University of Maryland Kobe Steel Scandal Case Study Discussion
Question Description
roved shipment of the goods to customers.
After admitting to widespread tampering of quality data, authorities in Japan and the United States started investigating Kobe. With at least five decades of data fraud, more than 600 customers were identified as affected by Kobe’s actions. Kobe Steel supplies manufacturing parts for automobiles, trains, aircrafts, electronics and other metal products. During the internal review, Kobe confirmed findings of data falsification stating that the problem spanned four percent of the company’s output between September 2016 and August 2017. Affected products included the following products that were shipped to approximately 200 companies:
19,300 tons of flat-rolled and extruded aluminum products
19,400 units of aluminum casting and forgings
2,200 tons of copper products
At the time, Kobe Steel declined to reveal the names of the companies affected but indicated it had not received any complaints from customers using the affected products.
In October of 2017, Kobe Steel established an Independent Investigation Committee (IIC) that reviewed the company’s shipments between September 2016 and August 2017. The company recognized misconduct that covered the act of fabricating inspection data that did not meet customer specifications and public standards and the shipping and delivering of products to customers as if the products conformed to customer specifications and public standards.
Findings of the report revealed the involvement of executive officers in the misconduct but stated the involvement was limited to the Aluminum and Copper Business. Two executive officers were aware of the misconduct but did not report the issue to their boss who was the Head of the Aluminum and Copper Business. Another executive who was aware of the misconduct made the decision as a basic policy to gradually eliminate the production and shipment of nonconforming products. He also decided to instruct staff to improve manufacturing processes and to stop accepting part of the orders.
The report also showed former executive officers were directly involved with misconduct before becoming executive officers and failed to stop or correct the misconduct. The misconduct extended beyond the Aluminum and Copper Business to other division and Group companies.
Instructions:
Step 1: Course Material
For this project, you are required to use the case scenario facts and the course material. External sources are not permitted. You are not researching on the Internet or using resources from outside the course. You are expected to answer the requirements identified below showing the connection between the case scenario facts and the course material. Using course material goes beyond defining terms and are used to explain the “˜why and how’ of a situation. Avoid merely making statements but close the loop of the discussion by explaining how something happens or why something happens, which focuses on importance and impact. In closing the loop, you will demonstrate the ability to think clearly and rationally showing an understanding of the logical connections between the ideas presented in a case scenario, the course material and the question(s) being asked. Using one or two in-text citations from the course material throughout the entire paper will not earn many points on an assignment. The use of a variety of course material is expected consistently supporting what is presented. The support must be relevant and applicable to the topic being discussed. Points are not earned for mentioning a term or concept but by clearly and thoroughly explaining or discussing the question at hand.
NOTE: If external sources are used, what is presented will not count and a penalty for following instruction will apply.
Step 2: Create Headings
You will use the following headings for this project. Make sure that each heading is in place and use the headings as a guide to write each section of the project.
Introduction
Ethical Issues
Potential Implications for Stakeholders
Role of Corporate Culture
Utilitarian Viewpoint
Aristotle’s Viewpoint
Addressing the Issues & Behavior
Conclusion
Step 3: Write the Introduction
Create the introductory paragraph. The introductory paragraph is the first paragraph of the paper and tells a reader the main points covered in the paper. To help you know how to write an introduction, view this website to learn how to write an introductory paragraph: http://www.writing.ucsb.edu/faculty/donelan/intro.html
Write the introduction last to ensure all of the main points are covered.
Step 4: Answer the Following
Answer the following requirements using both the course material and case scenario facts to support the reasoning and conclusions made. You may use additional research but are limited to two additional articles related to Kobe Steel. All source material must be cited and referenced.
Identify and discuss the ethical