Prof. Keikoh Ryu, Keio Business School, joins the Routledge-CoBS Focus on Responsible Business series with his soon-to-be published book Strategic Altruism: Total Strategy Inspired by Kazuo Inamori’s Management Philosophy. Who is the Japanese legendary figure behind the title and why is his management and leadership approach so important as a model for others?  Prof. Adrian Zicari, ESSEC Business School–CoBS interviews Prof. Ryu to find out.

Kazuo Inamori: How a Buddhist engineer built Japan’s most ethical management system by Keikoh Ryu.

Adrian Zicari: In a few words, who was Kazuo Inamori?

Keikoh Ryu: Kazuo Inamori (1932–2022) was a Japanese entrepreneur, philanthropist, and Zen Buddhist priest who founded Kyocera Corporation in 1959 and DDI (later KDDI) in 2000—both now pillars of Japan’s industrial and telecom sectors. He was also the outsider who led Japan Airlines (JAL) out of bankruptcy at the age of 77, and the founder of the Inamori Foundation and the Kyoto Prize. More than a businessman, he was a moral innovator who proved that ethics and profitability can co‑exist when guided by “strategic altruism.”

Adrian Zicari: Why does Kazuo Inamori’s life deserve to be known beyond Japan?

Keikoh Ryu: Because his ideas travel. Inamori’s career spanned materials, electronics, telecommunications, and aviation – all of which he reshaped through principled management. At Kyocera, he turned a small ceramics startup into a global electronics supplier that pioneered fine‑ceramic technology. Four decades later, he helped engineer the three‑way merger that created KDDI, now Japan’s second‑largest telecom operator. And in 2010, after JAL collapsed with massive debts, he accepted a government appeal to become chairman—despite having no airline experience. Within a year, JAL reported a ¥188.4 billion operating profit, and by 2012 it was listed on the Tokyo Stock Exchange in one of the year’s largest IPOs.

These turnarounds show that Inamori’s approach was not bound by industry or culture. He codified a management system – Amoeba Management – and a moral framework – Strategic Altruism – that any organization can adapt. His life deserves global attention because it offers a coherent model for aligning financial performance with public good – a challenge that business leaders everywhere still grapple with.

Adrian Zicari: In which sense were his business decisions exemplary, different, or remarkable? Could you provide some examples?

Keikoh Ryu: Inamori refused to manage through slogans or morale posters – he built rules that bite. His Amoeba Management system breaks a large company into small, autonomous profit centres – “amoebas” – each responsible for its own P&L. Internal transactions are priced at external market rates to eliminate political gaming and cross‑subsidies. Performance is measured by a single, universal metric: value‑added per hour, which trains financial discipline where it matters most – at the front line.

Equally notable was his understanding of human behaviour. Knowing that metrics can be gamed, he decoupled performance scores from compensation – reducing perverse incentives and focusing employees on true productivity rather than KPI theatre. This design has been replicated by firms in Asia and Europe alike as a scalable model of “distributed leadership.”

When he took over Japan Airlines, he applied the same discipline in a bureaucratic, loss‑making environment. He introduced a plain‑language JAL Philosophy, revamped accountability systems, cut unprofitable routes and waste, and brought transparency to management. Within twelve months, the numbers spoke for themselves: record profits, a clean balance sheet, and a culture rebuilt around responsibility and service. He took no salary during the turnaround – leading by example to restore trust and moral authority.

Inamori’s decisions were remarkable because they combined mathematical rigour with ethical clarity – a rare balance in modern capitalism.

Adrian Zicari: Besides his business achievements, Mr. Inamori was deeply religious (he was a Zen priest). How did this aspect shape his business practice?

Keikoh Ryu: Inamori was ordained as a Zen Buddhist priest in 1997 at Enpuku‑ji Temple – taking the monastic name Daiwa – but he never used religion as corporate decoration – he lived it. At the heart of his practice was a single question he asked before every decision: “Is my motive truly good?” This disarming question was the ethical engine of his entire system. He believed that people are not merely rational actors but moral agents capable of cultivating a “higher ego” (altruistic conscience) over a “lower ego” (selfish desire). His management methods therefore reinforced self‑discipline, transparency, and service – virtues that turn morality into organizational energy.

He called this integration “Strategic Altruism.” In practice, it meant that ethical principles were not a public‑relations gesture but the operating code of the enterprise. Profit was a result, not a goal; value was measured in both economic and social terms. Decades before ESG or stakeholder capitalism entered the mainstream, Inamori had already demonstrated that doing good can be a competitive advantage when designed into the system itself.

Beyond his corporate roles, he founded the Inamori Foundation in 1984 to promote the harmony of science and humanity, establishing the internationally renowned Kyoto Prize. Through his leadership academy, Seiwa Juku, he mentored thousands of business leaders around the world – teaching that management is ultimately a spiritual discipline – a path for polishing one’s character.

His life embodied a principle that remains universal: “Good motives create good management, and good management creates good society.”

A Spotlight on Kazuo Inamori – The Business Monk Who Practiced “Strategic Altruism”: How a Buddhist engineer built Japan’s most ethical management system

A comprehensive overview of Kazuo Inamori, presenting his life, management philosophy, practical implementation, and lessons for today.

Note: This text may contain AI-assisted content.

1. Life Overview

• Kazuo Inamori was born in 1932 in Kagoshima Prefecture, Japan.
• In 1955, he graduated from the Department of Applied Chemistry at Kagoshima University.
• He initially worked in ceramic materials research.
• In 1959, he founded Kyocera Corporation, starting with ceramic components and gradually expanding into electronics and materials.
• In 1984, he founded DDI Corporation (now part of KDDI), entering the telecommunications sector.
• In 2010, he was invited by the Japanese government to serve as chairman of Japan Airlines (JAL), helping the company recover from bankruptcy.
• Later in life, he became a Buddhist monk and passed away on August 24, 2022.

2. Core Management Philosophy: Integrating Altruism and Profit

Kazuo Inamori’s management philosophy centres on combining altruistic mindset with business objectives.

Altruism as the foundation

1. He emphasized that humans have a mission higher than personal gain: to serve humanity and society.
2. His foundation, the Inamori Foundation, is dedicated to the happiness of humanity and society.
3. Altruism is the base of his philosophy: “Do the right thing, prioritize humanity.”

Altruism and profit are not opposed

1. Traditional views see profit pursuit and serving society as contradictory. Inamori argued they can coexist, creating a positive cycle where altruism leads to long-term profit.
2. He emphasized balancing “maximize revenue, minimize cost” with “spiritual and material well-being.”

Systematized practice: Amoeba Management

1. Inamori’s Amoeba Management System divides large organizations into small, autonomous units (“amoebas”), each responsible for its own profit and decision-making.
2. This system ensures full employee participation and transparent accountability.

Cultivating mindset and organizational culture

1. He stressed integrating mind, knowledge, and action (心・智・行).
2. In his companies, he held open discussions (“kompa”) for managers and employees to share their life and work philosophies on an equal footing.
3. He frequently emphasized the idea of self-cultivation, family harmony, business management, and contributing to the world, blending Buddhist and Zen thought into corporate practice.

3. Practical Implementation and Case Studies

• At Kyocera, he applied the principle of “Respect the heavens, love people” , meaning reverence for natural laws and respect for human dignity.
• During the JAL restructuring, he focused not only on financial recovery but also on employee mindset transformation and fostering a company-wide sense of social responsibility.
• In his writings, he frequently stated: “Enhance your mind to enhance management” — linking personal and spiritual growth to business success.
• His books are very popular in China, with over 25 million copies sold outside Japan.

4. Insights from Strategic Altruism

From Inamori’s philosophy, we can draw the following lessons:

• Do not focus solely on short-term gains: Prioritizing employee, societal, and environmental well-being ensures sustainable success.
• Institutionalize altruism: Make the idea of serving others a structured part of decision-making and organization.
• Empower small teams with transparency: The amoeba model allows each unit to take responsibility and implement altruistic principles at the grassroots level.
• Corporate culture and employee mindset are key assets: Long-term health depends on employees embracing a purpose beyond profit.
• Balance spiritual and technical development: Management is not only technical but also ethical and personal; integrating moral cultivation strengthens business resilience.

Useful links:

• Read a related article: When Two Dragons Meet: The dynamics of Japanese management and Chinese workforce relations
• Discover Prof. Ryu’s book and the Routledge-CoBS collection
• Browse the Keio Business School site and apply for the Keio MBA or EMBA.

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