It's time for Japanese cosmetic giant Kao to realize its potential

Seth Fischer is the founder and Chief Investment Officer of Oasis Management. (Oasis has a stake of more than 5% in Kao Corporation.)

Japan has made giant steps in improving corporate governance. To date, these moves have concentrated on balancing out stakeholder needs, improving return on equity (ROE), protecting minority shareholders and increasing diversity on boards. I believe that the next step in corporate governance is to drive increased profitability, raise wages and create Japanese global leaders. Japan has many high-quality companies with world-beating products that have failed to increase margins, globalize and challenge foreign industry leaders. Kao Corporation is a perfect example of this.