Environmental Business in Environmental NGOs 1995.11.15

Japanese environmental NGOs (Non-Oversight Organizations), which have been said to be weak in terms of both scale and power, including cooperation and funding from the general public, have recently begun to establish a foundation for their activities.

In the past few years, a new trend has emerged that may compensate for the chronic shortage of human resources. An increasing number of students and professionals are seeking employment with environmental NGOs. This is largely due to changes in the economic environment, which have led to a change in attitudes, including a questioning of existing business practices and a deepening interest in civic activities.

The emergence of financial institutions that support NGO activities is also helping to promote the commercialization of NGOs aiming for economic independence.

The environmental NGO business can be described as a "social value-creating enterprise," as Professor Kitaya of Tama University's Faculty of Management and Information Sciences has advocated. The Citizen's Bank, established in 1989, is one such support organization. In addition, PA has established the Japan branch of the Women's World Bank (WWB), a support line for women entrepreneurs. The PA also established a Japanese branch of WWB (Women's World Bank) in 1990.

In addition to the businesses mentioned above, the PA Group currently operates the Third World Shob and Environmental Crap, both of which have a large number of paid staff. The membership-based door-to-door delivery system for organic agricultural and fishery products, "Rade-isshupoya," launched in 1988, is probably the most successful example of an environmental NGO's business. The system is based on a system of contract cultivation, full pickup, and full member delivery, and links 2,500 producers nationwide with approximately 55,000 member households. The parent organization, Japan Recycling Citizens' Association, was established in 1984. With the concept of "creating a sustainable recycling-oriented society," the organization has always raised issues and proposed alternatives. It has a full-time staff of 240, and nearly 600 if part-time employees are included. It is one of the largest environmental NGOs in Japan, excluding the Co-op Movement and others.

The Poran Plaza home delivery service is another wholesale/retail group that connects producers of organic agricultural products and additive-free processed foods with consumers. With a staff of 300, the company's sales in 1994 totaled 100 million yen. The company is pioneering a new type of distribution that is not based on the conventional distribution system. Another example of an environmental NGO's specialty store for environmental goods is The National Trust Gift Shop, which has been operated nationwide by Hankyu Department Stores, Inc. since 1994. The company has partnered with National Trust Enterprises, the business arm of the National Trust, a British environmental protection organization headquartered in London. The company sells 3,000 products in 100 categories, ranging from home dresses, pyjamas, and other clothing to sundries, stationery, tableware, and confectionery developed by the company. The headquarters business unit in the U.K. operates 130 sales outlets in Japan, with annual sales of 6ofl negligible yen. Hankyu is capitalized at 50 million yen for the development of the franchise chain.