The Political Contributions of Big Business in Japan

Abstract

The importance of political contributions by big business has been raised once again in Japan in connection with the recent decision involving the Yawata Iron and Steel Company. In April 1963, the Tokyo district court ordered Ojima Arakazu and Sumino Naonori, the two chief directors of the company, to repay to the company 3,500,000 yen which they had donated to the Liberal-Democratic Party in 1960. A seventy-seven year old stockholder, Arita Benzaburo, had sued on the ground that the political donation was contrary to the articles of incorporation which barred all noncommercial expenditures except donations for cultural, educational, scientific or humanitarian purposes unless specifically approved by the shareholders' meeting. The court did not accept the directors' contention that political donations were allowable exceptions. Doubtless, large firms will continue to make political contributions much as before on the ostensible ground that political contributions are an established custom contributing to the development of democratic government. Otherwise, the conservative party would be deprived of its primary source of financial support. The situation serves to emphasize the extent to which politics is financed by big business and the comparative insignificance of individual contributions, even from those who could well afford them. Since a large share of funds for the two socialist parties also comes from corporate organizations, those parties, for once, are in agreement with the conservatives in condemning the court's decision as unrealistic. For Yawata to be the object of this judicial decision is ironic since that company is not particularly dependent upon government aid, and prides itself upon its clean reputation. Nevertheless, it follows the practice prevalent among other big firms of contributing to the important parties and to factions within the Liberal-Democratic Party. These latter donations, incidentally, are thought to place the conservative party leaders under strong personal obligations to the donor companies and their chief officers., The court's decision was particularly telling, moreover, because Yawata is undoubtedly the largest business contributor to political parties in Japan.2 In Japan today, the conservative politicians are almost exclusively de-