【Easy Explanation】The Dark Side of Disability and Social Welfare Corporations: Why Are These Issues Still a Problem?

This article discusses disability welfare and social welfare corporations, which are also involved in employment support.

Read this article and incorporate it as part of your knowledge.

1. Introduction

What kind of image comes to mind when you hear the term "social welfare corporation"?

Many people might think of it as an organization involved in welfare and caregiving, or as one that operates healthily according to government rules.

On the other hand, what image do you have when you hear "corporation"? Perhaps "profit-driven" or "a bit unscrupulous in their pursuit of profit." Some might have such impressions.

When we take a step back and look objectively, most of the products and services we use, like LINE, mobile phones, computers, TVs, refrigerators, shoes, everyday clothes, and sportswear, are created by corporations. While they do operate for profit, they are constantly striving to provide you with better services.

The following discussion is about social welfare corporations. Ayumi has conducted interviews and research through unique channels over several months, and will share the findings here. Please rest assured that this is not an attempt to criticize all social welfare corporations.

It is important to note that there are wonderful organizations providing caregiving and welfare services based on straightforward and admirable principles, and this article is written with that understanding.

2. What Are Employment Support Facilities?

Some of you might not be familiar with them, but have you heard of Employment Continuation Support Type B, Employment Continuation Support Type A, or Employment Transition Support Facilities?

I'll now discuss ongoing issues with these three types of facilities. I'll also explain why social welfare corporations are closely involved with them.

The differences between Employment Continuation Support Type B and Type A are broadly illustrated in this photo.

The main differences between Employment Continuation Support Type B, Type A, and Employment Transition Support are as follows:

Employment Transition Support Facilities: Aim for general employment
Employment Continuation Support Facilities (Type A): Focus on employment with an employment contract
Employment Continuation Support Facilities (Type B): Rehabilitation and training

Additionally, the general employment rates for these employment support facilities are as follows:

Employment Transition Support Facilities: 22.4% (generally, facilities with rates over 50% are considered reliable).
Employment Continuation Support Facilities (Type A): Around 4%
Employment Continuation Support Facilities (Type B): Around 1%
Note: Even from support schools, the employment rate in general companies is less than 30%.

For more details on the differences between Type B and Type A, please see

3. What Is a Social Welfare Corporation?

After a lengthy introduction, let's get to the main topic.

Why focus on these three facilities, especially Employment Continuation Support Type B and Type A?

It's because some individuals with disabilities are being exploited and not properly valued by some of these facilities.

Employment Continuation Support Type B and Type A facilities are often operated by corporations, NPOs, and social welfare corporations. Among these, social welfare corporations are frequently highlighted in articles and news as "problematic facilities."

3-1. Characteristics and Overview of Social Welfare Corporations

• Social welfare corporations are private businesses (private operators)
• They are public interest corporations that must not aim for profit
• In return, they receive subsidies and tax incentives from local governments
• They can function as public institutions by being entrusted with municipal projects
• They are characterized by "public nature," "non-profit nature," and "stability"
• They meet the requirements of the social welfare corporation screening criteria
• They only conduct designated welfare projects
• They require at least 6 directors, 2 auditors, and more than twice the number of directors as councilors
• Profit distribution is not allowed

This provides a broad overview of the characteristics and establishment conditions of social welfare corporations.

This article aims to express the deep-seated issues within social welfare corporations. We will discuss this further. Not all social welfare corporations are implicated, but why can this be said? How can one discern the truth? We hope to discuss these points as well.

4. The Deep-Rooted Issues of Social Welfare Corporations

Social welfare corporations, which are the business entities behind employment support facilities (Type A, Type B, and transition support), have been used as post-retirement positions for bureaucrats, national public servants, and local government officials. They have even been called "termites devouring social welfare."

Why is this revolving door possible? It is reflected in the characteristics and establishment conditions of social welfare corporations.
Refer to the previous section "3-1. Characteristics and Overview of Social Welfare Corporations."

On the surface, they appear to be "public interest corporations operating healthily," but in reality, they are "private operators." Although they are private operators, they have many conditions and characteristics that make them suitable as post-retirement positions, such as tax incentives from local governments and the ability to be entrusted with municipal projects. While it is stated that they meet the screening criteria, the approval comes from the nation, government, and local authorities.

While some social welfare corporations apply earnestly, positions like chairman, director, and facility manager are prepared for bureaucrats and national public servants post-retirement.

Although it is said that there are strict audits and investigations for establishing social welfare corporations, this is based on the assumption that "audits and investigations function correctly." Conversely, would the auditors, who are third-party organizations for social welfare corporations that serve as post-retirement positions, conduct audits correctly without bias? If so, articles like the following would not appear.

Reference: What to Do When You Can't Consult with an "Inexperienced Facility Manager"?

Additionally, are any special skills or qualifications required for a facility manager? No, they aren't. That's why they can be appointed to the position. There are many issues where management is pushed onto those who know nothing about running a facility.

Social welfare corporations are generally exempt from business and corporate taxes. The remaining profits form a system where money continuously flows into the hands of the management, such as the chairman, directors, and facility managers.

5. In Conclusion

This article has discussed disability welfare and social welfare corporations involved in employment support. Do you trust the financial reports of social welfare corporations that have become post-retirement positions? People with disabilities are being caught up in this system. Are they actually being exploited?

For more on this topic, please see

If you have time, please also read the Mainichi Shimbun article on the issue of social welfare corporations being used as post-retirement positions.

Reference: Covering Personnel Costs: "Pressure from the Deputy Mayor on Post-Retirement Positions" in Shibukawa, Gunma