The arrest of Takafumi Horie, 33, founder of high-flying Internet startup Livedoor Co., has shocked business leaders and prompted some soul-searching.
"There are rules and ethics that companies have to follow and should not breach," Hiroshi Okuda, chairman of the Japan Business Federation (Nippon Keidanren), told reporters soon after Horie's arrest late Monday.
"A young and challenging figure like Horie did not have to engage in (alleged illegal) acts," Okuda said.