When viewed from this perspective, how does the Yakult Lady system fare? The schema in Figure 4 clarifies the meeting of needs, generation of income and stimulation of independence.
To continue, the features of BOP business can be summarized as the following three points. Unless a business satisfies all three, it cannot be considered a BOP business. First, BOP business should not be charitable work, but core business. It must be sustainable over the long term as a core business that earns profits. Second, it must use innovative, efficient and sustainable business means to solve the issues faced by the BOP tier (how to reduce poverty, improve the environment and ensure better lives). Third, as a partner of the local people, it must share their values.
How does the Yakult Lady system fare in light of the above three points? It is certainly a core business. Consequently, it both contributes to improving the health of the poor and establishes a partnership with the local women, who work as Yakult Ladies. Every individual who participates as a Yakult Lady becomes a proprietor who has a similar relationship with Yakult Honsha as the retail stores it entrusts with sales. In other words, Yakult Ladies are not part-timers or other such contract employees.
Yakult Honsha has five strengths that made it possible to secure the poor as a market and contribute to society through core business: (1) steadfast founding philosophy and principles, (2) a strong sense of mission, (3) a long-term perspective, (4) a Gemba (workplace or actual location)-oriented stance, and (5) outstanding, scientifically backed products (= Yakult).10 This is what can be called an ideal model for a BOP business that definitely solves social problems through core business.
These five strengths are not peculiar to Yakult Honsha. When the concept behind Japanese-style corporate governance and the special nature of characteristics that distinguish Japanese companies are considered in light of BOP success factors, it is clear that Japanese companies have much more of a base for BOP business than do Western companies, or at least British and American ones.
In terms of the concept behind British- and American-style governance, corporate goals are straightforward.11 Specifically, they focus on value for shareholders - i.e., raising share prices to the maximum - and give the highest priority to shareholders’ profits. The major participants are first, the shareholders; second, the management; and third, the board of directors. There is thus no room for employees and other stakeholders to come into the picture.12 The objective of British- and American-style companies - to boost profits in the short term and cause share prices to rise - is completely incompatible with BOP business success factors.
In contrast, in the way of thinking behind Japanese-style corporate governance although corporate objectives naturally place importance on profits and shareholders, the greater emphasis is on maintaining business and having it prosper over the long term, ensuring that its existence as a collective will be long-lasting. Abegglen has criticized US companies, remarking, “The result of the US governance system, dedicated to maximizing share price, with the CEO largely free to pursue his own interests, is short-term share price maximization, selling off the corporation’s future, the future of everyone in the company except top management, and the future of much of the community as well.”13 It thus can be said that Japanese companies, which emphasize the collective, the consensus and long-term profits, clearly have far more possibilities and potential for BOP business.