Daily BriefsESG

Daily Brief ESG: Lax Governance Would Affects Not Only Occurrence of Scandals and more

In today’s briefing:

  • Lax Governance Would Affects Not Only Occurrence of Scandals, but Also Areas Such as Competitiveness

Lax Governance Would Affects Not Only Occurrence of Scandals, but Also Areas Such as Competitiveness

By Aki Matsumoto

  • By nature, management is expected to establish an organizational structure that ensures compliance with laws and regulations, and to put in place a management system to ensure such compliance. 
  • This is a governance issue, but it goes beyond that. If a loose corporate culture permeates the company, it would have an impact on various areas, such as reduced competitiveness.
  • Based on the analysis of Metrical Score, companies that have enhanced their corporate governance and performed stable earnings and high stock valuations would have minimized risk of falling into scandal.

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