After a steelmaker’s deception, steps to restore trust

A maker of vital metal products worldwide, Kobe Steel comes clean on making shoddy materials. Its corrective moves may help reverse a global decline in trust of companies.

The head of Kobe Steel, a giant manufacturer of metal products in Japan, made a rare admission on Oct. 12. After admitting his company had long lied about the quality of its materials, which are used worldwide in products from cars to computer chips, Hiroya Kawasaki added: “Trust in our company has dropped to zero.”

In an era of damaging deceptions by big businesses, his frankness was refreshing – and necessary to quickly figure out which vital metal products, such as airplane parts, need replacing. Many other big companies, such as Volkswagen and Wells Fargo, have recently lied about the quality of their products or services. Mr. Kawasaki was quicker than most corporate chieftains in giving a number for trust in his company..

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