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Corporate Governance and Managerial Reform in Japan$
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D. Hugh Whittaker and Simon Deakin

Print publication date: 2009

Print ISBN-13: 9780199563630

Published to Oxford Scholarship Online: February 2010

DOI: 10.1093/acprof:oso/9780199563630.001.0001

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Management Innovation at Toshiba: The Introduction of the Company with Committees System

(p.254) 9 Management Innovation at Toshiba: The Introduction of the Company with Committees System
Corporate Governance and Managerial Reform in Japan

Hisayoshi Fuwa

Oxford University Press

In this chapter, Hisayoshi Fuwa shows how corporate governance and management innovation were closely linked in Toshiba Corporation. Drawing on first‐hand experience, he shows that introduction of the company with committees system in 2003 was preceded by the introduction of a “management officer” system in 1998, which sought to separate supervision from management execution, and to speed up decision making. Furthermore, it helped to nurture a greater effort among the management officers. This gave Toshiba confidence in operating a management system in which supervision and execution were separate, and enabled the smooth introduction of the company with committees system. The result was improved speed and flexibility of management, which facilitated innovation. Toshiba focused on key businesses that can sustain future growth and profitability, faster innovation, and corporate social responsibility‐based management at the core of its business. Achieving this requires generating value for all stakeholders, and balancing their interests.

Keywords:   Japan, corporate governance, management innovation, board of directors, company with committees system, Toshiba Corporation

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