Corporate Governance Code in Japan

As one of the measures of the Japan Revitalization Strategy approved by the Cabinet, the Corporate Governance Code was issued on June 1, 2015, a joint effort of the Financial Service Agency and the Tokyo Stock Exchange (TSE). Accordingly, TSE’s listing rules and regulations were revised. Japan’s initiatives for the corporate governance system have significantly accelerated in recent years.

Masakatsu Mori on Management Consulting

Masakatsu Mori is the former Chairman and Representative Director of Accenture Japan Ltd. He was with the organization for over 30 years and helped major clients like Sony, Toshiba and Yamaha remain globally competitive. He was President of the International University of Japan from 2011 to 2012 where he currently serves as Vice-Chairman. He is currently an Executive of the Japan Association of Corporate Executives (Keizai Doyukai), and a member of the board of directors of SKY Perfect JSAT Holdings, Stanley Electric and Yamato Holdings.

Former Accenture Chairman Masakatsu Mori shares his 30 years of experience in advising many of Japan’s leading corporations as well as foreign corporations doing business in Japan and beyond.

Linking Growth Strategy to HR Strategy

JAPANESE corporations have accumulated huge capital and technology over the past 50 years. There are over $2.7 trillion in cash and equivalent assets in the corporate sector. Among the top ten companies which own the highest patent values worldwide, five are Japanese. However, the number of global business leaders developing and running global businesses has been increasing much more slowly compared to other countries around the world.

Building the World’s Best Smart City for the Tokyo Olympics

TOKYO will host the 2020 Olympic Games. Since the 1964 Tokyo Olympics, Japan has achieved miraculous advancements in economic growth and infra- structure through the development and application of cutting-edge science and engineering technologies. During the 1970’s and 80’s, air pollution in Tokyo was a major problem, and I often returned disappointed from the blue skies of California. Since then Tokyo has become one of the largest and the most advanced cities in the world in areas such as: cleanliness, safety, dining, accommodation and transportation.
Japan is the world leader in utilizing energy efficiency for the purpose of developing GDP. The use of energy per GDP is less than half of the USA and 4.5 times less than China. Japan has advanced technologies for building a cleaner city.

JAPANESE Prime Minister Shinzo Abe is pursuing an economic policy called the “three arrows” with the aim of boosting the economy and lifting the country out of long-lasting deflation.

The arrows include:

1. Unlimited monetary easing to achieve 2% annual inflation
2. Ramping up public spending
3. Pursing a long-term economic growth strategy

The first arrows helped boost the stock market about 40% as well as devalue the yen 20% against the U.S. dollar. But since Japan’s underlying economy has changed little, stocks and the currency have been fluctuating widely due to the uncertainty of the third arrow, the growth strategy.

Former Accenture Chairman Masakatsu Mori shares his 30 years experience of advising many of Japan’s leading corporations as well as foreign corporations doing business in Japan and beyond.

How to Compete in the Global Market

The global marketplace provides ample opportunities for companies to expand their business. While cultural values, social behaviors, affordability and legal issues may be challenges for running a successful global business, the principles for success are clear. Only a few global companies can survive in each industry. Most of the rest will get acquired or go out of business.

Successful companies should be able to acquire the best capital, labor and raw materials at the lowest cost globally. And their products and services should meet the diversity of needs of international markets.

Former Accenture Chairman Masakatsu Mori, shares his 30 years experience of advising many of Japan's leading corporations as well as foreign corporations doing business in Japan and beyond.

TJ: Companies in Japan are revolutionizing the meaning of globalization by making English the official language of their headquarters, even while others are remaining domestic- minded by not promoting English in the workplace. What are your thoughts on these approaches, and which approach do you think is needed for Japan? On another note, why do you think Japan has been struggling with competition from companies in China and South Korea, and what can Japan do to remain competitive?

Mori: Japanese corporations have accumulated a wealth of capital and technology, with the total in accumulated cash at US$2.5 trillion. Japanese companies hold the top five spots for highest patent values in the world. Even so, the number of business leaders able to do business in the global market lags behind other major countries. The development of executives who can harness Japan’s huge capital and technological resources for doing business in the global market is a national priority. Two young companies are leading this charge: Fast Retailing and Rakuten. They are challenging Japanese corporations by aggressively transforming into global players with sustainable growth. This is leaving its mark on traditional companies, albeit gradually. More companies are starting to consider at least minimum TOIEC scores before hiring new employees and promoting others to management positions. Being able to speak English and understand different cultures and business habits are now seen as keys for success in the global marketplace.