The Japanese corporate governance system differs vastly from the US system. Discuss corporate governance issues that may arise under the Japanese Keiretsu system from the perspective of a).financiers, b). Owners, c). Suppliers, d). Employees.

Corporate Governance System in Japan (1) Definition of Corporate Governance
Corporate governance deals with the agency problem: the separation of management and finance. This basic agency problem suggests a possible definition of corporate governance as addressing both an adverse selection and a moral hazard problem.
The traditional definition of corporate governance was such a narrow view as Shleifer and Vishny (1997) mentioned that the ways in which the suppliers of finance to corporations assure themselves of getting a return on their investment. Recent trend, however, express doubts on the definition that solely focuses on shareholder value.
EPA (1998) shows the constituents of corporate governance as follows:

Table 1: Constituents of corporate governance Stakeholders | Interest | Desired Management | Shareholders | Maximize profitsAsset protection | Profitable managementSound management | Investors | Efficient investment | Exploitation of profitable investment | Creditors | Protection of receivables | Sound management | Main bank | Corporate growth | Sound managementPursuit of productivity growth | Employees | Pay raiseSecure employment RelationshipPromotion | Profitable managementSound managementSustainable corporate growth | Consumers | High quality goods & services | Pursuit of productivity growth | Suppliers | Business stabilityExpansion of business | Sound managementSustainable corporate growth |

Source: EPA (1998), Mitsubishi Research Institute, Inc. The Characteristics of Corporate Governance System in Japan
Managerial decisions do impact not only