April 1, 2009
Posted: 905 GMT

You don't really notice Haruka Nishimatsu when he passes you in the hall. A middle-aged man in a suit, he blends into the working crowd at Japan Airline's headquarters in Tokyo.

JAL President Haruka Nishimatsu, center, shares a light moment in front of a jet engine.
JAL President Haruka Nishimatsu, center, shares a light moment in front of a jet engine.

"Why should I stick out?" Nishimatsu says out loud to me.

"Well, you are the CEO and Chairman of this multi-billion dollar international airline," I replied.

"So?" says Nishimatsu. "That doesn't make me special."

That philosophy, that he's just like everyone else trying to make it through Japan's recession, is why he takes the city bus to work, eats in the cafeteria with his employees and strolls through the operations room at the airport. When the company looked to cut costs, he eliminated every single expensive perk of his job. He took away the corner office and chauffeur. Then he slashed his pay dramatically, so that in 2007 he made less than his pilots.

JAL can use every penny it saves. This fiscal year, the airline expects to lose $34 million dollars after passenger traffic fell 20 percent and cargo loads fell 40 percent. It's a global company that lives and dies by the direction of the global consumer and economy.

"I understand there are different conditions in terms of the economy for each country, but I think these economic issues need to be solved globally, rather than solved country by country," says Nishimatsu. "I hope the G20 will give a clear direction to the global economy."

Nishimatsu also believes the solution must begin with the financial institutions and continue to tighter regulations.

But he points to corporate culture as the long-term solution. Like the AIG bonuses, Nishimatsu says, "shocked" him. "It's like they're from another planet," he says.

A lesson of this recession, he hopes, will be that corporations don't solely pursue profit and instead focus on the long-term financial health of the company and employ people and help society. Together with shared sacrifice, he believes, the global economy will recover - but only if everyone from the CEO to the entry-level employee works together.

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Filed under: Financial crisis • Japan


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Mike V.   April 1st, 2009 1117 GMT

This guy is one of the most remarkable people there is. I've had the pleasure of meeting CEOs, Vice Presidents, professional atheletes and Nobel laureates. Words cannot properly encapsulate Mr. Nishimatsu's humility and dignity – he is the model for what we need more of. He works every day to reverse one of the single most telling examples of our current world economy: the disparity between the senior corporate leadership and the "front-line" corporate associate.

Jason Martin   April 1st, 2009 1557 GMT

What a great example of the difference in corporate culture!
That's a company that I could have an allegence and loyalty to.
No wonder that they enjoy such long average seniority of the employees.
Mr. Nishimatsu is a shining example in a very soiled senior executive pool.

Sandra Sears   April 1st, 2009 1939 GMT

People don't understand when you have demonstrations like they are having in London right now they are organized by professonials whose job it is is to make the situation as bad as it can be for everyone involved. If you could get these guys you would not have as much trouble believe me. Violence gets you nothing.

Manuel Vilhena   April 3rd, 2009 2145 GMT

The World in General and Europe in particular have a lot to learn with Japan.

The so called good practices have been implemented for a long time in Japan and it seems to me that social ethics role in the presented company.

Congratulations JAL!

Manuel
Coventry, UK

Bon Rendal   April 4th, 2009 234 GMT

Yes a great example but also a bit of expectation. Here in Japan not cutting your salary, losing the perks would be seen as grounds for removal. Remember even the smallest hiccup in business will be reflected back on the top management and resignations will be required to atone for those mistakes.... forget about a bonus.

Elvis   April 5th, 2009 745 GMT

Well, 1 dont expect Malaysia to ever follow such leader as Mr. Nishimatsu. He would be looked down upon as cheap charlie. Here is Malaysia, CEO are given special titile such as Datuk Seri, Tan Sri or Datuk. And CEO in Malaysia also enjoy special perks as royalty families. Even if listed companies should filled for bankcruptcy, government will bailout such firms just like in US. I think Mr. Nishimatsu is a very rare individual, perhaps the only one exist in the world! Other CEOs will laughed at him and may go down in lecture halls as lesson to other aspirants not to follow such stupidity. Lets be realistic, CEO should act like one.

tom henderson (perth scotland)   April 5th, 2009 1614 GMT

I admire the attidude of the CEO . As we live in a society of lables and barriers its time to remove them all .
Work for the common good for all .
take the slogan from Asda part of the walmart family " every one matters."

Dificult times bring tough solutions so together we can build for the future generations.

Andrew   April 5th, 2009 1949 GMT

That Japanese culture you mention is true Rendal, but JAL's performance is hardly a reflection of top management mistakes, so I wouldn't expect his job was ever on the line. All airlines are suffering from a dramatic reduction in passanger traffic and JAL is no different. That being said, taking a paycut and being paid less than most pilots, thats admirable.. what a remarkable man... I would be honored to work for him for life.

TS888   April 6th, 2009 515 GMT

"...a bit of a expectation."

But in the eyes of the west, now jaded by the selfish behavior of celebrities, politicians and many corporate leaders, he's extraordinary.

Personal responsibility is becoming a quaint memory from the past in the US. Everyone points the finger and says "It's not my fault!"

jack   April 8th, 2009 900 GMT

Japan has never really been capitalist, though every nation has its share of crooks. Difference is, in US self serving is seen as a good thing, in Japan it is demonized. Attitudes are beginning to change in US where the majoirty is plunged ever closer to poverty.

Bashir, Nigeria   April 9th, 2009 1631 GMT

Comin from a nation so notorious for her corrution record JAL CEO is a like robin hood. Greed and speculation make the world go round. In Nigeria, he'll never make it to the top.

Ken in Japan   July 17th, 2009 1303 GMT

We do not care what you do or how you slack off in your work time. You should bring in more profit to your company. Having lunch together with your empoyees dose not help much. Get a respect from people outside your company ,not from within your own. I'm really ashamed of you how you distract your hard-working staff from your decade-long haphazard business practice. Now you realize that you must live in the competitive world. How to satisfy customer needs is a key practice for airline companies to survive at least . Do you know what you need to do? Open your eyes!

Francie Dalton   September 28th, 2009 1852 GMT

Thank you Kyung,
Those who prevail in difficult times are the ones who steadfastly refuse to allow negativity to form a barrier to their success. They instead deliberately and diligently take constructive action, thereby refreshing and reinvigorating their minds and their spirits, enabling them to take more action, which refreshes and reinvigorates. JAL's CEO is a prime example of this.

AB   November 3rd, 2009 1229 GMT

I know another example of such a man. His example shows that a very frugal style can allow you to get away with quite a lot.

I am talking about Ingvar Kamprad, CEO of IKEA, the famous furniture dealer. He is old now and more or less out of the game but he is still the ghost hovering above the company. He was famous for a style so spartan that he awed even egalitarian Swedes – his had not even an office of his own, the CEO of a billion dollar corporation was sitting at a simple table on a simple hard seated chair behind an office drawer in a corridor! Eating at the common canteen like all his staff went without saying.

There goes a famous story of some young Americans who took a job in the US subsidiary of IKEA, fresh from business school with their MBAs in their trunks. Their astonishment of having to haul furniture like any truckdriver is simpler to imagine than describe.

With his style mr. Kamprad has greased the popular acceptance of his sometimes dubious business practices. Like owning everything worth owning in his home smalltown and lording it like a local baron, like placing high hurdles in front of trade unions, like utilizing timber logged by unscrupulous logging companies in the 3rd world, like engaging in shady financial deals...

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