Additional Costs and Reputational Impact of Product Defects
First written in FY2016. 2 of 6 entries say "Mitigated", first in FY2024. Latest entry: FY2026.
The whole theme swung hardest in 2026: 11 of 57 companies on the "Worse" side.
- FY2026MitigatedAnnual report
「・Launch of basic quality training for Group employees ・Continued expansion of automated quality verification testing ・Continued cross-audits of quality within the Group」
As part of its response to product quality risks, the Group is advancing specific measures including training for Group employees, automation of quality verification testing, and cross-quality audits. - FY2024MitigatedAnnual report
「Product Quality and Responsibility Number of serious quality defects Zero Zero」
In fiscal 2023, the number of serious quality defects was zero against a target of zero. The number of customer complaints also decreased 4.2% year on year, representing a change from the 25% year-on-year increase in serious quality defects disclosed for the previous fiscal year. - FY2023WorsenedAnnual report
「Number of serious quality defects: up 25% year on year」
For fiscal 2022, the number of serious quality defects increased 25% year on year. From fiscal 2023, the evaluation metric was revised to the number of serious quality incidents, with a target of zero. - FY2022ReframedAnnual report
「Product Quality [Risk Details and Impact] ● Loss of trust among customers and other stakeholders due to fraud or inappropriate processing related to quality assurance, or the occurrence and distribution of products that fail to meet quality standards ● Defects at customers or in the market, and failure to fulfill supply responsibilities, resulting from products failing to meet quality specifications」
The risk previously described as the cost and reputational impact of product defects has been reorganized to include fraud and inappropriate processing in quality assurance, products failing to meet standards and being distributed, and failure to fulfill supply responsibilities. - FY2017RestatedAnnual report
「Product defects that lead to large-scale compensation payments or product liability claims could result in substantial costs and significantly affect the Group's reputation, adversely affecting its operating results and financial position.」
The disclosure reiterates the possibility that product defects may affect additional costs, reputation, operating results and the financial position. - FY2016First statedAnnual report
「Product defects that lead to large-scale compensation payments or product liability claims could result in substantial costs and significantly affect the Group's reputation, adversely affecting its operating results and financial position.」
Using beverage cans and automotive parts as examples, the disclosure indicates that losses may not be fully covered even with quality control, regulatory compliance and insurance coverage.