Shame on you, Kobe

Once again showing my age, I am old enough to remember when the label “Made in Japan” suffered the same stigma as “Made in China” does today. My parents immediately thought of products produced in Japan as subpar. (Of course, this opinion may have had something to do with the time being not too long post-WWII.)

I have lived to see Japanese manufacturing become the gold standard in the electronics and automobiles industry. Remember when Hondas were first introduced and few in the U.S. would buy them? In 2014, Honda was No. 3 among the best-selling car brands in the U.S., No. 1 was Toyota, No. 4 was Nissan—all three Japanese brands. The U.S. brands in the top 10 were Chevrolet (No. 2), Ford (No. 5), and Dodge (No. 10).

For the last few days, my Outlook inbox has been filled with Google alerts about Tokyo-based Kobe Steel falsely certifying material. I can’t remember the first such notice I received, but most alerts I’ve received since then have had one or more links to news items and articles about the situation.

The most recent alert—one of several that greeted me this morning—focused on the admission by company President and CEO Hiroya Kawasaki that its data fabrication may have spread beyond Japan. This admission came after the Japanese government ordered Kawasaki to report on how the misconduct occurred and address safety concerns for globally.

According to the article, “Planes, trains and automobiles: Kobe Steel’s tainted metal is everywhere,” on businesslive.co.za, “Kawasaki told reporters the cheating scandal has left Kobe Steel’s credibility at ‘zero,’ underscoring the deepening crisis at the steelmaker and the sweep of quality problems besetting Japan’s once-vaunted manufacturing sector.

“The scandal penetrated deeper into the most hallowed corners of Japanese industry, as iconic bullet trains were found with substandard parts supplied by the steelmaker.

“While they do not pose any safety risks, aluminium components connecting wheels to train cars failed Japanese industry standards, according to Central Japan Railway Co, which operates the high-speed trains between Tokyo and Osaka.

“West Japan Railway Co, which runs services from Osaka to Fukuoka, also found substandard parts made by Kobe Steel.”

The article also touched on something I had wondered after reading the very first notification: Have U.S. companies been the recipients of Kobe products bearing false data?

“In the US, General Motors said it was checking whether its cars contained falsely certified parts or components sourced from Kobe Steel, the latest major car maker to be dragged into the widening scandal.

“‘General Motors is aware of the reports of material deviation in Kobe Steel copper and aluminium products,’ spokesman Nick Richards told Reuters.

“‘We are investigating any potential impact and do not have any additional comments at this time.’

“GM joins Toyota and as many as 200 other companies that have received parts sourced from Kobe Steel.”

Kobe is not the first corporation to commit this mistake. It joins Volkswagen and other major brands in knowingly providing false data and/or failing to divulge critical information. The ramifications of this particular incident remain to be seen.

Beyond the questions surrounding this scandal and its scope looms another serious question: Why on earth do companies do this? Is it the “act now, ask for forgiveness later” paradigm at work? The fault of a single or several individuals that gets out of hand? A cover-one’s-butt strategy? A pervasive lack of ethics and accountability that appears to permeate all areas these days? If fake news is allowed, why not fake data?

No matter the reason, it isn’t good or good enough. I’m also old enough to be well-acquainted with the phrase “to hell in a handbasket.” That adage seems to ring true more and more these days.