Business Case Studies,Corporate Governance & Business Ethics Case Study, Flour Corp's Business Ethics Practices: Creating Six Sigma Standards in Staying Corruption-Free

Code : GOV0043

Year : 2006

Industry :Internet and e-commerce

Region : Japan

Teaching Note: Not Available

Structured Assignment : Not Available

Horie and Livedoor: Fall from Grace Prosecutors alleged thatHorie and the company’s executives were involved inmarketmanipulation and accused that Livedoor had resorted to stock swaps and complicated operations to circulate the profits fromthe sale of its shares back to its books. For this, an international Swiss financial institution set up companies in British Virgin Islands to secretly trade in stocks on behalf of Livedoor and its group companies. The proceedswere funneled back to Livedoor through Swiss private bank accounts to boost up Livedoor’s financial figures...

The Future DExperts opine that the rise and fall of Livedoor would have a long-lasting effect on Japan’s financial markets and business practices. Japanese financialmarketswere in the process of revival after its downfall. The restructuring process intended to raise Japan’s financial systems andmarkets to global standards had resulted in deregulation of themarkets. But analysts observe that to do so, regulations had to be simplified, systems had to bemade robust, enforcement had to become tough and reporting had to bemade transparent. David Sneider (Sneider), a partner at the lawfirm, Simpson Thacher and Bartlett in Tokyo, says, “[Japan’s] Financial ServicesAgency has almost done nothing to check on disclosures...