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Impact of Johnny’s Sexual Crimes on Trade and Overseas Business


Let’s talk about Johnny’s Sexual Crimes.
What does it have to do with trade? ? Some people may think so, but this time the problem was exposed by the BBC and the United Nations sent an investigation team, so the impact on Japan is huge.

However, I don’t think there are many articles that specifically address the problems that arise when doing business overseas.
As a trade specialist, I would like to present my concerns and future countermeasures.


As a trade specialist, I would like to present my concerns and future countermeasures.

●Risks in Japanese industry

  1. Compliance Risk: Due to Johnny’s issues with non-compliance, companies have reconsidered their sponsorships to protect their image and reputation. However, the media is still in the dark and it is hard to say that they are reconsidering the situation.
  2. Brand Image: Companies place great importance on their own brand image, and being associated with Johnny’s issues will inevitably spread a negative image. While some companies may have dropped their sponsorship right away, those who have not and those who were opportunistic will have a huge impact.
  3. Impact on the Tourism Industry: The impact of Johnny’s problems, which had fans in Asia, may also cast a shadow on inbound tourism, causing damage to the tourism industry.
  4. Impact on Foreign Investment: Foreign direct investment in Japan may decline. If it turns out that the company you invested in was sponsored by a company that committed sexual abuse, your investment would quickly disappear.
  5. Impact on International Society: If Japan itself tolerates sexual assault, it will have a negative image as a country, and this will have a negative impact on international relations.
  6. Impact on Entertainment: Many sponsors have announced their withdrawal from Johnny’s, but the media is still in denial. The biggest immediate impact will be the loss of broadcasting rights and sponsorship rights for international sporting events such as the World Cup and the Olympics. This problem is having an immeasurable impact on the entertainment industry, where terrestrial television, whose viewer ratings are already declining, is unable to purchase broadcasting rights.

●Measures Against Risks

 I tried to think about what I could do to minimize the impact of the Johnny’s problem on industry and lead to the development of the trade business.

  1. Risk Management: Japanese companies need to strengthen their risk management practices with artists and entertainment organizations with which they sponsor or partner.
  2. Strengthening Compliance: Japanese companies will need to strengthen compliance and require entertainment agencies to comply with compliance, with an emphasis on adhering to legal obligations and ethical positions in sponsorship contracts and partnerships.
  3. Diversification of Risk: It is important for companies to diversify their risks and avoid becoming overly dependent on any particular artist or entertainment organization. I think we should consider diversifying risk by maintaining multiple sponsorships and partnerships.
  4. Crisis Management: A crisis management plan should be in place to ensure a quick and appropriate response when needed. When a crisis occurs, it is necessary to take appropriate measures while receiving advice from public institutions and experts.
  5. Transparency and Communication: Companies should prioritize transparency and communicate appropriately with stakeholders. The company should clearly communicate its stance and measures regarding the Johnny’s issue and strive to restore trust.
  6. Internal Education and Training: It is important to educate and train employees internally, raise compliance awareness, and develop human resources who can cooperate with risk management.
  7. Reorganization of the Media and Dispersion of Shareholders: Even now, there are people in the media who still do not admit the facts that have been covered up. Japan’s freedom of the press will also be put to the test. Therefore, I think it is necessary for shareholders to be able to keep an eye on each other by allowing them to hold only one stock in newspapers, internet TV, or terrestrial TV.
  8. Leverage External Advisor Strategies: It is important to seek advice from outside law firms and compliance experts regarding legal and ethical issues.
    Originally, I think that “outside directors” should fulfill this role, but now in most cases, this role is placed solely to create a fait accompli.
    Therefore, we believe that shareholders, who are stakeholders, need to have the authority to decide on “outside directors.”

Market research is still required to make concrete profit and loss predictions. I would like to continue thinking about how the Johnny’s issue will affect Japan’s entertainment industry, tourism industry, foreign investment, and international relations.


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