Citizenship Report 2014 - 2015 Creating a real impact for a better tomorrow, with the power of ICT and the mind of citizenship The future is ahead of us and Japan is moving toward it with strong footsteps. With Tokyo being selected to host the Olympics in 2020, the Japanese society sees the lights breaking through the clouds, starting to illuminate the future. Japan is still facing a number of pressing challenges, such as the trend toward becoming a highly aged society, a shrinking working age population, declining job opportunities, and contracting regional economies. In addressing these social issues, information and communications technology or ICT, has an indispensable role to play, as specifically noted in the Japanese government’s “Declaration to be the World’s Most Advanced IT Nation”. As a leading company of ICT, Microsoft Japan is contributing to finding solutions to these challenges and driving new societal movements especially in the areas of “cloud” and “mobile” technologies. Microsoft’s new mission is to “empower all individuals and organizations on the planet to achieve more.” By connecting ICT with people, ICT with Japan, and ICT with the future, we are determined to serve various communities. We believe this is the natural role of Microsoft Japan—a company that has taken root in Japan and has been growing together with Japanese society. 2 Citizenship Report 2014-2015 Contents 4 Leadership Dialogue What actions are local governments and businesses expected to take to enhance the vibrancy of local communities? —Toward progress in the “regional vitalization” initiative 8 Local Revitalization 10 Work Style New Directions 13 Small Businesses and Startups 14 Education Becoming a “productivity and platform” company 18 Information Security In February 2014, Satya Nadella was appointed as the 20 Contribution to Local Society third CEO of Microsoft Corporation. During his first year as CEO, he redefined the core and future 21 Microsoft Japan Corporate Citizenship Activities directions of Microsoft as “the productivity and by the Numbers platform company for the mobile-first and cloud-first world” and accordingly promoted radical change on a 22 Corporate Citizenship Activities around the World number of fronts, including technology strategy, business processes and methods, and corporate culture. In October 2014, Nadella made his first visit to Citizenship Report 2014-2015 editorial policy Japan as CEO to meet with customers and partners and emphasize the company’s new directions. Microsoft Japan’s Citizenship Report 2014–2015 provides Microsoft Japan, meanwhile, announced that current highlights of our corporate citizenship activities aimed at president & CEO Yasuyuki Higuchi will become contributing to solving issues that are important to Japanese chairman and current vice president Takuya Hirano will society. Among the various initiatives undertaken replace Higuchi to become the new president & CEO collaboratively and cooperatively with local governments, on July 1, 2015. With the new leadership team in educational institutions, nonprofit organizations, industry place, Microsoft Japan will continue to move forward associations, and other partners, the report covers those that with change in line with Microsoft’s global we would most like to share with our stakeholders. company-wide transformation initiative. In 2016, Microsoft Japan will celebrate its 30th year since its Note on the report content start of business in Japan. The company will continue to be committed to serving as a trustworthy company Unless otherwise stated, information included in the report firmly rooted in Japanese society. such as affiliations and job titles is as of March 31, 2015. 3 Special Talk What actions are local governments and businesses expected Leadership to take to enhance the vibrancy of local communities? Dialogue —Toward progress in the “regional vitalization” initiative Yasuyuki Higuchi Tokihiro Nakamura President & CEO, Microsoft Japan Co., Ltd. Governor of Ehime Prefecture. Yasuyuki Higuchi will assume the role of Executive Chairman of Microsoft Japan Co., Ltd. on July 1, 2015. With the new leadership team in place, Microsoft Japan has been committed to working to fulfill its public responsibilities, serving the needs of people in communities, by partnering 4 with central and local governments, nonprofit and other organizations in Japan and other social contribution activities. From January 2014 to March 2015, Microsoft Japan and Ehime Prefecture worked together under the Local Revitalization Program, a program that forms part of our social contribution activities. Under the Local Revitalization Program directed at increasing community vibrancy through the use of ICT, a range of activities were implemented to create a cloud-based website, develop promising ICT professionals, and support people with disabilities, among others. During a meeting with Yasuyuki Higuchi, Ehime Governor Tokihiro Nakamura candidly shared his thoughts on the collaborative project, major challenges local communities are facing, and the keys to solving these issues. Setting off a chain reaction by utilizing ICT for a local Higuchi: The Bike Roads website provides information on those initiative to produce a “Paradise of Cyclists” 26 roads as well as a social-network-linked community forum. Higuchi: One thing we did under this Local Revitalizatoin How has the website been received so far? Program was to launch the Ehime Marugoto Bike Roads website. Nakamura: It’s got a much greater response than we expected. Let me ask you why Ehime Prefecture decided to make cycling a Topics on the website keep expanding through the SNS and focus of its local revitalization efforts? other media. By adding more features such as GPS, maps, and Nakamura: It came down to a public pledge I made when I game apps, the website will be able to attract even more visitors. assumed the governorship five years ago. Out of three bridges As local governments like us are undeniably not so great in the connecting the islands of Shikoku and Honshu, Shimanami Kaido areas of communications and PR, this project has reminded us Microsoft is a company that continues to strive to make the in Ehime is the only one that has a separate bike path. Ehime is how useful and meaningful it is to receive support from the world a better place. Although the Local Revitalization Program very proud of this fantastic cyclist-friendly road. To help it business community. was officially launched in 2009, we were consistently working become better known around the world, I thought we should do Higuchi: The website is based on our public cloud service, with local governments even before then. Our previous activities something related to cycling. Microsoft Azure. The cloud platform allows you to build a new mainly focused on developing ICT talent and supporting NPOs, To begin, I started biking myself in order to serve as a website quickly and at less cost, and to adjust related resources people with disabilities, senior citizens, and others. In the project self-appointed ambassador of cycling. I then invited prefectural in a flexible manner. Given this, the cloud concept seems to be a with Ehime Prefecture, our involvement was extended to include government workers, mayors of cities and towns in Ehime, good match for the dynamic cycling-related content. In the the main thrust of your community revitalization project. I’m prefectural congress members, corporate leaders, and many future, public-sector organizations will join businesses in sure our employees must have found the project very more to join me. The expanding network of cyclists in Ehime was recognizing the usefulness of cloud services and use them more. stimulating and inspiring. covered by local TV news, which helped spur the popularity of Nakamura: Local governments tend to take an analog It seems to me that the necessity for local governments to cycling among residents of the prefecture. Perhaps because of approach, as I used to myself. From the collaboration with partner up with businesses and NPOs has been increasing year the bright-colored jerseys that they often wear irrespective of Microsoft Japan, however, I have come to realize that adding a by year. What do you make of it? their age, the cyclists attracted some suspicious stares at first. digital element will likely set off a chain reaction. Nakamura: As a former employee of a trading company, I But now, seeing cyclists on the road has become an everyday Higuchi: I totally agree. The Japanese government recognizes personally sense the importance of such partnerships every day. event in Ehime. that the growth of the national economy requires the Although local governments are capable organizations, we are Higuchi: On October 26, 2014, an international bicycle race development not only of physical space but also cyberspace. admittedly not so good at creating something new or expanding called Cycling Shimanami was held using the cycling road on the As you just mentioned, the combination of cyberspace and into new areas. As a result of efforts to raise the awareness of its sea. Microsoft Japan’s cycling club also joined the race and the community revitalization programs will expand the possibilities staff and change organizational systems, Ehime Prefecture has event was much talked about in the office. of those initiatives. been making good, steady progress in this respect. Still, such Nakamura: The event attracted 8,000 participants from 31 efforts have their limitations and working with businesses is countries and regions around the world. To commemorate the Collaborations with diverse partners and strong essential to compensate for them. From the experience of event and declare Ehime something of a holy place for cyclists, leadership: keys to regional revitalization working with Microsoft Japan, our staff have learned a lot and we even built a monument. As the next step, we are working to Nakamura: Through the Local Revitalization Program, I been greatly inspired in terms of the speed at which business is make Ehime a cycling paradise. Specific projects toward the goal genuinely feel that Microsoft Japan is keenly committed to done and in many more areas.