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▼ Execs Punished Over False Data
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TOKYO (Jiji Press) — Mitsubishi Materials Corp. said Wednesday that its president and chairman will receive no monthly pay for three months beginning April to take responsibility for product quality data manipulation at its group companies.
At a press conference, the president, Akira Takeuchi, apologized for causing great inconvenience to many people.
He also vowed to improve the group’s governance to prevent a similar problem from happening again.
Mitsubishi Materials announced the pay cuts for Takeuchi and its chairman, Hiroshi Yao, together with a final report by a special committee investigating the data falsification scandal and preventive measures.
The major Japanese nonferrous metal producer decided to establish a council to improve corporate governance systems for the entire group and strengthen employee training programs as part of efforts against any recurrence of such manipulation.
After product quality data falsifications were found at five group companies from autumn last year, Mitsubishi Materials set up the special investigation panel, composed of outside board directors and lawyers, to find what caused the data manipulation.
Based on the final report, the company said that the data falsifications stemmed from negative effects from its vertically structured corporate organization and inadequate management at its subsidiaries.
The parent firm also said that some of its subsidiaries lacked awareness on compliance and that necessary capital investments were postponed at some subsidiaries to prioritize earnings.
At a press conference, the president, Akira Takeuchi, apologized for causing great inconvenience to many people.
He also vowed to improve the group’s governance to prevent a similar problem from happening again.
Mitsubishi Materials announced the pay cuts for Takeuchi and its chairman, Hiroshi Yao, together with a final report by a special committee investigating the data falsification scandal and preventive measures.
The major Japanese nonferrous metal producer decided to establish a council to improve corporate governance systems for the entire group and strengthen employee training programs as part of efforts against any recurrence of such manipulation.
After product quality data falsifications were found at five group companies from autumn last year, Mitsubishi Materials set up the special investigation panel, composed of outside board directors and lawyers, to find what caused the data manipulation.
Based on the final report, the company said that the data falsifications stemmed from negative effects from its vertically structured corporate organization and inadequate management at its subsidiaries.
The parent firm also said that some of its subsidiaries lacked awareness on compliance and that necessary capital investments were postponed at some subsidiaries to prioritize earnings.
- March 29, 2018
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