The NO&T Podcast - EN

Scrutiny from regulators outside Japan: Challenges for Japanese companies

Some Japanese companies will downplay the seriousness of misconduct and can even resile from implementing appropriate remedial measures once they become aware that a competitor is engaging in similar misconduct.

Does this 'two wrongs makes a right' approach increase a company's regulatory risk in relation to non-Japanese regulators?

Speakers: ⁠⁠John Lane⁠⁠, ⁠⁠P...

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 misco...

Scrutiny from regulators outside Japan: Challenges for Japanese companies

Public behaviour in Japan is often characterized as courteous, rule-abiding, and considerate — and this is largely true. This behaviour is driven by a feeling of ‘external observation’. Expressed differently: Japan is very densely populated and others are always around ready to judge; since inconveniencing others brings social opprobrium, pub...

Scrutiny from regulators outside Japan: Challenges for Japanese companies

In Japanese corporate culture, shoganai — the belief that ‘it can’t be helped’— can reinforce a fatalistic acceptance of problems within the organization. It can discourage employees from questioning authority, reporting misconduct, or pushing for change. When unethical practices, inefficiencies, or questionable decisions are met ...

Scrutiny from regulators outside Japan: Challenges for Japanese companies

It is not uncommon for Japanese companies to retain employees who have engaged in wrongdoing without subjecting those employees to disciplinary action proportionate to the misconduct in question.  This can send a strong message to overseas regulators that the company condones the misconduct despite statements to the contrary. The company risks damaging it...

Scrutiny from regulators outside Japan: Challenges for Japanese companies

Compartmentalisation and siloed thinking are common in many companies. When employees rigidly adhere to reporting lines and organisational structures, it can lead to dysfunctional reporting of compliance issues or misconduct. Decisions are then made withlimited, or even incorrect, information.

 What risks do compartmentalisation and siloed thinking create...

Scrutiny from regulators outside Japan: Challenges for Japanese companies

Many Japanese companies transfer their employees to new roles every two to three years.  These transfers can be to other departments or subsidiaries, either in Japan or overseas.  These rotations are not typically tied to expertise and, as a result, can perpetuate issues such as dysfunctional reporting and loss of organisational memory.

 What ri...

Scrutiny from regulators outside Japan: Challenges for Japanese companies

Promotions of employees at Japanese companies are primarily based on the relevant employee’s length of service at the company. Performance-based factors are not irrelevant, but they are of secondary importance. As a result, companies sometimes have employees in senior positions who lack all the skills that the position demands.

Why do Japanese companies ...

Scrutiny from regulators outside Japan: Challenges for Japanese companies

In-house legal departments at Japanese companies are often not staffed by qualified lawyers. This can make it difficult for in-house Legal to convince others to address legal risks that materialize.

Why are in-house legal departments at Japanese companies often not staffed by qualified lawyers, and what risks does this create?

Speakers: ⁠⁠John Lane⁠⁠, ⁠⁠Peter Bu...

Scrutiny from regulators outside Japan: Challenges for Japanese companies

Historically, Japanese companies have saved money by having small Legal and Compliance functions compared to their peers outside Japan.  That makes sense when your company is highly unlikely to find itself involved in regulatory enforcement action and ultimately liable for significant fines and penalties.

Does having a small Legal and Compliance function ...

Scrutiny from regulators outside Japan: Challenges for Japanese companies

There are three cultural themes that consistently influence the way that Japanese companies interact with the outside world: (i) form over function, (ii) group over individual, and (iii) harmony.

These themes are not the main topics of this series, but they are constant threads that run throughout each episode.  Understanding these themes is essential for ...

Scrutiny from regulators outside Japan: Challenges for Japanese companies

As the domestic market shrinks and more Japanese companies look outside Japan to increase revenue, they expose themselves to increased legal and regulatory risk.

John Lane, Peter Bungate, Nina Newcombe and Anup Bharadwaj are lawyers at Nagashima Ohno & Tsunematsu in Tokyo.  Join them as they invite their colleagues to discuss some of the difficulties t...

We discuss the reform of Thailand’s rules on advertisement based on the guidelines on the use and proof of advertisements in regard to affirming facts which are difficult to prove under the newly enacted Notification of Advertisement Committee. This episode will guide you to these guidelines that set out requirements which business operators or advertisers need to comply with when making advertisement for the purpose of consu...

In this episode, we will discuss the substantial changes to the Civil and Commercial Code.  The discussion will get into details of how newly amended Civil and Commercial Code will facilitate entrepreneurs and companies in doing business in Thailand and an introduction of a new business consolidation scheme. (Speakers: Yothin Intaraprasong, Ponpun Krataykhwan, Kwanchanok Jantakram) *This podcast was recorded on November 21, 20...