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Business Ethics and Corporate Governance in Japan

In Japan, although many people are interested in corporate governance and business ethics, there is little consensus on what good corporate governance entails. The Japanese Commercial Code (revised in 2003) enables Japanese companies to introduce a board committee system and abolish the company auditor system. After the recent exposure of various corporate malpractices, many Japanese companies have started institutionalizing business ethics in their organizations. Nevertheless, ethical issues such as death from overwork (karoshi), harassment at work, illegal collusion (dangou), and defrauding consumers and governments still remain prominent.