Mindfulness and Reporting Incentives in Risk Management: an Analysis of Japanese High-Reliability Organizations

This study examines the impact of mindfulness and reporting incentives on risk communication within Japanese high-reliability organizations (HROs). Eleven companies were categorized into three groups based on human and economic impact: Group I (high human and economic impact), Group II (low human, high economic impact), and Group III (low human and economic impact). Group I, including public and telecommunications infrastructure companies, emphasized risk reporting’s effect on evaluations, strict manual adherence, and decentralized reporting. Group II, comprising banks and construction companies, had centralized authority and a culture promoting early reporting to supervisors. Group III, consisting of hotels, manufacturers, and advertising agencies, maintained traditional seniority-based systems with minimal performance-based incentives, relying on employee loyalty. The study reveals significant differences in risk management practices across groups and underscores the necessity for explicit risk communication and decision-making guidelines in Japanese firms, highlighting the need for industry-specific strategies to enhance mindfulness and incentivize reporting.