Stakeholder Capitalism and Corporate Governance in Japan

Introduction

Corporate governance is a fundamental aspect of managing a successful business, and companies around the world employ a variety of models to achieve their objectives (Aguilera & Jackson, 2003). One notable model is the Japanese stakeholder-focused corporate governance model. Rather than concentrating only on shareholders, this strategy places an emphasis on developing connections and taking into account the interests of all stakeholders, including employees, customers, and suppliers. This model originated from Japan’s post-WWII economic recovery (Aoki, 1988; Aoki & Patrick, 1994). It is a bank-based, relationship-oriented system that prioritises employees, customers, and suppliers over shareholders, contrasting with the more ...