Japanese universities now educate an increasing number of women students who are prepared for management positions. However, because of traditional societal attitudes in Japan towards women, these graduates are unable to find appropriate employment with Japanese firms. Recent changes in the Japanese law have eliminated some of the restrictions placed upon women seeking managerial employment. Since Japanese firms are unlikely to break with societal custom, the authors view this as a potential opportunity for foreign firms in Japan. Foreign firms in Japan have great difficulty in hiring male university graduates, therefore they should seriously consider hiring female graduates for managerial positions. While this strategy is not without risk, foreign firms may be in a better position to bring about social change in this area as well as reap a greater share of the associated benefits than Japanese firms.