Cut The Gangsters Off, Japan

No country tolerates organized crime like Japan. Yakuza gangsters have a level of social acceptance and economic legitimacy unknown to their tong and mafia cousins. Japanese corporations, in particular, have long used yakuza muscle to keep shareholders in line during annual meetings. The idea of CEOs using gangsters to frighten shareholders and prevent them from questioning management about dividend policy or other matters is appalling to U.S. or European businesspeople and investors. So is the paying of huge sums to blackmailing sokaiya mobsters. Japanese corporations must end their shameful dealings with the shadow world.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.