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The Yomiuri Shimbun:
”Mitsubishi Motors Corp. was found to have manipulated data to overstate the fuel economy of minicar models.
Fuel efficiency is an important element for consumers to consider when they buy cars. Falsification of such data is an extremely malicious act.
MMC overstated the fuel economy by 5 percent to 10 percent by intentionally underestimating figures concerning tire resistance and other resistance while the vehicles are in motion.
”April 21, 2016 – 48 Members of the International Forum of Independent Audit Regulators (IFIAR) were hosted by the Financial Reporting Council (FRC) in London, United Kingdom, at their annual meeting to advance their common interest in promoting high quality audits globally.
Bloomberg’s Rishaad Salamat speaks to Mr. Zuhair Khan, Head of Japan Research at Jefferies. He discusses Japan’s corporate governance, shares his thoughts on whether it is improving and the impact of Mitsubishi’s manipulation on fuel economy data.
Brunswick Review is a Journal of Communication and Corporate Relations that features insights from global business leaders, policy makers, political critical and journalists as well as Brunswick consultants.
In this edition, the Journal features diverse topics on Directors and Boardroom issues. Among them is an Interview with Mr. Osamu Nagayama titled ‘The View from Outside’ on page 16. Mr. Nagayama is the Chairman and CEO of Chugai Pharmaceutical. He is also a member of the Enlarged Corporate Executive Committee of Rochel besides being a member of board of directors at Sony.
According to Transparency International as reflected in this article, most Corruption Perception Index (CPI) scores for Asia-Pacific did not change much compared to the previous rankings of 2014 despite the general improvement elsewhere. Countries that showed improvement include Mongolia, India, Myanmar, Thailand, Timor-Lestor, China, Indonesia and South Korea.
Japan dropped 3 places from 15th in 2014 to 18th in 2015. With the introduction of the Corporate Governance Code and introduction of Independent Directors on Boards in Japan, it is expected that the scores will improve with time. Others that notably dropped include The Phillipines, Malaysia together with New Zealand and Australia which declined by two places though still at the top end.
Background:
Last year, Japan introduced codes designed to work together to increase corporate value and investor return in Japanese companies. The Corporate Governance Code and the Stewardship Code are supposed to work hand-in-hand to promote transparency and sustainable growth. Part of the Corporate Governance Code calls for companies to have at least two independent directors. Having outsiders on board, it was hoped would bring discipline as companies reach for higher profits.
”As many institutional investors have concluded, prevailing governance policies and practices have not produced desired board refreshment, which these investors would support in order to strengthen expertise, promote diversity and provide fresh perspectives in the board room. At the same time, companies and investors alike appreciate that term and age limits, as they have been typically applied, may not be the solutions, because they force the arbitrary retirement of valuable directors.
”In recent years, there has been an increase in the frequency and sophistication of cybersecurity attacks on both businesses and governments. There has also been an increased interest in government regulation of cybersecurity to protect the public from data breaches. Recently, two American Senators – one Democrat and one Republican – introduced a bill that would require publicly traded companies to have a cybersecurity expert on their board, or explain why having such a board member is unnecessary.
”Abstract: Using panel data on corporate social responsibility (CSR) matched with corporate proxy statement data for a large and representative sample of 1,492 publicly-traded firms in Japan over 2006-2014, we provide rigorous econometric evidence on the effects of CSR on gender diversity in the workplace. Our fixed effect estimates point to positive and significant effects on gender diversity of CSR, yet the effects are felt only after two to three years.
”The Advisory Council on the Systems of Accounting and Auditing, set up by the Financial Services Agency to make recommendations to improve the external audit framework in Japan, published its report and recommendations earlier this year. An English translation of the report and recommendations was published last week.