KARUIZAWA, Nagano Pref. -- As moves continue to consolidate major business organizations, members of the Japan Association of Corporate Executives (Keizai Doyukai) discussed ways to make their organization more prominent during a two-day annual seminar that ended Wednesday.
The participants pointed out that Keizai Doyukai needs to realize the policy proposals that it makes, while admitting that its proposals have had little impact to date.
"We should raise the quality of our policy proposals so that we can convince (others) with these proposals," said Yotaro Kobayashi, chairman of Keizai Doyukai, in a statement closing the meeting. "We must also strengthen efforts in acting (to realize such proposals)."
Kobayashi said that as Japan faces serious social issues, business leaders are expected to act beyond the scope of business and the economy.
During the session, about 30 business leaders discussed various issues ranging from information technology to fiscal reforms of the government.
The participants also discussed ways to enhance the role of board members and establish corporate governance to prevent the failure of large companies, as seen in the case of department store operator Sogo Co.
After pointing out that boards of directors at Japanese firms do not properly check management, Kakutaro Kitashiro, chairman of IBM Japan Ltd., proposed that companies should increase the number of directors hired from outside their ranks to 50 percent or more of their total board members.
Such reforms would be in the interests of shareholders because top executives would face greater risks of being ousted if their firms perform poorly, Kitashiro said.
Two of the nation's four major business groups, the Japan Federation of Economic Organizations (Keidanren) and the Japan Federation of Employers' Associations (Nikkeiren), are discussing a possible merger.