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Corporate investing in society
starts with children
CEOs must ensure that their companies contribute to the good of society, writes Kinya Seto
As CEO of LIXIL I am driven by a belief that a company is a microcosm of society. This belief is reflected in the Japanese language; the term ‘kai-sha’, company, shares the same Japanese kanji characters as ‘sha-kai’, society.
At LIXIL our purpose – to make better homes a reality for everyone, everywhere – is the ‘north star’ that guides us in everything we do. We make pioneering water and housing products that transform homes, which we combine with a dedication to improve accessibility for all and responsible growth to make things that matter, to people, to communities and to the world we live in.
Yes, we must make profits, but our role goes beyond that. Our world as a company should reflect the ethos and needs of the society that we work and live in.
That is why at LIXIL I am committed to creating a purpose-driven company that contributes to society. As a global lead in sanitary ware and with our expertise in innovation, and experience in the sector, I saw that we could make a major contribution to the challenge of ensuring access to safe sanitation and hygiene for all.
I often say that I am incredibly proud of our advanced US$ 5,000 toilets from Japan (as everyone knows, Japanese toilets are the best in the world!), but I am even more proud of our US$5 SATO toilets that we brought to the market in 2013. They are specifically designed to work in communities that don't have access to safe water and sanitation infrastructure.
It is estimated that 1 in 5 people around the world lack access to basic toilets and over 700 children under five years of age die every day from diarrhoeal disease due to a lack of appropriate wash and sanitation facilities.[1] It can also impact a child’s ability to go to school to learn and reach their full potential. When a school doesn’t have clean toilets or good washing facilities children are more at risk of disease, causing them to fall ill and miss out on their education.
Partnerships for global scale
Products and solutions, like our SATO toilet, are helping to address this. Since its launch we have helped to improve the lives of at least 45 million people across Africa and Asia. But we have, of course, not been able to achieve this on our own. It is only through partnerships, with organisations such as UNICEF, that we have been able to make a difference on a global scale.
We see UNICEF as a partner whose strengths, capabilities, and focus closely align with ours. They work with communities to raise awareness of the health risks related to poor sanitation that in turn creates local demand for sanitation and hygiene products. But UNICEF found that in many locations, suitable and affordable products were simply not available.
What began as an organic collaboration in East Africa, is now focused on our shared ambition of tackling the global sanitation crisis. Launched in 2018 in Ethiopia, Kenya, and Tanzania, we cultivate sanitation and hygiene markets through awareness, education and demand creation, complemented with affordable, high-quality sanitation products and services. In the first three years, we reached 2.9 million people. In 2022 we expanded to include India, Indonesia and Nigeria and reached an additional 5.6 million people.
Investing for mutual gain
With UNICEF, LIXIL is making an investment in the future of our society. While we have metrics that we use to track various aspects of progress, the real value lies in the development of sustainable sanitation and hygiene markets that in turn improve health, education and overall quality of life of children. This contributes to the development of stronger, healthier communities, which is a long-term benefit for all, including LIXIL.
I would encourage my fellow CEOs to see the value in partnerships like ours with UNICEF. By investing in children's futures, you are investing in the sustainability and success of your own business.
Being a purpose-driven company also helps to foster a culture of social responsibility and empathy. It reminds us all that our work has a broader positive impact, and, together, we can truly make a difference in the world.
The private sector has a crucial role to play in creating sustainable solutions to global challenges as we have the capabilities to innovate, develop and market solutions to help solve some of the world's most pressing problems. At LIXIL, we're committed to doing our part to ensure access to safe sanitation and hygiene for all – for our ‘sha-kai’, society, as much as for our ‘kai-sha’, company.
Kinya Seto is the Director, Representative Executive Officer, President and Chief Executive Officer of LIXIL, a global leader in water and housing products.
