The Future of Japanese Corporate Governance : Participation, Sustainability, and Technology

Corporate governance has developed significantly in Japan over the last fifteen years with shareholder participation, corporate sustainability and the deployment of technology for corporate governance as its main goals. The new corporate model moves away from the post-war bank-dominated, heavy-industry led and interlocked model. The technology central to this transformation is examined along with the legal tools used and the dynamics among the various stakeholders. This new Japanese corporate model promotes sustainability by encouraging companies to be more purpose-based and ESG-focused as well as by enabling shareholder participation. The way that Japan is working to develop its corporate governance model provides lessons for policy makers in other countries