of Japanese Corporations

Abstract: The risk faced by Japanese firms in bribing foreign public officials has increased following the strict regulation by the United States government and the foreign business expansion of Japanese corporations. Japanese corporations, however, are yet to adopt an effective countermeasure against the risk. The main concern of this paper is to answer the following core question: Why does the management of Japanese corporations not take action against the bribery of foreign public officials? In general, the management is considered to be influenced by the characteristics of the following three sectors: the corporate sector, the government sector, and the market sector. Keeping this in mind, the reasons will be analyzed from the viewpoints of each sector. The conclusion of this analysis will help us to gain a structured understanding of the environmental problems that fundamentally cause managerial problems.