English Draft of Japan’s New Stewardship Code; and Related Events in Other Countries

Soon Japan will have its first stewardship code. You can download a translation of the exposure draft of the stewardship code here:

http://bdti.mastertree.jp/f/yj8ez02t

At the same time, Matthew Orsagh of the CFA Institute has written this useful summary of recent development related to stewardship and engagement around the world:

http://blogs.cfainstitute.org/marketintegrity/2014/03/26/shareholder-engagement-bridging-the-divide-between-boards-and-investors/

Active Ownership (Engagement)re CSR Shows Outperformance, Especially Where Reputation Considered Important

Abstract: We analyze an extensive proprietary database of corporate social responsibility engagements with US public companies over 1999–2009. Engagements address environmental, social, and governance concerns. They are followed by a one-year abnormal return that averages +1.8%, comprising +4.4% for successful and zero for unsuccessful engagements. We document outperformance following environmental/social, as well as governance, engagements.

Marubeni Pays $88 Million FCPA (Criminal) Fine, Second in Three Years, – Emails Point the Finger

On March 20, Marubeni agreed to pay an $88 million fine and plead guilty to foreign bribery charges handed down by the DOJ, markingMarubeni’s second payout in three years. Marubeni stood accused of bribing high-ranking officials in Indonesia in order to secure a $118 million contract for an energy project as part of a consortium. Once again, digital discovery of email traffic made it easy for the DOJ to pursue Marubeni:

Marubeni Pays $88 Million FCPA (Criminal) Fine, Second in Three Years, – Emails Point the Finger

On March 20, Marubeni agreed to pay an $88 million fine and plead guilty to foreign bribery charges handed down by the DOJ, markingMarubeni’s second payout in three years. Marubeni stood accused of bribing high-ranking officials in Indonesia in order to secure a $118 million contract for an energy project as part of a consortium. Once again, digital discovery of email traffic made it easy for the DOJ to pursue Marubeni:

SEC Close to Weighing Possible Action on Proxy Advisory firms

WASHINGTON (Reuters) –  The Securities and Exchange Commission will soon review recommendations for possible regulatory action targeting proxy advisory firms, SEC Chair Mary Jo White said on Wednesday.

White did not offer any details on what kinds of new rules or changes could be in store for proxy advisory firms like Glass Lewis and Institutional Shareholder Services, which help large institutional investors weigh how to vote on critical company issues such as board elections and compensation.

Kenya to Set Quotas for Female Directors in Corporate Governance Code

”Kenya’s Capital Markets Authority (CMA) is reviewing the Code of Corporate Governance that will among other things make sure women representation on boards of public listed companies is legalised.

Initially, the regulator wanted companies to abide by the guidelines without making it legal, but CMA Chairman Kung’u Gatabaki complained of lethargy in appointing women to the boards.

He said the issue of men dominating boards is overdue and it was time the corporate world supports women leadership.