04-08-2025
Kobayashi Pharmaceutical chairman vows corporate culture reform
Japan's Kobayashi Pharmaceutical will accelerate efforts to reform its corporate culture marked by workers' reliance on top management, Chairman Yoshihito Ota has said.
A major problem the drug and supplement maker must address is the "strong tendency to depend on top management," seen among its employees, Ota said in a recent interview.
Ota took office in March after being invited from outside the Osaka-based company, following a massive health hazard caused by supplements containing beni kо̄ji red yeast rice ingredients that came to light early last year.
Led by top executives mainly from the founding family, Kobayashi Pharmaceutical achieved net profit growth for over 20 years from its stock market listing in 1999, until the beni kо̄ji scandal emerged.
For many employees, "it was easier to work if they depended on someone rather than asserting themselves" during the period of strong growth, Ota said.
As the company focused on generating profits, capital investment plans were often delayed, leaving the manufacturing staff exhausted, but the division did not request an improvement, according to Ota.
"The manufacturing division weakened," while the marketing division was strong, he continued.
Probes into the beni kо̄ji scandal have found that culture drums in a company factory had cracks due to aging, indicating the possibility that mold spores may have entered the drums through the cracks, allowing the substance that caused the health hazard to generate inside the drums.
"It's best to renew facilities systematically," Ota said, underscoring his intent to strengthen the manufacturing division.
Saying that quality control has not been unified across the entire group, Ota also emphasized, "We'll carry out structural reform of the entire manufacturing division."
Before joining Kobayashi Pharmaceutical, Ota was involved in the reconstruction of Japan Airlines after its 2010 bankruptcy, as a close aide to the late Kyocera founder Kazuo Inamori, who led the airlines' turnaround.
Under Ota, Kobayashi Pharmaceutical regularly holds a leadership workshop for senior officials to foster a culture where employees make decisions and take action independently.
"The corporate culture will not change unless the older generation changes, " he said.
