Focus on profits and market share led to data falsification scandal: Mitsubishi Materials Corp

Here are the findings of the committee constituted by Mitsubishi Materials Corp on the data fabrication scandal.

On Thursday, Japan’s Mitsubishi Materials Corp stated the push for market share had driven its subsidiary to fabricate fake product specification which led to the compliance scandals that have acted as a blown to Japan Inc’s reputation this year.

In November, Mitsubishi Materials had admitted that its subsidiaries had falsified data on products, including parts for automobiles and aircrafts.

Earlier this month, Kansai Electric Power Co stated two of its nuclear plants had used parts with possibly falsified data supplied by Mitsubishi Cable Industries.

According to Mitsubishi Materials, a committee looking into the case, concluded that Mitsubishi Shindoh, had taken orders despite being unable to meet customers’ product specification. The committee also cited an urge to approve products and a lack of awareness on compliance and quality assurance among its staff as one of the reasons for the issues.

Other Japanese companies that have admitted to product data falsification, including Toray Industries and Kobe Steel, have also blamed lax quality controls, shortage of staff and a focus on profit as the reasons, among others, for the data falsification scandals.

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