C for Compliance in Japan Inc.
The presence of globalization can be remarkably witnessed in all the Asian countries including Japan. Automobiles and electronic devices have been the strongest export industries of Japan alluring many companies to set up their offices and units in Japan. More the globalization, trade and commerce, greater is the need for governance, risk and compliance in any market. The cases of non-compliance in the Automobiles Industry have already hit the Japanese market between 2000 and 2002. Needless to say that there is an immense need of a robust compliance programme being run by every company belonging to the Japanese Automobile Industry.
Intensive research of applicable laws and compliance related provisions thereunder is a primary step to achieve the hallmarks of a robust compliance programme. Japan being the Civil law system has well codified laws from the view point of statutory and regulatory compliances. However, on the research front, language is one of the biggest barriers that a foreign company may encounter. Since the Japanese laws are notified in Japanese in its Official Gazette, no official English versions are available. Although the translation industry is well benefitted by providing the online translations of Japanese laws, none of such translated laws are without a disclaimer of it being an unofficial translation. Thus, taking the support of a local lawyer in validating the research of applicable laws and the compliance thereunder definitely brings a legal authenticity to the whole compliance process. A bilingual local lawyer who is able to interpret Japanese as well as English proves to be a great recourse to overcome the language barriers. Apart from the language barrier, there are no other limitations as such while researching on the Japanese laws as the Ministries are well updated with the respective legislations issued by them. For example, The Ministry of Health, Labour and Welfare of Japan have a wide and systematic database of all laws segregated into health, labour and welfare related laws along with the White Papers and Reports.
Some nuances of the Japanese legal system may be useful for an Automobiles Industry in running an effective compliance programme in Japan. Some of the alarming latest amendments have taken place in Competition, Consumer Product Safety and the Corporation Tax Act in the period of 2011 to 2013. The Commercial Code of Japan has been repealed by the Companies Act 86 of 2005 however, some of its provisions continue to apply to the companies. Such partial repeal brings more complicated applicability issues for the Japanese companies. The subsidiary laws are issued under the mother legislation in the name of the Order or Ordinances. Apart from the mother legislation, a separate Ordinance for enforcement of each law is issued by the Cabinet which is equally important to be considered along with the mother legislation. Automobile Liability Security Law of 1956 also requires a critical attention of the companies belonging to the Automobiles Industry in terms of regulatory compliances. Since cross-border trade has been one of significant factors of the Japanese economy, the Foreign Exchange and Foreign Trade laws of Japan are one of the primary legislations while checking the regulatory compliances.
Department of Justice of the United States stipulates nine hallmarks of a robust compliance programme[1]. An IT enabled compliance management solution is the ultimate and most efficient way of meeting with most of these hallmarks. Also, the technical language translation tool facilitated in such compliance management solution may help the local employees of the company situated in the market like Japan’s in understanding the exact compliances. Thus, an intensive research overcoming the language barrier, an IT enabled solution and a support from the local lawyer prove to have a strong and effective compliance mechanism in place across Japan Inc.
[1] http://www.justice.gov/criminal/fraud/fcpa/guide.pdf
(Please Note: This is only a research based article with the support of the Bibliography mentioned herein. It only provides information and personal analysis concerning the given topic.)
Visit https://flagggrc.tech to know more!