Risk of repair and recall costs and reputational damage due to defects in products and services
First written in FY2019. 2 of 3 entries say "Restated". Latest entry: FY2021.
The whole theme swung hardest in 2026: 11 of 56 companies on the "Worse" side.
- FY2021RestatedAnnual report
「The Group has established a quality control system throughout the Group, including its partner companies, using ISO management systems as a tool. However, if products or services are found to have defects arising from design or manufacturing errors, defective construction or other causes, and free repairs, replacements, refunds, recalls or other measures are required under applicable laws or at the Group's discretion, substantial costs may be incurred and the Group's reputation as a manufacturer may be severely damaged, potentially having a material impact on operating results and financial condition.」
While describing the Group-wide ISO quality control system, including partner companies, the company continued to identify the cost and reputational risks arising from product defects. - FY2020RestatedAnnual report
「If products or services are found to have defects arising from design or manufacturing errors, defective construction or other causes, and free repairs, replacements, refunds, recalls or other measures are required under applicable laws or at the Group's discretion, substantial costs may be incurred and the company's reputation as a manufacturer may be severely damaged, creating a risk of a material impact on operating results and financial condition.」
The company continued to identify the risks of repair, replacement, refund and recall costs and reputational damage associated with product and service defects. - FY2019First statedAnnual report
「If products or services are found to have defects arising from design or manufacturing errors, defective construction or other causes, and free repairs, replacements, refunds, recalls or other measures are required under applicable laws or at the Group's discretion, substantial costs may be incurred and the company's reputation as a manufacturer may be severely damaged, creating a risk of a material impact on operating results and financial condition.」
For the first time, the company separately identified the costs and reputational damage associated with free repairs, replacements, refunds and recalls caused by product or service defects as a material business risk.