Other |
Corruption and public trust: perspectives on Japan and East Asia |
SJ Pharr |
2000 |
(abstract not available) |
7 |
Journal Article |
Ethics And Executives: A Cross-Cultural Comparison of Japan, Taiwan, and The United States |
C Huang, BG Mujtaba , FJ Cavico… |
2006 |
(abstract not available) |
7 |
Journal Article |
Japan in 1980: The Conservative Resurgence |
LW Farnsworth |
1981 |
(abstract not available) |
7 |
Journal Article |
Suffragist Women, Corrupt Officials, and Waste Control in Prewar Japan: Two Plays by Kaneko Shigeri |
MA Tamanoi |
2009 |
Through the reading of two plays written by Kaneko Shigeri, this article examines the way in which Japanese suffragist women, who actively participated in the local governance of Tokyo in prewar Japan, joined in the production of two mutually related sets of discourses on democracy and waste control. Relying on the idea of “purity” (jôka), these women gendered the discourse of democracy along the divide of “pure” women and “impure” men, and succeeded, to a certain extent, in eliminating corrupt officials from the Tokyo prefectural and city assemblies. Yet their efforts to control waste, which was dumped on the residents of Fukagawa Ward in lowland Tokyo, largely failed, for suffragist women hardly paid attention to the intricate relationships among gender, class, and space in Greater Tokyo. This article aims to reveal the limit of the ideas of democracy and environment shared among the suffragist women in prewar Japan. |
7 |
Journal Article |
Anti-corruption measures the Japanese way: prevention matters. |
E Oyamada |
2015 |
Abstract
Purpose
The purpose of this paper is to analyze recent Japanese corruption prevention mechanisms and assess the efforts of the Japanese government in winning public trust.
Design/methodology/approach
This paper discusses public sector corruption in Japan at an institutional level through a study of its features and current status. It then analyzes and evaluates the effectiveness of corruption prevention measures and the public perceptions of these measures. The paper concludes with a discussion on whether such measures can be adopted by other countries.
Findings
Recent preventive measures in Japan are effective in decreasing corruption opportunities, but not in enhancing the public trust of the government. Major findings are: first, Japan is the only Asian country without a dedicated anti-corruption agency (ACA); second, there is more emphasis on corruption prevention in the anti-corruption measures; third, the government is concerned with initiating measures to prevent the further erosion of public trust when corruption occurs; fourth, while preventive measures such as public disclosure and whistle-blower protection acts are in place, public awareness of their existence is still lacking and the usage of these systems is limited; fifth, more efforts are placed on prevention through the promotion of government transparency and accountability and public sector ethics education rather than penalizing the corrupt offenders; and sixth, though efforts to minimize amakudari practices are made, lack of political will and its sustainability prevents further reform.
Originality/value
This paper will be useful for scholars, policy-makers, and anti-corruption practitioners interested in learning how Japanese government practices prevent corruption. |
7 |
Journal Article |
Compliance and governance in large Japanese companies |
M Hirata |
2004 |
Abstract
The purpose of this paper is to clarify how large Japanese companies have coped with the compliance and governance problem. Figuratively speaking, compliance lays rails on which a train runs safely, whereas governance has interest in how fast the train can run on safe rails. While compliance aims at creating a healthy business entity by preventing the recurrence of corporate misdeed, governance intends to create an efficient business entity by strengthening its competitiveness. Firstly, the author deals with the Charter of Corporate Behavior of Nippon Keidanren, and top manager's attempt to eliminate corporate misdeed. Secondly, he treats legal reforms on governance since 1990, some proposals for reforming governance systems, and the large-scale revision of the commercial law in 2002 inclusive of the new board system. Lastly, the author emphasizes that compliance and governance must work together to run the business effectively, and that every company should create the most suitable governance system for itself after due deliberation on its own history, corporate culture and so forth. |
6 |
ChapterBook |
Corruption judgements in pre-war Japan: locating the influence of tradition, morality and trust on criminal justice |
E MacNaughton, K Wong |
2007 |
(abstract not available) |
6 |
Chapter |
Corruption judgements in pre-war Japan: locating the influence of tradition, morality and trust on criminal justice |
E MacNaughton, K Wong |
2007 |
(abstract not available) |
6 |
Journal Article |
The Politics of Transparency in Japanese Administrative Law |
T Ginsburg |
2008 |
Abstract
The 1990s will likely be seen as a major turning point in Japanese administrative law. During the decade, Japan adopted three major legal reforms that substantially impact the Japanese administrative system: the Administrative Procedure Act (APA), the Information Disclosure Act (IDA), and the Cabinet resolution requiring public notice of administrative rule making. The first two of these reforms are statutory in character have have received some attention abroad. The Cabinet resolution has received less attention but may prove to be equally significant, especially if it is expanded and strengthened to include provision for judicial review. Together, these three reforms bring Japan into alignment with many other countries of the Organization for Economic Cooperation and Development (OECD) in terms of basic structure of regulation of administrative action and administrative policy making. |
5 |
Journal Article |
The changing trend in links between bureaucracy and the private sector in Japan |
A Moerke |
2004 |
Japan has been conceived of as being a “developmental state.” However, given that Japan has, since 1992, been contending with a post-bubble “crisis period,” it is important to examine whether or not the resultant deregulation has altered the government-industry nexus. This paper focuses on amakudari, a core administrative guidance medium, within four core industries to measure the extent and direction of regulatory change. The findings show that amakudari networks have weakened, with corporations only employing bureaucrats deemed as being useful, supporting the hypothesis that there has been a “paradigm shift” from a “developmental state” to a “resource dependence” view. |
5 |
Journal Article |
The industry must be inconspicuous': Japan Tobacco's corruption of science and health policy via the Smoking Research Foundation |
K Iida, RN Proctor |
2018 |
(abstract not available) |
5 |
Journal Article |
Accounting in Japan and the new Japanese CPA law |
G Murase Journal of Accountancy (pre |
1950 |
(abstract not available) |
5 |
Journal Article |
Bribing in historial context: The case of Japan |
M Maruyama |
1996 |
(abstract not available) |
5 |
Other |
Contrasts: internal auditing in the US and Japan |
PA Burnaby, N Powell, S Strickland |
1992 |
Full Text:
THE UNITED STATES AND JAPAN control many of the world's
largest corporations and a significant portion of the world's wealth.
Recognizing the potential role of internal audit in maximizing economic
resources, a team of researchers recently compared aspects of internal
auditing practices in the two countries. In many areas, differences in
values, culture, and tradition appear to account for significant diversity.
In Japan
The foundation of the Japanese culture rests on personal
relationships and mutual dependency, and corporations foster this value in
all policies and procedures. The Japanese executive encourages all to give
their best efforts; and if they do not, the executive loses face. Leaders
make the workplace supportive of the subordinates in exchange for quality
work. Subordinates know that the executive will protect them; and when group
efforts yield good results, all share in the "glory" and rewards.
Corporate Culture
Contemporary Japanese corporate philosophy emphasizes harmony and
cooperation at all levels. Business practices in Japan are largely guided by
social values and cultural traditions, exemplifying the notion that
management cannot be separated from culture. Japanese culture places social
homogeneity and group consensus above individual performance. The Japanese
assumption that members of a group work for the good of all encourages and
fosters trust. The worker/worker and the worker/employer relationships are
entangled in a complex web of mutually exchanged debts and favors. Long-term
interests are guided and protected by pasty loyalties.
The Japanese see little usefulness in strict work divisions.
Detailed guidelines as to rights and duties would make relationships too
inflexible. Encouraging a system of indebtedness among members of the
corporation reinforces the importance of the group.
Internal Auditing
Despite vast cultural differences between Japan and Germany, the
U.S., and the U.K., the framework for Japanese accounting and auditing was
imported from these countries during the 1800s. Even in current times, the
Japanese depend heavily on U.S. practices as models.
Internal auditing in not actually recognized as a profession in
Japan. The few Japanese companies that do have internal auditing departments
give them low status; or they may exist in name only, for the sake of
outsiders.
Japanese life is based on loyalty to one's employer, honesty,
and honor. There is little separation of duty, general controls, or signing
of contracts. The Japanese believe that only those who distrust each other
need detailed contracts. They rarely use lawyers in business arrangements;
nor do they resort to the courts to remedy relationships that have gone sour.
Many transactions are based on the individual's word, and many companies
are interrelated. Although the Japanese Commercial Code requires public
companies to have a Statutory Auditor, who is separated from the internal
audit department, the individual is often not an accountant and lacks
independence from management.
Stockholders trust management, so little in the way of financial
disclosures or reports from internal auditors is required. If an employee is
found to be dishonest, the individual has little hope of finding other
employment in a Japanese company. (1)
In one of the open-ended questions included in research study, one
Japanese respondent observed that "The role of the internal audit
department is made light of and its position is not high in the
organization." Another commented: "Internal auditing is put into
operation to improve management efficiency and increase an
organization's profit. It does not principally aim at exposure of
financial irregularities and errors, because internal auditing in Japanese
companies is generally based on the ethical doctrine that human nature is
essentially good."
RESPONDENTS' EMPLOYERS
(BY INDUSTRY)
United States Japan
Financial 3 1
Government 3 0
Service/Distributor 3 1
Insurance 6 1
Manufacturing 4 8
Conglomerate 0 1
Construction 1 0
Oil and Gas 1 0
Transportation 0 1
In the U.S.
U.S. employees are individualistic and seldom, if ever, view the
corporation as a substitute for "family." American workers often
seem to feel inhibited by interlocking loyalties and by social and group
demands imposed by employers.
Corporate Culture
Corporate cultures are more diverse in the U.S. than in Japan.
U.S. corporate culture reflects the philosophy of top management (whereas
Japanese corporate culture mirrors the Japanese culture). In some cases,
managers may be driven by power and ego, unwilling to give to others
responsibility or credit for important jobs. Mutual trust is not a prevalent
attitude in the U.S.
To protect themselves in conflicts, U.S. corporations rely on the
courts. Legal aspects of contracts are well-defined and of the utmost
importance. Suing for breach of contract and other open conflicts are
commonplace and accepted courses of action. While the Japanese place great
emphasis on human relations, U.S. managers emphasize technology, perhaps
believing that good human relations cannot be taught.
Internal Auditing
Internal auditors have been accepted as a necessary evil by U.S.
business. Internal control systems stress separation of duties, compliance
with company policies, reliable accounting systems, and safeguarding of
assets. The status of the U.S. internal auditor was strengthened by the
Foreign Corrupt Practices Act of 1977, which mandated that corporations must
have a good system of internal controls. Now management is held legally
responsible for lack of controls. Since the issuance of this law, internal
auditors in the U.S. have become a more integral part of the internal control
system.
The Institute of Internal Auditors (IIA), the international
organization for internal auditors, was first established in the U.S. in
1941. The IIA sets audit standards, developed a code of ethics, and
administers an exam for members to become Certified Internal Auditors. If an
internal auditor is also a Certified Public Accountant, the individual is
additionally bound by the American Institute of Certified Public Accountants
ethics.
Survey Findings
This study surveyed internal auditors in the United States and
Japan to determine adherence to IIA Standards, to gain an understanding of
the scope of their activities, and to compare usage of computers as an audit
tool. A questionnaire was mailed to large corporations in the United States
and Japan (in Japanese). The questionnaire was reviewed by the Board of
Governors of The IIA's Greater Boston Chapter and by several corporate
executives and corporate auditors with experience in international
operations.
The population was selected from The IIA's membership
listing. One hundred participants were selected randomly from U.S. and
Japanese members. Twenty-one U.S. questionnaires were returned, for a 21%
response rate and 13 of the Japanese questionnaires were returned for a 13.4%
response rate. (*)
International Firms
Twenty-nine percent of the U.S. respondents work for international
firms. Only 8% of the Japanese respondents work for an international firm;
however, a fact which made it possible to learn more about internal audit
practices unique to Japan.
Internal Audit Departments
When asked how long the internal audit department has been
functioning as a separate department, the U.S. responses ranged from 1 to 70
years (mean of 19) and the Japanese responses ranged from 5 to 47 (mean of
17). It appears that the internal audit function in Japan did not evolve as
a separate department until after World War II. The number of internal
auditors in the U.S. departments ranged from 1 to 675. For the Japanese
firms, number of positions ranged from 1 to 40.
Adherence to IIA Standards
Of the 21 U.S. respondents, 17 (80%) indicated that their
departments complied with IIA standards in performing audits. This is not
surprising, since the Foreign Corrupt Practices Act has encouraged
organizations to maintain a visible and well-organized internal audit
department. Only two of the 13 (15%) of the Japanese respondents indicated
that they follow IIA standards, which probably reflects The IIA Standards
requirement for in-depth audits of compliance with management policies. In
Japan, reviews of financial and operating system might be construed as a
questioning of the employees' honor.
Independence
To determine the level of independence the internal audit
departments are allowed to maintain from management, respondents were asked
to whom the internal audit department reports. The data is summarized in
Exhibit 2.
ADMINISTRATIVE AND FUNCTIONAL REPORTING BY INTERNAL AUDITORS
United States Japan
Administratively
(line of authority)
Board of Directors' Audit Committee 10
Chief Executive Officers 2
Chief Financial Officer 9 4
Functionally
(directs and reviews work)
Vice President of Finance 9 1
Controller 2
Chief Executive Officer 3
Chief Financial Officer 3
In the U.S., it appears that internal auditors are making progress
in attaining independence from management, and many believe that the ideal
situation is for them to report to an active audit committee. Internal
auditors within Japanese firms appear much less independent. They report to
high-level management and do not have an audience with the Board of
Directors.
Audit Committees
When asked whether or not their organization had an active Board
of Directors' Audit Committee (Audit Committee), 16 (90%) of the U.S.
respondents and two (15%) of the Japanese respondents replied yes. Ten of
the U.S. firms' audit committees meet with internal auditors four or
more times a year; two meet three times; three meet two times; and one meets
one time. The two Japanese Auditing Committees meet with the auditors twice
a year.
Professional Proficiency
To be effective in an internal audit department, the auditor must
have a clear understanding of the functions and responsibilities of the
department, proper technical education and business background, and continued
training. To determine whether or not the internal auditors have clearly
defined the functions and responsibilities of their departments, respondents
were asked if they have a formal audit charter. Seventeen (85%) of the U.S.
internal audit departments have a formal audit charter, while three (23%) of
the Japanese internal audit departments have a formal audit charter.
Job Requirements
The formal requirements for employment are outlined in Exhibit 3.
In the U.S., many internal auditors are required to have a college degree,
accounting certification, and experience in accounting or the area under
audit. The Japanese appear to require less, in terms of education,
certification, and experience. In Japan, some internal auditing positions
require only experience in business.
REQUIREMENTS FOR EMPLOYMENT AS AN INTERNAL AUDITOR
United States Japan
Education
College Degree 21 6
None Required 7
Experience
1-2 years in accounting 7
3-4 years in accounting 2 1
Business experience in area 12 6
None Required 6
Professional Certifications
Certified Internal Auditor (CIA) 5 3
Certified Public Accountant (CPA) 4
Both CIA and CPA 10
None Required 10
Continuing Education
The respondents were asked if they were required to attend
continuing education. Seventeen (80%) of the U.S. and seven (54%) of the
Japanese respondents stated that they are required to attend continuing
education courses.
Scope of Audit Work
To determine the scope of audit work performed, general functions
and specific activities were listed. The respondents were asked to rank each
function from 1(never) to 5(always). Exhibit 4 shows their mean responses.
GENERAL INTERNAL AUDIT FUNCTIONS
Mean * Responses
United Japan
State
Review the reliability and integrity 3.7 4.1
of financial information
Review reliability and integrity 3.9 4.0
of operating information
Review compliance with policies,
procedures, laws, and regulations 4.6 3.4
Review of the internal controls for
safeguarding and existence of the assets 4.5 4.1
Review the economy and efficiency
with which resources are used 4.1 3.4
* scale - 1 (never) to 5 (always)
Exhibit 5 indicates the number of respondents engaged in
particular internal audit activities. Some differences may be explained by
culture. For example, the reason that more Japanese internal auditors review
bad debt/loan loss may be that bad debts are unusual in Japan because of the
dishonor associated with nonpayment. Fewer Japanese internal auditors are
involved with corporate ethics, fraud investigations, and personnel
functions. Again, this may be due to the perceived cultural environment of
honesty.
PERCENTAGE OF RESPONDENTS WHO PERFORM SPECIFIC INTERNAL
AUDIT ACTIVITIES
United States Japan
Acquisition/divestiture 61% 85%
Bad debt/loan loss 57 92
Billing/collecting 100 100
Construction projects 48 39
Corporate ethics 71 54
EDP general controls 86 69
Microcomputer security 76 31
Employee benefits 86 46
Financial budgeting 67 92
Fixed assets capital expenditures 95 92
Fraud investigations 95 39
Government regulations 54 91
Inventory control/plans 76 92
Management Information Systems 81 23
Manufacturing/production control 38 77
Marketing/sales promotion 62 62
Organizational control 100 54
Personnel functions 91 69
Purchasing function 100 77
Quality Control 57 54
Receipts/disbursements 100 92
Research & development 54 29
Transfer pricing 33 39
Treasury function 81 100
Shipping and receiving 76 54
Contract administration 76 77
Also, the Japanese auditors seem to do less work in the areas of
microcomputer security, EDP general control, management information systems,
and organizational control. Japanese workers do many of the functions
performed by computers in the U.S., so that there are fewer computer systems
to safeguard.
Computer Systems
To determine the level of involvement of internal auditors in
computer systems modification, the participants were asked to rank the degree
to which they audit certain data processing functions. Exhibit 6 summarizes
the responses.
AUDIT SCOPE OF DATA PROCESSING FUNCTIONS
United States Japan
Systems documentation 3.1 2.3
User documentation 3.3 2.4
Systems modification 3.0 1.6
Program coding 2.0 1.6
Pre/post tests 2.7 1.8
Program-change control 2.8 1.4
* Scale - 1(never) to 5(always)
It is disappointing to see that, in both countries, internal
auditors appear to be doing only a marginal job of reviewing their
organizations' computer system changes. Highly automated systems
require strong internal controls to assure accuracy of information, and
internal auditors' regular reviews of these systems would help to assure
continued safeguarding of the system.
Computers as an Audit Tool
Few Japanese internal auditors appear to be taking advantage of
computers as audit tools (Exhibit 7). The reason for this may again be that
management would consider it dishonorable to have their work reviewed. When
asked if the internal audit department uses microcomputers as an audit tool,
18 (86%) of the U.S. respondents said yes, while only two (15%) of the
Japanese answered affirmatively.
EXTENT TO WHICH MICROCOMPUTERS ARE USED AN AN AUDIT TOOL
United States Japan
Prepare workpapers 3.9 4
Use commercial software 4.2 1
Design own audit software 2.6 3
Access mainframe computer 3.4 1
* Scale - 1(never) to 5(always)
The Future
When asked what direction and responsibilities the internal
auditing profession will take in the future, comments from U.S. respondents
suggested several recurring themes, especially increased professionalism and
pride in the profession. Some individuals felt that the internal
auditor's role will expand into management consulting. Many felt that
more fraud and operational investigations would be initiated and that more
computer audit skills would be required for working with complex systems.
Many Japanese respondents stated that the status of internal
auditing will not improve in their country unless laws are passed. One
respondent felt that as more corruption cases come to light, laws will be
passed to require more involvement of internal auditors. Others replied that
as their businesses become more complex, diversified, and modern, the role of
the internal auditor will naturally evolve. Several mentioned the need for
audit and computer training.
Conclusion
U.S. and Japanese internal auditors are striving to find their
roles in the infrastructure of complex environments. Although U.S. internal
auditors have more independence and acceptance within their organizations,
their position is still evolving. The Japanese corporate culture is so
deeply rooted in the mores of personal integrity and group cooperation that
overall change in attitude toward the internal auditing function will be slow
to evolve. If the Japanese
(1) Albrecht, W. S., Marsh, H. L., Jr., Bentzel, F. H., Jr.,
"Auditing an International Subsidiary," Internal Auditor, October
1988, pp. 23-27. (*) When responses do not toal 21 for the U.S. and 13 for
Japan, the difference is the result of nonresponses. |
5 |
Journal Article |
Extortion Japanese Style |
T Haida |
1998 |
The emerging influence wielded on Japanese businesses by the sokaiya, or extortioners, raises issues not just of bribery but more fundamentally of corporate governance and transparency in the conduct of business. “If it were true that the Japanese companies in question were otherwise conducting their businesses in perfectly ethical ways, then sokaiya would not have any leverage”. The author has completed the first year of her MBA at London Business School after previously working with the Japanese Delegation to the OECD. |
5 |
Journal Article |
Japan—The Antimonopoly Act and Japanese Fair Trade Commission Enforcement |
RL Thurston |
1993 |
(abstract not available) |
5 |
Journal Article |
Private enforcement of antitrust law in Japan: an empirical analysis |
S Vande Walle |
2012 |
Abstract
This article assesses the role of private antitrust litigation in Japan through an empirical analysis. Based on data concerning actions for damages and injunctive relief in the post-war era, the article gauges how much private antitrust litigation has contributed to the deterrence of antitrust violations, compared to public enforcement by the Japan Fair Trade Commission. It also evaluates to what extent private antitrust litigation has resulted in compensation for those harmed by antitrust violations. Finally, it compares the level of private enforcement in Japan with levels in Europe and the United States.
The article includes findings on (1) the number of private antitrust actions, (2) the types of antitrust infringements invoked (bid-rigging, cartels other than bid-rigging, monopolization and unfair trade practices), (3) the success rate of antitrust litigation, (4) the magnitude of the damages awards and settlements, (5) the proportion of stand-alone versus follow-on cases, and (6) the kind of plaintiffs that have recovered damages.
Based on these data, the article concludes that, despite the dramatic increase in the number of filings in the past two decades, private antitrust litigation’s role in generating deterrence and compensation has remained limited. In fact, the only area in which private lawsuits really played a systemic role was bid-rigging. In bid-rigging cases, local citizens, acting as “private attorney-general”, used a unique litigation mechanism to recover substantial amounts on behalf of local governments. In addition, public entities frequently seek and obtain significant damages from bid-riggers. Through these actions, local governments and government agencies have recovered tens of billions of yen. By contrast, in cases other than bid-rigging, aggregate antitrust recoveries have been much more modest. Businesses have recovered comparatively little and consumers virtually nothing. |
5 |
Chapter |
Public service ethics and corruption in Japan |
K Akio |
2010 |
(abstract not available) |
5 |
Journal Article |
Indirect evidence in japanese cartel control |
K Arai IIC |
2015 |
Cartel control is a major issue in any economy with competition laws. This article deals with the proof of cartel agreements based on indirect evidence from communications, which extends the interpretation of the term “mutually” in the Japanese judicial system. A case precedent has referred to the word “mutually” as indicative of the existence of a communication of intention, or a “liaison of intention”. The term “liaison of intention” is defined as an action that facilitates recognizing and predicting the implementation of the same or similar types of action by others. This article incorporates economic insights into the discussion of indirect evidence, refers to the system of reporting parallel price increases, and examines four Japanese case studies to investigate recent developments concerning the proof of a liaison of intention. |
4 |
Journal Article |
Japan's" PXL" Decision: The Politics of Weapons Procurement |
S Han |
1978 |
(abstract not available) |
4 |
Book |
Political corruption and scandals in Japan |
MM Carlson, SR Reed |
2018 |
Combining history with comparative politics, Matthew M. Carlson and Steven R. Reed take on political corruption and scandals, and the reforms designed to counter them, in post-World War II Japan. Political Corruption and Scandals in Japan makes sense... |
4 |
Journal Article |
Politics and Antitrust in Japan |
SK Mehra |
2002 |
(abstract not available) |
4 |
Other |
A Missing Piece in Japan's Political Reform: The Stalemate of Reform of the Bureaucratic Personnel System |
K Mishima |
2013 |
(abstract not available) |
4 |
Journal Article |
The Crime of Commercial Bribery in Japanese Criminal Law and its Enlightenment for China [J] |
C Jia lin |
2006 |
In Japan,the crime of bribery concerning public officers is ordained in criminal law while crimes of commercial bribery are included in accessory criminal law such as commercial law.The descriptions on the constitution elements of commercial bribery in criminal law are much stricter than those on crimes of bribery concerning public officers.The above mentioned descriptions in Japanese law can be used for reference in the legislation and interpretation of crime of commercial bribery in China. |
4 |
Journal Article |
A Successful Story: Leniency and (International) Cartel Enforcement in Japan. |
T Nambu |
2014 |
Since its introduction in 2005, the Japanese leniency programme has made it possible to detect and prosecute an increasing number of anticompetitive practices.This has strengthened the capacity of the Japanese competition authority to act against domestic but also international violations of competition rules. |
4 |