Yahoo to set up office in Ishinomaki Exploring the best avenues for corporate support one year on

Yahoo! Japan decided to set up in July a local office in Ishinomaki – the first of its kind for the company in its support of the post-tsunami recovery.

Yahoo has explored and worked on various options to provide support in a way that only Yahoo can, one of which is their online “Recovery Department Store.” The website sells Tohoku specialities by co-operating with businesses in the disaster-affected areas. It has been an effective form of support, with a number of businesses recording monthly sales of over a million yen just three months after starting to work with Yahoo. The “Recovery Department Store” recorded total sales of over 10 million yen in the months of March and May this year.

In the process Yahoo continues to communicate with people in affected areas and become more aware of the problems they face. Yahoo decided to set up an office in Ishinomaki so it can work yet closer on local issues. As for why Yahoo chose Ishinomaki amongst the affected areas, the company cites its connections with local businesses though its online store, and Ishinomaki’s relatively large business scale.

Setting up an office marks the start of a genuine business for Yahoo, and the company plans to deliver more attractive specialties from affected areas. It will make electronic commerce and information sharing the pillars of its business, with IT training and branding/marketing support as its foundations. Working with local businesses with potential is seen as an opportunity for the company itself.

Moving from CSR to CSV and using business expertise

Now a year on since the disaster, the recovery seems have to reached a plateau. It is an important period in terms of medium to long term recovery but results are hard to see, and many supporters are beginning to fall away. So it is important to provide continued close support so that people and businesses in affected areas can become independent
and grow on their own.

Many companies are still involved in regular support activities in affected areas. While hopes are high that this will energize local economies, some people are doubtful that it will lead to substantial results. Also while various companies have managed to donate some 100 billion yen in total for recovery, some people point out that half of this amount has not yet been allocated for use.

Taking this into account, what is required now is not just funds, but assistance which leverages the supporting company’s strengths and contributes towards the development of new business. In other words a switch from activities stemming from Corporate Social Responsibility to continued support together with the business, or Creating Shared Value.

Supporting companies and local businesses need to establish a system where both social problems are addressed and businesses grow, resulting in a win-win relationship. One hopes that the establishment of a Yahoo office in Ishinomaki turns out to be a good example of companies “Creating Shared Value” in affected areas.