Japan: Kobe Steel CEO to quit over data fraud scandal

On Tuesday, March 6, Kobe Steel said its CEO will step down to take responsibility for a widespread data fraud scandal, although doubts remain over a corporate culture mired in malfeasance and the possibility of future fines, reported The Financial Times.

Hiroya Kawasaki departure as head of the country’s third-biggest steelmaker came five months after the company confessed to tampering with data on metals used in aircraft, automobiles and trains across the world.

“I have to admit that we face deeply rooted issues that go beyond our compliance structure to our corporate culture and the mentality of our executives and employees,” Mr Kawasaki said at a news conference following a deep bow of apology. “I have come to the conclusion that the best way forward is for the new management to speedily implement a shake-up so that people feel that Kobe Steel has transformed as soon as possible,” he added in announcing his decision to step down.

Japan’s third-largest steelmaker, which supplies steel parts to manufacturers of cars, planes and trains around the world, admitted last year to supplying products with falsified specifications to about 500 customers, throwing global supply chains into turmoil.

Full Content: Financial Times

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