Embracing the Ancient Wisdom: The Philosophy of Omi Merchants and Its Influence on Modern Japanese Corporations

When mentioning Sumitomo Group, Itochu, Toyota, Nippon Life, or Takeda Pharmaceuticals, most people recognize these names as representative of Japan’s elite companies. But what binds them together? Remarkably, these enterprises adhere to a tradition known as “Sanpō Yoshi” (三方よし) or “Good for All Three Sides” originating from the Omi merchants. This philosophy has evolved into what’s being emphasized today as Stakeholder Capitalism, where contributions are made to shareholders, customers, employees, and suppliers. Surprisingly, this profound management philosophy has been considered by merchants 400 years ago, but the term “Sanpō Yoshi” was only coined in the 2000s.

The Tradition of Omi Merchants

Omi merchants consist of various branches including Itochu and Marubeni’s origin “Koto Merchants,” creators of Nishikawa bedding “Yahata Merchants,” and Takashimaya’s founders “Takashima Merchants.” The oldest stem from the “Omi Hino Merchants.” They were born and operated in Omi but ventured outside their comfort zones to establish new business domains. Starting as peddlers, they later manufactured, opened stores, and evolved into large corporations.