The Gender Gap Crisis in Japan’s Corporate Culture—What’s Holding Progress Back?
January 29, 2025
Key Points
Gender Gap: Japan is 118th out of 146 in 2024
Female Executives: Rose to 13.4% in 2023, still low compared to the G7 average of 38.5%.
Fuji TV Scandal: Highlighted societal biases in Japan, revealing issues with male-dominated leadership.
The Current Status and Challenges of Female Executives in Japan
In Japan, traditionally, men have assumed the role of decision-makers while women have been generally regarded as part of the workforce. However, due to unconscious bias, there are predominantly more men in managerial positions, raising concerns that the criteria for female executives might depend too heavily on male standards.
Gender Dynamics in Corporate Japan
As of 2024, Japan ranks 118th in the Gender Gap Index, indicating significant room for improvement in terms of gender equality.
As Japan faces a significant population decline due to aging and low birth rates, promoting women’s participation is crucial for sparking innovation and revitalizing the socio-economic landscape. According to the Gender Equality Bureau Cabinet Office, the proportion of female executives in listed companies on the prime market increased from 11.4% in 2022 to 13.4% in 2023. Despite this progress, the percentage remains significantly lower than the G7 average of 38.5%. Furthermore, about 10% of listed companies still do not have any female executives, highlighting a considerable gap compared to other countries.
The Impact of the Fuji TV Incident
The Fuji TV scandal, triggered by sexual misconduct allegations involving Masahiro Nakai and subsequent media reports, has exposed significant failures in corporate governance and compliance. The controversy began in June 2023, when Nakai allegedly had a dispute with a female entertainment industry insider, X, during a dinner gathering at his home. This gathering was reportedly arranged by Fuji TV’s programming executive, A, who later canceled, leaving Nakai and X alone. In December 2024, Josei Seven and Shukan Bunshun published reports claiming that Nakai paid ¥90 million in a settlement, triggering public outrage. Additionally, allegations surfaced that Fuji TV executives were involved in coercive sexual misconduct, further escalating the crisis.
Fuji TV attempted damage control by conducting an internal investigation, ultimately denying A’s involvement. However, inconsistencies between the company’s statements and media reports deepened public distrust. The scandal caused Fuji Media Holdings (FMH) stock to plunge, and major advertisers withdrew their commercials, severely damaging Fuji TV’s reputation and financial standing. The company’s response was also widely criticized, particularly its January 2025 press conference, which was perceived as insincere and overly defensive. The backlash led to the resignation of President Koichi Minato and Chairman Shuji Kano.
In an effort to regain credibility, Fuji TV held a “redo” press conference later that month, but it lasted an unprecedented 10 hours due to inconsistencies in the executives’ responses. This mismanagement only intensified media criticism, with many questioning Fuji TV’s ability to handle crises transparently. As a result of the scandal, Masahiro Nakai announced his retirement from the entertainment industry, marking a dramatic fallout from the controversy.
Beyond being a celebrity scandal, the Fuji TV incident has raised serious concerns about corporate governance, compliance, and crisis management within Japan’s media industry. Fuji TV has since established a third-party investigation committee, but whether it can restore public trust remains uncertain.
Japanese companies are encouraged to foster environments where employees can freely express opinions and concerns without fear of retaliation. This includes establishing hotlines for reporting issues and providing clear guidelines on what should be reported and when. Even if internal silencing occurs, employees should have the ethical option to consult third-party lawyers if necessary. To truly advance women into managerial positions, Japanese firms need to do more than set numerical targets; they must reform actual workplace culture and practices.
Traditionally in Japan, individuals who have performed well in sales roles and have long tenures at the same company often ascend to executive positions. However, excelling in sales does not necessarily translate to effective management skills. The practice of using sales tactics in management can pose significant problems. Fortunately, unlike in the past where victims might have been silenced, there is now more opportunity for voices to be heard and issues to be addressed.
This approach highlights the critical need for Japanese businesses to adapt and evolve, ensuring that leadership roles are filled by those truly equipped for them and not just by those who have historically been in power. Diversity in leadership not only enhances decision-making but also contributes to the overall health and innovation within a company.
