Business Ethics & Corporate Governance: A Case Study of a Foreign Financial Services Firm in Japan
How should managers exercise judgement in situations involving fiduciary duties, internal policies, corporate objectives, and ethical considerations in their day-to-day decisions?
At a glance
Industry
Financial Institutions
Context
A foreign financial services firm operating in Japan
Key Concepts
Managerial Decision-Making
Abstract
Managers, at one point in their careers, routinely face decision-making situations in which legal regulations, internal policies, business objectives, and ethical considerations do not point in the same direction. In such situations, they must exercise judgment to determine what issues require action, how to solve them, and when concerns should be escalated.
This case study consists of seven situations encountered by a Chief Administrative Officer (CAO) and the managers at a fictional foreign financial services firm in Japan, involving fiduciary duty, conflicts of interest, soft-dollar commissions, commuting allowances, cross-functional employee referral programs, and gift-giving and gift-receiving policies. The cases vary in their nature, significance, and the decision makers involved, illustrating that an issue that initially appears to be a major ethical concern may, upon closer examination, require clarification, escalation, policy interpretation, or no further action.
Adapted from David Nichols’s Business Ethics Education Through Case Analysis: A Study on Foreign Financial Institutions’ Operations in Japan, published in the Spring 2026 issue of the Journal of International Management, this case study was written with the intention of encouraging students, as future managers, to assume the role of each character and exercise judgment in assessing the situation and determining an appropriate response when faced with ethically ambiguous issues.
Key Topics: Foreign Companies in Japan, Financial Services, Business Ethics, Corporate Governance, Fiduciary Duty, Conflicts of Interest, Soft Dollar Commission, Three Lines of Defense Model, Compliance, Internal Controls
Cover Photo: Vitaly Gariev
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Disclaimers:
(1) Regarding Case Study Content: This case study is based mainly on secondary data and analysis of publicly available information unless otherwise stated, and is intended solely for educational purposes. Any opinions expressed by the author(s) are designed to facilitate learning discussion and do not serve to illustrate the effectiveness of the company. Additionally, banner images and logos used in the case study are intended for visualization in an educational setting and it is not used to represent or brand the company. For any dispute regarding the content and usage of images and logos, please contact the team.
(2) Regarding University Affiliation and Titles of Authors: The university affiliation and titles of author(s) seen in the case study is based on their affiliation and title during the time of publication. It may or may not represent the current status of said author(s).
