University of Vaasa - Vaasan yliopisto

these three actors have been strongly connected in Japanese unique policy system
called Shingikai.
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Now I would answer the questions I listed above. Some of the cut down on
information costs are promoted by companies themselves. Participation to an
international standard is completely voluntary but Japan and Germany are one of the
most enthusiastic countries to join this. VAs enable the regulatory threat functional.
To alleviate future risks, companies are motivated to join VAs. Usually companies
set up, evaluate and issue environmental targets to achieve in the framework of VAs.
Thus these must fulfil the condition (1). The condition (2) is still unclear because the
criticism that a VA is a too weak instrument to settle climate change recently
occurred in Germany. VAs have improved the relationship of actors however it is
sceptical if VAs can continually improve the relationship and reduce the information
costs. On the other hand, it is credible that the voluntary disclosure of corporate
information will improve. The fact that the number of companies publishing Eco-
Report or CSR report increases must confirm this trend. Thus the condition (3) is
also fulfilled.
In the private politics companies disclose information in order to respond to the
requirements of companies. The companies have noticed the advantage of use of
NGOs’ trust which consumers have. The private politics can improve the relationship
between companies and NGOs because it realises the “win-win” situation. As long as
the private politics brings the “win-win” situation both companies and NGOs have
no reason to give up this measure. Thus this can strongly promote CSR.
The last aspect must be handled carefully. On one hand this potentially decreases the
information costs of NGOs; on the other hand this would increase the information
costs of the government. Whether or not this change is advantage for CSR depends
on a balance of increase and decrease of information costs. Thus the government
should use formal or informal measures to minimise the increase of information costs.
A VA can be helpful but the regulator has to be careful of the limitation of VAs.
In sum, the institutions in Japan and Germany differed until the 1980s; especially
existence of NGOs and the relationship between companies and the government were
significantly different. However the driver decreasing information costs in both
countries looks not as different as the former institution did. The lack of political
alternatives to public regulations, and the implementation of international standards
requiring reporting on environmental information play a crucial role in both counties.
A politician who wants to promote CSR should carefully use these factors in the
future.