There are numerous external factors (inflation, stagnation, political problems etc.) that may hinder growth of a company. But these issues may not be as critical as internal problems, such as old corporate culture. Only last week, Daio Paper, Japan’s largest tissue producer, announced that it would file a criminal complaint against its former chairman Mototaka Ikawa, accusing him of illegally siphoning $140 million for gambling in Las Vagas. Ikawa had been justifying his dubious payments as “capital for foreign exchange trading and stock investment”, but Daio Paper finally refused to acquiesce Ikawa’s misconduct any longer. Akihiko Okudaira, a lawyer who led the panel’s investigation, stated, “(Daio Paper) had a corporate culture that you can never raise an objection to the Ikawa family” and pointed out their working environment as a main reason for the delay in the dismissal of Ikawa family. Incidents similar to Daio’s case have been constantly occurring in Japan, which indicates how Japan’s outdated corporate culture remains unchanged. I think this is one of the major reason why Japan, which used to be like China in nowadays, is falling behind.
http://ajw.asahi.com/article/behind_news/social_affairs/AJ2011102916079
