Edano says Japan's corporate governance on par with U.S.

lol is that supposed to be good?

I wonder what it's like living in a fantasy world?

Looking at past experience, the delusional level of the Japanese goes from small companies to the government itself.

On par with Enron, MF Global, Lehman, et. al?

The Japanese government is currently revising its Company law.

~ to ensure a foreigner never makes it that high in the company.

Also to make sure Whistleblowers are censored and punished with extreme prejudice.

“To say that Japan has no corporate governance is going too far, way to far,” Edano said.

I like this sentence.

Clearly dealing with Fukushima has somewhat addled his brain...

They have the laws on paper but absolutely no way of enforcing them.

What do you expect him to say? He's a lawyer.

Blind, ignorant, and a liar or is he just stupid ?

Isn't this the same guy who kept insisting early on that Fukushima Daiichi wasn't leaking anything? And we're supposed to believe him now? Yeah, right. He has no creditability.

The laws aren't at fault, it's the culture. Several times I have been alone dissenting on ideas that are obviously bad for the company. Later I learn from other committee members that they disagree, but refused to voice it publicly. The locals don't move up if they disagree with management.

The Japanese government is currently revising its Company law

Sorry edano, YOUR WRONG, the above clearly & correctly counters what you "think".

Japan has been long known for poor governence, but now its abundantly clear that a lot of fraud is also involved with the usual co-conspiratorial type management type practices, end of story.

The man is clearly delusional. So long as most boards are made up almost excusively of insiders, Japan will never attain a reasonable level of corporate governance. It is an oxymoron.

Japan has been long known for poor governence, but now its abundantly clear that a lot of fraud is also involved with the usual co-conspiratorial type management type practices, end of story.

yeah this is true. the thing is, while most of the world HAS long known this, Japan is just finding out how the rest of the world thinks. The insular bubble has been popped and defense mode has been activated. The caste system that STILL exists in Japan is not condusive to any semblance of "corporate governance practices"

"in the country of the blind, the one-eyed man is king"

“Historically, looking at past cases related to corporate governance, Japan is at least at the same level as the U.S. or even better, in term of effort and results.”

..whereupon Edano and the entire press corps burst into laughter.

This little blurb from the Economist sheds light on the well-known reality; http://www.economist.com/node/21541036

woops, wrong link. Here it is; http://www.economist.com/node/21541039

I agree with herefornow for a change. The man is clearly delusional. There is no way in hell that corporate governance is in par with U.S. Enron???? Worldcom?? And as recently as MF Global which is already in the billions and yet it gets barely a ticker on the headline in U.S.

hoserfella

Put your links between these < > and they will become active.

http://www.economist.com/node/21541039

See?

I think Edano is missing the point. The heart of the problem is that those tasked with oversight and accountability are doing anything but proving to the world that Japan’s governance efforts are “at least on par with the U.S. or even better.”

The story here is getting twisted so that Woodford is regarded with a higher degree of scorn than are the corrupt Olympus executives. Former Olympus president Shimoyama recently said that it was a mistake to bring a foreigner on as president (「外国人社長を迎え入れたのが失敗」), suggesting that it isn’t the corruption that was wrong, but the exposure of it. I think many here share that sentiment.

Politicians, financial regulators and media are all key elements of successful governance of a nation’s companies, and as such they need encourage whistleblowers to come forward. Until whistleblowing is seen in a positive light in Japan, all of the governance efforts to which Edano refers will be close to meaningless.

"in the country of the blind, the one-eyed man is king"

Nope. In the country of the blind, the one-eyed man gets forced to resign if he talks about what he can see.

Pitttown Man -- great post. I'd add share holders and directors to the elements you listed for successful governance. But identifying the elements and getting Japan Inc. to change enough to allow any of them to function productively to establish true corporate governance are two vastly different things.

NO NO NO American companies are way better at covering this stuff up. Japan has a long way to go to catch up. ...Oh wait, is he talking about good business practices?

"But he strongly rejected criticism that Japan lacks proper standards in this regard."

Yes, well, Olympus also strongly rejected the idea that it was committed in any sort of dubios behaviour, and the execs are all being protected while they persecute the whistleblower.

nigelboy: "I agree with herefornow for a change. The man is clearly delusional. There is no way in hell that corporate governance is in par with U.S. Enron???? Worldcom??"

Tell us, please... where are the people responsible for the Enron scandal? In prison or dead, no? Where are the people responsible for the Olympus scandal? in mansions enjoying their severance packages and arranging their next amakudari positions and trying to make it up to their yakuza connections.

YES, there's scandal everywhere, to be sure, and mismanagement to say the least. How it's dealt with in different nations is EXTREMELY different, and Japan is very, very far behind in this respect, and Edano is, as such, out of his mind (as you say yourself).

I agree with herefornow for a change. The man is clearly delusional. There is no way in hell that corporate governance is in par with U.S. Enron????

nigelboy -- thanks for the laugh. But if you understood the difference between corporate governance and corporate greed, you really would agree with me. And it is too bad that Edano does not understand the difference either. Corporate governance has to do with the laws and procedures the country has in place to protect the rights of the share holders -- like the Sarbanes-Oxley law. Japan's are a joke. But, as you correctly point out, even good governance cannot stop outright greed. Respectfully, Japanese financial regulators feel it is their jobs to protect the banks and corporations, even if it means letting companies get away with shady practices. That is what gives Japan Inc. stability. Japan's most prized trait. Where U.S. regulators are charged with protecting the stock holders, even at the risk of bringing a company down. to set an example. Two totally different philosophies and Edano shows his ignorence by even putting the two in the same sentence.

I call bs on Yukio chan's claims.

Japanese companies tend to appoint only board members with close ties to the company’s management or majority shareholder, perpetuating the perception that Japanese corporations are dominated by insiders.

No big secret here, except them trying to deny it..

@Al Stewart

NO NO NO American companies are way better at covering this stuff up. Japan has a long way to go to catch up. ...Oh wait, is he talking about good business practices?

Yea, except in the U.S., when they catch them, they go to JAIL. in Japan, it's, "Oh, Don't do that anymore Kenji-kun..." "Bad Kenji-kun! You are such a bad boy, now go to your room...! No more PSP for you!, I mean it!"

herefornow: " And it is too bad that Edano does not understand the difference either."

EXACTLY! And what has changed, exactly, in terms of governance of Olympus only, for example? NOTHING. Sure, three execs quit just before they could be questioned by the board (cowards running!), sure there were the requisite, "It's regrettable", "Moushiwake arimasen", and promises to make things transparent while tighting them up, but what else?

Anyway, it doesn't matter how much Japan tries to convince the rest of the world and international investors -- the damage has been done and he's only making it worse. He may be able to convince the other Japanese company heads engaged in the same kind of corruption, but that's about it.

Finally, if there's nothing wrong with their governance, why the need to revise the laws?

going too far, way to far," Edano said

Editors, in the above phrase you're missing a 'o'. Hint: either before the o in 'to' or after the o in 'to'.

The Japanese government is currently revising its Company law

To make it easier for companies to hide losses or more difficult?

MoaboDolfisSpicy - baby steps. I've just now learned how to cut and paste.

Ah yes!! Greed!! Anger!! And stupidity! The 3 evils not only the USA but also Nippon must encounter 24/7 365 days a year!!

Now it's my turn to laugh. Corporate governance means crap when the same crap is repeated over and over while shareholders are losing billions and billions taking it up their rear ends year in and year out. So what if the principal involved gets to spend time in da BiG HOUSE??? It still doesn't change the fact Mr. Johnson, who planned on retiring in Utah now has to rely on welfare payments to make ends meet.

Governance is An act of governing. It's not a measurement of severity in punishment when the greedy slimeballs are caught. In that aspect, U.S. is a joke.

Looking at past cases related to corporate governance, Japan’s efforts and record were at least on par with the U.S. or even better.....

That is supposed to be good considering how corrupt American Corporations are where people that caused the destruction of our economy through bad banking practices were not only not punishing, but were given huge bonuses. Where CEOs can not be fired for poor performance without buying out his complete contract, in fact will still get their golden parachute even if they destroy the company by mismanagement. This where the corporations buy government officials and pass laws for the benefit of these same corporations and against the average citizen, while allowing the wealthy to pay far lower taxes than the average taxpayer.

If Japan is about the same then I would say you are nearly about to collapse completely just as the United States is. More civilizations are destroyed by their own internal corruption by their own ruling class than any other single cause. I guess we better look to see what new civilization is forming to take over the world as the present one is dying of its own corruption.

Pinnochio Edano for team japan at your service!

Predictable but interesting responses from the usual suspects on this site. Are there people who really expect Mr. Edano to boast and brag that Japan has far better corporate governance than the US, even if that may be true? Japan more often than not gets burned when it tries to put itself on a pedestal above the United States, so no surprise that Edano stuck to the usual script of treating the US, despite its tarnished image, as the "global standard" or "global best practice" nation. I'm sure many of you find this laughable, but to me the more interesting point is that Mr. Edano--a typical member of the Japanese governing elite, ethnically "pure" according to the official bio and a graduate of Tohoku University--was willing to trot out the old assumption of the US--and not Germany or China or some other place--as the yardstick for measuring Japan's own progress and status.

Then why are there no Japanese success stories from the last 10 years? Not that the US is any good.

Edano says Japan's corporate governance on par with U.S.

It's as bad as that!?

Edano says Japan's corporate governance on par with U.S.

Why does he say it like it's a good thing?

nigelboy: "Governance is An act of governing. It's not a measurement of severity in punishment when the greedy slimeballs are caught. In that aspect, U.S. is a joke."

Excuse me, you actually said this after saying it was YOUR turn to laugh?? Do you have a Madlibs filter on or something? Severity of punishment for causing such scandals, or in Japan's case degree of reward, IS a form of governing the situation and the companies that commit these crimes. In that respect, the governing of corporations in Japan is as wishy-washy as their governing in general, and Edano takes the cake (especially of late).

Words like "Corporate Governance" and/or "Compliance" is in itself a joke in the US since they rewrite the book utlizing their corporate lawyers and lobbyists to obtain their goal and profit. US companies like Monsanto is reeking havoc worldwide to sell their product at the price of the natural environment and lives of the small.

If you don't understand what I am taking about take a look at their genetically engineered products which is causing mutation all around the globe and this is not an isolated incident.

Maybe next time compare it to Sweden and you will get a very different picture.

What he means by saying "corporate governance" is that corporations govern you!

I know nothing about corporate governance in Japan, but if someone ask this question to me, I would agree with Edano. I lived 3 years and a half in Japan. Most of the japaneses are worried about honesty, good practices at work and hard work. Olympus case is nothing. In the western it is much much (...) much worst.

What he means by saying "corporate governance" is that corporations govern you!

Could not agree more wth you, Firetribe.. The Keidanren of Japan is telling what to do to the government that should be stopped and discouraged.

US is not a saint here and not perfect. Do you remember World Com, Enron and MS World (2 weeks ago)? But at least, if the criminal offence is committed, these who were in charge have been prosecuted according to the law. I hope Japan is taking a case of Olympus mess seriously. If Japan wants to earn trust from global investors, they need to start prosecuting them..

Monsanto is reeking havoc worldwide to sell their product at the price of the natural environment and lives of the small.

If you don't understand what I am taking about take a look at their genetically engineered products which is causing mutation all around the globe and this is not an isolated incident.

Agreed, SamuraiBlue. They will do anything to go around the law to make a profit. Very disturbing, indeed.

This is a very timely topic. If you are interested in learning how the Wall Street executives are still getting away with murders who were responsible for the US financial meltdown, you can watch cnn 60 minutes of 12/05/11 tonight. I just want to let you know we are sharing the same problem and pain here.

Hope we can restore the confidence and trust for all investors someday..