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JAPAN NEWS AND DISCUSSION

Olympus scandal not good for Japan's image, Noda says

Politics Oct. 31, 2011 - 05:40PM JST ( 46 )

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Olympus has been mired in crisis since ousting its British chief executive and president Michael Woodford

Japan PM Yoshihiko Noda's comments, published in FT, come as concern grows over the impact of Olympus scandal

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46 Comments

3

ExportExpertOct. 31, 2011 - 03:29PM JST

Hahaha Japan does not follow the rules of capitalism nor the rules of the international community. Japan does everyhting it wants to and does it all it's own way, to hell with the norms, the rules and the regulations, eh japan.

Many in business have known about japan's strange practises now alot more people have seen does business in a very obscure strange way that is often difficult for those who have come from conventional business ways to understand.

Make the pay off or pay the bribe and the job/deal will be done the way you want it, especialy if you are in the network.
0

ExportExpertOct. 31, 2011 - 03:31PM JST

more people have seen does business in a = -more people have seen how japan does business in a-
3

gogogoOct. 31, 2011 - 03:31PM JST

Tip of the iceberg, if this company is doing it so it all of them.
3

buggerlugsOct. 31, 2011 - 03:35PM JST

Dear mr noda. Which country are you living in? Of course this is the norm in Japanese boardrooms, nay society. You have obviously not been keeping track of all the scandals in business here. Just look in your own party, dear mr potato head. Aka Ozawa. I predict there will be another dominos falling soon among other companies illicit practices. Poor naive mr noda, you obviously understand less about Japan than those silly gaijin.
7

hakumanOct. 31, 2011 - 03:47PM JST

Unfortunately, it is this kind of company culture that has led to the stagnation of Japan's economy. The people at the bottom know that nothing they do will really benefit them, and that the people at the top will do whatever they want (both in business and society). So they will meet the minimum standard that being Japanese requires them to, but not go that extra mile. Essentially this means, they have no hope. And when you have a country full of people with no hope, everything starts to break down.

Of course, this isn't just in Japan, obviously the Occupy-everywhere protests show that. But, this article is about Japan specifically.
9

tokyokawasakiOct. 31, 2011 - 04:04PM JST

Olympus scandal not good for Japan's image, Noda says

Sharp as a razor that Noda :)
9

johninnahaOct. 31, 2011 - 04:27PM JST

Note that he doesn't care about the legality/illegality/business ethics of the situation, just about Japan's image!
1

Dennis BauerOct. 31, 2011 - 04:27PM JST

i think the whole nuclear reactor scandal casts a bigger shadow on japan, then the "usual" corruption news
-1

tmtmsnbOct. 31, 2011 - 04:33PM JST

“What worries me is that it will be a problem if people take the events at this one Japanese company and generalize from that to say Japan is a country that (does not follow) the rules of capitalism,” he told the paper, adding: “Japanese society is not that kind of society.”

True, though Prime Minister Noda probably needs to ask this too: ---How about companies with foreign capital?
5

NessieOct. 31, 2011 - 04:52PM JST

Still no details on where the money went and who these shadowy advisors are?
1

buggerlugsOct. 31, 2011 - 05:42PM JST

There goes dear mr noda proving he's as sharp as all the other marbles in the government.
1

YubaruOct. 31, 2011 - 05:49PM JST

If I recall correctly Noda came up through the Finance Ministry and of all people he should be intimately aware of just how Japan works. Like DOH!
-3

theeastisredOct. 31, 2011 - 05:52PM JST

I think a lot of the comments on here are far too harsh on corporate Japan in general, and far too lenient on Olympus. The Olympus case, and the Daio Paper case for that matter, are absolutely extraordinary and do not typify the way things happen in Japan. They may be symptoms of lax corporate governance, and if they provide the trigger to tighten things up, then great. But it is unfair and untrue to say that this kind of thing is going on all the time. If the argument is that the difference is only one of degree, then possibly that is true - other people are doing similar shady things but on a much smaller scale perhaps. But to portray the Olympus or Daio cases as everyday occurrences in corporate Japan is quite wrong. That is the message Noda wants to give, and I think he is absolutely right to try that. Good luck to him! (In a good way, not the cynical 'Good luck with that!' way...)
1

lostrune2Oct. 31, 2011 - 06:03PM JST

$687 million is a lot of money. It must be serious for a 2-week-old newly-promoted CEO to urge the Chairman to resign.
1

nakamuranOct. 31, 2011 - 06:28PM JST

Corporate Japan was built off of such payoffs and "less-than-moral" business deals. This is nothing new, and definitely not the first to hit the news. Lets take a look back at Lockheed, or Sagawakyubin, or any of the other 1000s of such issues that have started coming to light since the 80's. Anyone who knows the business and history side of Japan well enough to venture into business deals here most likely already knows this. johninnaha said it clean and clear... the concern isnt with immoral behavior, its with a shift in image. Its all about keeping Face!
0

AlanOct. 31, 2011 - 06:52PM JST

Noda is wrong. Serious as this scandal may be, it is not a reflection on the Japanese business community as a whole. Situations like this have always arisen in large organizations, including not only corporations but also government agencies, in many countries. Some result from personal greed, others from misguided attempts to find shortcuts to good outcomes. The shame in this case belongs solely to Olympus. On the positive side, Olympus has created wonderful scientific and medical instruments that have saved countless lives.

What Noda should really be ashamed of is the complete lack of leadership and commonsense among Japan's corrupt, squabbling, small-minded, shortsighted politicians. I believe that any Japanese corporate board, including that of Olympus, would have far higher ethical standards than Noda's cabinet or party organization.
-3

Elbuda MexicanoOct. 31, 2011 - 07:28PM JST

Noda, is No duh?? Atarimae yanen! Sharp as all the other marbles?? LOL!!
0

smithinjapanOct. 31, 2011 - 07:34PM JST

"...Prime Minister Yoshihiko Noda called for clarification on the issue and said he was concerned it would be seen as part of a wider problem in the country’s business culture."

I'd be happier if he were concerned about addressing the actual issues than covering Japan's image.
2

sillygirlOct. 31, 2011 - 08:07PM JST

japan has relied on "this is the japanese way " for too long. you want to play in the big leagues you had better but on the up and up - and please NODA - find out the who, what, where, when and why of these enormous payments instead of trying to save face. it would go a long way in getting japan trusted on the world stage.
1

FernandoUchiyamaOct. 31, 2011 - 08:14PM JST

My opinion is that the capitalist world is full of these crappy things happening all around and Japan is too naive. It's giving too much attention to a thing that is not important. Lots of companies and countries do this and they don't care, they don't give a damn.

Japan is carrying a cross like Jesus did while it should be giving attention to important things like reconstruction, democracy, future and the construction of a free society.
-2

FernandoUchiyamaOct. 31, 2011 - 08:44PM JST

Raising more babies should be a more important matter too... What is happening to the japanese society? They can't even make babies!!! Where are the values? The faith?
1

moomoochooOct. 31, 2011 - 08:47PM JST

It isn't just one company. Japan is rotten to the core.
0

LagunaOct. 31, 2011 - 08:52PM JST

Imagine - an imaging company dealing a black eye to Japan's image. Let's hope they correct this, but don't get too down on Japan: corporate malfeasance unheard of in America?! Imagine!
-1

WilliBOct. 31, 2011 - 09:19PM JST

Noda is wrong.

Japan´s image is not tarnished by scamming executives.... it is potentially damaged by the way the case is dealt with.

Come clean on the goings on at Olympus, fire the scoundrels, and it will be good for Japan`s image.

Ball´s in Nodas court.
3

Christina O'NeillOct. 31, 2011 - 09:55PM JST

Mr Noda, It would help if you innitiate a law protecting whistle blowers from being iether bullied or sacked by companies, if the accusations prove to be substantiated. It is not the financial scandals that reflect so much on any countries reputation, but the ability for institutions to get away with it. Business practice regulations need to be tightened, and those flouting the law need to expect punishment sufficeint to deter such practices in the future.
1

okimike67Oct. 31, 2011 - 10:03PM JST

“What worries me is that it will be a problem if people take the events at this one Japanese company and generalize from that to say Japan is a country that (does not follow) the rules of capitalism,” he told the paper, adding: “Japanese society is not that kind of society.”

Well, if you ay it three times in a row, real quick, maybe i wont be true! HAHA!

Who does he think he is kidding, they are all in it together. Now, I am all for capitalism, but hen you are busted you are busted. Oh and to think that a couple of rotten apples automaticaly makes all people think all of Japan is thesame speaks volumes as to the Japanese mentality. Just POINT THEM OUT, TAKE EM DOWN AND MOVE ON. Simple enough??
3

herefornowOct. 31, 2011 - 10:08PM JST

Noda is wrong. Serious as this scandal may be, it is not a reflection on the Japanese business community as a whole.

Alan -- wishful thinking. Japanese business is rife with this kind of thing. The whole business model of Japan is based on lack of tranparency, cross-holdings, and boards made up of only insiders. Where else do you have annual meetings held with members of "anti-social forces", who are on the company payroll, attend to keep order and make sure no shareholders actually ask tough questions? There is no such thing as real corporate governance in Japan, nor sense of fiduciary responsibility/shareholder's rights. It simply does not exist. And the only reason this came to light is because an outsider exposed it. Corporate managers in Japan are taught to manage for the benefit of each other and their partners, not the public or shareholders. This situation defines what Japan Inc. is all about.
0

oginomeOct. 31, 2011 - 10:09PM JST

Too late. The first thing that comes to my mind when I think of Japanese business/politics is cronyism and money-for-favours. I think the whole rotten deal began to get exposed in 1988/9 when the Recruit Scandal hit... worrying 22 years later that Japan's image might get tainted is a bit of a liberty, Noda, love.
3

warnerbroOct. 31, 2011 - 10:25PM JST

Unfortunately, from what I've seen in 25 years in Japan, this amounts to business as usual. There are plenty of scandals in other nations, George W. Bush's friends at Enron in America, for example, but the former Olympus chairman, Kikukawa was the one that brought up Japanese customs to defend himself. Japanese politicians, bureaucrats, and business officials still assume that what they are doing is for domestic eyes and ears only.
0

UtrackOct. 31, 2011 - 10:46PM JST

British chief executive and president Michael Woodford should get his job back. This man did the right thing.
2

ubikwitOct. 31, 2011 - 10:51PM JST

Prosecute the guilty executives

...just like that Japanese yankee Horie, parade them before the media, take all of the money back, and fine them.

Then throw them in jail with hard labor.

That'll work.
1

Christina O'NeillOct. 31, 2011 - 10:58PM JST

As most crooked executives have never lifted anything heavier then a fountain pen utbikwit, hard labour would be a formidable punishment
-2

sswayOct. 31, 2011 - 11:28PM JST

What is the worst for Japan's image is FUKUSIMA, the radiation contamination, the leaving of people in the evacuation zones.
-1

smithinjapanNov. 01, 2011 - 12:01AM JST

Would the PM say anything at all if he were not so badly embarrassed? Oh my god do the business practices of Japan prove so transparent with this or what? Hence the damage control.
0

FoxieNov. 01, 2011 - 12:08AM JST

No reason to be embarrassed about such a small problem Mr. Noda. The whole world knows that it is common business practice. I would worry more about the lack of food labeling, that is becoming embarrassing.
0

PT24881Nov. 01, 2011 - 12:57AM JST

"What worries me is that it will be a problem if people take the events at this one Japanese company and generalize from that to say Japan is a country that (does not follow) the rules of capitalism,” he told the paper, adding: “Japanese society is not that kind of society.”

Denying such practices appeared pointless given the secretive business culture is part of the characteristics of Japan's business community since centuries. No shame to disclose it that is already an open secret. The PM Noda should keep his mouth shut on this case and let the appropriate people to handle it as per Japanese law.
0

ubikwitNov. 01, 2011 - 01:09AM JST

Another point is that although this multiple transaction sandal is centered on Olympus, the $687 'fee' (the M&A transaction) also involves Wall St cretins and offshore operations in the Cayman islands, not to mention organized crime.

Aside from somewhat substandard laws against organized crime, this reflects more the effects of international capital movements and corporate M&A transactions than Japan per se.

I suspect that had there been stronger enforcement measures in place against such off-shore tax haven banks like in the Cayman's, there would have been less incentive to try some nonsense like this.

At any rate, the FBI should be able to nail the Wall St, cretins, and that in turn should shed light on the culprits in the executive offices of Olympus.

In fact, the other transactions also involved finance sector (Nomura) cretins. It seems that the finance sector cretins are out to facilitate such scams that try to exploit some regulatory flaw or loophole. It would appear that cretins in the finance sector are coming up with scams they market to non-productive executives, basically spawning corporate corruption.
0

ubikwitNov. 01, 2011 - 01:10AM JST

multiple transaction scandal
1

MeanRingoNov. 01, 2011 - 01:27AM JST

This seems no worse to me than what goes on in corporations everywhere. Can anyone say Enron?

I would love to be privy to what scams have gone on unnoticed in this crazy world we live in.
-1

Elbuda MexicanoNov. 01, 2011 - 02:46AM JST

MeanRingo, I guess if you want to be privy?? Well that is what Wikileaks is all about right?? Shame on these big bad corporations!
-1

UtrackNov. 01, 2011 - 03:19AM JST

PM Noda the TEPCO scandal is definitely not good for Japan's image everyone else can get behind TEPCO.
-1

issa1Nov. 01, 2011 - 04:27AM JST

Supplier Furukawa Electric to pay $200 million U.S. fine for price fixing on wire harnesses.

Combination of prices???? Only Japanese companies do it ?I doubt very much.
-1

seesaw1Nov. 01, 2011 - 06:17AM JST

Woodford has already shut the door for all other foreign Executives who wish to make it big here in Japan. PM Noda made the issue worse.
0

naruhodo1Nov. 01, 2011 - 06:29AM JST

MeanRingo, you are forgetting the Lehman shock, US BANKS not only put its own ordinary americans in bankruptcy and out of jobs but the whole world. Japanese scandals dont usually take others down but just that company or locally. Just like the commiting suicide tradition vs going postal in the US.
0

kurisupisuNov. 01, 2011 - 09:48AM JST

Correction.it has already tarnished Japan's image-of course it has!
0

Higashi MinamiNov. 17, 2011 - 02:14PM JST

Mr. Noda unfortunately is 100% RIGHT: I just came from an international commerce conference, and one of the things more commented was the japanese companies moral nowdays: the multiple case of car returns due to malfunctions, the $30 million office supply budget for the Chiba prefecture, the nuclear impasse, the whale hounting, even corruption of some embassy officers that just some years ago where unbelievable affairs.

I´d been an Olympus user for 35 years and I won´t quit using its cameras and microscopes... but...now I feel something unconfortable recommending others Olympus stuff... I can ´t until they clear this situation in the next weeks, and if not, I will switch to Canon or Nikon...

I drive Subaru cars, work for a japanese fund, cook acceptable Yakitori, my little girls love Glico candy, and came last october from Okinawa where we enjoyed the Miruku Munari one more time...we love Japan, but this news really affected us and the sadness the Olympus case produces, wont go away easily. Yes, painful.