Corporate Japan stands in the way of Abe's reform plans

THE Japanese government's newfound embrace of international corporate governance standards has the potential to be an epochal moment for the country's economy. Shareholders are now being encouraged to challenge Japanese CEOs, and companies across the country find themselves under pressure to diversify their boards and increase accountability.

There's just one problem: Japan's biggest companies are greeting these reforms with a halfhearted shrug.

When it comes to corporate governance, Takata, Toshiba, Sharp and Toyota are still acting as if it's 1985. Deadly airbag maker Takata is as opaque as ever in its dealings with the public. Toshiba is avoiding any admissions about its growing accounting scandal. Sharp is refusing to exit money-losing businesses, angling for government aid instead. Toyota is hawking new shares that can't be sold for five years, the better to resist the demands of shareholders. And you can now include Honda, Japan Tobacco and even the operator of the Nikkei stock exchange on the list of recalcitrant Japanese corporations.