Photo/Illutration Fumihiko Kobayashi, right, an executive vice president and chief administrative officer of Itochu Corp., explains his company’s approach at Harvard Business School in November 2024. (Provided by Itochu Corp.)

Harvard Business School has published a study on a Japanese trading house’s business style dating from the feudal era.

The case study of Itochu Corp. centers on its “sampo-yoshi” (triple-benefit) policy, under which enterprises go all out to make their products and services beneficial for sellers, buyers and society at the same time.

Harvard Business School’s study appeared in a magazine in spring for readers interested in business management and educational institutes.

The triple-benefit business philosophy is believed to have been broadly shared among merchants from Omi (present-day Shiga Prefecture).

Ito Chubei (1842-1903), who founded what is now Itochu in 1858, was among those successful merchants.

Recent academic papers showed that Chubei referred to a business style that likely inspired the triple-benefit principle.

Itochu designated the Omi merchants’ wisdom as its group policy in 2020.

Harvard Business School discovered that many Japanese companies have survived for more than 100 years by overcoming a succession of challenges, such as the COVID-19 pandemic. It cited the triple-benefit spirit in particular for such longevity.

Harvard Business School decided to look into the style as part of its research program.

To explain the company’s business approach, Fumihiko Kobayashi, an executive vice president and chief administrative officer of Itochu, visited Harvard Business School last fall.

“The triple-benefit stance in the business world can be likened to a computer operating system,” Kobayashi said. “Installed 160 years ago at the time of the company’s introduction, it has been running ever since, with business applications added over time.”

He emphasized the significance of the social impact that he insisted was brought on by Itochu.

“We have been exerting positive effects on society while producing profits in a sustainable manner,” Kobayashi said.

For example, Kobayashi mentioned that Itochu called for its employees to start work much earlier in the morning. He said this shift not only changed their awareness but also raised questions about efficient work styles and work-life balance among partner corporations and other members of society.

The triple-benefit idea may come into the global spotlight now that it has been publicized by Harvard Business School.

“Omi merchants did business primarily along the tough Nakasendo route,” Kobayashi said. “They could not set up stores in Kyoto or Edo (today’s Tokyo) to sell items under comfortable conditions.”

Kobayashi went on: “They had no choice but to win customers’ trust and earn money, if only a little, daily. The triple-benefit attitude represents their frontier spirit, which is still alive even these days.”

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