Since the Second World War, Japanese firms have gone from being ridiculed in the West for poor quality products to being highly praised and imitated for their success in manufacturing innovation, quality standards and management philosophy. Arguably, however, one area in which Japanese firms can be said to lag behind their western counterparts is in the development and articulation of policies mandating ethical business practices. In its own markets, but particularly abroad, Japanese business has been accused of a variety of (...) ethical shortcomings, including racial and sexual discrimination, bribery, environmental irresponsibility and the flouting of local laws and customs. This article will consider the reasons for the apparent lag in conduct, examine the issues involved, consider the likelihood of imminent change and offer some personal observations on the subject. (shrink)