Reflection on “The Path of Kyosei”

Posted by Chris Iafolla

 

The article, “The Path of Kyosei” was Ryuzaburo Kaku’s description of how Cannon moved from a traditional business model to one that embraced the concept of kyosei.  Kyosei is described as the spirit of cooperation and it is something Kaku worked diligently at cultivating within the company.  In reading this article, I once again struggled with the viability of this theory.  Naturally, I interpreted the article through the lens of my own experiences, as well as my own personal tendencies toward business.  The truth is: I tend to view things as a zero-sum game.  For example, when my company goes on a new business pitch, my primary job is to beat the other agencies that are bidding for the business. In this case, somebody has to win and somebody has to lose.  Of course, these situations will always exist and it is that reality that allowed some skepticism to creep in when reading this article.

 

It’s not that I don’t buy into the principle of kyosei.  I certainly believe that acting in the sprit of cooperation is a lofty aspiration.  However, I do question how feasible it is in all circumstances.  That being said, this article seemed to run parallel to the theory behind “Firms of Endearment.”  Essentially, Kaku believes that by conducting business with the principle of kyosei as the guiding factor, businesses will not only be good for the world, but it will also be good business.  As “Firms of Endearment” has proved this is in fact the case.  Running a business that contributes to the social good and all key stakeholders does not mean that profits need to be sacrificed.  Where this article seems to diverge from “Firms of Endearment” is the path to reaching kyosei.

 

Kaku explains that in order for kyosei to be achieved, a business first has to focus on establishing a solid and sustainable business model.  Kaku argues that if profit is not central to a business’ goals than it will never be able to move along the path to kyosei.  He does go on to emphasize that profit motivation should not be the sole motivating factor or else it will consume the decision makers.  So in this instance, it almost seems that kyosei is a benefit of profit where “Firms of Endearment” maintains that profit is a benefit of stakeholder-centered decisions.  While this may be splitting hairs, it does seem that simply establishing a business with the hope of getting to kyosei is quite different than starting an organization with a purpose.  I do not question the necessity of profits.  Without profits it is impossible to survive in the business environment.  I simply wonder whether this path to kyosei may create short-term decision making that hinders the ability of a company to truly reach kyosei.

 

Kaku touches on the idea of a win-win scenario throughout his article.  Again, this is where I struggle from a personal standpoint.  The principle as presented is worthwhile and something that all businesses should aim to achieve.  But when I evaluate my own company, I fail to identify how we can truly meet the criteria of kyosei.  As a company, we are fairly active in our local community, we take on pro-bono accounts when possible, employees are treated fairly and top-level management never takes bonuses until everyone has been compensated fairly.  So at the surface, we would seem to be well on our way to the path of kyosei.  But where we fall down is when it comes to competition.  As mentioned earlier, the nature of our business is that somebody has to win and somebody has to lose.  If you extend that out, especially in this economy, losing businesses often equates to people losing jobs.  Does the fact that we beat our competitors more than we lose negate our ability to achieve kyosei?  I suppose this is a narrow-minded view of the industry but I can’t see many opportunities to partner.  We offer identical services and there is not enough budget for all of us to share in the pie.  The consequence is that some companies are whittled out while others survive.  When you are personally in those situations, it is difficult, if not impossible, to ignore that reality.  I rarely view circumstances as a win-win because if another agency wins, it puts my agency in jeopardy. 

 

Putting this in the context of the article, I am not sure a company like mine can truly achieve kyosei as defined by Kaku.  We are profitable, but do not have the resources to turn away business.  We also work in an industry where partnerships are not prevalent.  As a PR agency, it is natural to partner with ad agencies, branding agencies and marcomm groups.  But to partner with another PR agency is unheard of in the industry.  Where Cannon was able to partner with Kodak and HP, I am not sure we have those opportunities.

 

Does this mean that a cash-strapped company in certain markets is incapable of kyosei?  Maybe it does as currently defined but I don’t believe that is the intent of the definition.  In reality, my company treats its employees well, helps the community as much as possible and donates its services for free routinely.  The other stark reality is we have to beat our competitors more than we lose to stay in business.  So while that one instances may be a zero-sum game, the rest is a win-win.  In addition, we do play well with our competition when afforded the opportunity.  If we receive a lead we can’t service we gladly pass it to a competitor and we always fight fair in a new business situation.  Ultimately, kyosei is a worthy principle to strive for in business and something that can be achieved no matter what industry you are in and what resources you have at your disposal.   

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