2007 President's Message

Charles D. Lake II
2007 ACCJ President

I am pleased to report that the state of the Chamber is excellent.

Before I begin, I would like to extend my thanks to the leaders of the ACCJ, from the Board of Governors to the committee and subcommittee chairs and vice-chairs as well as many other active members.

As a volunteer organization, your efforts are vital to making the ACCJ the robust and influential organization it is.

In addition, I would like to thank all the members of the ACCJ's staff, led by Executive Director Sam Kidder, who work so hard for the benefit of our entire organization. The success we have had in 2007 would not have been possible without your dedicated efforts. Thank you.

We again kicked off the year with a Shinnenkai featuring a kagami biraki with the traditional Japanese hammering of sake barrels, ACCJ branded masu, and Board members in hapi coats.

Nearly 500 ACCJ members and guests joined a number of distinguished business and political leaders such as Taizo Nishimuro of Toshiba Corporation and the Tokyo Stock Exchange.

At this event, we announced that "相利共生," or "Working Together, Winning Together," would again be our slogan in 2007.

Shinnenkais were also held in Osaka and Nagoya as well.

Later in January, the Board of Governors came together for a long strategic planning session and agreed, under the 相利共生 slogan, to focus on two major pillars in 2007 in addition to continuing our ongoing activities.

The two pillars are: Corporate Social Responsibility and our role as an Economic Growth Oendan, or "Supporter of Sustained Economic Growth."

Thanks to the tremendous efforts of ACCJ leaders, members and staff, we have achieved some real results in 2007.

Over the next few minutes, I would like to review the ACCJ's 2007 achievements in four areas featured in the Board's vision for 2007: 1) leadership and management; 2) governance; 3) advocacy; and 4) programs.

Leadership and Management

First, I would like to discuss leadership and management.

The core competence of the ACCJ is its committee structure and its volunteer leaders, and the stronger the leaders, the more successful the Chamber will be.

 

In 2007, we continued our efforts to strengthen the capabilities of ACCJ leaders through training efforts and other activities.

For example, early in the year we updated the Leadership Guide and again shared it with all committee chairs and vice chairs.

In May, the Programs Development Committee sponsored a leadership workshop on how to MC events that was attended by Board members and committee leaders.

Thank you to Dominic Carter and Robert Burnside for their efforts to put this worthwhile workshop together.

Leadership Forum also continued to be a place where the Board and committee leaders gathered to exchange information and ideas and work to improve leadership skills.

Thank you Mark Schwab and Todd McHenry for your hard work in chairing the Leadership Forum.

Thank you also to Vice President Bill Bishop and others that serve on the Communications Advisory Council for making sure that the Chamber's policy and practices are sound as we strive to communicate effectively with our members through the ACCJ Journal, our Website, and Webcasts.

In particular, with the support of ACCJ Associate Director for Communications Peter Rolufs, the Communications Advisory Council has undertaken an ambitious program to renew the ACCJ Website this year, including adding a full-fledged Japanese site.

Bill and Peter, thank you for your efforts.

Membership

Membership is obviously important to management of the Chamber, and 2007 has been a great year for ACCJ membership.

For the first time in three years, our membership surpassed 3,000 paying members, and it is still growing.

As of October, the ACCJ had 3,127 total members, 113 more than this time last year.

And in a continuing trend from last year, commercial memberships are on the rise.

We welcomed one new Corporate Sustaining member this summer, and from January through October we added 23 new company members.

Thank you to PMI Mortgage Insurance Company Tokyo and all our other corporate sustaining and commercial members.

Regionally, under Vice President Michel Weenick's leadership, the Chubu Chapter has worked hard at maintaining its current membership and continues its efforts to attract new commercial members.

 

In Kansai, Vice President Mike Bobrove and new staff director Keizo Yamada have led an effort to rejuvenate the Kansai Membership Committee and utilize new recruiting methods.

So far, the results are good, with Kansai membership on the rise this fall.

Overall, the Chamber's membership is in great shape.

Thank you to Aki Watanuki and her membership team at the ACCJ and to the members of the Membership Relations Committee and Membership Expansion Subcommittee for all their hard work.

Finances

In the area of finances, thanks to the tremendous efforts of ACCJ Treasurer Mark Baldwin, Vice President Michael Alfant and others on the Business and Financial Affairs Advisory Council, and the ACCJ staff, the Chamber is in good financial health.

Although Mark Baldwin will go into more detail in his presentation, I wanted to give you a brief overview.

The Chamber is expected to end the year with over 187 million yen in net assets, which exceeds our original budget expectation by over 2 million yen and represents a significant cushion over the 100 million yen safety reserve level adopted by the Board a few years ago.

This result was achieved through containing expenses; favorable advertising sales; revenues generated by Employment Central, the ACCJ's job and résumé posting website; and an improvement in membership numbers since the beginning of the year.

Thank you Sam and Aron, particularly, for your hard work in controlling expenses.

Finally, I should mention that the Board is currently conducting a review of our infrastructure needs and other strategic investments that may be necessary to ensure that we are maximizing the ACCJ's value proposition for all members.

Governance

Next, I would like to talk about the ACCJ's governance.

From a governance perspective, this has been a historic year for the ACCJ.

Earlier in October, ACCJ voting members overwhelmingly approved an updated and improved Constitution.

This vote marked the completion of a long, comprehensive review and revision of our Constitution and Bylaws to better reflect the dramatic changes that have occurred in the nearly 60 years since these documents were drafted.

The ACCJ has always strived to apply meticulous corporate governance standards to its activities through established rules and practices and through an internal structure that consists of the Board of Governors, advisory councils, and committee leaders that collectively ensure accountability and that our organization is governed in a responsible manner.

In addition, the core documents of the Chamber's governance have always been our Constitution and Bylaws.

But the ACCJ's Constitution and Bylaws were drafted early in the Chamber's life and – despite major changes in the ACCJ's membership, mission, scope of activities, and operating environment – they had not been substantially reviewed in their entirety in many years.

Accordingly, under the direction of the Board of Governors, the Internal Affairs Advisory Council, chaired by ACCJ Vice President Larry Bates and vice chaired by ACCJ Governor Royanne Doi, undertook a concerted effort this year to revise these core governance documents.

Early this year, the IAAC identified key issue areas associated with constitutional revision and conducted a best practice review of each of them.

This review was an exhaustive one, with the IAAC conducting more than 12 brainstorming sessions; holding numerous meetings with other Chamber advisory councils and key stakeholders like the leadership of the two regional chapters; and briefing on a monthly basis the Board of Governors, Leadership Forum, and the Executive Committee.

Building on these efforts, and operating under the three principles of (1) maintaining consistency with the ACCJ's objectives and mission statement, (2) opening everything for discussion, and (3) not changing what we know works well, the IAAC put together a package of recommendations for revision of the Constitution and Bylaws, which was debated by the Board of Governors and Leadership Forum in several special meetings throughout the spring and summer.

The next step was to gather feedback from the ACCJ general membership, which we accomplished through several means. First, we sent – by hard copy and via e-mail – drafts of the proposed new Constitution and Bylaws to every ACCJ member.

From June 25 to July 24, we then held a 30-day member comment period on these documents. During this comment period, we convened four Town Hall Meetings for ACCJ members, including one in each of the Chamber's regional chapters.

These meetings gave interested ACCJ members opportunities to have their voice heard on any and all issues related to constitutional reform.

Finally, to ensure that Chamber members had the information they needed to cast an informed vote, the ACCJ Journal carried four articles on the constitutional reform process this year.

During the course of gathering feedback from ACCJ members on the proposed new Constitution and Bylaws, we heard many different perspectives, some of which were quite strongly held and vigorously presented.

Board members and IAAC members welcomed this response, and several material changes were made to the original proposed draft based on the input of ACCJ members.

In the end, the Board made compromises in the best interests of the ACCJ as a whole and approved a proposed new constitutional reform package that, taken in its entirety, will ultimately make the Chamber much stronger and better protect our stakeholders.

I would like to commend the IAAC and the members of the ACCJ Board of Governors for the earnestness and dedication with which they approached this vital initiative.

Members of the Board, who were elected by voting members to represent the best interests of the Chamber, took their charge seriously, spending countless hours of volunteer time reviewing and debating the IAAC's recommendations and the draft text itself.

Thank you to the Board and, in particular, to IAAC Chair Larry Bates and Vice Chair Royanne Doi for leading this effort.

Thank you also to the six other constitutional reform champions, who each devoted hundreds of volunteer hours over the course of 2007 reviewing and revising the ACCJ's vital governance documents.

To:

Victoria Becker;
ACCJ Governor Vicki Beyer;
Andrew Conrad;
ACCJ Governor John Kakinuki;
ACCJ Governor Jay Ponazacki; and
Maurice Rabb

Thank you for your monumental contribution to the health, stability, and future success of the Chamber.

Every ACCJ member owes you a great debt of gratitude.

Advocacy

Making a Difference

In the area of advocacy, the Chamber has accomplished much in 2007.

More than ever, it is clear that policymakers in Japan and the United States are looking to the ACCJ for policy solutions to some of the toughest issues faced by Japan and by U.S. businesses operating here.

For example, the ACCJ has testified in 10 government or advisory committee hearings through October 2007, offering our views on a range of issues including foreign direct investment, tourism, postal privatization, financial market competitiveness, immigration, aviation, and food safety.

Thank you to the members and leaders of the committees and task forces that participated in these hearings.

On the U.S. side, through this month we have held more than 25 briefings with U.S. Government officials, including meetings with senators and other high-ranking policymakers.

These briefings serve as excellent opportunities for sharing our views with the U.S. Government.

Thank you to ACCJ Executive Director Sam Kidder and Government Affairs Manager Kathy Santillo for working so hard to make these important briefings happen.

Committee advocacy activities

In other areas of advocacy, our committees have really turned things up a notch in 2007.

As of October, we approved 23 viewpoints, 20 public comments, and 9 advocacy-related press releases.

Although I cannot possibly detail all of the issues presented, I would like to mention the committees and task forces who have been the key drivers behind these strong advocacy efforts:

The Financial Services Committee;
The Healthcare Committee;
The Information, Communications and Technology Committee;
The Legal Services Committee;
The Transportation and Logistics Committee;
The Toiletries, Cosmetics, and Fragrances Committee; and
The Privatization Task Force.

Thank you to the leaders of these committees and to ACCJ Vice President and External Affairs Advisory Council Chair Allan Smith and Vice Chairs John Kakinuki and Andrew Conrad and other members of the EAAC for reviewing every policy document the ACCJ issued in 2007.

Another way we engage with policymakers in Washington and Tokyo is through our annual D.C. and Diet Doorknocks.

In April, we held a successful D.C. Doorknock, presenting the ACCJ's views on numerous public policy issues to Washington insiders, including our call for actions leading to the eventual negotiation of a U.S.-Japan Free Trade Agreement.

Here in Japan, we will hold our three-day Diet Doorknock starting tomorrow, and we already have more than 60 meetings scheduled.

During the Doorknock, I look forward to exchanging views with Ministers, Diet members, and other key policymakers on issues of importance to ACCJ members.

Among the documents we will be distributing and discussing is the ACCJ Financial Center White Paper, a comprehensive policy paper that offers a strategic roadmap for enhancing the competitiveness of Japan's financial and capital markets, a goal Japan's cabinet set earlier this year.

Many thanks to those who put the time in to draft and review this important policy document.

Thanks also to the ACCJ's Garland Yu, who played an important role in designing and formatting this White Paper.

Finally, thank you to Government Relations Committee Chair Jim Foster and ACCJ Government Affairs Manager Miho Yasuda and her team for all their hard work in preparing for what is sure to be another successful Diet Doorknock.

Before I move on to programs, I want to take a moment to highlight the important role public relations play in enhancing the effectiveness of the ACCJ's advocacy efforts.

Effective brand management is vital to ensuring that policymakers listen when the ACCJ talks, and we are fortunate enough to have an excellent media officer on the ACCJ staff.

Mina Takahashi, thank you for all your efforts.

And to all ACCJ members involved in the Chamber's advocacy efforts, great work again this year – I am confident that we are making a difference for our member companies.

Programs

Next I would like to discuss programs.

2007 was another great year for ACCJ programs.

Corporate Social Responsibility (CSR)

In the area of CSR, we had a number of successes this year.

Created in January by the Board to build on the success of our 2006 CSR Task Force, the new CSR Committee had a big first year, holding eight open events through October.

The CSR Committee has also hosted a number of guest speakers to its meetings, including a Diet member and several leading thinkers in the area of corporate social responsibility.

Thank you to CSR Committee Chair Andrew Conrad and Vice Chair Patricia Bader-Johnston for all their hard work in helping to foster continued dialogue about important CSR issues among the ACCJ's members.

Another important CSR-related event was our second annual "Symposium on Women in Financial Services," sponsored by the Financial Services Committee.

More than 360 people attended this year's Symposium, which featured a full-day program of events a keynote address by Diet Member Kuniko Inoguchi, two panel discussions, five afternoon workshops, and a networking cocktail reception.

Many people contributed to the tremendous success of this event, but I would like to especially thank Financial Services Committee co-Chair Jon Schuman for spearheading the effort to pull this program together.

Thank you also to ACCJ Chairman Debbie Howard, ACCJ Governors Royanne Doi and Vicki Beyer, and Maureen Grewe of the U.S. Embassy for their support.

Finally in CSR, of course, is the ACCJ Charity Crystal Ball, whose theme this year is "Guys and Dolls."

Last year's Ball raised a record 16.8 million yen for distribution to local charities and non-profit organizations.

This year, the Charity Crystal Ball was an even bigger success, raising 24,354,546 yen in cash and prize sponsorships.

Thank you to Barry Bergmann and all the members of the Charity Ball Committee for working so hard to achieve this record success.

I would like to also thank Governor Tom Jordan, Tom Whitson, Governor Tad Johnson, Vice President Mark Schwab, Senior Special Advisor Kumi Sato, Vincenzo Lufino and others for their work with the ACCJ Community Service Advisory Council.

Other Programs

Overall in programs, we held 365 programs from January to September, which is an increase from the same period last year.

And attendance is way up in 2007, with nearly 13,600 attendees from January to September, a sharp rise from 12,000 in the same period last year.

Congratulations to Laura Younger and her programs team and all our committee leaders for organizing engaging programs that have attracted so many ACCJ members.

In the area of networking, for example, the Membership Relations Committee had another great year.

The Committee's three "Nomu-nication" events again drew a total of nearly 500 people and its "Meet and Greet" brought in nearly 200.

These fantastic networking opportunities are a major reason why many join the Chamber and why they stay as members year after year.

Networking is a vital part of the Chamber's value proposition, and I thank Membership Relations Committee co-Chairs Andrew Silberman and Jim Weisser and the members of the committee for doing such a great job in getting our members together.

We also hosted some high-profile business speakers in 2007, including: Hiroshi Okuda, Senior Advisor and Member of the Board, Toyota Motor Corporation, and our 2006 Person of the Year; American Airlines Chairman, President, and CEO Gerard J. Arpey; Daniel P. Amos, Chairman & CEO of Aflac Incorporated, and Jesper Koll, who gave a great economic overview to more than 300 ACCJ members and guests.

Key government speakers this year included U.S. Ambassador Thomas Schieffer; Minister for Financial Services Yuji Yamamoto; FSA Commissioner Takafumi Sato; SEC Commissioner Paul Atkins; and Hawaii Governor Linda Lingle.

We also held two sold-out golf tournaments this year.

And although we lost the DaimlerChrysler Cup by a slim margin to the Europeans for the first time in 4 years, I am sure we will be back strong next year. Many thanks to Bob Bernal and Aron Kremer for heading up the North American Task Force, and to Bob Grondine, who again served as captain of the North American team and happened to hit an iron to about twelve inches to win one of the near-pin prizes.

Tokyo was not the only place for exciting events in 2007, as the Chubu Chapter held its sixteenth annual Walkathon, which has become the largest annual international event in Nagoya.

This year's Walkathon brought together more than 2,000 people from Nagoya's international and Japanese communities and raised more than 7.5 million yen to support the vital work of 28 local charities.

Congratulations Vice President Michael Weenick and Governor Harry Hill for another outstanding job.

The Kansai Chapter held its second annual Walkathon earlier this month.

Over 38 businesses, 14 governmental and NGO agencies, 3 international schools and approximately 1,000 individual participants came together in a 1.3 km walk around Osaka Castle to raise approximately 13 million yen for charities.

Vice President Michael Bobrove and Governor Ravi Chaturvedi showed strong leadership in planning and executing the event together with key Kansai Chapter committee leaders.

I would also like to mention the continued success of our Member Feedback Online Survey, launched in January 2006 under Chairman Debbie Howard.

This system, designed to ensure that the Chamber is effectively monitoring member opinions about our programs, has proved to be an effective tool for committee chairs and the ACCJ office as we strive to continually improve the quality of our programs.

So yes, when you say that the room was too hot or the soup was cold, we are listening.

Closing

Finally, on a personal note, I would like to close by saying that it has truly been an honor and a privilege to serve as your President these past two years.

I have learned a tremendous amount in that time and have been incredibly impressed with the spirit of volunteerism, dedication, and professionalism of all of the ACCJ's members.

I truly believe that we can all be proud of everything we have achieved.

Thank you for your support, and I look forward to doing everything I can to help our next President lead the ACCJ to even greater successes.

Thank you.

Charles D. Lake II
2007 ACCJ President