Japanese firms' scandals offer a vital lesson
The shockwaves from the malfeasance in some of Japan's big companies continue to be felt as new revelations emerge. On Tuesday, Kobe Steel CEO Hiroya Kawasaki said he would step down, taking responsibility for the quality control lapses that resulted in substandard materials being supplied to about 605 clients, including 222 overseas companies.
Kobe Steel, which is Japan's third-largest steelmaker, sells its products to all kinds of businesses, including those in the aviation and automobile industries, railways and nuclear power plants.
US consumers have filed a lawsuit against Kobe Steel and Toyota Motor Corp accusing the two Japanese companies of violating consumer protection laws and indulging in fraud by concealing the use of substandard metal components in the latter's vehicles. The complaint claims that Toyota models, such as Prius, Camry, Land Cruiser and Lexus, have all been made using substandard steel, aluminum and copper.
