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JAPANESE CORPORATE GOVERNANCE MODEL - Coggle Diagram
JAPANESE CORPORATE GOVERNANCE MODEL
CORE PHILOSOPHY
Collective decision-making
Harmony among stakeholders
Loyalty
Stability over short-term shareholder primacy
Long term relationships
KEIRETSU NETWORKS & CROSS-SHAREHOLDING
: Interlinked companies with mutual shareholding
FUNCTIONS
:
Protection from hostile takeovers
Reduced short-term market pressures
Alliances between manufacturers, suppliers, banks
Collaboration and mutual support
IMPLICATIONS
Stability and shared success
Lower transparency and external investors
CONSENSUS-BASED DECISION-MAKING (RINGI SYSTEM)
ADVANTAGES
Well-rounded decisions
Broad support for smoother execution of tasks
CHALLENGES
Time-consuming
Slower response in fast-changing markets
PROCESS
Agreement built through consultation
Harmony prioritized over speed
Input solicited across departments
LIFETIME EMPLOYMENT & COMPANY LOYALTY
OUTCOMES
Stable workforce
Reduced turnover costs
Strong institutional knowledge
CHALLENGES
Global competition pressures
Some firms reconsidering lifetime employment
PRINCIPLES
Employees as long-term stakeholders
Job security and career development
OPERATIONAL CHARACTERISTICS
Creates sustainable growth and resilience
Strengths
: Effective in industries requiring precision and planning
Characteristics such as stability, harmony and collaboration
Criticisms
: Slows innovation and less agile in dynamic industries