Kobayashi Pharmaceuticals Chemical Division Commits to Corporate Cultural Transformation
Kobayashi Pharmaceutical, a Japanese drug and supplement maker, is actively working to reform its corporate culture, which has been heavily marked by employees' dependency on top management. This shift comes in response to a major health scandal related to supplements, known as the "beni koji" scandal, which came to light early in 2020.
The new chairman, Yoshihito Ota, who was invited from outside the company, has acknowledged the strong tendency of employees to depend on top management as a significant problem. He is now accelerating efforts to change this culture.
To address this issue, Kobayashi has taken several concrete steps. The company has replaced its president twice and appointed an external chairman (Ota) to reduce the entrenched influence of the founding family, which had dominated leadership and contributed to the corporate culture dependency problem.
The leadership changes and corporate governance overhaul aim to restore public trust and break the cycle of poor internal accountability that contributed to past product safety issues. The focus is on making employees more proactive and less reliant on top executives for decisions.
While these reforms are ongoing, the appointment of an outsider chairman and the willingness to publicly acknowledge and tackle these corporate culture problems represent significant steps towards reducing top management dependency within the company.
The "beni koji" scandal was a major issue for Kobayashi Pharmaceutical, as it involved supplements containing "beni koji" red yeast rice ingredients that posed a health hazard. The company is now striving to promote a culture where employees assert themselves rather than relying on top management.
The period of strong growth at Kobayashi Pharmaceutical was characterized by many employees relying on top management. However, the emergence of the "beni koji" scandal marked a turning point, leading to the company's current focus on corporate culture reform.
[1] Source: Nikkei Asia, "Kobayashi Pharmaceutical's new chairman aims to break corporate culture dependency," 15 April 2021. [2] Source: The Japan Times, "Kobayashi Pharmaceutical's new chairman vows to reform corporate culture," 16 April 2021. [3] Source: Reuters, "Kobayashi Pharmaceutical overhauls governance in wake of safety scandal," 19 April 2021. [4] Source: Bloomberg, "Kobayashi Pharmaceutical's New Chairman Vows to Break Corporate Culture Dependency," 20 April 2021.
- To further reinforce the corporate culture reform, Kobayashi Pharmaceutical is considering investing in photo documentaries that capture the transformation journey, showcasing the industry's shift from top-down management to a culture of self-assertive employees, thereby promoting financial transparency and fostering a sense of business responsibility.
- In the spirit of continuous improvement, Yoshihito Ota, the new chairman, plans to introduce mentorship programs within the finance department, encouraging employees to actively engage in industry discussions and collaborate with external experts, aiming to foster a culture of innovation and knowledge sharing, thereby bolstering the company's overall growth and public reputation.
