Abstract
The late 1990s through the beginning of the 21st century was a decade of evolution for a large number of Japanese corporations. It was not, as many analysts inside and outside Japan claim, a "lost decade". The true "lost decade" was that of the 1980s, when Japan experienced the so-called "bubble economy" because of absence of sound corporate management and real governance. However, even during the last fifteen years of evolution, some socially influential corporations have been left behind. They have experienced what might be called a "devolution" and now face serious ethical problems that they must address if they are to survive. In this paper, I discuss the current phenomenon of both positive and negative poles of evolution in the Japanese corporate society, focusing on Mitsubishi Motors Corporation (MMC). I argue that MMC lacked vital elements for sound management and governance based upon discipline and business ethics. I conclude by considering the lessons we can learn from this case which has become very well-known in Japan but has not been widely discussed elsewhere.
