Scrutiny from regulators outside Japan: Challenges for Japanese companies

Let’s assume that fraud does not occur more frequently at Japanese companies than at companies in other highly-developed economies. Even if this assumption is correct, several underlying factors in Japanese corporate culture and structures create an environment where identifying and then stopping fraud or misconduct is difficult. The result is that misconduct can continue for long periods.  When corporate fraud is uncovered in Japan, the problem is often more serious than it otherwise would have been if it had been detected and stopped earlier.  The length of the fraud is one of the key factors that non-Japanese regulators look at when evaluating the egregiousness of the misconduct and the amount of any penalties.

Are there certain aspects of Japanese corporate culture which make fraud difficult to stop once it occurs?

Speakers: ⁠⁠John Lane⁠⁠, ⁠⁠⁠Kensuke Suzuki⁠⁠⁠, Peter Bungate

You can find the slides for this episode at: ⁠⁠https://www.nagashima.com/seminars/seminar20260609-1/

Featured topics page: ⁠⁠⁠https://www.nagashima.com/eng/lp/overseas_regulatory_scrutiny/