The denial from Chugai Pharmaceutical could hardly have been more emphatic.
No, Japan’s number three drugmaker by market capitalisation had nothing to do with news reports that Roche, its 59.89 per cent shareholder, was weighing a buyout of minorities, it announced on Saturday. Then it went on: “Chugai is in no way in the process of reviewing any plan to become a wholly-owned subsidiary of Roche, nor discussing with Roche about such a transaction.”
Eiji Toyoda was the man who taught the world’s production workers Japanese. If you know kaizen means continuous improvement, and use kanban inventory tags to eliminate muda, or waste, then Toyoda, who died recently, was your sensei.
Corporate governance can be dull. But Nomura’s annual meeting on June 27 will be livened up no end if the Japanese bank’s chairman allows any discussion of shareholder proposal 12, “regarding overhaul of basic daily movements”. Here it is in full:
Details of Proposal: It should be stipulated in the Articles of Incorporation that all toilets within the Company’s offices shall be Japanese-style toilets, thereby toughening the legs and loins and hunkering down on a daily basis, aiming at achieving 4-digit stock prices.
Reasons for Proposal: The Company is on the verge of bankruptcy. In other words, it is the time to hunker down. The Company cannot avoid bankruptcy if it merely adopts a spiritual approach such as encouraging sales persons to speak in a loud voice, but the Company can surely avoid failure if they straddle over a Japanese-style toilet every day and strengthen their lower body. If it cannot, it can only be accepted as a bad luck.
Fujitsu’s plan to enter the European smartphone and tablet market has a 1980s ring to it. By the early part of that decade, Japanese companies had already grabbed large shares of the markets for televisions, hi-fi units, calculators, electronic toys and digital watches. These days, Europeans are more used to hearing about new Chinese, Taiwanese and South Korean entrants.
But in phones, Japanese manufacturers have largely concentrated on domestic consumers, using country-specific technology and features. It will be interesting to see how many of these features travel, and how many have to be tailored to local tastes, as Japanese phone makers break out of their national silo. (There have been reports that Panasonic is also planning to launch a mobile phone for the European market* and Sony Ericsson – already present – is, as of last week, wholly owned by Sony.)
Michael Woodford has undoubtedly done a service to Japanese capitalism by exposing the accounting scandal at Olympus. But is the former president and chief executive the right man to lead the camera and medical equipment maker out of the mire? I think not.
The British executive is now back in Japan and due to meet the directors who fired him on Friday. Three executives formally resigned as directors on Thursday ahead of the encounter, but I would still love to be a fly on the boardroom wall for it.
You know a corporate scandal is serious when prime ministers and heads of state start to mention it. The fact that Japan’s premier Yoshihiko Noda took time in an FT interview on Monday to talk about the problems at Olympus is doubly significant, therefore. As our correspondents Michiyo Nakamoto and Mure Dickie point out, it’s “highly unusual for a Japanese prime minister to comment on events involving a private company”. Here’s what Mr Noda said:
What worries me is that it will be a problem if people take the events at this one Japanese company and generalise from that to say Japan is a country that [does not follow] the rules of capitalism. Japanese society is not that kind of society.