Eiichi Shibusawa’s Management Philosophy and CSV

Eiichi Shibusawa was chosen as the new portrait for the 10,000-yen bill from the first half of 2024. Known as the “Father of Japanese Capitalism,” Eiichi Shibusawa (1840-1931) was involved in the creation of more than 500 companies in Japan, including a bank. This paper aims to tackle Eiichi Shibusawa from the standpoint of a management and accounting researcher; in particular, accounting studies, with its consciousness of the relationship between companies and the society. First, we introduce the fact that Drucker (P.F. Drucker), an authority in management studies, evaluates Eiichi Shibusawa exceptionally. Second, we clarify how Eiichi Shibusawa’s remarkable practical ability in accounting, especially management accounting, was evaluated and came out into the world based on the land where he was nurtured. Eiichi Shibusawa appears as a pioneer in management accounting and made an important contribution to the introduction and establishment of Western bookkeeping methods during the Meiji period. Third, we discuss Eiichi Shibusawa’s management philosophy, “The Theory of the Union between Morality and Economy,” its contents, and their significance. Lastly, we study the fact that CSV (Creating Shared Value) proposed by Porter and Kramer (Porter, M. E. and M. R. Kramer), which is currently attracting worldwide attention, is highly compatible with Eiichi Shibusawa’s “The Theory of the Union Between Morality and Economy.”