Thursday, March 2, 2023

It gets better

Hi from Hong Kong! It's Bruce Einhorn, part of the Bloomberg News team covering equality issues in Asia, here to shine a light on surprising

Hi from Hong Kong! It's Bruce Einhorn, part of the Bloomberg News team covering equality issues in Asia, here to shine a light on surprising progress on LGBTQ rights in Japan. But first…

This week's must-read stories:

The gay rights movement in corporate Japan

On a recent Congressional trip to Japan, US Representative Alexandria Ocasio-Cortez called on the host country to do more for its LGBT population, noting that Japan is the lone G-7 member without marriage equality. In spite of overtures to the queer community domestically and a commitment to "shared values" with its global allies, the conservative government has resisted any formal changes

In the private sector, though, there's a different vibe. As Yuko Takeo and I write in a story for Bloomberg Businessweek, many of Japan's biggest employers are offering benefits to same-sex partners, and some have been vocal advocates for marriage equality.

Yamaha Corp. last month endorsed a campaign led by  Business for Marriage Equality, joining Sony, Fujitsu, Honda and others in calling on Japan to legalize same-sex marriage. That's a big change from regional neighbors like Hong Kong, where foreign multinationals have publicly advocated for equal rights but most large local employers haven't.

Why are companies in Japan willing to wade into the culture wars? There are moral issues, of course, and supporting equality can be good for business in a variety of ways. But in a country with a shrinking population, like Japan, many experts see a benefit particularly to recruitment and retention.

Given the relatively small number of young people entering the workforce each year and an unemployment rate well below 3%, the labor market is tight. With the majority of Gen Z Japanese in favor of LGBTQ rights, companies stand a better chance in the competition for talent by demonstrating that they're in synch with the way young are thinking.

"There is a labor shortage in Japan because of the shrinking population and it's kind of a sellers' market," says Kiyoteru Tsutsui, a Stanford professor of sociology and Japanese studies. "LGBTQ friendliness can project friendliness overall."

The usual caveats apply. There's a limit to what companies can do. Equal status under the law requires action from lawmakers and judges. But Naosuke Fujita, co-founder of Lawyers for LGBT & Allies Network, says that companies "publicly supporting marriage equality is a huge change.'' Maybe they can help pull the government along. —Bruce Einhorn

By the numbers

4 out of 10
board seats on FTSE 350 companies are women, hitting a gender diversity target three years ahead of their 2025 target

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