For Japanese-affiliated companies to run their operations smoothly overseas, it is essential that these companies work in harmony with local communities by engaging in community relations programs. Indeed, nations are made up of several regional and local communities, each playing a crucial role in the character of the nations. In the U.S., for example, citizens give high priority to their local communities, and they support those communities through donations and volunteer activities. In Asia, a new trend has emerged in which citizens and government agencies work together to solve social development and other regional issues. While remaining cognizant of the cultural, social, and religious diversity of Asian countries and regions, the CBCC will support companies as they strive to deepen their understanding of the communities in which they operate and actively implement their community relations programs.
The CBCC invites community-relations experts, scholars, staffs of foundations and NGOs, and others from Japan and abroad to give lectures and participate in panel discussions. The aim of such activities is to help Japanese-affiliated companies to broaden their understanding of the overseas societies in which they operate. In this way, the council provides member companies with a wealth of information that promotes better community relations.
The CBCC dispatches survey missions to the U.S. and Asia in order to bolster understanding of the current status of community relations activities, ascertain the needs of local communities, and learn more about new, locally emerging issues.
The CBCC works to develop networks with opinion leaders, companies, foundations, and NGOs, with the aim of establishing links to address various local concerns.
The CBCC was authorized in 1990 as a "designated public-benefit organization" under the Corporate Tax Law Enforcement Ordinance and the Income Tax Law Enforcement Ordinance, and this status has been renewed every two years since then. Any prospective project first needs approval by our Project Selection Committee, a panel of well-informed individuals, and the money involved must be sent from the Japanese donor through the CBCC to the project overseas. The donor may then seek tax deduction for the funds up to the limit described as below. As the committee meets for a screening session whenever a sufficient number of applications have been received, we welcome proposals for new project at any time. Interested parties should contact our Secretariat for details.
As of March 2009, the CBCC has approved 132 projects and contributed a total of 20 billion yen for their implementation.
Corporations:
Corporate donations are treated as ordinary tax-exempt donations (deductible from pre-tax income) up to a certain limit ([income × 5.0%+capital × 0.25%] × 1/2).
In addition to this, donations to designated public-benefit organizations may be treated as special tax-exempt donations under Article 77 (Part 1, Item 3-q) of the Corporate Tax Law Enforcement Ordinance. The limit for special donations is the same size as that for ordinary donations.
Individuals:
Under Article 217 (Part 1, Item 3-q) of the Income Tax Law Enforcement Ordinance, donations to designated public-benefit organizations may be deducted from income up to a specified limit. The limit is 40% of gross income minus ¥5,000, and it applies to the individual's total donations (including those to government bodies and specially designated donations).
Broadly speaking, there are 9 types of designated public-benefit organizations that are eligible to receive preferential tax treatment. The CBCC is recognized by the competent minister as a corporation that complies with the Civil Code and which, with regard to its main activities, evidences an appropriate administrative organization and accounting system, has demonstrated an appropriate level of achievement, and has no officers or other employees or agents who have received special benefits as a result of receiving donations. The CBCC's stated purpose is to "engage in activities that introduce aspects of Japanese politics, economics, and culture to people overseas, with the aim of promoting a deeper understanding of Japan abroad". (Article 217, Part 1, Item 3-q of the Income Tax Law Enforcement Ordinance, and Article 77, Part 1, Item 3-q of the Corporate Tax Law Enforcement Ordinance)
The interests in Corporate Social Responsibility (CSR) is increasing rapidly in Western countries along with the rapid progress of globalization or information technology, civil society including NGOs, the changing of consumer behavior, and intensified competition between companies. There have also been successive motions to enact the international standard on CSR at international organizations, such as the OECD, the United Nations, and the ISO.
Moreover, Socially Responsible Investment (SRI) is also spreading and investors are assessing companies based on CSR. The CBCC is following up these backgrounds and the trends of various standards and also participates in foundation processes of international standards.
To promote deeper understanding of international standards and the latest development of CSR, the CBCC invites CSR experts from Japan and abroad to give lectures and participate in discussion meetings.
The CBCC works to develop networks with NGOs or international organizations which operate actively to promote CSR activities and standardization. The CBCC also participates in the foundation processes of international standards.
The CBCC works to disseminate information about the role Japanese-affiliated companies should play as "good corporate citizens." It also engages in a number of activities designed to encourage companies to solve the problems they confront when establishing themselves overseas, and to help those companies better understand the goals and activities of the CBCC.
The CBCC issues a publication "Stakeholders" which spotlights the latest status about CSR, companies' community relation activities, and examples of the overseas contribution projects. It also contains investment information and articles describing social conditions in different countries.
"CSR NEWS" is the Japanese translation of selected articles from the "BSR Weekly", issued by Business for Social Responsibility (BSR). "BSR Weekly" summarizes articles on CSR from major news sources worldwide. Articles from "BSR Weekly" are picked up on the basis that they are subjects of strong interest to Japanese corporations.
To disseminate information on its activities in Japan and abroad, the CBCC has established a web site (http://www.keidanren.or.jp/CBCC/) which provides text in both Japanese and English.