OSAKA — The head of Kobayashi Pharmaceutical Co., a company implicated in supplement products potentially connected to numerous fatalities, announced in an interview with the Mainichi Shimbun that they plan to hasten their move toward less familial control over business operations under the leadership of the newly appointed president.
Norikazu Toyoda, aged 60, declared, “Our top priority is to address those who have experienced health issues by providing compensation. We will strive to avoid future incidents and transform our company ethos.”
In mid-January 2024, the firm learned about an initial instance of health problems associated with their red yeast rice dietary supplements; however, they did not disclose this information to authorities or the public until after a period of two months had elapsed. In light of taking accountability for the situation, former President Akihiro Kobayashi resigned in August 2024. This marked the first occasion since the company’s establishment in 1886 where leadership fell upon someone external to the Kobayashi lineage. As such, Satoshi Yamane, previously serving as a managing director, assumed control initially prior to passing the torch to Toyoda earlier this March.
Toyota admitted that the company failed to address the issue publicly sooner, stating, “We as board members (myself included) placed excessive trust in the original family. Despite feeling uneasy, we assumed that the founding family would ultimately make the decision, which has led us to regret our lack of initiative today.”
In the organizational overhaul, Yoshihito Ota—who previously worked at prominent electronic firm Kyocera Corp. and helped revamp Japan Airlines Co.—was appointed chairman. Serving concurrently as an executive board member, he plans to instruct participants in a leadership development program this June. His aim is to shift mindsets among corporate leaders long influenced by founder-led decision-making.
Nonetheless, uncertainties persist regarding the company’s ability to lessen its reliance on the founding family. When the health issues were exposed, Kazumasa Kobayashi, then serving as chairman, continued his association with the firm as a special advisor. Simultaneously, Akihiro stayed onboard as the director responsible for remuneration. The founding clan retains approximately 30% ownership stakes in the enterprise, thereby maintaining considerable sway over its affairs.
Concerning the connection with the founding family, Toyoda stated, “Similar to other stakeholders, I wish to discuss with them their support for choices implemented by management.” When asked about the potential for Akihiro reclaiming the presidential position someday, Toyoda remarked, “This is not predetermined; rather, it hinges upon his recognition within the firm following him addressing his outstanding duties.”
Toyota also addressed the potential for changing the company’s name, saying, “I personally don’t consider this necessary, but it might turn into a subject worth discussing in the future.”
Regarding public relations, the firm restarted its domestic television advertisements this month, having paused them post-scandal. Currently, these ads will exclude food products. Additionally, come August, the company plans to unveil a comprehensive long-term management plan aimed at achieving goals by 2035.
(Japanese original by Tsuyoshi Kosaka and Naomichi Senoo from the Osaka Business News Department)
