How to Prepare for and Prevent Data Falsification Issues -

In September 2015, news broke that Volkswagen had manipulated software on its diesel engine vehicles to avoid emissions requirements, a disclosure that led to the largest data falsification case in history. To date, the company has spent more than $34 billion in fines and settlements to deal with the crisis. In addition, a number of its senior executives have either pleaded guilty or been indicted in the United States.

But Volkswagen was just the start. For Japanese companies alone, there have been a rash of data falsification cases. Takata and Toyobo recently resolved such cases with the US Department of Justice (DOJ). Just last fall, Kobe Steel announced that it had falsified data to make it appear as though certain products met customer specifications, leading to lawsuits in the United States and Canada and a DOJ investigation. In December 2017,Keidanren asked its 1,500 members to investigate whether they had data falsification or quality control issues at their companies.