How does Japanese culture affect its corporate governance?

When Michael Woodford was fired from Olympus, it was said that: "[I]nsularity is a huge problem for Japanese companies. By gazing inwards, they have lost ground to Asian competitors in world markets … How many bright young foreigners would want to work for a Japanese firm?" The Japanese corporate culture does not like individual decision-making. A collective decision would be made before the board meeting even takes place. This practice is widely known in Japan as "nemawashi". Although it is also present elsewhere, only nemawashi was systematised as a dominant role in corporate Japan. Outsiders do not have a say in the decision-making process. Japanese firms believe that outside directors cannot add value as they may not understand the complex relationship-based business issues. The influence of the independent outsider "is likely to be small if his interests are completely independent from those of the CEO [and the board]".