Kobe Steel CEO steps down over data fabrication scandal

Hiroya Kawasaki, the firm’s 63-year-old CEO, will step down on April 1, a decision approved at a board meeting Monday. Executive Vice President Akira Kaneko, 63, who is in charge of its aluminum and copper business, will also resign. Both executives will remain as board members until late June, after its annual shareholders meeting.

“I thought it’s best for the company to proceed with reforms under new managers with speed, so that we can show as many people as possible that the company has changed,” Kawasaki told a news conference Tuesday. “We once again deeply apologize that our misconduct has caused enormous inconvenience for our customers, clients and stakeholders.”

The resignation came after a release of a final report compiled by a third-party team of investigators. The report cited an emphasis on profits, excessive pressures to meet strict deadlines, waning compliance among employees and poor quality control procedures as the root causes behind the data manipulation.

The third-party investigation also revealed that an additional 163 companies were affected by the data-fabrication scandal, Kobe Steel said Tuesday. The total number of clients affected is now 605, it said.

Among the affected companies are Toyota Motor Corp. and Mitsubishi Aircraft Corp., a subsidiary of Mitsubishi Heavy Industries Ltd.

As a part of preventive measures, the company said it will increase the number of outside board members to account for at least one-third of the total so as to secure more robust management transparency. The company also said it will drive forward a campaign that promotes better communication between managers and employees.


Kobe Steel CEO steps down over data fabrication scandal | The Japan Times

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