update：November 13, 2024

The Toyota Foundation, a public interest incorporated foundation,
marks its 50th anniversary in 2024 since its establishment.
On this occasion, we, the Toyota Foundation,
would like to look back at what we have done over the past 50 years
and think about what direction we will need to proceed in over the coming 50 years.
Ms. Haruka Mera, a young leader who also had received a grant from the Toyota Foundation before,
facilitated a special talk between the Foundation Chairman Nobuyori Kodaira
and President Masashi Haneda. Below are the transcript of the talk.

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Ms. Mera ────────
The Toyota Foundation is operated by a fund of Japan’s leading and biggest company Toyota Motor Corporation. I read documents detailing the Foundation’s 50-year history and have been impressed again by the fact that it goes beyond the realm of one company and has been operating with a mission for the sake of the country (or Japan), society and the world.

As we celebrate the Toyota Foundation’s 50th anniversary since its inception, I would like to hear from both of you, Chairman Kodaira and President Haneda, today particularly about the role the Foundation has played in the past 50 years or what it has valued most in playing that role. First, let me start with you Chairman Kodaira.

Chairman Kodaira ────────
I used to work for the Ministry of Economy, Trade and Industry (METI), and began working at Toyota Motor in 2008. I was engaged in various tasks at the company and became in charge of social contribution activities when serving as an executive vice president. The Foundation marks its 50-year anniversary, but that doesn’t mean I have been involved with the Foundation for all that while. My relationship with the Foundation has started since I became an executive vice president. In 1980 and 1981, when I was working at the METI (or the Ministry of International Trade and Industry at the time), a trade dispute intensified between Japan and the U.S. over automobiles and car parts and I was dealing with that issue as an official in charge of the auto industry. At the time, the late Mr. Eiji Toyoda, who established the Toyota Foundation, was the president of Toyota Motor Co., Ltd.

Mr. Eiji Toyoda contributed greatly to the evolution of Toyota in the post-WWII era, and he was committed to contributing widely to society through various initiatives taken from a broader perspective, while adhering to its basic principle of making social contributions through the automotive business.

As part of such efforts, the Toyota Foundation was established 50 years ago. Under the concept of contributing to society as a whole from a standpoint separate from Toyota Motor’s business operations, the Toyota Foundation was formed, with a vision for operating grant programs that support a variety of activities by private sector organizations.

It was around the time when Japan still continued to grow economically 50 years ago. As internationalization was deepening, Japanese companies started to make inroads primarily into Southeast Asia in earnest, and then-Japanese prime minister’s visit to Southeast countries triggered anti-Japanese movements back then. Against such a historical backdrop, the Toyota Foundation was created under its guiding philosophy of giving grants widely to research projects and socially-contributing activities, based on a broader perspective of “human happiness” and with an eye on international activities in Asia and elsewhere. The Foundation has since continued its activities under these basic principles.

I suppose you have looked through the content of some grant-awarded projects described in our documents, and the Foundation’s approach to grant-giving and grant targets have changed gradually over time. In the past, there was a time when the government’s grants-in-aid for scientific research did not cover research projects in humanities. At the time, the Toyota Foundation made grants to a variety of research projects in the fields of humanities that were carried out by researchers at universities and other institutions. At several universities, I happened to meet researchers who told me that they had received grants from the Toyota Foundation before. Later, humanities-related research would become eligible for the government’s grants-in-aid. The situation now is different from back then, but we still continue to give grants to research projects by universities and other institutions.

Another important area of our activities is to provide grants to various undertakings conducted primarily in Japan by NPOs and other organizations. And then, the non-profit activities promotion law (NPO law) was enacted. I would say that, since its establishment, grants by the Toyota Foundation have supported the development of Japanese NPOs, including the establishment of the NPO law.

Over the past 50 years, the situation in Japanese society has changed considerably and Japan’s international standing has shifted as well. Meanwhile, Southeast Asian countries have seen rapid economic development and Toyota Motor has expanded business operations into many countries and regions. Toyota’s local subsidiaries in the U.S., Europe, Southeast Asia and elsewhere have all been engaged in social contribution activities in their respective countries. Given such changes in the situation globally, the Toyota Foundation has been shifting focus to grant-giving at home or returning to Japan, if you will, since about 10 years ago. As such, we have revised our grant targets and areas in response to a shifting situation and changing needs, and have gotten to where we are today.

Mera ────────
I understand that the Foundation has changed its grant policies and themes according to the changing times and historical backgrounds. In view of Japan’s global standing and the business status of Japan’s leading company Toyota, I suppose the Foundation has created various themes for its grant programs. Then, let me ask you about how the Foundation has gone about deciding those themes. As you said, it has engaged in a wide range of activities. Has there been any modus operandi by which the Toyota Foundation has decided what to do at a given moment in time?

Mera────────
You said that higher-level concepts the Toyota Foundation upholds, that is, human happiness, what society should look like, or a more holistic way of thinking, sound all impressive. But seeing from a historical perspective or a somewhat detached viewpoint, what do you think about the position and the role of the Foundation to play? President Haneda, how do you view the role the public-interest sector, such as this foundation, can play in community building or the need for it to do so?

Haneda ────────
Historically, in the days before the formation of the so-called nation state, a government did not play much of a role. For instance, a government headed by a Shogun 200 years ago exerted limited influence on society as a whole compared to the Japanese government today. Back then, ordinary people were not as conscious of a shogunate government and must have never imagined what it would do for them. In the Meiji period (1868 to 1912), as a nation state came to be formed, Japan developed a system by which the state and the central government controlled every aspect of the public sphere. To facilitate things, various ministries and agencies were created so as to set the boundary of their respective responsibilities.

Nevertheless, I would say it is an illusion, in a sense, to assume that the state or the government can handle all the issues related to people and society. That’s why I think it is quite natural and healthy to think that the private sector or a private foundation will step in and take care of things that cannot be addressed or are often overlooked by the state.

Mera ────────
What do you think about that, Chairman Kodaira?

Kodaira ────────
One of the historical Japanese figures I like is Mr. Kaishu Katsu (a politician between 1823 and 1899), and the other day I re-read a book compiling his essays called Hikawa Seiwa. It was my third time to read the book. After an interval of time, I went back to it and yet again felt his greatness. In the book, he writes that “local governance (as argued by the Meiji government) is considered to be an uncommon designation, but in fact local governance during the Tokugawa period (1603 to 1867) was in place to actually enhance the level of autonomy such as through the systems of village heads, five-household neighborhood units, neighborhood watch groups, and neighborhood fire prevention units. These are all forms of a self-governance system.” Looking at opinions in society today, I feel that people, particularly some of us among senior citizens, firmly believe that the government should respond to anything and everything and it is the role of municipalities to do so. That’s why I think there should be self-help and mutual help in addition to public help…

Haneda ────────
Or rather voluntary mutual assistance.

Kodaira────────
That’s right. Voluntary mutual assistance. If you say that is important, people will criticize you, arguing that the government and municipalities evade their responsibility. But I feel that Ms. Mera and young people have come to form a different idea about these things. That is to say, these things are supposed to be handled by ourselves. In that sense, the Toyota Foundation has provided grants to projects in fields that are not often publicly funded, particularly through the Grant Program for Community Activities in Japan. I think the Foundation has been able to get ahead of the times.

Mera ────────
That’s right. It is important that the government and the private sector play their respective part, and I believe that private entities may as well take on more public roles. So, I can relate to where both of you are coming from. In that regard, the Toyota Foundation’s various efforts serve as a bridge to initiatives implemented in society with follow-up support by the government. As I listened to you both, I found that really wonderful.

Mera ────────
Let me move onto the next question. When you look back at the grant programs over the past 10 years, could you tell me what went very well and if there is anything the Toyota Foundation should have done more, if any?

Kodaira ────────
President Haneda talked about program officers. The Toyota Foundation has since its establishment assigned program officers to each of its grant categories. What sets the Foundation apart from other organizations is that its program offices closely follow the progress of grant-awarded projects. Thus, the Foundation thoroughly examines the content of proposed projects in the selection process and selects grant recipients, a system that is unique to this Foundation. That is our huge strength.

For one thing, many NPOs in Japan do not have strong foundations partly because a culture of donation is not mature yet in this country but also because necessary resources are insufficient in terms of funding and personnel. Therefore, I am afraid it is true that many of these NPOs have weak management.

The Toyota Foundation holds a seminar called Toyota NPO College Kaiketsu every year, which offers NPO applicants an opportunity to learn Toyota Motor’s approach to business management. Apart from how much the Toyota Foundation can do, it is an important issue for NPOs to bolster their management ability.

Needless to say, NPOs do not aim to turn a profit, but I think they may as well consider embracing and implementing a private company’s business management methods. Some American NGOs, for instance, possess management capability on a par with private businesses. I would say such non-for-profit organizations are still few and far between in Japan. With such an idea in mind, we, at the Toyota Foundation, would like applicants to present plans on how to continue their projects after receiving grants. We have been running our programs for several years by taking that into consideration in our selection and screening process.

Meanwhile, young people, in particular, have become very enthusiastic about launching so-called social ventures, or a new type of activity, in recent years. I, for one, think that the Foundation will need to put more effort into making grants to such an activity as part of its grant targets.

Mera ────────
Thank you very much. Is there anything else you would like to add?

Kodaira ────────
In connection with what I just said, there is something we have devoted a lot of energy into over the past few years. It depends on fields, but it seems that NPOs do not have many opportunities to collaborate with one another. Since their activities are closely centered around specific localities, many of them conduct their activities in narrow areas. It would be better to take more measures and have a system in place for sharing experiences, insights, and resources among NPOs. We can expect that a greater collaboration among NPOs would lead to more efficient and effective use of resources.

With that thought in mind, the Toyota Foundation has recently been making attempts to play a role as a hub for NPOs. Since the Foundation itself has limited resources, we have been using mostly the internet to do activities in recent years, such as creating a space for NPO people to share insights and experiences or offering “training camp” for grant recipients.

Mera ────────
That’s exactly what I call the abilities to secure continued funding and envision the continuity of projects. You referred to the program called “Kaiketsu” which aims to communicate Toyota Motor’s business management methods to NPOs. I think it is such a great practice. In that sense, I feel that it may be necessary for business professionals to get involved in the social sector a little more seriously or for transferring such personnel who will help strengthen the foundation of non-profits and create projects together, as opposed to engaging on a voluntary basis.

Kodaira ────────
I agree. There is some negative reaction to adopting a business-minded approach. Not a few applicants say that they do not engage in their activity for business purposes but do so as volunteers for the sake of society, and thus they would like to receive grants for such not-for-profit activities. While that is perfectly okay as is, I must say I feel that not many applications are based on the idea that applicants draw up 10-year plans to work on their project in a sustainable manner, receive a grant from the Foundation as part of that process, and carry it forward to the next stage based on that given grant.

That said, I am beginning to see relatively a rise in the number of people, particularly among young people, who would like to think and work on their project on a 10-year or long-term basis. In that regard, since NPOs and their approaches to social projects have been changing gradually, I think that the Toyota Foundation’s programs, particularly the Grant Program for Community Activities in Japan, should respond to such a changing situation and need to re-examine its grant-giving practices on a constant basis.

Mera ────────
That’s a very important point. Thank you.

Now, the next topic is about what will happen in the coming 50 years. This may overlap with what has been said so far. In light of Japan’s place in the world and social situations, I think the Toyota Foundation has thought about its role to play and has implemented its programs and activities so far. Then, what is your outlook for the next 50 years?

Haneda ────────
I was already alive 50 years ago, so when I compare the situation then with now, I do feel that things have changed greatly on many fronts. In my opinion, the biggest change is the advent of the internet and social networks in this information society.

But on the other hand, there are a lot of things that remain the same. Of course, we had cars 50 years ago, and airplanes, trains, and other social infrastructure facilities have not changed much. There were countries and governments, too. I think some things haven’t changed much. But most of all, there have always been humans. However, I am slightly skeptical as to whether humans will still exist 50 years from now. The humans I refer to here are what we define as Homo sapiens or human beings as we know it today.

I think there are three possible scenarios in which humans will cease to exist. The first scenario is nuclear war. If and when it happens, I am not sure if all humans would be wiped out or not, but an unimaginable scale of destruction would be bound to follow. The second scenario is global warming. Again, I am uncertain about the possibility of a total human extinction, but this problem, too, could lead to doomsday in some cases. The third scenario is rapid advances in science and technologies, such as AI, robotics, and genetic engineering. After 50 years, what we consider is humans could no longer be distinguishable from, say, an advanced form of AI, and I think it is possible whether or not what we call human society today may no longer be in existence in the same manner.

In that sense, I have a sense that the values, common sense, social institutions and systems that we humans have built over the past hundreds of and thousands of years could change drastically over the course of the next 50 years from now. When that happens, the key will be science and technology. Rapid progress of science and technology has brought about economic development and population growth in the world during the past 200 years. The last 200 years of population increase and economic development has been astonishing. These achievements could not have been possible without advances in science and technology.

On the other hand, I wonder what will become of the so-called human society if only science and technology are to develop further unstoppably. Prior to the rapid development of science and technology, simply put, it was what I call the age of words. For instance, the institution of democracy in Greece was built upon the use of words. In religion, words were used to teach people about how the world was created and what ethics people should follow. In almost all academic disciplines, words were employed to hold discussions. Back in those days, science and technology had little significance in society. And yet, since Galileo Galilei and Isaac Newton came to prominence in the 17 and 18 centuries, science and technology made rapid progress, which in turn enabled science, in other words numbers and charts, to explain to a greater degree how the world came about and how humans behaved. Nowadays, not many people believe that religion can clarify how the world came into existence. Meanwhile, we have also seen progress in the so-called humanities fields such as political science, sociology, anthropology, history, and ethics. This means that science and technology stand side by side with words and the two work in tandem with one another relatively well in the world we live in today. Words still have some power, albeit on a declining trend.”

Nevertheless, science and technology today, as represented by ChatGPT, are even encroaching on the sphere of words, ushering in what I call “the age of only science and technology” in the near future. When that happens, we may lose the value and diversity of culture, whose basis consists of the vagueness, subtlety, and ambiguity of words. I wonder what will happen to humans in the so-called age of only science and technology when digital technology, which is defined by a numerical value 0 or 1, becomes the absolute standard. Therefore, I suspect that a future completely different from what humans experienced in the last thousands of years, could emerge 50 years from now.

Mera ────────
That’s amazing. Very interesting.

Haneda ────────
Under such circumstances in the world, the question is what the Toyota Foundation should do, right?

Mera────────
Yes. In the AI field, what worries people most is potential abuse of the technology. Originally, the biggest push for me to start my business was that I felt using technology to do something new was quite interesting when I went to see Professor Yutaka Matsuo, who specialize in AI research at the University of Tokyo. It was in my student days when social media services became available, so I thought I wanted to do something to help increase the convenience for people by using new technologies. That how I got started.

I think that AI will play a major role in achieving an industrial revolution in Japan. On the other hand, I see that there are concerns that people’s ethics could be left behind.

Many of us need to be aware of and think about what society should look like, what humans are, and what humans will and should be like in coexistence with AI. With technology advancing at an incredible speed, I also fear that technological evolution could accelerate with no regard for society’s ideal state, purely because technology is strongly connected with the business sector. As the Toyota Foundation, which is funded by Toyota Motor, plays a leading role in the public interest sector, I personally believe that the value of the Foundation will become ever more important.

Mera ────────
Lastly, I think what you two have just said is one of the elements related to this 50-year anniversary grant program, Envisioning Human Society 50 Years Ahead. Could both of you tell us what kinds of project proposals you expect for this program?

Haneda ────────
It is not that any future-oriented project proposals for 50 years ahead would be acceptable. Since the Toyota Foundation provides this grant, proposed projects should be based on the underlying idea of achieving an increase in human happiness.

Just as we discussed earlier, proposals to be selected will differ greatly, depending on what we put emphasis on; whether we will focus on what so-called AI-integrated humans think is happiness or whether we will highlight the realistic values that we have associated happiness with at different times in history. With that in mind, I think it would be best for applicants to come up with project ideas for achieving an ideal future 50 years ahead and make a proposal in a straightforward manner.

It is not possible for us to imagine ”an answer” beforehand to what happiness will look like 50 years from now. I will be involved in the screening process, but I have no intention at all to select proposals that will fall in line with what we think an ideal future should be. There should be a variety of possible future states.

The talk of AI-integrated humans presents, in a sense, a very radical future scenario and serves merely as a metaphor. I am sure every applicant has their own idea about future. I, for one, hope that they will use that as a starting point and come up with interesting proposals while keeping in mind what human happiness is.

Kodaira ────────
Needless to say, I won’t be around 50 years from now. But people in their 20s and 30s now or my grandchildren are most likely to be still alive 50 years later. It may be because of such a generational difference, but when I look around at discussions out there in society, I feel at times that some young people today have a realistic view of Japan’s future, without being attached to the so-called good-old days of Japan.

Some young people can reimagine the future with a sense of realism and think about society 50 years ahead, without being shackled by the conventional values. It would be great if we can have such people applying for this program.

The very theme of this 50-year anniversary grant is about human happiness 50 years ahead, so it is rather different in nature from the Foundation’s other grant programs. It is my hope that this anniversary grant program will offer a chance and serve as a basis for more progressive research and discussions, which will then turn into wide-ranging and sustainable activities.