Tokyo, April 7 – Professor Colin Mayer, Emeritus Professor of Management Studies at University of Oxford, delivered a lecture titled “Reimagining Capitalism: Solutions for a World in Crisis and Japan in Transition.”  Professor Mayer is a renowned economist and former Dean of Oxford’s Saïd Business School, has advised governments, global corporations, and policymakers across Europe on reshaping business for the 21st century. In his address, Professor Mayer challenged the long-standing concept of shareholder primacy that has defined conventional capitalism. He argued that businesses must move beyond the narrow pursuit of maximizing shareholder returns and instead adopt a broader purpose: solving the problems of people and the planet profitably.

According to Professor Mayer, today’s global crises, ranging from climate change and rising inequality to the erosion of trust in institutions, stem in part from a capitalist model that prioritizes financial capital at the expense of social and natural capital. Reimagining capitalism, he asserted, requires redefining the corporation as a purpose-driven entity, one that is governed and financed in alignment with long-term societal goals. Institutions such as boards, investors, and regulators must actively support this transformation, ensuring that companies generate profit without causing harm. Professor Mayer emphasized the importance of embedding purpose not just in mission statements, but in corporate law, governance structures, and performance metrics.

Drawing on examples from around the world, Professor Mayer highlighted Japanese companies with longstanding traditions of stakeholder responsibility as promising models of this renewed capitalism. He argued that Japan is uniquely positioned to lead a global shift, combining its heritage of community-focused enterprise with an emerging commitment to social and environmental sustainability. In the face of demographic decline, productivity challenges, and issues of global competitiveness, Japan has the opportunity to pioneer a more inclusive and resilient form of capitalism. Professor Mayer outlined key reforms for the Japanese context, including the need to reform corporate governance, unwind cross-shareholdings, increase foreign institutional ownership, and promote more active institutional investors and takeover markets. 

Following Professor Mayer’s lecture, Mr. Ken Shibusawa offered his reflections, drawing a parallel between Professor Mayer’s message and the philosophy of his second great-grandfather, Shibusawa Eiichi, known as the Father of Japanese Capitalism. Both emphasize the integration of different values into business, aiming for a sustainable model of prosperity and peace. Rather than abandoning capitalism, his message is clear: we can strive for a better world through the responsible and ethical use of capitalism.

The lecture concluded with a Q&A session featuring keynote speakers Mr. Ken Shibusawa, Director of the Japan Association of Corporate Executives, and Professor Tomoyoshi Noda, President of Shizenkan University, where approximately 90 in-person and 300 online participants engaged in thoughtful dialogue with the keynote speakers.

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