Japan’s Corporate Governance Code: A UK Perspective
Across the globe, better corporate governance will be a strong focus in 2016. Just on the heels of some large corporate scandals — be it Petrobras in Brazil, Satyam in India, Toshiba in Japan and even Volkswagen in Germany — legislators, regulators and investors are placing greater scrutiny on their boards of directors and demanding more tools to promote company accountability and transparency.
In Japan, corporate governance improvements are being pursued with greater tenacity, particularly following the introduction of the Japanese Financial Services Agency’s Corporate Governance Code last year, which was implemented by the Tokyo Stock Exchange and put into effect on 1 June 2015. Further driving this transition and focus on better corporate governance in Japan is the gradual rise of foreign investors entering the market, from 5% of the total market value in the 1970s, foreign investment into Japan has jumped to 32% in 2015. Along with capital, foreign investors into Japan have brought along expectations for greater disclosure and accountability. Based on the learnings of our risk and compliance experts in the UK, we focus on what makes a highly-effective board and apart from simply following the guidelines, how can companies more pragmatically put into practice good corporate governance.