The recent confession of Kobe Steel ltd., Japan’s third-largest steelmaker, to have falsified quality data for an array of aluminium and copper products shipped over the past year is making headlines recently. This has raised yet another serious concern regarding the good governance practices across the industry.
The Japanese maker of steel and alloys said the products were delivered to more than 200 companies from September 2016 through August 2017. According to data compiled by Bloomberg, customers that rank among the top 10 include Shinso Corp., Mitsubishi Corp., General Motors Co. and Ford Motor Co., Nissan Motor Co., Honda Motor Co. and Alconix Corp .
Kobe steel already has a Corporate Governance and Compliance structure in place and the core values of the company clearly states to pay attention to product safety by offering excellent products and services  to its customers. But such scandals bring out the gaps in the existing corporate governance structures in the organization. Such scandals clearly indicate that having governance structure in place does not make companies scandal-free. But the effective implementation of the corporate governance and compliance practices is necessary to avoid such scandals within the company.
This incident is clearly an awakening to other enterprises to visit their governance structures to identify any gaps in their existing practices. The companies need to work on it before any such scandal within their company shakes it to its roots. To know furthermore about how to implement good governance through the technology support, visit here.
|||K. B. ,. a. J. M. Nao Sano, “Here’s What Kobe Customers Are Saying on Falsified Data Scandal,” Bloomberg, 10 October 2017. [Online]. Available: https://www.bloomberg.com/news/articles/2017-10-10/here-s-what-kobe-steel-customers-are-saying-on-falsified-data.|
|||Kobelco, “Core Values of KOBELCO,” [Online]. Available: http://www.kobelco.co.jp/english/about_kobelco/csr/environment/2006/1178058_12546.html.|