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Case Study

Pasona: Well-being through regional revitalization

By Alyson Meister and Naoko Jinjo

22 pages

November 2024

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Reference: IMD-7-2573

Pasona Group, a Japan-based human resources company, is committed to driving social change through business and supporting individuals to find “ikigai” (fulfillment) through work. The company has promoted flexible work and equitable workplaces and created employment opportunities for minorities. Pasona now wanted to tackle the overconcentration of population and businesses in Tokyo and the related decline of rural areas; both issues raised questions of well-being and sustainability. In response, Pasona moved its headquarters from Tokyo to Awaji Island, setting up sales and back-office operations for its core business and launching the “Regional Revitalization” initiative. Employees who moved from Tokyo to Awaji said that their lives became more sustainable, and their well-being improved. On the other hand, some Tokyo-based employees chose not to relocate, worried that boundaries between work and personal life would be blurred. Pasona was also criticized for its tourism-oriented and corporate-driven approach to local development, while the local government of Awaji appreciated the increase in the population and tax revenue that Pasona had brought. As Pasona sought to expand its “regional revitalization” model throughout Japan and attract more local governments to partner with the company, it needed to rethink its strategy to develop its original model in Awaji into a more powerful showcase that would lead to a more decentralized and sustainable society while ensuring the well-being of its own employees.

Learning Objective

Understand corporate social responsibility: the costs and benefits of regional revitalization and decentralization (e.g. through exploration of moving a company’s HQ to a rural community).
Discuss employee well-being: various factors that influence employee well-being, including the external environment, such as the company’s location and its role in promoting and protecting employee well-being.
Reflect on ikigai and corporate purpose: the Japanese concept of ikigai, and how it can underpin company strategy and enhance employee motivation.
Analyze issues related to the evolving role and responsibility of a company in ensuring the well-being of its employees and the broader community.
Critically reflect on benefits and risks of concentrated versus distributed economy, and what companies can do to achieve a healthy balance.

Keywords

Social Innovation, Inclusion, Equity, Diversity, Sustainability, Workplace Well-being, Social Sustainability, Community Development, Good Health, Well-being, Sustainable City, Sustainable Community, Regional Differences

Settings

Asia, Japan
Pasona Group, Business Management Services, Human Resources
2000-2024

Type

Field Research

Available Languages

English

Related material

Teaching note

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Asia Pacific Case Center

NUCB Business School

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Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

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