EDITORIAL: Ruling on Paloma case

The Tokyo District Court handed suspended prison terms Tuesday to a former president of Paloma Industries Ltd. and the former director for quality control after finding them guilty of professional negligence resulting in death and injury over improper modifications of its gas water heaters.

The case concerned a carbon monoxide poisoning accident in 2005. The court said the defendants failed in their corporate duty to place priority on consumer safety.

The accident in Tokyo's Minato Ward killed a college student and left his brother seriously injured.

The malfunctioning of the gas water heater was not due to a defect in the product but was the result of modifications after the unit had been sold. The court recognized this as a case of professional negligence resulting in death and injury after concluding the defendants failed to implement effective measures to prevent possible accidents despite being aware of in-house reports on a number of similar accidents.

Consumers use gas appliances, which are convenient but potentially dangerous, without any fears for their safety because they trust the makers to ensure their products won't blow up or leak gas. We welcome the ruling that reflects this sentiment.

Today, corporate accidents and misconduct result in a fierce pursuit of criminal and civil responsibilities, not only of the individuals directly involved, but also of the top managers for failing to prevent them. The business community has cried foul in some cases. Indeed, some instances have generated skepticism among experts as well.

Nevertheless, it is high time that executives lived up to their corporate responsibilities and public expectations with regard to their products and services.

In short, companies need to properly assess risks, try to prevent problems from occurring and take quick action when something does happen. Corporate directors have an obligation to set up internal control systems for that purpose. While Paloma was definitely deficient on that front, the question remains whether this problem is limited to Paloma alone.

We feel that too many companies are content to draft regulations, make necessary organizational changes and publicize these efforts internally even though in reality the measures are insufficient.

When companies come up with systems that work as intended--for the public good--it can be said that they have fulfilled their social responsibilities. Taking heed of this court ruling, we hope that corporate managers will re-examine the nuts and bolts of their respective operations.

This accident, and other incidents, gave birth to the Consumer Affairs Agency last year. The agency collects information on problems faced by consumers and discloses the data on its website. Top managers are now burdened with regularly checking if products similar to their own have caused accidents, staying abreast of all pertinent developments and striving to raise the quality of their own brands.

While the investigation and trial of the Paloma case sounded an alarm throughout the business sector, certain boundaries also emerged. Prosecutors passed over the liability of gas service firms that run checks on the units. Likewise overlooked was the accountability of the Ministry of Economy, Trade and Industry that had been informed about a considerable number of accidents.

The ruling effectively confirmed this thinking with the logic that sectionalism in both the industry and government offices prevented information from being shared. This, the court concluded, undermined expectations that such accidents could be prevented. Though criminal trials are destined to seek individual responsibilities according to the laws, this judgment leaves much to be desired in terms of shedding light on the bigger picture.

How can we best determine the causes, pinpoint the responsibilities and define potent preventative measures following accidents like the Paloma case, which involve numerous people and organizations? Strong steps must be taken to answer this question.

--The Asahi Shimbun, May 12