Sumitomo Chemicals in Japan and Africa: Differences between active-transformational and passive-transactional CSR initiatives
Date
2016
Authors
Aarma, Katlin
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Publisher
Bachelor of Commerce Best Business Research Papers
Abstract
The Olyset Net is a revolutionary malaria preventative bed net. Its fibers are tear-resistant, fast-trying, and porous on the inside as they are filled with mosquito repellent. Its slow-release of the repellent enables it to last for five years upon installation, and was the first of its kind to be created. Sumitomo Chemical, the Japanese firm behind the technology, could have reaped the rewards is placing a high dollar patent on the product and sold the net themselves to the malaria stricken countries. Instead they invested in the local Tanzanian economy by providing the Olyset technology royalty-free to A to Z Textile Mills in 2003. Two years later, their partnership turned into a 50:50 joint venture under “Vector Health International“, building a R&D research facility while A to Z Textiles runs production in two factories in Arusha and Kisongo. Sumitomo Chemical enabled a positive economic impact in these communities resulting in an increase overall production for A to Z Textiles and creating an additional 8,000 job opportunities for Tanzanians. Sumitomo Chemical also has provided various support initiatives for those affected by the “Great East Japan Earthquake“, supporting the reconstruction of various Japanese communities affected. This case demonstrates the difference between two Corporate Social Responsibility strategies (active-transformational and passive-transactional initiatives) by presenting two different examples of Sumitomo Chemical’s CSR initiatives. Furthermore Sumitomo Chemical’s CSR structure will be compared to the foundations of the Japanese CSR.
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Citation
Aarma, K. (2016). Sumitomo Chemicals in Japan and Africa: Differences between active-transformational and passive-transactional CSR initiatives. Bachelor of Commerce Best Business Research Papers, 9, 7–26.