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Japan Ethics

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Japan Ethics

Although, Japan has had their fair share of unethical business practices, rules and regulations have been established to either cutback or eliminate wrongdoings. There are a few ethical issues that U.S. companies should be aware of when doing business in this country.
Corruption in Japan is not as major an issue as it may be in other countries. Due to the lack of enforcement of the OECD Anti-Bribery Convention, there are currently three cases of foreign bribery cases in Japan. It is rare to see the direct exchange of money for favors from government officials, instead it is said that they are “institutionally corrupted.” This comes in the form of Bid-rigging, which occurs when competing corporations secure a contract at a predetermined price (Business Anti-Corruption Portal) Transparency International (TI), a non-governmental organization created the Corruption Perceptions Index. This index is set up to measure the recognized levels of public sector corruption in countries worldwide. Out of the one hundred and seventy-seven countries, Japan is ranked eighteenth and the U.S. is nineteenth for having the least amount of corruption (Asian Century Institute) In response to the concerns of bid rigging, the government made amendments in 2006 to the Act on Elimination and Prevention of Involvement, which aimed at removing secrecy in bid rigging (Greenspan). The government has also taken precautions to ensure fairness and to increase the documentation on foreign bribery allegations. To aid in this initiative the government has external auditors report suspicious illegal activity to authorities. There are also points of contact for collecting information allegations and they ensure whistle-blower protection.
Employee practices are vital whether you’re conducting business in ones own country or in another one. Individuals should be adequately compensated, and working conditions up to par. According to a NDTV Correspondent back in 2011, Japan hired six young Chinese workers to whom they promised job training, good pay and chance at a better life in their home country. Instead, these six worked sixteen-hour workdays at below minimum wage and received little training. With regard to businesses, the government sponsored trainee program often lags in some areas for hiring foreign workers. Stemming from these mistreatment of workers, JITCO (Japan International Training Cooperation Organization), which operates the program, actually admitted to being aware that some companies were doing such actions are taking steps to rectify those situations and punish the wrongdoers. The organization plans to ensure that fraud is eliminated and that there is legal protection for the trainees. Jitco, set minimum wage at a fair rate, vacation days granted, and labor protections have been applied. Another measure was that the government had banned the confiscation of trainee’s passports. (NDTV) Japan is an active member in the promotion of human rights as set forth by the United Nations in 1982. Japan believes in the creation of democratic development through several fields such as the legislative, administrative and voting systems. Also Japan has signed onto the Partnership for Democratic Development (PPD), which seeks to strengthen cooperative activities in the human rights field and for democratization. Japan has also made financial contributions to other organizations, such as the UN Commission on Crime Prevention and Criminal Justice, which fights against transnational organized crime, and to the United Nations Children’s Fund UNICEF. (Ministry of Foreign Affairs of Japan)
To have women in the workplace is a topic in Japan that is gaining much support from others, amongst the support is Prime Minister Shinzo Abe. He is pushing for gender equality and the advancement of women. He projected that by 2020, 30% of the leadership positions in Japan will be filled by women, Based on statistics, One in ten managers in Japan are women, compared with 31% in Singapore, 38% in Germany and 43% in the United States. Of these managers in Japan, Yumi Suzuki is one of the few. She (Yumi) is a general manager at one of the country’s biggest construction firms, overseeing a team of about 20 (Sekiguchi) Though, women in the workplace was not a relevant issue some time ago, today it is one that is making progress.
Since Japanese companies are respected for honesty, scammers take advantage of the good reputation of Japanese businesses. Internet-related scams such as fake websites aim to deceive individuals into sending money or buying products from them. The help deter or eliminate some of these activities, organizations like the Company Trust Organization and Japan Partner were created. The JCTO warns consumers to double-check websites or companies before continuing the purchase. It also provides a search engine for establishing credibility of the company. Japan Partner, through attempts to prevent fraud related crime, has been successful. With the use of technology, many cyber crimes have been interrupted as quickly as possible. (Japan Partner)

References

Business Anti-Corruption Portal. (2014) Japanese Public Anti-Corruption Initiatives. Retrieved from www.business-anti-corruption.com/country-profiles/east-asia-the-pacific/japan/initiatives/public-anti -corruption-initiatives.aspx

Greenspan, Jesse. (2006) Japanese Parliament Approve Bid-Rigging Law. Retrieved from www.law360.com/articles/14296/Japanese-parliament-approve-bid-rigging-law

Japan Company Trust Organization. (2014) Online Fraud. Retrieved from www.japancompanytrust.org/fraud/

Japan Partner. (2014) Protection against Fraud and Scams. Retrieved from www.japan-partner.com/internet-fraud-watch.php

Ministry of Environment. (2014) Japan’s Environmental Pollution Experience. Retrieved from www.env.go.jp/en.coop/experience.html

Ministry of Foreign Affairs of Japan. (2014) Human Rights. Retrieved from www.mofa.go.jp/policy/un/pamph2000_archive/human.html

NDTV Profit. (2011) Japan under fire for sweatshops in disguise. Retrieved from www.profit.ndtv.com/news/market/article-japan-under-fire-for-sweatshops-in-disguise-98991

Sekiguchi, Toko. (2014) Abe wants to get Japan’s Women Working. The Wall Street Journal. Retrieved from online.wsj.com/articles/abes-goal-for-more-women-in-japans-workforce-prompts-debate-1410446737

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