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Mitsubishi Electric chairman quits; closed culture behind test cheating

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corporate culture was to blame for decades of cheating by the company in inspections for train-use equipment.

No body got arrested for this fraud? People bought their product expecting that product as they said but it's different, just blame to the culture and everyone walk free. While foreign executives being prosecuted just for discussing compensation that never happen.

https://www.wsj.com/articles/japanese-prosecutors-seek-two-years-in-prison-for-former-ghosn-aide-greg-kelly-11632902497

8 ( +13 / -5 )

Time for a robust audit and investigation, going back a minimum five years. Complete. And let the chips fall where they may. Nothing like lots of sunlight in too-long dark places, when you want to discourage corruption and fraud!

2 ( +6 / -4 )

Mitsubishi Electric needs a "fundamental change."

"Needs" and gets are two totally different things, particularly here!

As the head of the company it was up to you to see that your ideas of fundamental change happened, yet you only talk about it after you quit!

Hypocrite if you ask me!

0 ( +5 / -5 )

The old boys club in the ivory tower getting disconnected to what's happening beneath them? Surprise surprise....

2 ( +7 / -5 )

well well well.... honour responsibility honesty accountability in short supply? colour me gobsmacked. (^_-)

1 ( +5 / -4 )

Very normal in Japan. Nothing is new.

2 ( +8 / -6 )

never did cotton on to the 'resign to take responsibility' schtick. but there's a lot of it about, if you're in the club.

-1 ( +4 / -5 )

Mitsubishi Electric Corp Chairman Masaki Sakuyama resigned Friday after a panel of outside experts said an "inward-looking and closed" corporate culture was to blame for decades of cheating by the company in inspections for train-use equipment.

Err...point me to a top J-company which culture is not inward-looking and closed"...

decades of cheating by the company in inspections for train-use equipment.

Frankly, how many times did we read similar news over the last 10-20 years. It looks more and more like the rise of J-inc back in the days was based on a lot of data-tampering...I guess this would explain the staggering amount of product recalls I witnessed since moving here 17 years ago...

The panel also said Mitsubishi Electric employees involved in the scandal lacked awareness of the need to ensure quality through proper procedures, urging the major electronics maker to improve its culture.

Aaaah, the gool ol' "lack of awareness" explanation which conveniently points to the employees and not the management...Now how many times didn't we hear that one...

Sakuyama also stepped down as a vice chairman of the Japan Business Federation, the country's most powerful business lobby known as Keidanren.

Pretty much everybody in the Keidanren seems to be doing the same, but cold-shoulders those who get busted.

Mitsubishi said earlier that employees at its plant in Nagasaki Prefecture, southwestern Japan, did not conduct quality-related tests as required for products such as train air conditioners and air compressors. The inspection cheating is believed to have taken place for over three decades.

The panel, including lawyers and professors, said computer programs were used to automatically produce inspection results for air conditioners.

So, we're talking of decades-long falsification of data. Doesn't it mean, like, laws were violated or something? Any fines handed out or anybody getting prosecuted? Oh, silly me, TIJ. A slap on the wrist it is.

The Japanese electronics maker said it will strive to create a corporate culture in which "employees feel that they can consult with their superiors," and that "tolerates failures" and "fosters collaboration to solve issues through shared information."

Any suggestions besides what looks like fostering relationship between pre-schoolers? You know something, like, more applicable to a "corporate environment"?

2 ( +6 / -4 )

Train air conditioners. Hmmm

So what does this mean pertains to all those signs posted on trains about excellent ventilation for Covid on jammed packed commuter trains?

3 ( +6 / -3 )

Mitsubishi Electric Corp Chairman Masaki Sakuyama resigned Friday after a panel of outside experts said an "inward-looking and closed" corporate culture was to blame for decades of cheating by the company in inspections for train-use equipment

Here's a thought: Maybe it is not just an insular corporate culture that is responsible for corporate crimes and misdemeanors but the fact there are little or no consequences? Imagine if the authorities treated other crimes like they do corporate crime: No investigations , let it continue for decades and nominal penalties if caught?

2 ( +7 / -5 )

Japan does not conform with the international standards on quality control and accounting. They are just like PR China except for much more irresponsibility.

China's accounting methods and quality control do not obey the international standards but the private enterprises in China are terrified of Party officials probing their mistakes. If there is one mistake in quality or accounting, the whole Chinese firm will be fined and reprimanded by the government severely. Chinese firms do their best at avoiding any mistake if they don't want to receive a huge fine. Worse than that, the Chinese firms don't want a visit from the Chinese Public Security. In the US or EU, any company that engages in quality fraud and extremely damaging accounting fraud, then that company will be bankrupt.

In Japan, you commit a corporate crime or corruption, then you will walk free through resigning and bowing down. This type of fraud will happen in Japan forever, and the consequences will be more people trusting Japan less in any business. In fact, Japan gradually loses many contracts in the ASEAN to China and South Korea due to this type of behavior here in Mitsubishi.

1 ( +6 / -5 )

Ah good 'ol Mitsubishi, pre-war zaibatsu affiliated with the emperor, guided by the same principles which one of its leaders based on his experience studying at the Wharton school of business in New York in the days of Rockefeller and Carnegie.

From the Mitsubishi website:

A proponent of cooperation and accountability in a time of transition

*Koyata's strong conviction that integrity and fairness were the foundation of all business remains a cornerstone of Mitsubishi's management philosophy today. Amidst the economic depression of the early 20th century, Mitsubishi's operations were guided by a set of core principles. With the nation hard hit by the difficult economic times, Koyata advocated responsible action and assistance to manufacturers, producers and the public Mitsubishi served. Placing an unwavering commitment to quality and fair business practices, Mitsubishi survived and prospered and in many instances took a leadership role in moving the industries in which it conducted business to profitability and sustainable prosperity.*

The reality of war-time 'fairness' for those that Mitsubishi got their hands on:

*Mitsubishi made use of forced labor during this tenure (WWII). Laborers included allied POWs, as well as Chinese and Korean citizens. In the post-war period, lawsuits and demands for compensations were presented against the Mitsubishi Corporation, in particular by former Chinese workers. On July 24, 2015, the company agreed to formally apologize for this wartime labor, and compensated 3765 Chinese laborers who were conscripted to Mitsubishi Mining during the war.[15] On July 19, 2015, the company apologized for using American soldiers as slave laborers during World War II, making them the first major Japanese company to apologize for doing so.[16]*

Mitsubishi was involved in the opium trade in China during this period.[17]

1 ( +7 / -6 )

Corporate culture in Japan.

Decided at the top, executed at the bottom. Decades of practices can not be changed by a bowing employee.

The Japanese electronics maker said it will strive to create a corporate culture in which "employees feel that they can consult with their superiors

They can consult, I am sure, but not change things. unless ready to loose their position and career

1 ( +6 / -5 )

I'm surprised the guy quit and didn't just fine himself 30% of one month's salary. That's the normal level of punishment.

Faking tests and poor quality control are widespread, not just in Japan, but this does not make it remotely acceptable. It is fraud and theft.

2 ( +6 / -4 )

 Imagine if the authorities treated other crimes like they do corporate crime: No investigations , l

I agree but am waiting to hear from the poster who wrote 'no job creator should ever have to go to jail, only working-class people should'.

To many in the far right, 'freedom' seems to mean a business and business people can do whatever they want to do to make a profit. They do not want any restrictions on their businesses by government, only the 'silent hand of the market'.

2 ( +4 / -2 )

So no forced confession and indefinite detention? I thought in most industries the buyer makes an inspection and would notice these things.

-2 ( +3 / -5 )

No no , .this must be a mistake , Japanese are all honesty we,re continuously told....let's see how long before the usual suspects are here with the usual " but it's much worse in gaikoku" comments.

2 ( +7 / -5 )

Mitsubishi is a name synonymous with wrongdoing over the years.

And the culture of ‘us’ and ‘them’ in not only Mitsubishi but Japanese society might go along in explaining how best practices and rules are ignored.

2 ( +6 / -4 )

He had to go, before a real investigation began. The company is too entwined with the government to allow that.

2 ( +4 / -2 )

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