Channeling Funds to “Companies That Develop People”—A “New Form of Collaboration” That Supports Talent Development363

*Previous column is here.
“90% Do as You Please, 10% Cooperate”—A Blueprint for Japan’s Revival Based on an Autonomous, Decentralized, and Collaborative System

In my previous column, I presented a blueprint for an “autonomous-decentralized-cooperative system” that embeds “10% cooperation (coordination)” as a mechanism to protect the collective good while respecting individuals’ freedom of action (autonomy and decentralization). In this column, as an attempt to give concrete form to that mechanism, I will focus on the area of “human capital development,” which is crucial for society. Rather than relying on the goodwill or donations of a few individuals, how can we create a system where companies that nurture talent are fairly recognized, and funds circulate autonomously? I propose a new cooperative system that channels investment toward the human capital who will shape Japan’s future and lead the next generation.

Why Is It Hard to Raise Funds for “Developing People”?

The concept of “social common capital,” as proposed by economist Hirofumi Uzawa—whom I have introduced many times before—refers to the foundational resources—such as forests, water, healthcare, and education—that society as a whole must maintain and pass on to future generations. However, these resources tend to struggle to secure sufficient funding if left solely to market forces. Among these, “education” and “human resource development” are particularly challenging areas for investment.

In the activities of the “Platinum Initiative Network,” of which I am the chairperson, it is often easier to gain corporate support and participation in areas where a concrete link to business profits can be demonstrated—such as the processing and utilization of forest resources and renewable energy. This is because initiatives such as harvesting trees, processing them into high-value-added wood-based building materials for use, or operating power generation projects make it easy to demonstrate the relationship between investment and returns.

However, when it comes to education and talent development, companies face the reality that they are often reluctant to invest money. It takes many years to develop an employee into a fully competent professional. Furthermore, there is the so-called “free-rider problem,” where talented employees whom the company has invested in and trained may end up leaving to join another company. In a market-driven environment where short-term profits and immediate returns tend to take priority, investment in human capital is often put on the back burner.

Goodwill and having a "favorite" alone aren't enough to sustain a social system.

Of course, this doesn’t mean that entirely new flows of money haven’t emerged. In recent years, mechanisms known as “DAOs (Decentralized Autonomous Organizations)” have emerged, utilizing digital technologies such as blockchain to allow participants to engage in fundraising and decision-making. These organizations bring together people who share a common goal to pool their funds and participate in project management. It is becoming increasingly possible to translate individuals’ desires to “support” or “participate” into concrete funding and activities.

On the other hand, many initiatives addressing social issues are still supported by individual donations and goodwill. One example is the “Playcar,” a vehicle loaded with various toys that travels around local communities to provide play spaces for children. The “Mitenne Fund,” established with personal funds from Kenji Kasahara, founder of Mixi, has provided a 70 million yen grant to the “J-CST Initiative” run by the NPO Chance For All, which aims to expand the Playcar program nationwide.

Funds and DAOs like these are effective ways to turn goodwill and empathy into ongoing support. However, relying solely on voluntary contributions and participation from individuals has its limits when it comes to providing stable, long-term support for the development of the human resources needed by society as a whole. Rather than dismissing individual goodwill, we need a design that embraces it and elevates it into a social system capable of engaging a wider range of participants.

A Financial System That Recognizes “Companies That Develop Their People”

So, how can we turn goodwill and empathy into a sustainable flow of funds? One such effort is the movement to incorporate the perspective of human capital into financial evaluation criteria.

The “Platinum Career Award,” an initiative spearheaded by the Future Co-creation Initiative (ICF) at the Mitsubishi Research Institute—where I serve as Chairman—has evaluated companies that support employees’ continuous learning and long-term career development, utilizing CSR data from Toyo Keizai Inc. and other sources.

To translate this philosophy into a metric for evaluating companies in the financial markets, Mitsubishi UFJ Trust and Banking Corporation has developed the “Platinum Career Index (Japanese Stocks),” which evaluates companies that are proactive in supporting their employees’ career development. The index comprises companies with high Platinum Career scores, and its performance has consistently outperformed the TOPIX.

Even if such indices are used to inform investment decisions, that capital does not automatically translate into corporate spending on human resource development. However, if companies that actively invest in their people are recognized by the market, this can strengthen their motivation to continuously develop their workforce. This initiative goes beyond the framework of “donating because it’s a good cause”; it evaluates investment in people as a component of corporate value and seeks to generate a flow of funds within the market.

Turning Goodwill into a “System” for the Circulation of Funds

Transforming the “goodwill and support” provided by certain philanthropists and fans into a system of capital circulation that carries economic value. This could serve as one solution to the challenge facing the Japanese economy, namely the lack of sufficient investment in people.

Currently, in personal wealth building, global equity index funds—such as “Orkan”—and U.S. equity index funds are widely favored. While we do not dismiss the value of diversified overseas investments, if we can create options that offer both profitability and social value for investing in Japan’s future and its human capital, we can attract capital to companies and businesses that nurture talent.

While leveraging individual, autonomous investing (self-directed diversification), we will refine evaluation and investment rules to ensure that funds flow toward human capital development—a form of social common capital. Digital technologies that reduce transaction costs (such as digital micro-shares) can also serve as a means to this end.

While recognizing the importance of individual economic freedom, we must incorporate a reasonable level of “cooperation” to safeguard the sustainability of society as a whole. Let’s build goodwill into the system. Giving concrete form to this “new design for a cooperative system” is the vision for the future that Japan must present in order to overcome the limitations of self-governing decentralization. (Hiroshi Komiyama, Chairman of the Platinum Initiative Network and Honorary Editor-in-Chief of *Forest Circular Economy*)

*Reference link
Creating free “play spaces” for children in both disaster-stricken areas and depopulated regions. Carrying infinite possibilities, the Playcar travels across the Japanese archipelago! | Mitene Fund
Platinum Career Award
Platinum Career Index (Japanese Stocks) Index Product Lineup: Mitsubishi UFJ Trust Bank

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