|A nonprofit research institution aiming at improving Japanese corporate
|Japan Corporate Governance Research Institute|
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| As a nonprofit research institution, the Japan Corporate Governance
Research Institute (JCGR) started a corporate governance survey in March
2002 for all companies listed on the First Section of the Tokyo Stock Exchange
Stock Market. However, with the advent of Abenomis in 2012, the corporate
environment regarding corporate governance changed dramatically. In spite
of the change, in order to capture the time-series changes in corporate
governance of Japanese companies, JCGR kept changes in questionnaires to
JCGR decided to revise the questions of the JCGIndex survey, making the most of the opportunity of JCGR' separation from the Corporate Governance Network (CG-Net), to which JCGR was integrated in 2012. However, JCGR's attitude towards corporate governance has not changed at all. In order to show the philosophy of JCGR's corporate governance survey (JCGIndex Survey), its purpose stated in the wish letter at the time of the first survey (2002) is given below (corrected slightly).
From now on, JCGR will call 16 surveys from 2002 to 2017 as the first phase survey and the survey after 2019 as the second phase survey.
|About publication of JCGIndex of individual company
| Under globalization, corporate governance is becoming one of the
key criteria for corporate evaluation. Investors, as well as all stakeholders
in the company, are interested in corporate governance. In that sense,
we expect that all companies to answer and that we can publish the index.
We also ask that you approve the publication of your JCGIndex.
JCGR hopes that all respondents willingly accept the announcement, but JCGIndex for companies that do not receive approval will keep it confidential. However, we will announce the names of all the companies that responded. Also, for the top half companies with large JCGIndex figures among all responding companies, the company name and JCGIndex will be announced as the top group. Please confirm the approval in the form attached to the answer sheet.
In any case, we will report the JCG Index of each company to the companies that you have answered, so please use it inside and outside the company. However, when publishing, please specify that it is the JCG Index of the Japan Institute of Corporate Governance (JCGR). As JCGR, we analyze the JCG Index of each company statistically, and announce the "overall picture" of the responding company.
If you would like to know the specific response contents of the responding company and the JCGIndex etc., please request the JCGR from the responding company with a written consent stating that "JCGR acknowledges that the responding company's information will be presented." We provide it under certain conditions such as confidentiality.
| Phase 2 Survey Report
Phase 1 Survey Report
|Financial supporter for JCGIndex survey|
| The Corporate Governance Survey has been funded by the University
Ross School of Business Mitsui Life Financial Research Center since 2008.
Please cooperate with the corporate governance survey
March 25, 2002
| In recent years, the word "corporate governance" has come
to fly frequently over the country. With the title, the board of directors
reform, the introduction of the executive officer system, and the exercise
of voting rights by institutional investors have been discussed about their
practice. The Commercial Code will be revised, with emphasis on reform
of corporate governance.
Under these circumstances, in order for Japanese companies to rebuild their competitiveness under globalization and to regenerate the Japanese economy from the economic downturn which lasted more than 10 years, common recognition is prevailing and shared among Japanese that a revolution of corporate governance is inevitable in Japan.
However, corporate governance has views from various angles, and it does not seem to necessarily have been discussed based on common definition and recognition. Even the idea is not shared that corporate governance is from the viewpoint of controling the manner of corporate management of a public company. When we observe companies, we find their efforts towards corporate governance and its practical situation are quite diffrent by companies. These facts symbolize lack of common understanding of corporate governance. The revised Commercial Law introduced a new type of board of directors with three committees, but eventually leaves a conventional board type with corporate auditors.
Based on this reality, JCGR decided to survey the state of corporate governance of individual Japanese companies and to transform to index. For the time being, JCGR's targets are all listed companies on the First Section of the Tokyo Stock Exchange Stock Market. With the Revised Corporate Governance Principles published by the Japan Corporate Governance Forum in October 2001 as one model, JCGR measures whether each company's corporate governance is close to or far from this model, and converts the distance into JCGIndex.
To that end, JCGR sends questionnaire by post to each company and asks the company to answer to that questionnaire. In addition, we may interview the companies as necessary. JCGR expects that as many companies as possible respond to the quesstinnaire.
JCGR's aim is to understand the current state of corporate governance of Japanese companies that have been drawing attention internationally. JCGR believes that people in Japan can look back on Japanese companies from a new angle thanks to JCGR's revealing the overall picture of corporate governance of Japanese companies. Furthermore, JCGR hopes that overseas business community's understanding of Japan will deepen further. At the same time, through the process of responding to this questionnaire, JCGR hopes that each company will deepen understanding and recognition of the new corporate governance.
All responses returned from each company and JCGIndex measured based on them will be confidential. However, JCGR will only disclose the name of the companies that responds.
JCGR will report the company's own JCGIndex to each company that responded. It is free that the company uses its JCGIndex, but, when using, please specify that it is an index by the Japan Corporate Governance Research Institute (JCGR). On the other hand, JCGR statistically processes JCGIndex of each company and announce the overall picture of the respondent companies.
There are global commonalities in corporate governance principles, but at the same time there is uniqueness reflecting the culture and society of each country. Upon creating JCGR's questionnaire, JCGR made the utmost effort to devise ingenuity so as to highlight the difference between Japan and the other countries especially. In JCGR's questionnaire, a wide range of items related to corporate governance are covered, and items which seemingly do not seem to be related to governance are included, but they have a certain meaning from JCGR's standpoint. We appreciate that companies answer to JCGR's questionnaire with understanding JCGR's standpoint.
The questionnaire consists of seven parts, and the first two Parts are prepared assuming that the CEOs answer to the questions by themselves. JCGR thinks that it is difficult for too busy CEOs to respond, but JCGR hopes that CEOs do themselves.
For each question, please answer based on each company's situation as of April 1, 2002 ; and please post by May 31st (Friday). The schedule thereafter is shown on the next page. We appreciate your understanding and cooperation, and sincerely thank you for your continued support in the future.
|JCGIndex Survey Group|
Takaaki Wakasugi (Professor at the University of Tokyo, Director, Mitsui Life Financial Research Center, University of Michigan)
|©Jpapan Corporate Governance Research Institute 2001-2019