The adventure continues, after Kobe Steel announced earlier this month that workers at several different facilities had fudged paperwork on product quality, dating back to at least 2007. Apparently, getting that type of paperwork accurate is important. To someone.
“U.S. Looking Into Kobe Steel Scandal,” The Wall Street Journal, October 18, 2017 B3. Department of Justice kicks off a request for information after company disclosures about practices in Japan. Affects product sold into manufacturers of train, planes, and cars.
More to follow. Expect Congress to weigh in shortly. Again, the problem occurred in more than one facility, over a period of years. Is that a failure of compliance, or culture, or both?
An example of the intersection of governance, compliance, and information.
Filed under Accuracy, Compliance, Controls, Corporation, Culture, Data quality, Definition, Duty, Duty of Care, Employees, Governance, Information, Internal controls, Oversight, Reliance, Use, Value
“Kobe Steel Discloses More Reporting,” The Wall Street Journal, October 14, 2017 B3. Falsification of quality documents is much more prevalent than first reported at Kobe Steel. Twice the number of customers now involved. 500.
Once you find a rotten apple, one can make certain assumptions about the rest of that barrel. It’s a culture issue, at its core.
Filed under Accuracy, Board, Compliance, Compliance, Compliance Verification, Controls, Corporation, Culture, Culture, Data quality, Definition, Directors, Duty, Duty of Care, Employees, Governance, Information, Internal controls, Oversight, Oversight, Policy, Protect assets, Protect information assets, Third parties
“A Hot Startup Misled Advertisers,” The Wall Street Journal, October 13, 2017 A1. Outcome Health apparently misled advertisers as to how many units their ads were appearing on. The investigation continues.
How would your employees react if ask to provide inflated numbers to potential customers? How would your investors react after a story appears on page one, above the fold? Probably reflects in the valuation of the company. And what about your company’s extensive political contacts?
Filed under Accuracy, Board, Communicate, Compliance, Compliance, Compliance, Compliance Verification, Controls, Corporation, Culture, Culture, Data quality, Directors, Duty, Duty of Care, Employees, Governance, Inform market, Inform shareholders, Information, Internal controls, Investor relations, Managers, Oversight, Oversight, Policy, Protect assets, Protect information assets, Use, Value
Not Kobe beef.
“Suspect Metal Rattles Car Makers,” The Wall Street Journal, October 12, 2017 B1. A supplier (Kobe Steel) falsifies some of its product-quality paperwork. Result: manufacturers of planes, trains, and cars (and others) need to check that the faulty material doesn’t compromise safety.
How valuable is the information you get from your vendors? How accurate is it? Do you verify?
Filed under Data quality, Information, Use, Value, Governance, Duty of Care, Controls, Third parties, Internal controls, Compliance, Oversight, Duty, Vendors, Accuracy, Corporation
On the internet, no one knows you’re a dog. Maybe.
“Lawsuit Highlights Online Reviews,” The Wall Street Journal, September 20, 2017 A6. Plastic surgeon sues former patient for negative online review. Accuses her of making false accusations. Case appears to be going to trial, which is unusual. Offer to settle now at $1.8 million, which is nothing to sneeze at.
Wouldn’t you want to know if your doctor screwed up? And if he didn’t, where does he go to get his reputation back?
“CEO’s Simple Trick on Earnings Calls: Saying ‘I,’ ‘We’ and ‘Us’,” The Wall Street Journal, August 7, 2017 R1. Do CEOs control their use of “I” and “us” to manipulate your response? If they are doing this, who else is massaging their language to influence you?
Are you a critical listener? Does the content of the information delivery affect your reception? Do people other than CEOs do this?
There are people who make a living teaching others how to do this. Sometimes for crisis response, sometimes for news broadcasts.
Is this information governance? Is someone controlling how you get information?
“Ex-VW Official Admits Role in Emissions Cheating,” The Wall Street Journal, August 5, 2017 B3. A former VW “compliance executive” charged with conspiracy to defraud the US, wire fraud, and Clean Air Act violations pleads guilty. He admits he knew about the software used to mislead US environmental regulators. Faces sentencing in criminal case in December.
Hiding information from the government is not a good thing. What was the culture that allowed this to happen? Did people feel a need to do this to compete? Too many car companies have been caught up in such scandals to have it be random.
The shareholders have paid (and are continuing to pay) for the mistakes of the employees of the company. Who else from the company is going to go to jail, or lose his/her job? VW is facing costs in just the US of more than $25 billion and investigations elsewhere. Does the “compliance executive” know of others who also knew? Might he offer up some names before December? People who bought VWs are going to want to recover damages from someone.
Filed under Accuracy, Analytics, Board, Compliance, Compliance, Controls, Corporation, Culture, Culture, Data quality, Directors, Duty, Employees, Governance, Information, Internal controls, Oversight, Oversight, Value