The Dentsu Group, in which a former executive of a subsidiary was indicted in a bid-rigging case involving the management of the Tokyo Olympic and Paralympic Games, has released an investigation report by outside experts. We have pointed out the organizational culture that tries to grasp the intentions of customers to an excessive extent and the lack of sensitivity to legal compliance, and call for strengthening risk management.
In a bid-rigging case involving the management of the Tokyo Olympic and Paralympic Games, former executives of Dentsu, a subsidiary, were arrested and prosecuted on suspicion of violating the Antimonopoly Act, and the Dentsu Group as a corporation was also indicted for the same crime.
The company established a special committee composed of outside directors, and external experts conducted investigations and compiled a report on the investigation of the cause and necessary measures to prevent recurrence.
According to a report released by the company on September 9, the problem this time may have been the organizational culture that placed too much emphasis on "client first" that tried to grasp the intentions of clients to an excessive extent.
In addition, after pointing out that management, including management, was less sensitive to legal risks and that consideration for the fairness and transparency of procedures was significantly lacking, the report calls on the company to revise its corporate philosophy and action guidelines and take measures to prevent recurrence, such as introducing a new system to strengthen risk management.
After the incident, the company established a committee in May to prevent recurrence, and President Hiroshi Igarashi commented, "I have to say that there was still a lack of awareness of the appropriateness of the means because we were so focused on achieving our goals, and we will work together with management and employees on reforms."