How did the board structure contribute to the failures
How did the board structure contribute to the failures?
TEPCO (Tokyo Electric Power Company Holdings) is an electric company founded in 1951, went through a major failures and board structures are considered to be the major reason for it. The failure is the big error. The company failed to report the meltdown 3 week after they have known. The operator should have checked and followed its manual once the accidents occurred but TEPCO didn’t do that. The delay in announcing the meltdown made people think that there is nothing to worry about leading to cause several deaths and injuries. It had already went through major accidents in the past as well but the practice was not changed which forced people to not trust the company. 3 former executives were indictment to professional negligence. The indictment says the formal executives could have predicted the plant was at risk to be hit by tsunamis and inundated but that they failed to take appropriate measures,which led to hydrogen explosions at reactor buildings which injured 13 people and causing the death of 44 hospital from the nearby hospital. The person in-charge also didn’t take the information to the top management about the predictions. Therefore, there was no proper channel of communication.
2. How do you account for the discrepancies between the company’s alleged concerns for corporate governance on its website and the catastrophic failure?
In my opinion,there are few reasons for discrepancies between the company’s alleged concerns for corporate governance on its website and the catastrophic failure, first all the no proper communication between the hierarchy, negligence, lack of health and safety concerns for their workers.The company also provided false date to their people and outsiders which finally started causing the trust issues too.
3. What advice would you give to the chairman of TEPCO?
Being the chairman of such huge company and employing so many individual means being accountable, having an strategy to avoid the risk, focusing on employee’s health and safety, being trusted and having proper channel of communication. But the video showed, the chairman lacked all the ,mentioned qualities which is essential to represent company as chairman.
As showed in the video, they said, the in-charge of the plant didn’t pass on the proper information to them but in my opinion it is also the responsibility of chairman to take and initiative to have all the information updated to them. They should have focused on the employee benefit program instead of ignoring so many previous accidents which led people to not trust them again. The company should have transparency and everyone should be well known about every situation and scenario. They should also change the company practice policy so that they have people start trusting them again. Proper morale and ethics should be followed and one should be accountable towards all the problems and not pass the blame to other person.