According to Kobe Steel, the misconduct was provoked by certain issues relating to quality management processes, such as inspection processes enabling data falsification or fabrication, isolated and rigid operational systems, and the establishment of internal standards to which it was impossible to conform.Kobe Steel announced its intent to make other governance changes as well, including ensuring that at least one-third of its board members are independent outside directors. This new department will oversee risk management activities and engage in activities to increase awareness for managing risks across business divisions.New quality management department.
“These executive officers did not themselves engage in the misconduct,” Kobe Steel stated.Risk management revisited. This department engages in company-wide measures related to strengthening the quality assurance system by collecting information—such as quality management indicators and incidents—related to quality assurance for each business division, determining problems, and reporting such information to and sharing it with the senior management periodically.The employee’s quality compliance awareness dulled by a combination of the situations above.“These resolutions reflect our company’s taking to heart the substantial troubles we have caused our customers, suppliers, shareholders, and many other people in connection with misconduct that took place within the Kobe Steel Group,” the company stated.The manufacturing of products based on customer specifications not matched to process capability;Based on these recent revelations, risk and compliance officers should be on high alert and do their due diligence when doing business with Japanese companies. Estimates suggest that the falsification of data has been on-going for circa 10 years, if not longer.What is impossible to accurately assess is, to paraphrase one of the most famous lines from Watergate, “what the board knew and when the board knew it.”Hi, I'm Richard, the Editor for our Online Content. Falsified quality inspection data for aluminium, copper and steel parts has been supplied to a range of industries across the world, including aircraft manufacturers, carmakers and the construction industry. Kobe Steel said it will also appoint a director to oversee compliance and another director to oversee quality management.A culture that prioritized winning purchase orders and meeting delivery deadlines over ensuring quality;The investigation also found that the misconduct took place not only within Kobe Steel’s Aluminum & Copper Business, but also at other divisions and group companies.
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