Companies sometimes cause scandals in the course of business activities, such as defective product accidents, wrongful acts of corporate officers or employees, accounting fraud, violations of business regulations including Financial Instruments and Exchange Act, etc., or harassment. These scandals may develop into significant problems which are subject to social criticism, and may often cause fatal impact on companies.
Companies need to take every possible and appropriate measure against these scandals in the stages of (i) taking precautions to prevent scandals from occurring, (ii) dealing with the occurred scandals, (iii) implementing measures to prevent the recurrence of scandals and (iv) dealing with disputes arising from scandals.
“Appropriate measures” do not simply mean that companies have to comply with laws. To comply with laws is a minimum request, and only doing so might cause social criticism. Companies, as members of society, need not only to comply with laws but to recognize the necessity of actions which do not cause social criticism, and need to overcome the crisis they face.
Our firm has been well engaged with a broad range of companies and makes fullest efforts to seek “appropriate measures” in order to overcome business crisis as a team by cooperating with the person in charge of the company who has the best knowledge of the business.