kobe steel nissan scandals tarnish image of japan inc
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Kobe Steel, Nissan scandals tarnish image of Japan Inc

Arab Today, arab today

Arab Today, arab today Kobe Steel, Nissan scandals tarnish image of Japan Inc

The corporate apology, where company bosses bow deeply
Tokyo - AFP

Embarrassing scandals at Kobe Steel and Nissan have tarnished the reputation of Japan Inc for quality, as once-mighty industrial world-beaters battle fierce global competition and shrinking profit margins.

Once again, the image of a corporate boss bowing deeply in apology before the cameras has been splashed across Japan's newspapers and sparked a fresh bout of national soul-searching.

Kobe Steel's chief admitted his firm had falsified quality data in products shipped to about 500 clients, including carmaker Toyota, aircraft manufacturers and defence contractors.

The news that the affected parts were also used in Japan's "Shinkansen" bullet trains deepened the humiliation for the "Made in Japan" brand that was once a byword for quality.

The revelation wiped $1.8 billion off its share price over the past week -- a drop of more than 40 percent -- as the scandal deepened and widened to other products such as steel wires, a key company product.

The Kobe Steel news came just days after Nissan recalled more than one million vehicles in Japan after admitting that staff without proper authorisation conducted final vehicle inspections before shipping them to dealers.

"Once the Japanese way of manufacturing won the praise of the world. But now jobs are being outsourced and factories are sent overseas. Things have changed," said Koji Morioka, professor emeritus at Kansai University.

Intensifying global competition and an unending drive to cut costs have resulted in a situation in developed countries like Japan where workers keep quiet to protect themselves even if they see wrongdoing, added the expert.

"As globalisation continues, companies are expanding local production, and emerging economies are becoming ever more competitive," Morioka said.

- Indian, Chinese pressure -

The admissions came as the global industry landscape goes through sweeping transformations, experts said.

Costly workers in mature economies like Japan are directly pitted against cheap factory staff in emerging markets in a competition for jobs.

Experienced workers with stable contracts are being replaced by temporary novices, while management demands higher productivity from all employees.

Meanwhile, industry newcomers are taking market share away from traditional corporate giants.

In the steelmaking sector, for example, Indian and Chinese giants have steadily expanded, pressuring their Japanese rivals.

And the Japanese auto manufacturing behemoths have expanded overseas production, rather than exporting vehicles from Japan.

The Kobe Steel and Nissan scandals are the latest in a string of negative headlines for Japanese industry that used to be the envy of the world.

Airbag maker Takata went bankrupt this year after spending years dealing with defective products that were linked to 16 deaths and scores of injuries worldwide.

Mitsubishi Motors last year admitted that it had been falsifying mileage tests for years.

Sadayuki Sakakibara, chairman of the powerful Keidanren business lobby, said that "global confidence and trust in Japanese manufacturing were based on unrivalled quality that overwhelmed other countries."

"These acts were so serious that it could have an impact" on trust in Japanese manufacturing.

- 'Spread like mould' -

Corporate scandals are of course not limited to Japan. The 2015 "dieselgate" affair, where Volkswagen admitted to equipping its diesel cars with devices to evade emissions tests, caused great embarrassment for German industry, also a watchword for quality.

General Motors in 2014 also started recalling millions of vehicles over ignition defects that were linked with 124 deaths, after hiding the problem for more than a decade.

But analysts said that ironically, super-stringent quality controls in Japan could be part of the problem.

Eyebrows were raised in the Nissan scandal when it emerged that checks by more qualified officials were required for the domestic market but not for vehicles destined for exports.

Nobuo Gohara, a corporate compliance lawyer who has helped restore a number of firms after serious scandals, said many such affairs stem from excessive safety or quality standards.

Misconduct begins when employees consider that meeting these standards is a mere formality rather then a requirement and start hiding it from internal audits, he said. 

Such a culture can spread like "mould" through an organisation, Gohara told AFP.

"If you leave these situations untreated, the organisation as a whole becomes numb to regulations," he said.

Younger employees in Japan tend to be more sensitive to compliance requirements, Gohara said, adding that repeated surveys of workers by outside experts can encourage whistle-blowing.

But whistle-blowing does not function properly when the misconduct is routinely and systematically conducted by many people, including potential whistle-blowers themselves, he added.

In addition, there is no formal protection for whistle-blowers in Japan and a culture of respect for hierarchy prevents many workers from speaking out, observers say.

"I suspect many small acts of misconduct happen in many places," Gohara said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

kobe steel nissan scandals tarnish image of japan inc kobe steel nissan scandals tarnish image of japan inc

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

kobe steel nissan scandals tarnish image of japan inc kobe steel nissan scandals tarnish image of japan inc

 



GMT 10:06 2012 Saturday ,28 July

Querrey advances at ATP LA Open

GMT 21:15 2017 Thursday ,01 June

Trump condemns deadly Kabul explosion

GMT 02:15 2017 Thursday ,24 August

Is your country on the Qatar free entry list of 80?

GMT 19:48 2016 Monday ,03 October

Controversial boxing champ Tyson Fury retires

GMT 08:20 2015 Tuesday ,08 December

PC market woes show no sign of easing

GMT 17:27 2017 Tuesday ,25 April

20 Yemeni soldiers killed, injured in explosion

GMT 11:52 2017 Saturday ,30 December

OIC condemns Mar Mina Church attack

GMT 00:03 2017 Saturday ,25 March

Arab Meeting to Examine Anti-Corruption Methods

GMT 13:12 2017 Thursday ,20 April

Deputy premier meets Arab League chief

GMT 14:13 2014 Friday ,10 January

Opel Astra GTC

GMT 18:27 2016 Tuesday ,02 August

Turkish Foreign Minister arrives in Islamabad

GMT 11:27 2016 Tuesday ,13 December

Saudi woman arrested for challenging social norms

GMT 19:56 2017 Thursday ,09 March

Qatar Pavilion Opens at ITB Berlin

GMT 23:34 2013 Thursday ,07 February

New BMW 3 Series Gran Turismo

GMT 12:57 2017 Friday ,13 October

JPMorgan open to digital money if regulated

GMT 04:38 2017 Friday ,10 March

ADNOC opens fifth ADNOC Xpress

GMT 10:30 2017 Friday ,10 November

BDF military contingent honoured

GMT 17:37 2017 Tuesday ,24 January

China jails former Sinopec president for graft

GMT 19:34 2017 Sunday ,14 May

Austria centre-right calls for snap elections

GMT 14:54 2014 Saturday ,29 November

Wall cladding, wallpaper, fabric and wood!
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday