Corporate Japan’s credibility, already teetering after a barrage of corporate fraud and falsification scandals in recent months, hit another low after Toray Industries, one of Japan’s biggest materials manufacturers, joined a list of companies admitting to falsifying data. On Tuesdaty, Toray announced it had uncovered 149 cases of data fabrication at its subsidiary, Toray Hybrid Cord, in three products sold to tire companies and autoparts makers: tire cords, cords for car hose belts and cords for paper making. According to Nikkei Asian Review, the subsidiary made the products look as though they met customer requirements. The company admitted that 13 domestic and overseas companies, including at least one South Korean company, are affected.
In a statement issued roughly around the time president Akihiro Nikkaku was bowing to news reporters as Japanese management tends to do when caught engaging in criminal activity, Toray maintained that the “amount by which the data was adjusted to fit customer contract standards was insignificant.” The company believed there were no safety issues involved. Toray Hybrid Cord discovered the problem during a July 2016 internal compliance check, with Toray president Akihiro Nikkaku being informed of the matter the following October.
This post was published at Zero Hedge on Nov 28, 2017.
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