Corporate Social Responsibility (CSR) has been interpreted broadly in Japan as compliance, business ethics and corporate philanthropy. Many Japanese enterprises have been implementing various CSR activities and appeal to their stakeholders by publishing annual CSR Reports, Environmental Performance Reports or Sustainability Reports. Obviously, CSR strategies and implementations are being regarded as indispensable managerial tools required for creating and sustaining corporate value to Japanese enterprises. However, at the same time, Japanese companies are required to establish and strengthen their business ethical norms and guidelines due to continuous corporate scandals. Why Corporate Social Responsibility and Business Ethics are becoming essential to Japanese enterprises? Firstly, they strengthen and enhance corporate value. Though it is difficult to measure the economic performance of CSR and Business Ethics implementations, it is justified that they do contribute to corporate image and brand. Secondly, they improve the relationship between enterprises and their stakeholders. CSR and Business Ethics help a company earn their stakeholders' trust. Thirdly, they contribute to sustainable development of global economy. Balanced management in economic, social and environmental performance show a company's attitude to be a good global corporate citizen. In this paper, as a member of Top Management's Business Ethics Study Group belonging to Japan Society for Business Ethics Study, I will explore the reasons for corporate scandals and the latest interpretation of CSR and Business Ethics in Japanese enterprises by examining the questionnaire survey we conducted in March-April 2007. I would like to indicate that CSR and Business Ethics have become essential elements to Japanese enterprises' strategies and those companies that value CSR and Business Ethics will be positively evaluated. My conclusions will be as follows. 1. CSR and Business Ethics are not optional but indispensable to corporate strategies. 2. CSR and Business Ethics eventually bring benefits, such as social trust and good corporate image, to the company. 3. CSR and Business Ethics help establish good stakeholder communications. 4. Top management's leadership is definitely necessary to implement CSR and Business Ethics.