organization work together in order to generate added
value and profits. A strategy needs to describe the "ideal vision" a company wants to achieve in the future as wellas the related "transformative scenario." Given the demand for sustainably increasing corporate value, what kindof player does a company want to be in a certain market? In order to gain a competitive advantage in that market,
what kind of company do we want to become? Possessing what values? Also, managers need to "think bythemselves" the related "transformative scenario," indicating the actions to be taken now in order for thecompany to achieve its "ideal vision" in the future. In other words, a strategy embodies the managers’ originalplanning, their endeavors to "be in a certain way," and it could also be called a dream.
Managers must first take the initiative to return to the company’s philosophy and raison d'être, working
backwards (backcasting) from the future business model and desired management strategy, to ensure they arecompatible with the managerial resources available. It’s particularly necessary, from the perspective of humancapital, to visualize the deviation from the "desired" business model and strive to reduce it. In such cases,
besides matching personnel to the management strategy, it will also be necessary to tackle strategy planningfrom the perspective of whether the personnel’s capital value expands the possibilities of the management
strategy. In a Kenkokeiei structure that similarly prizes human resources as capital, it is necessary for managers
to formulate management strategies by leveraging their company’s strengths.
Furthermore, these days companies have already started exchanging human resources in order to increase
their corporate value. In order to utilize a limited number of human resources, it becomes necessary to consider
the circulation of human resources between companies in corporate management as well as enhance theattractiveness of each company when managing companies.

Strategic planning to achieve ideal vision:
1) Clarification of "ideal vision (corporate philosophy, company’sraison d'être)"2) Definition of human resources in "ideal vision"3) Understanding "ideal vision" and "current situation"4) Formulation of "transformative scenario" to achieve "ideal vision"

Capital market(investors)
Products market(customers)
Labor market (workers)

Market definedas business area

Kenkokeiei
Human capital investment

Ideal vision

Deviation(problems)

Transformative scenario
As is/ Current situation
Clarify issues that affectmanagementTime■ What are management strategies based on managers’ moral sense?
"Considering social issues as a new market"
The spread of the new coronavirus epidemic in 2020 has further accelerated the "VUCA era." The VUCA
acronym refers to a situation where the surrounding milieu, from the business environment to markets,
organizations, individuals and so on, is in constant flux, making it difficult to predict the future. In such a social
environment, at the corporate level, a new type of corporate management is required: from concentration to
decentralization and from decentralization to collaboration. To avoid being left behind in these changing times,
managers are required to determine by themselves what they think is right and formulate management strategies
accordingly.
In particular, in modern business strategies, together with SDGs, the perspective of consumer behavior
referred to as "ethical" is becoming more and more relevant. In this context, the word "ethical," rather than
indicating compliance with the letter of the law, refers to thinking for oneself and taking actions that benefit
society. SDGs are development goals proposed by the United Nations in 2015 as social goals for the year 2030.
The reason why the SDGs are gaining so much traction these days is believed to be that all aspects of society are
intricately intertwined, with an increasing number of issues that cannot be solved by conventional rules alone.
The SDGs merely indicate themes and goals, but do not specify any rules. As perspectives change, the SDG
development goals can be seen as a new market for companies and an opportunity for new business activities.
At Kenkokeiei level, it is particularly important to tackle Goal 8, "Promoting sustained, inclusive andsustainable economic growth, full and productive employment and decent work for all." Also, when employees
come to be regarded as consumers, achieving the SDG development goals, now defined by a company as its own
market, and contributing to ethical consumption will help gain workers’ trust. It is therefore important for
managers to adopt the perspective of balancing corporate growth and social development, as well as corporate
value and employees’ health.

Employees’ trust

Corporate growth and social
development

Employees as consumers

Solving social issues as amanagement tool

Ethical Consumption

Consumers individually consider thesolution to social issues and engage
in consumption by supporting
businesses that tackle those issues.

Efforts towards achieving
SDGs enhance employee
motivation

■ What is occupational safety (health care) in Kenkokeiei?
"Initiatives from the perspective of legal compliance"
In the past, a great number of female factory workers in Japan developed tuberculosis as a result of overwork
and poor working conditions and were then forced to return to their hometowns, where even more lives werelost, as described in The Tragic History of Female Factory Workers reportage. As a result, the "Factory Act" wasenacted in 1911. It was then that the principle that "working should not deprive workers of their health" becamelaw.
The following passage, taken from "Job Construction Information" (1903), underscores how the health of
employees and the health of business operators are two sides of the same coin, highlighting how in modern
societies, where infectious diseases are widespread, it is particularly necessary to recognize the importance of
health care and health promotion (disease prevention). "At a certain spinning factory, a female worker who fellsick with typhus was not given sufficient medical attention and, instead of being provided with a sickroom, wastreated in a dormitory. As a consequence, she infected other female workers, and of 30 female workers all but 5
ended up with typhus, writhing in agony with their pillows lined up in the dormitory. Eventually, even thefactory owner and his family came down with the disease, and the total death tally included one member of thefactory owner’s family and three female workers. This is the result of neglecting hygiene, and one is leftspeechless by such a horror. "(Job Construction Information, Volume 1, edited by Giichi Inumaru, page 365, Iwanami Bunko 1998)
Following that incident, the Labor Standards Act was passed in 1947 which set the minimum standards forworking conditions. The Labor Standards Law, enacted to guarantee the right to existence of workers,
established the minimum standards for working conditions with regard to items like labor contracts, wages,
working hours, holidays, annual paid leave, disaster compensation and work regulations. Additionally, theIndustrial Safety and Health Act was established for the purpose of ensuring the safety and health of workers in
the workplace and promoting the creation of a comfortable working environment. It was originally enacted in1972, with the provisions on "safety and hygiene," stipulated in the Labor Standards Law, published separately.
The Industrial Safety and Health Act, as a way to ensure an environment where workers can work with peace ofmind, introduces measures to maintain and improve the health of workers based on a study of past occupational
accidents, including measures to protect workers from danger and health problems, regulations on machinery,
dangerous and harmful substances, safety and health education for workers, safety and Kenkokeiei systems, and
it is still in effect today, periodically revised to keep up with the times.
In Kenkokeiei, industrial safety and health (healthcare) refers to the creation of a safe and secure workplace
and the promotion of physical and mental health to guarantee the joy of "finishing one’s daily work andreturning safely home." Compliance with labor laws such as the Labor Standards Law and the Industrial Safety
and Health Act is the criterion for judging basic efforts to protect the health of employees. These laws, however,are only the minimum standard set by public authorities, and compliance with the law alone cannot truly protect
the health and safety of employees. The WHO states that "unemployment damages the health of workers," and it
is also an unfortunate fact that in Japan, due to long working hours and various forms of harassment, "working
impairs the health of workers and endangers their lives."
Starting a company is also regulated by law in Japan, where a company’s rights are protected by law. The
principle of labor-management equality stipulates that there must be a balance between corporate profits andworkers’s income. If profits and income are significantly unbalanced, a claim for damages can be filed against
the party that caused the unbalance, and if issues of criminal nature arise, penalties will be administeredaccordingly. As a country under the rule of law, businesses activities too are regulated by law. The Labor
Contract Law stipulates that it is the management’s duty to take measures to prevent physical and mental
accidents and mishaps on the work floor. Complying with laws and regulations is the basis of maintaining ahealthy mutual relationship and ensuring the continuation of corporate activities.

■ What is "health promotion" in Kenkokeiei?
"Investing in improving health literacy"
The physical and mental health of workers is the foundation of exercising leadership and improving
motivation and engagement, and the existence of "employees who can fully demonstrate their abilities" is thepremise of corporate management. When a company focuses on improving the health of its employees,“business performance improves." This is because employees’ health is directly linked to productivity. If you are
physically and mentally ill, you will not be able to concentrate on your job. If you are in poor health, yourattendance and work performance will obviously be poor. Whether because of absenteeism (absence due toillness) caused by poor physical conditions, or because of presenteeism (working while indisposed, whereby
employees cannot demonstrate their abilities and skills even though they engage in work), it will not be possible
to achieve satisfying results and productivity will decline.
In order to improve the "quality of work" it is therefore first necessary to improve the "quality of health." Thehigher the quality of work, the higher the quality of products and services produced. When the three elements of"quality of health," "quality of work," and "quality of products and services" are mutually linked, a company’s
added value will increase. On the contrary, if you try to improve the "quality of products and services," you will
not get results if the "quality of health" of employees is poor in the first place.
In recent years managers have invested in OA and IT in order to increase the value of products and services.
In Kenkokeiei, investment in human capital is similarly indispensable in order to increase the value of people.
From a health promotion perspective, investment in improving "health literacy" is crucial. Health literacy can bethought of as "the ability to determine one’s health for oneself." In order to for employees to stay healthy,
whether they have just joined the company or are about to retire, it is necessary to develop the ability to detectchanges in health conditions through regular checkups and stress checks, as well as to cope with those changes
by improving lifestyles.

Quality of society

Giving one' s best performance
Exercisingleadership

Quality of company

Adjusting one's
motivation

Quality of
products/services
Occupational safety

Mental and physical healthconditions (Well being)

Quality of work

Managing one's lifestyle

Quality of
HealthThe quality of products
and services is guaranteedby the quality of work

Health literacy

The quality of work is
guaranteed by thequality of health■ What is "working conditions" in Kenkokeiei?
"Converting people into capital through comfort and communication""Health," the subject of Kenkokeiei, is a very important theme for people. If you take care of your health, if
you are sound in mind and body, you may be able to attain your goals. Kenkokeiei, however, does not stop at
ensuring that bodies are healthy; it requires formulating corporate strategies with an eye to turning people into
capital.
The two key elements of this strategic perspective are comfort (pleasant and comfortable working conditions)and communication. Recently management strategies have focused on increasing employees’ engagement by
increasing working conditions, such as by investing in diversity and inclusion. We believe these are important
points when putting Kenkokeiei into practice.
Strategy is successful only if combined with tactics. So what are the best tactics to get results? There are twothings that each company can do in its own distinctive way: "creating a "space" where one can work
comfortably" and "creating "space" for communication." Why is it important to invest in comfort andcommunication? Because the creation of these two “spaces” helps transform the intangible assets of untapped
wisdom and knowledge that people people possess as "tacit knowledge "into "explicit knowledge." Once madeexplicit, knowledge and wisdom are a source of new value for companies. Turning people into capital can bethought of as investing to ensure the physical and mental health of all employees so as to unlock their true
potential.
The reasons of Kenkokeiei strategies differ from company to company is because companies have different
goals that vary depending on which market they define as their own, and because they have to choose the formsof comfort and communication that are best suited to their corporate characteristics.

Strategic axes of Kenkokeiei

Investing in human capital =turning tacit knowledge into explicit knowledge
Comparing people's
knowledge to an iceberg[Comfort]

Explicit knowledge

Environmental
axis[Body][Mind]

Health care axis

[Communication]

Tacit knowledge
In the area below the water
surface there is enormous sensory
and imaginative experience value.
By sharing it and combining itwith that of other people, newknowledge is created.

■ What is "job satisfaction" in Kenkokeiei?
"Job satisfaction creates corporate value""Job satisfaction" means being able to actively engage in job that suits you, so that you can increase your own
value through your job. What starts as series of routine tasks, by virtue of iteration, leads one to understand theinterconnectedness of different professional roles. When, by doing so, people get to understand the breadth anddepth of the job itself, and realize that everything is tied up together with different threads, they develop a deep
interest and appreciation in what had left them indifferent up to that point and, as a result, they are believed toexperience enjoyment in their job. According to this line of thinking, what starts as LABOUR (pain, travail), by
virtue of accumulation turns into what is best described by the German word "BERUF (duties bestowed byheaven)."In order to increase one’s "job satisfaction," a relationship of trust is required between the company and its
employees. A relationship of trust is built on a foundation of psychological safety and it requires that thecompany’s "ideal vision of itself" be aligned with the employees’ "ideal vision of themselves." In order for thisalignment to take place, it is fundamental for the management to clearly indicate the course of the company as amatter of management strategy. If employees realize that the experience and skills acquired by working at thecompany will lead to an increase in their own value, they will be able to fully demonstrate their abilities while
experiencing long-lasting job satisfaction.
In order to achieve such "value co-creation between companies and employees," companies must actively
invest in maintaining a wholesome working environment steeped in legal compliance and built on comfort andcommunication, where employees can work flexibly and productively, as well as in creating work themes that
employees can relate to.

Ideal vision
Employees's growth
Increase in one's own value
as a result of working at thecompany

Engagement
Experience and ability
to demonstrate skills

Physical andmental healthPresent
situation
As is

Job offering long-lasting
job satisfaction

Employees

Job offering job
satisfaction
Working environment where one
can work productively and flexibly

Company

Wholesome working
conditions

Corporate growth
Sustainable growth and development

■ What is "job satisfaction" in Kenkokeiei?
"From supervision to a value creation prespective"
Supervisors are responsible for executing tactics based on the management strategy set forth by management.
But their role is not limited to business execution. From the perspective of Kenkokeiei, they must balance
maintaining and promoting their own health, as well as that of their colleagues and subordinates.
There are many possible causes of health problems while working, including lack of interest in one’s job,
excessive responsibility, lack of communication with superiors and colleagues, lack of work literacy (lack ofknowledge, experience, and qualifications) and so on. Moreover, all these deficiencies exacerbate physical andmental disorders like anxiety, maladjustment and depression. Even coming to the office becomes unbearable
because you can't do your job as desired. If people could come to work with the desire to do their best every day,corporate value would naturally increase.
Supervisors themselves have probably had to overcome these challenges too. Therefore, the supervisors’
experience in turning latent tacit knowledge into explicit knowledge will be extremely important for theirsubordinates’ growth. The role of the supervisor is to draw out of their subordinates the power they’ll need to go
beyond themselves, as well as to increase their motivation and engagement towards that goal through work.
Therefore, managers have the right to issue orders and commands, and in managing their subordinates theyneed to fully consider the impact of work on their physical and mental health from both a "qualitative" and a"quantitative" standpoint. Health care requires managing the workplace in compliance with labor laws like theIndustrial Safety and Health Act, and when promoting health promotion, it’s necessary to proactively foster ahealth-promoting workplace culture from the viewpoint of safety consideration obligations. The most important
thing is the conversion of "human resources" into "human capital, " that is, undertaking management with a view
to improving "working conditions" and "job satisfaction," so that each subordinate becomes the capital for
creating new corporate value from the strategic viewpoint of Kenkokeiei. It is worth noting that, while there arecertain basic rules for Kenkokeiei and health promotion, there are no particular rules as regards "working
conditions" or "job satisfaction." Therefore, in order for supervisors to create value, as mentioned above,
managers must formulate management strategies based on their own ethical standards and ensure that specificinitiatives tailored to the company’s characteristics are well known within the company.
Furthermore, with the emergence of new work styles like "side jobs, concurrent jobs, and multiple jobs," it isexpected that the relationship between employees and companies will change significantly in the future. From
the traditional one-to-one relationship in which the working party selects one company and works for it, a shift is
now underway towards a society where it is natural for one person to work in "multiple workplaces" at the sametime. We believe that this tendency will be a factor in accelerating management styles centered on "people," like"holaclassic management," where a flat organization is managed without a hierarchy of superiors andsubordinates, or "teal organizations," where almost all the authority and responsibility related to decision-making
is transferred to individual employees, causing innovative changes in the organization and human resources.
Under these circumstances, what is required, once again, in corporate management is a corporate strategy thatputs to use human capital, and to that end, a management style that makes the best use of human capital is more
important than ever.

■ Perspective of "sense of purpose" in Kenkokeiei"Creating job satisfaction and sense of purpose in the age of 100-year long lives"
The concept of "life shift," put forth by British organizational theorist Lynda Gratton, stands in stark contrast
to the traditional concept of "life stages," and advocates a "multi-stage" way of life in an age where 100-year
lives are the norm. This line of thinking focuses on "a person’s sense of purpose." A shift is underway from theconventional positioning of oneself in society and in a company, to a society for oneself, a company for oneself,
namely a style of selecting by oneself a place where to work. These changes in style are greatly boosted bydigitalization. The strategic purpose of Kenkokeiei is to "maximize human capital," and in the future, in order tomaximize human capital, perspectives like "job choice" or "work choice," where people choose a place of work,
will become more and more relevant.
Accordingly, when considering the future growth of a company over the next 10 years, investing in creating
an environment in which human capital can maximize its potential will become an ever more important issue forcorporate management.

Life strategies in the age of 100-year long lives"Lifestyle" and "working style"(job satisfaction)(sense of purpose)

FamilyChildren
Parents Spouse

Life

Work
Friends Continuing education
Community Volunteering
Hobbies

Lifestyle

FutureNow
Society

Oneself

Life Shift
Digitalization

Oneself
Society
Working in the age of 100-year long lives
Living anywhereWork style

Now

FutureOneself

Company
Oneself

Digitalization
Extension of employment
period/abolition of retirement age
Selective weekly 3-day off
system, etc.

Company
Working anywhere
Acceleration of side jobs and concurrent jobs

Kenkokeiei to build a better future-Expanded version: Considerations on the future of Kenkokeiei[Authors]
President:
Vice President:
Director:

Kunio Okada, Kenkokeiei Nonprofit Organization
Osamu Hirano, Representative Director of H2O Retailing Corporation
Tsuyoshi Higuchi, Director of Kenkokeiei Planning Department, Renaissance Co., Ltd./
Secretary General of Kenkokeiei Council’s Executive Committee[Supervisors]
Vice President:
Director:
Director:
Director:
Director:
Director:
Director:
Supervisor:

Hisanobu Yamada, Attorney at Yamada General Law Office
Koki Inoue, Professor of Neuropsychiatry at Osaka City University’s Graduate School of
MedicineToshiko Kubo, Director of Kubo Occupational Health Consultancy
Atsushi Tsuyama, Managing Director of The Association for Preventive Medicine of Japan,
General Manager of East Japan Business Department
Satoshi Hagiwara, Representative of Hagiwara Occupational Health Consultancy
Chika Hamada, General Occupational Physician at Osaka Gas Co., Ltd. Daigas Group
Health Development Center
Hisashi Yamawaki, Manager of Occupational Health Promotion Division, East Japan
Division, The Association for Preventive Medicine of Japan
Tetsuya Inoue, Managing Director of The Association for Preventive Medicine of Japan[Contributors]
Motohisa Ueda, President and CEO of Bizell Co., Ltd.
Ikuko Iguchi, Secretary General of Kenkokeiei Nonprofit Organization
Chizuru Sekino, Director of the Kenkokeiei Council’s Executive Committee
Kohei Tanno, Director of the Health and Longevity Industry Association[Inquiries]
Administrative Office of Kenkokeiei Nonprofit Organization
5-2-18 Sankyo Building’s East wing, 6F, Nishitenma, Kita-ku, Osaka 530-0047
Phone: +81-6-6362-2310 Email: info@kenkokeiei.jp