Innovations in digital technology are emerging across the globe, significantly impacting our daily lives, industrial activities, and even the state of social infrastructure. For NEC, a company using digital technology to expand its business in the global market, it is important to be aware of the inner workings of world affairs, to build rapport with government and public organizations in Japan and other countries, and to garner their support for using this technology appropriately. In this edition of NEC Stories, we will delve into the achievements of the Global Public Policy Relations Office responsible for such efforts.

Innovative digital technologies and ever-changing regulations and policies

Some of our readers may be unfamiliar with the term "public policy relations." This term refers to generating empathy and shared awareness by exchanging opinions with and presenting recommendations to government agencies and others on specific themes or issues. In doing so, companies can encourage the formulation and improvement of policies, thereby gaining a competitive advantage in business. This is why it is crucial for NEC—a company leading the way in new technologies and information infrastructure integral to people's everyday lives—to support regulations and policies through public policy relations activities to advance its business endeavors.

In public policy relations, policy proposal activities can vary tremendously. Take, for example, the acquisition of funding from governments. NEC makes proposals based on the importance and necessity of the projects it takes on in developing countries. If NEC successfully obtains Official Development Assistance (ODA) from Japan, that assistance will serve as a strong foundation for advancing the project in terms of funding and backing. In the Communications Infrastructure business, which includes submarine cables and 5G, collaboration with the Japanese government is key to reaching out to the governments of countries where we engage in such business. When it comes to cutting-edge technology, it is also imperative to fully understand the regulations in each country. One specific example of this is biometric authentication technology, a technology in which NEC takes great pride. Views on this technology concerning human rights and privacy vary from country to country, as do regulations. As such, carefully monitoring and adapting to the policy environment is vital to NEC's business operations.

Policy proposal activities like these involve much more than daily visits to governmental and ministerial agencies. For NEC, it involves participation in international conferences and lobbying of governments and public organizations by members of top management. Through these activities, NEC is focused on elevating its presence and earning trust. And it is NEC's Global Public Policy Relations Office that oversees all such activities.

According to Shigehiro Tanaka, who leads NEC's public policy relations activities and serves as Chief Government Affairs Officer (CGAO), "Countries are struggling to figure out how to approach innovative digital technologies." In the U.S., as Big Tech makes its presence felt, the debate on regulations in response to social change is intensifying. China has introduced its own regulations based on social principles that differ from our own. Meanwhile, European regulations are impacting international business as a whole. After offering this overview of the current state of digital policies in countries around the world, Tanaka emphasized, "As a company hailing from Japan—a country that stands in the middle ground—and as a social value innovator, NEC needs to have a good grasp of global digital policy trends and be proactive."

A strategic framework in Japan, the U.S., and Europe

While Japan is of course a stronghold for NEC, the U.S. and Europe are also key regions. To ensure that it stays abreast of and keeps pace with trends in each region, NEC is creating a framework for following trends in Japan, the U.S., and Europe. Mitsuhiro Murooka, NEC's Chief Global Strategy Officer (CGSO) who oversees the company's global strategy, described this framework, saying, "It is an extremely important strategic framework for networking with key persons and relevant governmental institutions and private organizations, obtaining information in real time, and engaging in fundamental activities that enable swift policy response."

The activities being carried out are unique to each region. In Japan, NEC promotes ODA-related proposals to encourage the establishment of programs that will lead to real business opportunities. Also, through its participation in advisory committees on AI and cybersecurity, NEC is helping to shape pivotal national digital policies. In business areas that are vital to NEC, including submarine cables, 5G communications, aerospace, and national security, the company listens to the government's needs and offers recommendations in return. Meanwhile, other activities are aimed at contributing to NEC's business, such as the handling of visits by government officials from other countries who show an interest in the company and its business endeavors.

In the U.S., NEC has set up an office in Washington, D.C. Members of this office proactively engage in activities ranging from lobbying for policies on biometrics and border security to participating in events related to the Trilateral Leaders' Summit of the United States, Japan, and the Republic of Korea, as well as the Japan-U.S. Business Conference. As exemplified by NEC's submarine cables being mentioned in the United States-Japan Joint Leaders' Statement in 2024 and visits by the United States Secretary of State and an influential U.S. senator and his delegation to NEC's head office, NEC is deepening its relationship with the U.S. government. Hiroyuki Ishii, who is in charge of policy related to the U.S. region, has also arranged meetings with numerous top officials. Ishii enthusiastically told us, "I am focused on what we can do to increase business opportunities for NEC by working closely with relevant stakeholders."

In Europe, NEC participates in a lobbying organization called the Japan Business Council in Europe (JBCE), primarily through its Brussels office. The policy recommendations being made there include those related to digital policies, environmental policies, and the EU Artificial Intelligence Act (EU AI Act). The NEC Group is also uniting to advance policy recommendation activities by collaborating with NEC Laboratories Europe and subsidiaries participating in Horizon Europe, a framework for promoting wide-ranging research and development efforts. In addition, with Dr. Nobuhiro Endo, Executive Advisor of NEC, serving as co-Chairman of the EU-Japan Business Round Table, which aims to bolster economic relations from the perspective of the business community, NEC is further establishing its presence by compiling the opinions of Japanese companies and more.

Behind these dynamic global government public policy relations activities are elements unique to NEC—a technology company that plays a key role in critical digital infrastructure projects related to national security and possesses world-class technology capabilities. Having a vision for social value creation backed by this is why NEC is able to make such powerful policy recommendations. It is also thanks to NEC's excellent track record and the relationships of trust it has built with governments and public entities over the past 125 years since its establishment.

Providing value to global society as a representative of Japan

The NEC Group has declared its Purpose as "creating the social values of safety, security,
fairness and efficiency to promote a more sustainable world where everyone has the chance to reach their full potential." Since NEC's goal is to change society as a whole for the better, it is imperative that it engages in initiatives involving various stakeholders, including not only companies but also governments.

According to Kiichi Tamida, who is responsible for improvements in the ODA framework, "Leveraging our strengths as a company that leads the world with technologies capable of contributing to economic security, we are lobbying the Japanese government to accelerate the ODA process. Doing so will not only bring more prosperity to developing countries and Japan but also make them safer and more secure, which we believe is tremendously valuable." Also, as digital technology becomes indispensable to society, people worldwide are calling for technologies that can be used safely without jeopardizing their privacy or human rights.

Recently, Chief Government Affairs Officer Shigehiro Tanaka shared an African proverb with employees that says, "If you want to go fast, go alone; if you want to go far, go together." In other words, the best way to take on a job as big as changing society is for everyone to work together. Expressing his expectations, Tanaka said, "I want to work together with all NEC Group employees to make society better and believe that global public policy relations will play a key role in accelerating this."

To provide value to the world as a Japanese company wielding critical technologies, the Global Public Policy Relations Office will continue to move forward with its trust-building efforts.

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