In 2021/2, a coup by the Myanmar military took place, and Aung San Suu Kyi, who leads the ruling party, and others were detained. The coup in Myanmar, the subsequent protests and repression, and the international relations and economic situation were widely covered by newspapers and television in Japan.

Amid Myanmar’s political upheaval, Kirin Holdings (Kirin HD), which has expanded into Myanmar, announced that, in response to the coup, it intended to dissolve its beer business joint venture with a military-affiliated company. In a series of reports, many Japanese media outlets have focused on Kirin HD’s claim that it cut ties with the Myanmar military out of consideration for human rights. However, the question remains as to why Kirin HD was doing business jointly with the Myanmar military in the first place. In its joint venture so far, were human rights issues not identified? How have Japanese media reported on the relationship between Kirin HD and the Myanmar military?

Do Japanese media sufficiently capture and report not only the “good” but also the “bad” aspects of Japanese companies expanding overseas? If they are not capturing the “bad” aspects, why is that? This article analyzes the relationship between the media and companies’ overseas expansion and explores what it should look like.

People participating in protests against Myanmar’s military coup (Photo: MgHla (aka) Htin Linn Aye /Wikimedia Commons [CC BY-SA 4.0])

The relationship between media and corporations

What kind of relationship do media and corporations actually have? The media’s original roles include that of a “mirror,” conveying facts as they are, and that of a “watchdog,” monitoring power according to social norms. Applied to the relationship between the media and corporations, the media has the role of reporting corporations’ noteworthy actions—whether “good” or “bad”—as they are, and of exposing socially undesirable actions such as corporate involvement in crime or human rights violations.

However, there are circumstances that complicate this relationship. Most news organizations are also companies, and to continue in the business of reporting they must make a profit. Many news organizations therefore obtain advertising revenue by carrying other companies’ ads in their pages. Today, advertising revenue accounts for a significant share of total income at many media outlets. In addition, they may place importance on relationships with companies and their affiliates as sources of story ideas and information. Conversely, from the corporate side, by placing ads and serving as sources, they can appeal to readers and viewers. In some cases, companies hire PR consulting firms to craft media strategies and lobby news organizations.

Thus, while the media plays a role in reporting and monitoring corporate behavior, it also has a partnership aspect as a source of advertising revenue and information, making the relationship complex. Especially in overseas operations where corporate activities become less visible, citizens have fewer opportunities to access information directly, and the media can be said to play an even more important role. Does such a complex relationship influence reporting on Japanese companies abroad? When Japanese companies expanding overseas are connected to scandals or problems, how do Japanese media cover those companies? We will look at the relationship between the media and companies operating abroad from three perspectives: human rights/conflict issues, corruption, and environmental issues, analyzing each with examples.

Human rights and conflict issues

First, we picked several cases in which Japanese companies were said to be involved in human rights and conflict-related issues and examined the reporting. To see how Japanese media reported on Japanese companies, we used the online databases of three major newspapers (Asahi Shimbun, Mainichi Shimbun, and Yomiuri Shimbun), and conducted headline searches across overall newspaper coverage (※1).

Let’s begin with Kirin HD, which ran a beer business with a military-affiliated company in Myanmar, mentioned at the top. The joint venture between Kirin HD and the military began in 2015, but even then large-scale human rights abuses and massacres against the Rohingya minority by the military had already begun. In 2017, when the repression intensified, it came to light that Kirin HD had made three donations of funds and supplies to the military, and human rights groups pointed out that this could amount to supporting a military perpetrating human rights violations.

Myanmar Beer (Photo: Eric Jordan /Flickr [CC BY-NC-ND 2.0])

Following the coup in Myanmar, the fact that Kirin HD was considering dissolving the joint venture with the military on human rights grounds was reported by the three major papers as well (※2). By contrast, articles focused on the relationship between Kirin HD and the Myanmar military up to the dissolution of the joint venture numbered one in Asahi Shimbun and zero in Mainichi Shimbun and Yomiuri Shimbun (※3). The sole Asahi article mentioned the fact that donations went to the military but did not pursue the causes. In addition, there was no sign that the article sought direct comment from Kirin HD, and it was only 276 characters long. By contrast, outlets in other countries delved deeper into the issue, incorporating expert opinions. Reuters covered the issue multiple times, and the UK’s The Guardian explored details in depth and included comments from Kirin HD.

There are other cases in which the relationship between human rights/conflicts and Japanese companies has been questioned. Consider coverage regarding the extremist organization IS (Islamic State) and Toyota Motor around 2015. The issue arose when multiple propaganda videos that IS posted online from territories in Iraq, Syria, and Libya showed large numbers of brand-new Toyota vehicles appearing. These videos triggered questions about how IS obtained Toyota vehicles. In October 2015, the U.S. Treasury Department, which handles sanctions against organizations that may pose a threat to the country, launched an investigation and asked Toyota to provide information on how vehicles had ended up with IS. Toyota stated that how IS obtained the vehicles was unclear, and no evidence has emerged that Toyota sold directly to IS.

ABC News coverage of IS and Toyota

As for reporting on IS’s use of Toyota vehicles, we found one article in Mainichi Shimbun and zero in Asahi Shimbun and Yomiuri Shimbun (※4). The sole Mainichi article covered the U.S. Treasury’s investigation into IS’s use of Toyota vehicles, but at 589 characters, the scale of the coverage cannot be called substantial given the gravity of the matter. About half the article was quotations from ABC News. By contrast, outlets such as ABC News and CNN in other countries drew on the views of many experts and stakeholders to examine the issue in detail.

Beyond these cases, there are many instances in which Japanese companies are involved in human rights abuses and armed conflicts in some way yet receive little coverage. Examples include the issue of Japanese companies conducting oil business with the Saudi Arabian government, which is complicit in armed conflicts in countries including Yemen and has committed numerous human rights violations at home and abroad, and the issue of Japanese companies importing garments made under poor working conditions in countries such as Bangladesh.

In this survey, we observed a tendency for reporting on Japanese corporate behavior in human rights/conflict issues to be more common in foreign media but less frequently covered in Japanese media. Moreover, even when it was covered, as in the examples highlighted here, there was little original reporting, with the stories simply condensing what foreign media had reported.

Corruption issues

Next, we picked several cases in which Japanese companies were said to be involved in corruption and examined how they were reported. As with human rights/conflict issues, we used the online databases of three major newspapers and conducted headline searches across overall newspaper coverage (※5).

Let’s look at coverage regarding South Africa and Hitachi. The issue was a suspicion that Hitachi, in bidding for coal-fired power plants in South Africa, made improper payments to the ruling African National Congress (ANC). It became a major scandal in South Africa in 2010, and in September 2015, the U.S. Securities and Exchange Commission (SEC) announced that it had charged Hitachi with violating the Foreign Corrupt Practices Act (FCPA) for failing to properly account for improper payments. Hitachi neither admitted nor denied the SEC’s claims and agreed to a settlement by paying a penalty.

Kusile coal-fired power station in South Africa (Photo: JMK / Wikimedia Commons [CC BY-SA 4.0])

Looking at Japanese coverage of this matter, we found one article each in Asahi Shimbun, Mainichi Shimbun, and Yomiuri Shimbun (※6). Each reported that the SEC had charged Hitachi for making improper payments in South Africa. However, there was no reporting from 2010, when the incident came to light and became a major issue in South Africa; it appears Japanese media only picked it up after it became an issue in the United States. The articles simply followed facts announced by the SEC and centered on the SEC’s view, with no sign of independent reporting that sought comment from Hitachi. By contrast, the issue was covered broadly and over time in South Africa, and was also taken up by U.S. USA Today and the UK’s BBC News.

Regarding Japanese companies’ corruption problems overseas, consider coverage of Marubeni Corporation (Marubeni) in Indonesia. The issue was that in 2014/3, to win a thermal power generation project in Indonesia, Marubeni, in cooperation with a company in the U.S. state of Connecticut and others, paid bribes to Indonesian lawmakers and the state-owned electric company, thereby violating the FCPA’s anti-bribery provisions. Marubeni admitted involvement in the violations and was fined.

In Japanese coverage, we found 3 articles in Asahi Shimbun, 3 in Yomiuri Shimbun, and 1 in Mainichi Shimbun (※7). Of the three in Asahi and Yomiuri, one summarized the announcements by the U.S. Department of Justice and Marubeni, and the other two concisely summarized the bribery case history in around 150 characters and cited announcements by Marubeni and Japan’s Ministry of Foreign Affairs. The Mainichi article similarly reported what the U.S. Department of Justice and Marubeni had announced. While the articles described the course of the bribery case, there was no detailed analysis of underlying issues such as corporate structures that could have led to the bribery.

In other countries, the issue was covered in detail, including by Yahoo News in English here and by Reuters.

Besides these examples, there are many cases in which Japanese companies are tied in some way to corruption abroad yet receive no coverage or only brief mentions. One example is the case in which Japan Tobacco Inc. (JT), a Japanese tobacco manufacturer, is suspected of involvement in cigarette smuggling into conflict regions in the Middle East and North Africa.

Person lighting a cigarette (Photo: Lindsay Fox /Flickr [CC BY 2.0])

In this survey, we observed, as with human rights/conflict issues, a tendency for reporting on Japanese companies’ corruption problems overseas to be sparse. In the coverage highlighted here, while the course of events was reported, we found almost no cases in which reporters directly sought comment from the companies.

Environmental issues

Finally, we picked several cases in which Japanese companies were said to be involved in environmental issues and examined the reporting. As above, we used major newspapers’ databases and conducted headline searches across overall newspaper coverage (※8).

First, let’s look at the environmental impact of Tokyo’s New National Stadium (Olympic Stadium). The Tokyo Metropolitan Government has emphasized that the New National Stadium would be built with consideration for environmental conservation and social contribution. In reality, however, it was revealed that vast amounts of tropical forests in Southeast Asia were being logged to secure construction materials for the stadium. This issue is also said to be connected to illegal logging. Furthermore, the heavy use of tropical plywood from Indonesia and Malaysia promotes deforestation in these regions and causes problems such as sacrifices to climate, biodiversity, and the rights and livelihoods of indigenous peoples and local communities. Despite the claim that the New National Stadium would be built with environmental considerations in mind, it has led to degradation or permanent loss of precious tropical forests.

New National Stadium under construction (Photo: Kanesue/ Flickr [CC BY 2.0])

How has Japan’s media reported on the environmental issues surrounding the New National Stadium? Coverage falls broadly into two categories. The first focuses on how materials used in the stadium are recycled or certified wood, highlighting that it is “environmentally friendly.” Coverage volume was 9 articles in Asahi Shimbun, 10 in Mainichi Shimbun, and 8 in Yomiuri Shimbun (※9), giving the impression that the “environmentally friendly reasons” were reported from various angles. By contrast, coverage focusing on how the New National Stadium is “harmful to the environment” amounted to 1 article in Asahi, and 0 in Yomiuri and Mainichi (※10). The Asahi article devoted over 2,000 characters to explaining in detail how tropical forests were being indiscriminately logged to build the stadium, contributing to deforestation. However, compared with “environmentally friendly” coverage, reporting focused on environmental harm was extremely limited overall, with only one article in Asahi. The issue was covered in greater quantity and detail by other countries’ media, such as the UK’s The Guardian and the U.S. HuffPost.

Next, let’s examine coverage of tuna overfishing, which is connected to many people’s tables. In Japan, overfishing of Pacific bluefin tuna is particularly prominent, and its extinction is feared. Japan accounts for about 80% of the world’s bluefin consumption, and Japanese fishing vessels actively fish tuna on the high seas around the world, while Japanese trading companies actively import tuna from other countries. As extinction looms, in 2019 and 2020, international meetings on managing Pacific bluefin resources discussed catch quotas.

Investigating five years (2016–20) of coverage in Mainichi and Yomiuri, we found 85 articles across the two papers. There were 12 articles (about 14.1%) criticizing Japan’s overfishing of tuna; 20 articles (about 23.5%) related to environmental matters such as products certified by the Marine Stewardship Council (MSC) for wild-caught seafood from sustainable fisheries, the Sustainable Development Goals (SDGs), and efforts to eliminate wasteful procurement; 35 articles (about 41.2%) focused on expanding catch quotas and Japan’s share; 12 articles (about 14.1%) on aquaculture; and 6 articles (about 7.1%) in other categories. In the data we examined, there was more coverage of various corporate initiatives and topics like Japan’s catch quotas and profit expansion than of negative reporting that Japan is overfishing tuna. Japanese coverage tends to report on themes related to marine resources and fisheries that impact Japan’s economy, but seems prone to avert its eyes from the damage Japan causes to the marine environment.

A school of tuna swimming in the ocean (Photo: Tom Puchner /Flickr [CC BY-NC-ND 2.0])

In this survey, we observed that coverage of environmental issues involving Japanese companies tended to be more detailed than coverage of human rights/conflict or corruption issues. However, compared with other types of reporting, there were fewer stories that pursued accountability of Japanese companies and the policies of the government that regulates them, or that probed the essence of the problems being caused.

Why is Japanese media lenient toward companies operating abroad?

While foreign media sometimes report in detail on Japanese companies, the cases examined in this survey suggest it is hard to say that Japanese media are fully fulfilling their “watchdog” role in pointing out problems caused by their own companies through overseas operations. Why does this tendency appear? Two factors can be considered.

The first factor is the relationship between patriotism/nationalism and reporting. When disseminating information about the world, reporting often centers on ideas of ethnocentrism and nationalism. This also reflects the views of readers and viewers. Since reporting is a kind of business, there is an incentive to emphasize the “good sides” of domestic companies, which consumers are thought to welcome, and to avoid mentioning “bad sides,” which they are thought not to welcome. The same thinking can be said to be reflected not only among readers and viewers but also among the reporters, editors, and management of news organizations. As a result, a tendency toward reporting that is considerate of Japanese companies’ overseas expansion may emerge.

The second factor is the relationship between advertising and companies. As noted above, corporate advertising expenses account for a significant share of media revenue. If the media exposes and reports on a particular company’s problems, that company might stop placing advertisements. The greater the likelihood that an advertiser is a large company capable of major ad buys, the greater the loss of advertising revenue. Furthermore, there is the risk of being sued for defamation. Such risks may also influence how the media report on companies. The media may also preemptively avoid or self-censor reporting on particular companies’ scandals or suspicions to avert potential trouble. However, these remain in the realm of speculation, and it is difficult to obtain objective evidence about how much influence companies actually have over reporting practices. Traditionally, sales departments that handle advertising and editorial departments have been separated within news organizations, but some point out that the line has become increasingly blurred in recent years.

Dentsu headquarters building (Photo: Dick Thomas Johnson /Flickr [CC BY 2.0])

There are also companies that intervene between the media and advertisers: advertising agencies. For example, in 2016/5, suspicions arose that funds paid by the Japanese Olympic Committee (JOC) to a Singaporean shell company as “consulting fees” were under-the-table money to influence the Olympic bid. The major ad agency Dentsu was implicated in the suspicions. There was little reporting on this issue in Japanese media. Among the stories that did appear, some cited detailed reporting by outlets like The Guardian regarding Dentsu’s involvement in the suspicions, yet omitted any mention of Dentsu’s role—something that can be interpreted as intentionally withholding it. Dentsu and many news organizations maintain close cooperative relationships in areas such as sports broadcasts and event hosting, including the Olympics.

Other factors include Japan’s weak reporting networks overseas and a tendency for international reporting to be influenced by U.S. international coverage.

Conclusion

As outlined above, when it comes to Japanese companies’ overseas expansion, the media may not be fully fulfilling their roles as a “mirror” that reflects facts or as a “watchdog” that uncovers wrongdoing. If the media cherry-pick content to report in ways that suit corporate interests, readers and viewers may be left with reporting that prevents them from understanding the essence of the issues. To fulfill their original role, the media should provide readers and viewers with highly credible information and strive for fair reporting to all parties. Readers and viewers, for their part, should recognize the importance of drawing on diverse sources of information and demonstrate demand for such reporting to news organizations.

(※1) For this review, we used the Asahi Shimbun’s online database “KikuzoⅡ,” the Mainichi Shimbun’s “Maisaku,” and the Yomiuri Shimbun’s “Yomidas.” For coverage on Myanmar and Kirin HD, we selected only articles whose headlines or text contained the keywords “Myanmar” and “Kirin,” and that fit the joint venture relationship between Kirin HD and the military. Coverage of IS and Toyota was examined similarly using the keywords “IS” and “Toyota.”

(※2) In this analysis, we included all sections, including local editions, over the full range of periods available. We found two articles in Asahi Shimbun (Example: Moving to dissolve joint venture with Myanmar military-affiliated company; Kirin HD: “The coup runs counter to human rights” · 2021/2/6), two in Mainichi Shimbun (Example: Kirin HD: Kirin to dissolve joint venture with Myanmar military-related company · 2021/2/6), and three in Yomiuri Shimbun (Example: Kirin to end partnership with military-affiliated company; in response to Myanmar coup · 2021/2/6).

(※3) In this analysis, we included all sections, including local editions, over the full range of periods available. We found 1 article in Asahi Shimbun (Did Kirin HD’s donation go to the military? Humanitarian aid in Myanmar · 2018/6/16).

(※4) In this analysis, we included all sections, including local editions, over the full range of periods available. We found 1 article in Mainichi Shimbun (U.S. Treasury: Terror sanctions official; probing IS’s use of Toyota vehicles—online weapons transport video · 2015/10/8).

(※5) As in (※1), we investigated coverage of South Africa and Hitachi HD using the keywords “South Africa” and “Hitachi.” Coverage of Indonesia and Marubeni was investigated using the keywords “Indonesia” and “Marubeni.”

(※6) In this analysis, we included all sections, including local editions, over the full range of periods available. Asahi Shimbun (U.S. SEC imposes penalty on Hitachi for improper payments to South Africa · 2015/9/29), Mainichi Shimbun (Hitachi, Ltd.: U.S. SEC imposes a 2.2-billion-yen penalty over improper payments for South Africa contract · 2015/9/30), Yomiuri Shimbun (Hitachi fined 2.2 billion yen · 2015/9/30).

(※7) In this analysis, we included all sections, including local editions, over the full range of periods available. Three articles in Asahi Shimbun (Marubeni paid bribes overseas—power plant project, 9-billion-yen fine · 2014/3/20) (Marubeni, which paid bribes, receives nine-month ODA exclusion—announced by Ministry of Foreign Affairs · 2014/3/27) (Marubeni cuts executive pay over bribery case · 2014/5/17); three in Yomiuri Shimbun (Marubeni fined 9.1 billion yen for bribery · 2014/5/17) (Marubeni fined 9.0 billion yen for bribery—Indonesia thermal power—plea deal in U.S. · 2014/3/21) (Marubeni—excluded from ODA for 9 months · 2014/3/26); one in Mainichi Shimbun (Marubeni: Bribes to Indonesian lawmakers—aimed at winning thermal power contract · 2014/3/21).

(※8) As in (※1), we investigated coverage of the New National Stadium using the keywords “Olympics,” “stadium,” and “forest.” Because coverage of tuna was greater than other topics, we limited our review to five years (2016–20) in Mainichi and Yomiuri, and used “Maisaku” and “Yomidas,” searching with the keywords “tuna” and “overfishing.”

(※9) In this analysis, we included all sections, including local editions, over the full range of periods available. 9 articles in Asahi Shimbun (Example: Aim for “sustainable” stadium operations—following the UN’s “SDGs,” trash disposal and international exchange—Iwate/Kamaishi · 2018/8/22), 10 in Mainichi Shimbun (Example: Tokyo 2020 Olympic/Paralympic Games: Prefectural timber for the Games—“forest certification” promoted—aiming to build a system for stable supply / Shizuoka · 2016/8/14), and 8 in Yomiuri Shimbun (Example: [Reviving Forestry] (Part 1) Sell to the Olympics—Hamamatsu united in PR for Tenryu timber = Shizuoka · 2016/5/24).

Writer: Mei Hatanaka

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