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Home Technology & Startups

Most Japan firms stay committed to diversity despite US moves, Reuters survey shows

March 20, 2025
in Technology & Startups
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By Kiyoshi Takenaka

TOKYO (Reuters) – More than three-quarters of Japanese companies have no plan to pull back from promoting workplace diversity and decarbonisation despite recent policy changes in the United States, a Reuters survey showed on Friday.

Since taking office in January, U.S. President Donald Trump has issued a series of executive orders aimed at dismantling diversity, equity and inclusion programmes across the federal government and the private sector.

Major U.S. companies that have backtracked on their DEI initiatives in recent months include Facebook and Instagram parent Meta Platforms and Alphabet’s Google.

Japan runs far behind the United States and the other members of the Group of Seven advanced economies in gender equality, a World Economic Forum report published last year showed.

Around 77% of survey respondents said they plan to press ahead with their diversity efforts, while 3% are reviewing or considering reviewing their DEI steps. The remaining 20% had no plan to promote diversity in the first place.

“DEI is a global trend. We don’t see it necessary to change our direction just because one country’s president is against it,” a manager at a machinery manufacturer wrote in the survey.

“It is important to manage a company in a way that is fair to everyone regardless of race or gender.”

Promoting diversity and inclusion is vital to attract and retain employees as Japan faces a chronic labour shortage due to a shrinking and ageing population, some survey respondents said.

The number of foreign workers reached a record 2.05 million in 2023, around 3% of the entire workforce, government data showed, but the figure is still short of what is needed to overcome labour shortages due to Japan’s ageing population.

Asked about the potential impact of the energy policy of President Trump, a climate sceptic and advocate of fossil fuels, about 84% of respondents said they intended to maintain their decarbonisation measures, while 3% said they would slow down such efforts.

Japan relies heavily on imported oil and gas for its energy needs, and weaning itself away from fossil fuels is important for its energy security as well as for reducing greenhouse gas emissions.

The survey was conducted by Nikkei Research for Reuters from March 5-14. Nikkei Research reached out to 505 companies and 225 responded on condition of anonymity.

EARNINGS OUTLOOK

On their earnings outlook for the business year starting in April, 36% of respondents expect operating profit to grow from a year earlier, 20% anticipate a year-on-year decline and 44% see their profit moving sideways, the survey showed.

Nearly two-thirds of those expecting positive earnings growth cited firmer domestic demand as a contributing factor, while more than half of those foreseeing a slide in profit blamed higher costs for weaker performance.

“Costs are on the rise across the board. We cannot pass them all onto selling prices,” an official at a food company said.

A manager at a transportation equipment maker also pointed to the prospect of higher auto tariffs in the United States and a slowdown in the Chinese economy as a reason for predicting a profit decline.

Trump is considering imposing significant tariffs on vehicles and parts made around the world in early April.

On expectations for the yen, 77% anticipate it to trade between 140-150 yen to the dollar in the new business year starting next month, while 15% see the Japanese currency to be weaker at 150 to 160 yen, and 7% expect it to trade between 130 and 140 yen, the survey showed.

(Reporting by Kiyoshi Takenaka; Editing by Saad Sayeed)

Tags: decarbonisationdiversity effortsDonald TrumpJapanNikkei ResearchPromoting diversityReuters surveysurvey respondentsUnited StatesWorkplace Diversity
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