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From Philanthropy to Paternalism in the Noda Soy Sauce Industry: Pre-Corporate and Corporate Charity in Japan*

Published online by Cambridge University Press:  11 June 2012

W. Mark Fruin
Affiliation:
Professor of History, California State University, Hayward

Abstract

Students of Japanese business development have long debated the question of what has been called “community-centered entrepreneurship.” Most often, the debate has involved two groups: one which has contended that Japanese businessmen put the public interest ahead of personal gain, and another which has argued that profits from private enterprise were so large that public interests could be served without imperiling private profits. In this article Professor Fruin examines the concept of community-centered entrepreneurship in terms of the Noda soy sauce industry as it evolved from the period of entrepreneurial capitalism of the nineteenth century to the managerial capitalism of the twentieth. While analyzing this important early industry in Japan within the context of ongoing institutional and ideological change, Fruin not only offers substantial evidence to support one side of the controversy surrounding community-centered entrepreneurship, but also draws some interesting parallels between the philanthropic endeavors of Japanese businessmen and their counterparts in the West during this era.

Type
Research Article
Copyright
Copyright © The President and Fellows of Harvard College 1982

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References

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5 Gustav Ranis, “The Community-Centered Entrepreneur in Japanese Development,” 446.

6 Johannes Hirschmeier, Ortgins of Entrepreneurship, 158.

7 Meiji Taisho Zaisei Shōran, Toyo Keizai Shinpōsha, 1926.

8 Anonymous, Noda Shōyu Jōzō Kumiai Shi, Noda, 1919 (?).

9 Meiji Taisho Zaisei Shōran, 678–679.

10 Craig, Albert, Chōshū and the Meiji Restoration (Cambridge, Mass., 1964).Google Scholar

11 Jisuke, Shinshima, Shōsō kara mita Rakudō (Tokyo, 1929), 4, 9.Google Scholar

12 Ibid., 8.

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15 Ibid., 48.

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17 There is only one discussion in English of what is known as “the Great Noda Strike,” which occurred in 1927–28. George Totten's discussion of this calamitous event relies heavily on the account of Matsuoka Komakichi, one of the leaders of the strike and, later, a politician. Totten presumes that the pre-corporate and early corporate policies of paternalistic management at Noda Shōyu were a major cause of the strike. Paternalism, in Totten's use of the word, is a pejorative term. My research, by contrast, finds that new work rules rather than paternalistic policies were the cause of the strike and that paternalism benefited rather than harmed the workers on the whole. Moreover, paternalism became a systematic company policy only after and not before the strike. See my treatment of the strike in “Kikkoman: Company, Clan, and Community” (forthcoming) as contrasted with Totten's “Japan's Industrial Relations at the Crossroads: The Great Noda Strike of 1927–28,” in Silberman, Bernard S. and Harootunian, H.D., eds., Japan in Crisis—Essays on Taishō Democracy (Princeton, 1974).Google Scholar

18 For a full discussion of the creation of a system of lifetime employment and seniority-based compensation, two features of the so-called Japanese system of employment, see my article based on documents from the Noda Shōyu Company. Mark Fruin, W., “The Japanese Company Controversy—Ideology and Organization in a Historical Perspective,” The Journal of Japanese Studies, 4 (Summer 1978).Google Scholar