The latest case of data falsification has shaken confidence in Japan's craftsmanship, and the responsibility for this is extremely grave.
The special investigation squad from the Tokyo District Public Prosecutors Office has indicted Kobe Steel, Ltd. as a juridical entity for falsely labeling its products in violation of the Unfair Competition Prevention Law. The steelmaker, which had engaged in misconduct throughout its organization for years, is charged with criminal responsibility.
The prosecutors office has decided not to indict four employees at production sites, including quality inspectors, on whom papers about their misconduct were sent to the prosecutors office.
Kobe Steel falsified strength and other inspection data, thereby ensuring that its steel, aluminum and copper products met the standards set in the specifications it stipulated with customers. Although the data covered by the latest indictment was compiled over about one year, the company had committed wide-raging irregularities since the 1970s.
The misconduct has been confirmed at about 20 locations, including a subsidiary, and more than 40 people were found to have been involved. Despite being aware of the irregularities, executive officers in charge of operations related to the case did not take any measures to address the problem. It must be said that a disregard for rules prevailed within the entire corporation.
In March, Kobe Steel unveiled a final report based on the results of a probe into the matter by an external investigation commission. In explaining the factors behind the problem, then Chairman and President Hiroya Kawasaki, who was later forced to step down, said, "There were such elements as a disproportionate emphasis on profits and insufficient quality-control procedures."
A warning to others
This means that a massive price must be paid for disregarding quality and placing priority on meeting delivery deadlines and pursuing profits. If Kobe Steel is found guilty as a juridical entity, it will be fined up to 300 million yen.
Efforts should be made, in the trial for the case, to uncover the realities of Kobe Steel's corporate culture, in which its irregularities had been left uncorrected. Doing so will serve as a starting point for preventing a repeat of the problem.
Kobe Steel is one of Japan's leading metal material manufacturers. The products in question were shipped to more than 600 companies, including some overseas. These products were also used to build automobiles, Shinkansen train cars and aircraft, all of which require a particularly high degree of product safety.
Kobe Steel has said that nearly all the products have been confirmed to be safe, but this does not exempt the company from responsibility. Kobe Steel should not forget that its act of modifying inspection data itself is a serious breach of customers' trust, as such data must be exact.
The U.S. Justice Department has set out to investigate the Kobe Steel problem. In Canada, a lawsuit has been filed for compensation. Once a similar problem is caused, its impact will spread worldwide. Every company should realize that if it causes such a problem, the case will not only tarnish the image of its own products, but those of all Japanese products.
There has been a series of cases in which there was misconduct in the manufacturing industry. Product data falsification has been brought to light at Mitsubishi Materials Corp. and a subsidiary of Toray Industries, Inc. Inspections of completed cars by unlicensed employees, as well as falsification of fuel efficiency and other data, have also been revealed at Nissan Motor Co. and Subaru Corp.
Industrial circles should see Kobe Steel's misconduct, which has developed into a criminal case, as the punishment of one and a warning to many.
(From The Yomiuri Shimbun, July 25, 2018)
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