The changing corporate governance in Japan: adapting to globalisation

Corporate governance in Japan is now undergoing dramatic changes. A set of global standards for corporate governance has been advocated. For example, OECD complied guidelines on corporate governance in 1998 and 1999. Corporate governance measures are increasingly being paid attention to, and not surprisingly, proposed changes to the Commercial Code (the Japanese version of a corporations law) are aimed at bringing Japanese corporate governance practices more in line with international standards. Although discussions about change have been ongoing for the past decade, most Japanese companies have not yet decided what type of corporate governance should be adopted as their own. What we need in Japan is a new type of corporate governance that suits Japanese companies and society, while at the same time we as a society begin to obey our laws and rules. This idea can only be achieved through a high degree of measurement, monitoring, and motivation.