The Japan Federation of Economic Organizations (Keidanren) will suspend Nomura Securities Co. and Dai-Ichi Kangyo Bank from participation in its activities for a year due to their recent involvement in dubious activities, the federation’s chairman, Shoichiro Toyoda, said June 9.
Both financial institutions have been rocked by revelations of their alleged links, including illicit payoffs and loans, to “sokaiya” corporate extortionists. Toyoda said the decision was made June 9 during a special committee meeting based on the federation’s charter for good corporate behavior, which covers 10 principles of company behavior.
The charter was revised last December with stricter rules amid a growing number of corporate scandals. If members violate the principles, the Keidanren chairman will set up a special committee to decide on appropriate penalties, such as expulsion, disqualification for a certain period of time or forced resignation from a Keindanren post.
“We have major Japanese companies as our members, and the scandal may shake the people’s trust in Japan’s business sectors,” he said. “I hope the two firms will implement measures to prevent a recurrence of similar scandals,” Toyoda said.