LATEST NEWS
 Top Stories
 U.S.
  Severe Weather
  Bird Flu
 World
  Castro
  Mideast Crisis
  Iraq
 Business
 Personal Finance
 Technology
 Sports
  Sports Columns
  NASCAR
  Baseball
  College Hoops
  NBA
  NHL
  Tennis
  Golf
 Entertainment
 Health
 Science
 Politics
 Washington
 Offbeat
 Podcasts
 Blogs
 Weather
 Raw News
 NEWS SEARCH
 
 Archive Search
 SPECIAL SECTIONS
 Multimedia Gallery
 AP Video Network
 Today
 in History
 Corrections
Nov 10, 6:04 AM EST

Kobe Steel says focus on profit, targets led to scandal


AP Photo
AP Photo/Shizuo Kambayashi

Multimedia
Archery on horseback still draws crowd
Ainu Rebels reclaim cultural pride
Japanese defend whaling tradition
Japan deals with 'Minimata Disease'
Latest News
Police: Woman confessed to putting babies in concrete in 90s

US troops in Japan banned from drinking after fatal crash

Japanese tug boat scrapes US Navy ship during exercise

Japan's Abe vows to bolster defense amid North Korea threat

Japan sends home 3 N. Koreans rescued from capsized boat

Interactive
AP's Athlete of the Decade

TOKYO (AP) -- Kobe Steel is pointing to a zealous pursuit of profit, unrealistic targets and an insular corporate culture as the causes of massive faked inspection data at the Japanese metals maker.

The company released a 27-page report Friday of its findings on what led to the scandal and measures to prevent a recurrence.

The scandal surfaced last month when the company, Japan's third-largest steel maker, acknowledged systematic data falsification spanning years that affected products sent to 525 companies, including aluminum castings and copper tubes for autos, aircraft, appliances and trains.

It said safety has been confirmed at 474 companies so far.

Government regulators are also investigating. Kobe Steel is planning to release findings of another report, by third-party officials including lawyers, next month.

One of the mysteries is why the rampant cheating was allowed to continue for so long without ever surfacing or being taken up by management as a problem.

Japan has been rocked by a spate of scandals in recent years at some of the biggest names in Japan Inc.

Japanese automaker Nissan Motor Co. acknowledged recently that it had systematically allowed unqualified workers to carry out last-stage vehicle inspections in violation of Japanese government regulations.

Earlier, major air-bag maker Takata Corp. filed for bankruptcy protection after reporting a defect with its inflators that resulted in some 100 million air bags being recalled globally.

Friday's Kobe Steel report found the company had been intent on doing the work efficiently, but the process for quality controls and back checks was inadequate.

At the same time, workers were under pressure to meet deadlines and to follow excessively stringent regulations, but instead they resorted to cheating because there wasn't enough awareness of the need to follow rules, it said.

The report calls for shaping a corporate culture that values quality controls, not just profit, so the company can try to win back trust from society.

"What is a big problem in this case is that a situation at the plant that was occurring on this scale was never taken up or dealt with properly by management," the report said.

---

Follow Yuri Kageyama on Twitter at twitter.com/yurikageyama

Her work can be found at https://www.apnews.com/search/yuri%20kageyama

© 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use.