Presentation Summary #7
MIYAUCHI Yoshihiko Japan Association of Corporate Directors
Schools are meant to educate, not show off beautiful buildings. Each organization in society has a function. What function does a company fulfill? I see a company's function to be narrow: society allows a company to exist because companies use resources efficiently to provide wealth to society. Companies must make use of finite resources to provide wealth to society. So, how can that be guaranteed? The mechanism is corporate governance. We must look at companies' resources and wisdom. On the top of a company may be a plant. But the base is always capital.
Corporate governance is built to monitor management-that is a global standard. But how it monitors depends on the practices of the country. In Japan, corporate governance has been introduced recently, so gradualism is necessary to build a Japanese version of corporate governance. In ten years, we will have a system. But so far, Japanese corporate governance has not evolved into a model. In order to get managers to accept the model, shareholders need more say.
