Stakeholder Capitalism and Corporate Governance in Japan

Japan has long been regarded as an exemplar of a stakeholder model of corporate governance, where the interests of employees, customers, suppliers, and the wider community, in addition to shareholders, are taken into account in decision-making. However, Japan's traditional stakeholder-focused corporate governance model is facing new pressures as the economy has undergone changes, including increasing foreign share ownership, calls for more transparency and a shift towards UK and US-style corporate governance. This book provides an in-depth analysis of Japan's changes and challenges in balancing the interests of shareholders and stakeholders in corporate governance. The first section of the book provides a comprehensive overview of the history of corporate governance in Japan and its evolution. It includes information on the key regulatory and legal frameworks, including the Companies Act and the Financial Instruments and Exchange Law. The second section delves into the implementation of the Abenomics corporate governance reforms and their impact on Japan's corporate landscape. It also includes information on the codes of Stewardship (2014) and Corporate Governance (2015). The final part provides an in-depth analysis of the challenges faced by Japanese companies in terms of corporate governance and the prospects of further corporate governance reforms in Japan. It discusses the convergence trend of Japan’s traditional bank-based, stakeholder-orientated corporate governance model and a shareholder value-driven corporate governance system in the UK and the US. This book is aimed at executives, policymakers, business leaders, academics, and anyone interested in the future of business and corporate governance. It will be of particular interest to those interested in learning about the unique approach to stakeholder capitalism and corporate governance that has been developed in Japan and how this approach is shaping the future of business worldwide.