It's been a dreadful few months for Japan Inc. Toshiba's accounting scandal is deepening, Takata's deadly air bags are deflating the national brand and a deal to save Sharp from collapse has descended into farce.
Each of these narratives makes for bad enough headlines on their own. Together, they raise troubling questions about the Japanese corporate governance revolution about which the foreign media has been buzzing. Modernizing management practices, after all, is a key element of Prime Minister Shinzo Abe's effort to raise competitiveness and economic growth rates. Unfortunately, it's backfiring.
Just ask Daniel Loeb, who's made headlines of his own lighting a fire under complacent CEOs at robot maker Fanuc, Suzuki Motor, jet-engine maker IHI and fading innovation powerhouse Sony. The hedge-fund star's newest quarrel is with perceived nepotism at Seven & i Holdings, where ailing CEO Toshifumi Suzuki is said to be grooming his son to take over the grocery and retail group.