Could Takata's Problems Have Been Avoided If The Leadership Was More Diverse?

Last month U.S. prosecutors announced charges against three former executives of Japanese supplier Takata for allegedly falsifying data to cover up a deadly airbag defect. The company has admitted to a 15-year cover-up, agreed to plead guilty to wire fraud, and will pay a $1 billion fine. Meanwhile, the faulty airbags have been linked to at least 16 deaths worldwide, and tens of millions have been recalled.

Industry-watchers trying to understand how this happened have their work cut out for them. A 2016 review found problems with the company’s organizational culture, and there’s evidence managers pressured workers to manipulate data. Too-rapid production growth and executive overconfidence may have played a role; at the same time, American lawmakers have blasted U.S. regulators for missing the problem for years.

Clearly, there’s plenty of blame to go around. But one potential -- and potentially controversial -- factor shouldn’t be overlooked: Every member of Takata’s board is a Japanese man.

PUGPROUD - 2/6/2017 11:00:34 AM

0 Boost

More ethical, more honest perhaps!

TomM - 2/6/2017 11:53:46 AM

+3 Boost

The idea that an All Japanese Male board would somehow not be proper is Nonsense. For decades - all American companies had ALL american boardmembers- and likely most still do. It is NOT what the gender or nationality of the board members is - it is if they actually do their job that makes the difference. The problem here was clear - they were listening to their "scientists"and "engineers" who claimed that the propellant they used met requirements. And the statistics they received to prove it - was manipulated by those whose jobs were on the line. And just as in other recalls - the data did not show a major problem until the OUTSIDE statistics started to do that - and by then it was too late. THe board believed their own people.

TheSteve - 2/6/2017 12:31:20 PM

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If by "diverse" you mean "more people who are more in touch with the product, more honest, less corrupt", then yes, that would have made a big difference. And that could have happened even if they were all the same gender.

LexSucks - 2/6/2017 12:57:25 PM

+1 Boost

Diverse? Do you even know the meaning of the word 009? There's more people of color in Beyonce's belly than there is in the entire Trump cabinet. You don't care about diversity. And when you talk about diversity here, what you really are asking, is if their problems could have been solved if white men were involved.

nguyenvuminh - 2/6/2017 2:00:02 PM

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+1 LexSucks