From Farm Boy to Financier: Eiichi Shibusawa and the Creation of Modern Japan

This case describes the career of Eiichi Shibusawa (1840-1931), a serial entrepreneur who is widely known as the "father of Japanese capitalism" and as a pioneer of socially responsible investment. Born in feudal Edo Japan, following the Meiji Restoration in 1868 Shibusawa transitioned to working for the government in the new Ministry of Finance. He played a central role in the creation of Dai'Ichi Bank, a national bank and Japan's first joint stock company, in 1873. He subsequently became a prolific venture capitalist, being involved in founding nearly 500 companies and 600 public organizations over the course of his lifetime. The companies he founded, such as Oji Paper, Tokio Marine Insurance Company, and the Osaka Spinning Company were central to the modernization of the Japanese economy. He was also active in forming business associations, including the Tokyo Bankers Association, and supported many social enterprises in education. In 1901 he was associated with the founding of the Japanese Women's University, the first private university for women. Shibusawa was a student of Confucianism and developed the concept of gappon shugi, which has been variously translated as ethical or stakeholder capitalism. While traditional Confucianism in Japan had regarded commerce as lacking virtue, Shibusawa argued that creating wealth was a virtuous activity. He believed that ethical principles had to be central to the pursuit of wealth, and that business must serve all stakeholders, so that the country as a whole could flourish.

• Stakeholder relations
• Careers
• Government policy and regulation
• Society and business relations
• Corporate social responsibility
• Capitalism
• Business and government relations
• Economic growth
• Venture capital
• Business policies
• Business law and ethics
• Social enterprise
• Business history
• Personal ethics
• Entrepreneurs and founders