Question
Firms around the world can choose among a handful of options for enhancing the effectiveness of their boards of directors. Which of the following methods might Japanese firms find difficult to adopt because it doesn’t fit with traditional cultural values?
A Establishing formal processes for evaluating board members’ performance because it violates the Japanese custom of “saving face”
B Modifying their executive compensation packages because it runs contrary to the Japanese preference for rewards
C Strengthening their accounting control systems because it violates the Japanese respect for privacy
D Including outsiders with different perspectives because it runs contrary to the Japanese emphasis on family and consensus
This question is taken from Business 497A – Strategic Management System » Summer 2023 » Guided Case Governance and Activist Investors Outside of the U.S. Ch 10
