CCGJ endorses the Principles of Corporate Governance laid out by Japan's Pension Fund Association. The key to better governance lies with the engagement of Shareholders with the Management and Board of the company to achieve the desired accountability. Core aspects are:

• The return to shareholders is the RoE. Management should explain what they consider to be a reasonable return on shareholders’ capital and justify the level of retained earnings. There is a requirement to earn a reasonable return on shareholders’ capital, deemed to be 10%, which is a little below the global long-term average, while efforts should be made to earn a sustainable and high RoE to compete for capital in global markets. Companies that require little capital can earn returns considerably in excess of 10%.
• Management must pay due attention to the cost of capital in setting out the business strategy, the investment in new projects and in maintenance capital spending.
• Boards should contain independent Directors who should have independent means to assist in their duty to monitor the Management on behalf of Shareholders.