Britain is a global leader in the area of corporate governance and there are many lessons that its firms have learned that are also applicable in Japan, according to speakers at a recent symposium organised by The Nippon Foundation.
The speakers expressed concern, however, at the slow pace of change in corporations in a country that is widely considered to be a “special case”. They also questioned whether there is a genuine desire for reform in Japanese boardrooms.
Evidence indicates that investors are increasingly shying away from putting money into firms that fail to have more outside directors on their boards; resist women or foreign nationals joining the highest echelons of their management; are at a disadvantage in global markets, due to an inability to communicate in English; or have not reformed the structure and format of board meetings to make them more efficient. Firms that are not evolving in these critical areas, the analysts suggested, are not attracting capital and will slip behind their international rivals.
I – Word Understanding
Symposium – a formal meeting of experts discussing a particular topic
Shying away – avoiding or keeping away
Highest echelons – highest level of authority
slip behind – to fall from its position or rating
II – Have your say
1.A recent study found that mothers are now the top earners in 4 out of 10 (40%) households in the United States. Is it bad for the marriage if the wife earns more than the husband?
2.Nissan Motor CEO Carlos Ghosn remained Japan’s highest-paid foreign executive. Japanese executives tend to earn much less that their foreign counterparts
090 Japanese firms need more women board members, outside directors and foreigners
