Now, I want to talk about sustainability issue. Now days sustainability issue is a big topic not only for individual companies but also for society as a whole. So sustainability has become a very key issue, and very key topic. [INAUDIBLE] you know, 10 or 20 years ago, people started paying attention to [UNKNOWN] issues in management. Was gathering some attention. And then you know, a little bit, separatist move ten years ago, or 15 years ago. Always a corporate social responsibility, became important. But corporate social responsibility is more about ethical and moral obligations the [UNKNOWN] must have. And green and environment issues more, you know, macro ever issue. Right? So that the government and world organizations, and NGOs paid attention to this global green gas you know, issues and. So, you know, since these two were developed separately, right? Environmental and green management issues. We'll get a bit distant from ethical and social issues. Another dimension we have to consider is, forms are not NGOs. They are not charity organizations. The foremost important goal of business or company is to earn profit. So the issue of profitability is also something we cannot ignore. In this sense, there are three seemingly different, seemingly separate topics here. Green and environmental issues. And more moral and ethical issues, a social responsibility, and profit money-making, margins, economic issues. So sustainability is trying to combine, trying to look at these three dimensions, and three topics at the same time. And sustainability tries to make sure that the form as whereas, you know, government endures, must to taking to [UNKNOWN] three dimensions simultaneously. If you want to make sure that all these efforts are sustainable. So when you look at this sustainability shift from the supply chain management perspective, or value chain perspective, we put that as value chain sustainability. Okay, so let's define value chain or value system sustainability more formally. It is a firm's effort to make decisions in a way to be more sustainable. Not just from the firm's own perspective, but from the perspectives of entire value chain participants. so there are many different types of value chain participants. There are internal stake holders, like managers, employees, and also there are external stake holders like suppliers, vendors, distributors, customers, communities and so on and so forth. So let's say, we wanted to get this sustainability issue not from, one particular stakeholder's perspective only. Why do I need to get that issue from this whole, you know, diverse perspectives at the same time. And I want to emphasize that the value in this case is not just a monetary value, but it encompasses it tangible and intangible elements at the same time. So, let's say that the value system sustainability look at this sustainability issue from the value chain perspective. So, value system sustainability will consist of three things. It's own definition we already you know, discussed some of this. Stakeholders, who's perspectives we need to take in order to understand this sustainability issue. Sustainability area, you already talked about environmental issues. The arrow is the first area people paid attention to in the context of, you know, sustainable. Sustainable global economy or sustainable world. And then there is some ethical and social dimension. In addition, we have to make sure that the company can sustain only when it earns profit, so there's got to be some economic perspective as well. Stakeholders, internal stakeholders and external stakeholders. And we want to make sure that where we stand, the company, how we can evaluate. This is evaluation system. How we evaluate forms in terms of their sustainability level. Where the, the company's you know, manufacturing or company's business is consistent with sustainability to an art. We gotta have some sort of a measurement system in order to make sure that we improve sustainability not only in the business, but also in the overall economy as a whole. First, let's look at the stakeholders. There are many stakeholders, but since we look at this from value chain perspective, we want to first define this internal stakeholders from top managers and employees. And then we can look at this value change stakeholders. In other words, the stakeholders who share the same value chain with the focal company. [BLANK_AUDIO] We have upstream stakeholders and downstream stakeholders, and we also have customers. These are more direct value chain partners. In other words, they are value chain stake holders. Of course these value change stakeholders are external stakeholders, but I want to make the distinction between these value chain stakeholders and other stakeholders, because there are other stakeholders, not apart of this value chain. For instance, general public and NGO's and communities, and other competing value chains, and governments. These are all stakeholders, relevant stakeholders but within the national boundary. And if we really go beyond all this, we can see that there are some stakeholders in the global contest as well. So in a sense we are looking at all this value chain stakeholders and non value chain external stakeholders. Especially national boundary, within the national boundary. And we can go beyond this national boundary. And we can go beyond our own value chain. Our own, you know, value chain partners. And we can look at this global stakeholders website. So, I mean that in, in theory it makes sense. We look at this forms sustainability issue, not only from it's own value chain partner's perspective, what about the other, you know, external stake holder's perspective. Why don't we have these other stake holders on a global scale? Eventually we, we probably look at it that way, but you know, more practical and feasible sense, we probably needed to start within our own value chain. So, I want to focus on this our own most immediate value chain. When we talked about value systems sustainability. And I already mentioned that there are three dimensions. There are three sustained areas. Natural environmental dimension. And that's usually, you know, green management and environment friendliness, and CO2 admissions and carbon footprint, greenhouse gas effect, ozone. And these are the traditional topics people were interested in when they tried to enhance the awareness about the environment, or environmental issues. In addition to these environmental issues, there are some social dimensions as well, social stability and improving the human conditions, justice, fairness, moral, ethics, and just trust. And these are more social, ethical, and moral issues, right? Moral, social, ethical issues. But again, if we want to true, truly make sure that the forms pay attention to this social sustainability and environment sustainability. The formaster has some profit to, to, you know. They got to be some economic sustainability as well, otherwise it doesn't make sense. So, when we talked about sustainability, we want to make sure that we look at these three areas, three dimensions simultaneously. And that's the, the so-called triple bottom line widely recognized in the literature. And now we want to determine, we want to suggest a framework that measures the sustainability level. And this framework consists of two dimensions. One is strategy priority, the other one is operational priority. Let's think about strategy priority. This is the priority the top managers, or you know, the CEO of the company places on the issue of sustainability. So sometimes the managers or the CEO believes that sustainability is private. It is a burden, it is a burden to the company. If we want to make an effort to enhance sustainability, it is kind of important, so. If top management believes that, that implies that they're strategy priority is at the develop liability. There is another liability which is neutrality. Which implies sustainability is not our burden, but it's not our asset either. In other words, it's kind of neutral. Sustainability is neutral to the company's competitive advance team. It does not help the company nor it does exacerbate the company's competitor advance team. And then the next develop priority is relevance. Top management believes the sustainability issues are relevant to their competitive advantage. But still, they are not sure about how to deal with it. They know sustainability issue relevant to their competitor quantity, but they don't have a clear idea about cause of relationship. At the higher level there is a strategy priority as asset. Now, top management believes sustainability is consistent with their competitive advantage. If we make an effort to enhance sustainability, that will make us stronger in terms of a competitive advantage. And therefore it is important to determine or to understand how to utilize the sustainability to enhance it's market position significant. So now sustainability becomes very positive force driving, driving the firm's competitive advantage. Finally, there is a stretches your priority of enabler. And now, sustainability is not just an asset, it actually is one of the strongest core competences it must have in order to compete in the market in order to detain the [UNKNOWN] position in the market. And therefore, sustainability is something we have that all of our stakeholders understand, and all of our stake holders try to achieve. Not only for the current or present competitive advantage, but also in the future, in a long term perspective, sustainability must be there. We must make sure that whatever we do, it must be consistent with the sustainability in the long. So that's the strategic priority as enabler. Now think this operational priority. Operational priority is related with the actual distance or location. Actual incrimination. And there are three priorities, three [UNKNOWN] we can think about. The first one is proactive activities, in other words we actually take some actions only when we know something will happen. Something won't let it happen. In other words, we want to fix what we, what we have done. That actually it just obeys our position in sustainability. That are, that were harmful to sustainability. Such like when we have some, you know, government penalty or government you know, government identify some of our [UNKNOWN]. We've got to fix that. We've got to fix the problems. So we need to correct that. We need to correct that, you know, wrong doings. And that's corrective activities. So the operational priority regarding the sustainability is corrective in retrospect. We want to fix, or elongate. And then the next level is conducting preventive activities, okay. You know, fixing our wrong doing is not enough. We have to make sure that those things do not repeat in the future. So we gotta take actions in order to prevent these eminent problems due to our failure to you know, make sure the sustainability. There are some examples. For example, even though the current is CO2 level is under the legal limit, we want to take a preventive action to fix the manufacturing process. So that maybe if we anticipate in the near future the standards will become tougher. And then even if our current level is okay in the future our current level may cause some problems, may cause some trouble, and therefore we want to take proactive actions. We want to take preventive actions so that in the future we still satisfy the regulations and the rules set by the government. In other words, we want to deed that you know, days not just lagging behind the government, the regulation government penalties. And finally, there are the, there are some innovating activities. In other words, it's not just preventing things, why don't they try to find some new solutions, new R and D, new technology, so that we not only fix the current problems, not only make sure that these problems do not occur in the future. Why don't we, you know, find ways to control all this variables and factors so that in the future, no similar problems occur. We can, we can take really [UNKNOWN] position in terms of deducing all this harmful factors. The factors are harmful to sustainability. [BLANK_AUDIO] So maybe the company invests actively, or indeed to develop a new process, to consistent with the support of sustainability. So, it's pretty much future orientated activities. So, now, we have you know, stretch is equality and operation equality, and I want to combine these to suggest a certain, you know, a framework, for [UNKNOWN]. Okay, take a look at this one. We have operational priority, x axis, and strategic priority, y axis. And we have corrective activities, preventive, and innovating as part of this operational priority. And also, strategy priority, time management beliefs, sustainability, survivability. Neutral and relevant. it's a asset and [UNKNOWN]. So let's think about this you know relationship between operational priority and strategy priority. If the company is here, in other words the company believes sustainability is liability and also it is ready to take just a crack of activities. That's ignore intrepid. And then a possible [UNKNOWN] still believes it's a liability, but the company conducts, the company implements extensive collective activities. And now becomes deactive as the activity becomes a little more mixture of preventive and corrective. And it approaches strategic neutrality. And now deceptive so sort of the debit applies okay, so sustainability is not asset nor liability. So it's in neutral, but you want to take more preventive actions that's a deceptive state. And now the company in this constructive whatever when it put certain priority at their debit of certain relevance. Now we know we know that sustainability is important, sustainability is relevant. And also we're trying to, the company trying to implement extensive [UNKNOWN] or preventive activity. And eventually the company can arrive at proactive position where they believe that sustainability must be their asset. And we want to take, you know, innovating activities more and more. And finally, I'll just say that the companies [UNKNOWN] priorities is enabler, in other words sustainability is actually enabler. It must be driving what we are doing. It must drive everything we do. And it is consistent with our long term future strategy. So now, sustainability's our strategic enabler, and at the same time we will invest a lot. We want to, we want to, you know, make lots of commitment to developing, find out, finding out new ways, more innovative ways to make sure that we continue with our sustainability if that happens. So, extensive innovating activities along with the strategic enabler as our strategic priority, then we would say that the company is at the transcendental level. Transcendental level. So this is kind of a guide [UNKNOWN] you know, set guidance. Companies might use this frame work to determine where they are, where they are, where we are, right? If we summarize here that's not good, because even if we believe that sustainability is strategically important, our action does not support our belief. Now there's actual [UNKNOWN] location is just to limit it. Likewise, or in a similar way, if we hear it's not good either. In other words, even if at the operational level we do a lot, we try to find innovate, inno, innovative ideas, innovative methods. But, at the top level, at the [UNKNOWN] level, we don't appreciate the sustainability too much. And then, it means that even if, you know, take us some actions, innovating actions, but still it's not, the sustainability is not sufficiently reflected in our long term corporate strategy. That's not good either. And therefore, there gotta be some, you know, fit between operational priority and strategy priority. And the company must try to enhance its operation priority, and at the same time, its strategy priority so that they pursue reaching the transcendental stage, transcendental level. So far, we talked about sustainability issue. I think that sustainability must be tackled from the entire vantage and perspective. In this instance, I would say the sustainability issue is one of the very you know, new and emerging topics, emerging issues in supply chain management, and I think that forms must pay more attention to this value chain sustainability. Not just the individual, individual companies or individual, you know, sectors of sustainability. Let's look at this sustainable issue, sustainability issue from the entire value chain, entire value chain's perspective. [BLANK_AUDIO]