What makes a good corporation? The answer depends partly on whether it takes a long-term and broad-gauged view of its activities. This may help clarify a question raised during the recent takeover battle for Nippon Broadcasting System: To whom does a corporation belong? The question may also serve as a reminder of some of the cultural differences between Japanese and American corporations.

Long-term thinking is often cited as a strong advantage of Japanese manufacturers. This was especially true in the booming 1980s when they received international acclaim as "excellent companies." The secret of their success was said to be their long-term commitment to profitability rather than a short-term fixation on satisfying shareholders.

In fact, Japanese manufacturers worked hard to develop products tailored to consumers' needs and to bolster their balance sheets over the long haul. As Western observers pointed out, that is why they outdid their American and European rivals one way or another. Honda Motor Co., which developed the world's first low-pollution engine, was mentioned as a typical example.