The retailer’s role in the reconstruction of areas affected by the Great East Japan Earthquake: how can retailers make their social contribution coexist with their pursuit of profit?
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Although national and local government played a major role in supplying relief goodsto victims immediately after the Great East Japan Earthquake, private companies, suchas manufacturers, retailers, transportation traders, etc., also played important roles. Especially for retailers – though they were also victims of the disaster – offeringrefuge and supplying food, water, and a stable supply of necessary goods to affectedpeople was an important part of the recovery process in affected areas. In spite of theseimportant roles played by retailers, there is little research that analyzes these activitiesfrom the position of distribution and marketing. This paper seeks to clarify three particular questions. First of all, what damage didretailers suffer due to the earthquake and how did they restart their businesses? Thespeed of recovery depended on the damage suffered and the recovery of shoppingstreets composed of small retail stores was delayed compared with that of nationalchain stores such as convenience stores. After the disaster many retailers recognized their social responsibility to supportaffected residents, as well as stricken producers. However, when retailers prefer theirown profit, it is likely to negatively affect the recovery of stricken producers, as it iseasier for retailers to switch suppliers. In fact, major CVS companies tried to securealternative suppliers. The second question is: why did some retailers endeavor tosupport the recovery of stricken producers? From the transaction cost approach, it canbe inferred that the more reliable the relationship which has been established, the moredifficult it is for the retailers to quit the relationship. In this case, it is beneficial forretailers to support stricken producers because the retailers’ actions will provide gains. However, in a situation where no benefits are expected from their support, is it agenuine altruistic social contribution? Even in this case, the retailers can expect thatconsumers will evaluate their social contribution and thus enhance store loyalty andhopefully increase their product sales. When we analyze the continuation of therelationship in terms of cost-benefit derived from the transaction, social considerationshould be incorporated into the framework. We call these actions “ethical marketing” in this paper and emphasize its effectsduring the period as consumers changed their attitudes toward the social role ofcompanies, including retailers, after the earthquake. The final question addressed iswhat kind of mechanism is at work in the interaction between retailers’contribution tosociety and ethical consumers’ response. Some business models are explained whichwill enable retailers to try and achieve coexistence between social contribution andprofit pursuit.
Abstract
Although national and local government played a major role in supplying relief goodsto victims immediately after the Great East Japan Earthquake, private companies, suchas manufacturers, retailers, transportation traders, etc., also played important roles. Especially for retailers – though they were also victims of the disaster – offeringrefuge and supplying food, water, and a stable supply of necessary goods to affectedpeople was an important part of the recovery process in affected areas. In spite of theseimportant roles played by retailers, there is little research that analyzes these activitiesfrom the position of distribution and marketing. This paper seeks to clarify three particular questions. First of all, what damage didretailers suffer due to the earthquake and how did they restart their businesses? Thespeed of recovery depended on the damage suffered and the recovery of shoppingstreets composed of small retail stores was delayed compared with that of nationalchain stores such as convenience stores. After the disaster many retailers recognized their social responsibility to supportaffected residents, as well as stricken producers. However, when retailers prefer theirown profit, it is likely to negatively affect the recovery of stricken producers, as it iseasier for retailers to switch suppliers. In fact, major CVS companies tried to securealternative suppliers. The second question is: why did some retailers endeavor tosupport the recovery of stricken producers? From the transaction cost approach, it canbe inferred that the more reliable the relationship which has been established, the moredifficult it is for the retailers to quit the relationship. In this case, it is beneficial forretailers to support stricken producers because the retailers’ actions will provide gains. However, in a situation where no benefits are expected from their support, is it agenuine altruistic social contribution? Even in this case, the retailers can expect thatconsumers will evaluate their social contribution and thus enhance store loyalty andhopefully increase their product sales. When we analyze the continuation of therelationship in terms of cost-benefit derived from the transaction, social considerationshould be incorporated into the framework. We call these actions “ethical marketing” in this paper and emphasize its effectsduring the period as consumers changed their attitudes toward the social role ofcompanies, including retailers, after the earthquake. The final question addressed iswhat kind of mechanism is at work in the interaction between retailers’contribution tosociety and ethical consumers’ response. Some business models are explained whichwill enable retailers to try and achieve coexistence between social contribution andprofit pursuit.
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