Guidance on Prevention of Foreign Bribery
Given that the issue of foreign bribery has become a major risk that may directly lead to damage to corporate value for Japanese companies, the Japan Federation of Bar Associations has issued “Guidance on Prevention of Foreign Bribery” (the “Guidance”) in July 2016. This Guidance provides practical guidelines and contemporary best practice for Japanese companies and counsel who provide legal advice to them in relation to implementation of anti-bribery measures. The ABCJ members played roles in the drafting process the Guidance. The dissemination of the Guidance is regarded as one of the prime engagements of the ABCJ.
Anti-Bribery Assessment Tool
Currently, bribery risks are increasing in materiality from the viewpoint of both their impact on the capital efficiency and corporate value of companies as well as their impact on ESG (environment, social and governance). In addition, a company’s involvement in bribery results in inappropriate accounting processing in order to prevent the detection of such involvement and, as such, bears the risk of giving rise to doubts regarding the reliability of the company’s financial information. In light of this situation, the ABCJ has developed the Anti-Bribery Assessment Tool (the “Assessment Tool”) in collaboration with the Global Compact Network Japan (GCNJ), for promoting engagement and dialogues between institutional investors and investee companies on the enhancement of bribery prevention measures. The tool aims to enhance the transparency and sustainability of companies, through the use of the tool by both institutional investors and investee companies.
Tokyo Principles for Strengthening Anti-Corruption Practices
The ABCJ has helped the Global Compact Network Japan (GCNJ) draft and disseminate the “Tokyo Principles for Strengthening Anti-Corruption Practices”. The companies agreeing to the Tokyo Principles are expected to proactively disclose the status of their anti-corruption initiatives as much as possible by using, for example, the Anti-Bribery Assessment Tool, and to have constructive engagement and dialogues with stakeholders, including investors.
Below is a list of the publication authored by ABCJ's members on anti-bribery issues.
Nishigaki, Tateishi, Takeuchi, and Takahashi "Commentary to JFBA's Guidance on Prevention of Foreign Bribery", New Business Law 2016-2017, No.1081-1097 (Japanese)
Takeuchi, Nishigaki, Nakano, Fujino, and Taka "Feature Articles: Towards Effective Systems for Prevention of Foreign Bribery", Liberty and Justice, 2017, No. 68, Japan Federation of Bar Associations (Japanese)
Takahashi and Fujino "The Japanese Anti-Bribery Landscape and Collective Actions - Bar Association Guidance and Beyond” IACAlumnus IssueXIII, December 2016, International Anti Corruption Academy