The so-called Japanese-style business management supported the rapid economic growth of this country and drastically transformed business, especially the employment system, through the slow-growth period called the “two lost decades.”
As companies face a new business environment resulting from new industrial and digital revolutions, companies in Japan have repeatedly been involved in major scandals since 2017, such as the product quality(inspection)falsifications by Mitsubishi Materials, Nissan Motor, and Kobe Steel and other scandals by Yamato Holdings and Suruga Bank.
This paper focuses on these five companies, which represent involvement in recent corporate scandals, and examines the main problems, factors, and backgrounds to the scandals. The author then suggests(1)promotion of empathy-based business management,(2)innovation leveraged by diversity, and(3)corporate governance based on the principle of human nature.
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