Restructured Fuji Media Holdings' Priority: Earn Back Public Trust

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Fuji Media Holdings (FMH), parent company of Fuji Television and the Fujisankei Communications Group, held its annual shareholders' meeting on June 25. Normally an uneventful affair, this shareholders' meeting came amid severe criticism of the company's response to a scandal involving former popular entertainer and media personality Masahiro Nakai and a former Fuji TV female announcer.

Nevertheless, shareholders approved the appointment of 11 directors, including Executive Managing Director Kenji Shimizu as president. The selection affirms FMH's new governance structure, which was put in place by the company following the scandal. Hopefully, the company will steadily implement revitalization measures and work to restore trust.

Up Front with Shareholders

Company representatives began the meeting by apologizing for the recent problems. Shimizu, who also serves as president of Fuji Television, promised to proceed in line with the revitalization plan. "We will proceed with bold reforms and efforts toward growth," he assured shareholders.

The company's slate of management nominees was not the only one. Dalton Investments, a major non-media shareholder, offered its own 12 candidates for the board of directors. However, all 12 were rejected. The shareholders instead chose to support the company's autonomous revival as a broadcasting media company.

*Shareholders heading to the venue for the Fuji Media Holdings shareholders' meeting on June 25. (©Sankei by Masahiro Sakai)*

Ten new directors were chosen in addition to Shimizu. Six outside directors now constitute a majority on the board. An emphasis on diversity, such as increasing the proportion of women, was evident.

Shimizu previously told The Sankei Shimbun: "I have knowledge of the media industry, human rights, digital and other areas. And I have reflected the opinions of a wide range of stakeholders."

He also said that to prevent recurrence of incidents like the Nakai scandal, "We will hold repeated discussions within the company, including at the board of directors level, and establish a strong awareness of human rights."

Third-Party Committee Determinations

A third-party committee of outside lawyers determined that the sexual violence the announcer suffered occurred under circumstances that "were an extension of work." They also harshly criticized the poor corporate governance. For example, FMH's redress mechanisms failed to function properly, even though the company received a complaint from the woman about the abuse.

The third-party committee also pointed out that the human rights issues involving sexual violence and harassment are structural issues. Moreover, the media and the entertainment industry were particularly prone to problems. In another widely publicized case, the entertainer Taichi Kokubun was dropped from appearances on Nippon Television and other networks due to "compliance violations."

Taking It Seriously

Issues involving business and human rights are not just someone else's problem. Good corporate governance allows employees to work with peace of mind. That way they can demonstrate their abilities. In turn, that supports a media company's growth, including in the creation of high-quality programs.

Fuji TV also found itself involved in another scandal. In that case, the head of its variety shows was arrested on suspicion of habitual online casino gambling. It is essential that the company constantly review measures to strengthen its management and compliance.

Author: Editorial Board, The Sankei Shimbun

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