The Last One Mile Labor Union has continuously received consultations from multiple union members currently employed at Last One Mile Inc. regarding the words and actions of Makoto Watanabe, Representative Director, Chairman, and CEO, questioning whether they are inappropriate for the representative of a listed company.<\/p>\n\n\n\n
This time, what was provided to our labor union by current last-mile employees consists of seven training videos and their transcripts conducted for employees by Mr. Makoto Watanabe, covering legal affairs, labor relations, human resources, general affairs, accounting, information systems, and sales media.<\/p>\n\n\n\n
When reviewing everything across the board, it becomes clear that each individual statement is not a random slip of the tongue, but is based on a distinct, shared ideology.<\/p>\n\n\n\n
That mindset is not to think first about whether to obey laws and contracts, but rather to calculate the probability of detection, the amount of damage the company would bear, the likelihood of being pointed out in an audit, and the risk of delisting, and to carry it out if the company can endure it.<\/p>\n\n\n\n
\nThere is not even a 1% risk of being sued by the original company. The other party won't even know that you are reselling it.<\/p>\n<\/blockquote>\n\n\n\n
\nWhether to swallow a 1% risk and resell without obtaining consent is decided by the sales manager or a director.<\/p>\n<\/blockquote>\n\n\n\n
The basis for legality has been replaced by the possibility of disclosure to the other party, rather than contracts or the data subject's consent.<\/p>\n\n\n\n
2. Even if there is a 90% legal risk, if the board of directors decides on it, it will be executed.<\/h2>\n\n\n\n
\nWhether the risk is 30%, 50%, or 90%, if I told the board we're swallowing it, we're doing it.<\/p>\n<\/blockquote>\n\n\n\n
We are instructed that the legal department should not determine illegality, but merely communicate the degree of risk to the sales department. If even illegal acts are treated as items to be weighed against potential profits and losses, laws cease to be rules that must be obeyed and instead become options on a price list.<\/p>\n\n\n\n
3. Delay social insurance by one month and create a reason.<\/h2>\n\n\n\n
\n"You just need to delay starting the social insurance and unemployment insurance procedures by one month."<\/p>\n<\/blockquote>\n\n\n\n
\nWe will make up a reason that confirmation is necessary for administrative procedures. We just need to make sure the official stance is solid.<\/p>\n<\/blockquote>\n\n\n\n
Rather than confirming the statutory deadlines and operating accordingly, they first decide to delay the procedures and then come up with reasons to explain this to external parties afterward.<\/p>\n\n\n\n
4. Even if a system passes an audit, information leaks can still occur.<\/h2>\n\n\n\n
\nI think that even if you withstand an audit, information leaks can still happen.<\/p>\n<\/blockquote>\n\n\n\n
\n"We always make security decisions that are on the edge\u2014security measures that lean toward sales but can still withstand an audit."<\/p>\n<\/blockquote>\n\n\n\n
The purpose of security has shifted from protecting customer information to ensuring that we pass audits.<\/p>\n\n\n\n
5. Accept the risk of customer data being stolen via USB<\/h2>\n\n\n\n
\n"Because the USB port is active, there is a risk that an operator might plug in a USB device and extract data."<\/p>\n<\/blockquote>\n\n\n\n
While recognizing these risks, the Information Systems Department is advised not to simply rule something out as \u201ctoo dangerous,\u201d but rather to limit its response to reporting the matter to management.<\/p>\n\n\n\n
6. Even if someone uses their company card at a bar, that's fine.<\/h2>\n\n\n\n
\n"There might be some people who use their company credit cards to pay for drinks at bars without permission. Oh well. We'll just have to absorb that risk as part of running the business."<\/p>\n<\/blockquote>\n\n\n\n
\n"If it comes to light, we'll either fire you or cut your pay."<\/p>\n<\/blockquote>\n\n\n\n
It is a system where management tolerates the occurrence of fraud, yet imposes heavy penalties on individual employees when problems arise.<\/p>\n\n\n\n
7. If 100 cards are needed, issue 100 cards.<\/h2>\n\n\n\n
\n"If someone says, 'I need 100 copies,' just say, 'Okay,' and issue 100 copies."<\/p>\n<\/blockquote>\n\n\n\n
A policy has been announced to eliminate preliminary screening, refrain from reviewing all cases, and punish only instances of fraud discovered through random checks.<\/p>\n\n\n\n
8. Even if there is misappropriation of company funds, it is acceptable as long as it does not interfere with business operations.<\/h2>\n\n\n\n
\n"Whether or not there was embezzlement, it doesn't matter either way, since it doesn't affect the company's operations."<\/p>\n<\/blockquote>\n\n\n\n
The sole criterion is whether the company can withstand the loss, rather than the proper use of company funds.<\/p>\n\n\n\n
9. The accounting can be off by up to 10 million yen.<\/h2>\n\n\n\n
\nIt doesn't really matter if it's off by 1 million, 2 million, or 10 million yen, does it?<\/p>\n<\/blockquote>\n\n\n\n
\n"If there's a 10 million yen discrepancy every month, we can just follow the rule of adding 1 million yen to each company."<\/p>\n<\/blockquote>\n\n\n\n
The idea is that it\u2019s easier to allocate a fixed amount and hide the difference than to investigate the actual details of the transactions.<\/p>\n\n\n\n
10. Just put any unidentified expenses under "Miscellaneous" and call it a day.<\/h2>\n\n\n\n
\n"It doesn't matter if it's 'unknown' or 'miscellaneous'\u2014just put it under something, process it, and get it over with."<\/p>\n<\/blockquote>\n\n\n\n
Without checking whether the unexplained expenditure constitutes fraud, a duplicate payment, personal use, or lack of supporting documentation, we will process it as settled on the books only.<\/p>\n\n\n\n
11 The 8% consumption tax benefits the tax office<\/h2>\n\n\n\n
\n"If it's 8%, the tax office comes out ahead. So 8% for everything is fine."<\/p>\n<\/blockquote>\n\n\n\n
The explanation is that the tax rate should be chosen not based on the nature of the transaction, but in a way that is less likely to raise concerns with the tax office.<\/p>\n\n\n\n
12. Shred both your resume and your resignation documents<\/h2>\n\n\n\n
\n"Shred all the resumes. Scan all the employment agreements and shred them, too."<\/p>\n<\/blockquote>\n\n\n\n
\n"Once you've taken a photo of your resignation documents, just run them through the shredder."<\/p>\n<\/blockquote>\n\n\n\n
Given the retention requirements, evidentiary value, and digitization requirements for each document, reducing locker rental and mailing costs is being prioritized.<\/p>\n\n\n\n
13. Even if the image is blurry, no one's going to look at it anyway.<\/h2>\n\n\n\n
\n"It doesn't matter whether I keep it neat or messy. I'll never look at it anyway."<\/p>\n<\/blockquote>\n\n\n\n
We view the purpose of saving as creating the saved form itself, rather than using it when it might be needed in the future.<\/p>\n\n\n\n
14. Commission payments will be consolidated every three or six months.<\/h2>\n\n\n\n
\nWe should change the commission, which is currently calculated every time, to once every three months, or lump it into the bonus.<\/p>\n<\/blockquote>\n\n\n\n
Reducing the company's calculation work takes priority over the compensation employees earn each month.<\/p>\n\n\n\n
15 Changes in employee satisfaction indicate emotional instability<\/h2>\n\n\n\n
\nDo you change your mind like that every single month? There is no one who is that emotionally unstable.<\/p>\n<\/blockquote>\n\n\n\n
A survey to understand changes in the work environment is being treated with words that make fun of employees' personal emotions.<\/p>\n\n\n\n
16 If trouble arises after hiring, the interviewer takes full responsibility.<\/h2>\n\n\n\n
\nIf an employee we hire causes a problem, the person who interviewed them takes full responsibility.<\/p>\n<\/blockquote>\n\n\n\n
The management responsibility for post-employment training, placement, supervisors, and organizational culture is shifted onto a single recruiter.<\/p>\n\n\n\n
17 The customer is made to face right by command.<\/h2>\n\n\n\n
\nHere is how to make customers turn right when you tell them to.<\/p>\n<\/blockquote>\n\n\n\n
They are treated not as individuals making their own choices, but as targets to be steered in the direction the company desires.<\/p>\n\n\n\n
18 One-up the client and corner them so they can't escape<\/h2>\n\n\n\n
\nTake the upper hand and press the attack, driving the point home. Or from a different angle, insert it so there is no escape.<\/p>\n<\/blockquote>\n\n\n\n
Closing off escape routes, rather than gaining the client's understanding, is often talked about as a sales technique.<\/p>\n\n\n\n
19 Employees and their families are also eligible for purchase<\/h2>\n\n\n\n
\nYou should sell to the employees too. Are you advertising to the employees' families?<\/p>\n<\/blockquote>\n\n\n\n
The question is whether there was a system in place that allowed employees under the influence of representatives or superiors to freely decline purchases.<\/p>\n\n\n\n
20 Working for 10 years or more makes you a specialist<\/h2>\n\n\n\n
\nA medical specialist is defined as a doctor with over 10 years of practical experience.<\/p>\n<\/blockquote>\n\n\n\n
This is a proposal to replace official qualifications with years of service for display on hospital signs.<\/p>\n\n\n\n
21 Searching and thinking, \"This photo will do.\"<\/h2>\n\n\n\n
\nI just searched for signs at random and this photo came up, so I figured this was fine and submitted it.<\/p>\n<\/blockquote>\n\n\n\n
No evidence of checking the rights holders or terms of use can be confirmed from the training session remarks.<\/p>\n\n\n\n
22 Since it's after the IPO, it's okay to make mistakes occasionally<\/h2>\n\n\n\n
\nNot a single mistake could be made before the IPO. Now that we're already public, it's okay to make a mistake once in a while.<\/p>\n<\/blockquote>\n\n\n\n
This is the reverse of the usual explanation: rather than saying that going public increases responsibilities, it claims that having achieved a listing allows for relaxed controls.<\/p>\n\n\n\n
5 criteria running through 7 books<\/h2>\n\n\n\n
First, the probability of detection takes precedence over legality<\/h3>\n\n\n\n
In the reselling of customer lists, the likelihood of discovery by the other party was used as the criterion. Regarding social insurance, it is proposed to create a reason to show externally rather than the true purpose.<\/p>\n\n\n\n
Secondly, ex-post punishment over prevention<\/h3>\n\n\n\n
Instead of preventing the personal use of company cards, employees are having their pay cut or being fired after it is discovered. Instead of improving the hiring system, full responsibility is placed on the interviewer when a problem occurs. This mindset keeps repeating.<\/p>\n\n\n\n
Third, management costs over accuracy<\/h3>\n\n\n\n
Accounting can be off by 10 million yen. Documents can be messy photos. Commissions can be lumped together a few months later. Accuracy, preservation, and payment timing are placed below work hours.<\/p>\n\n\n\n
Fourth, operating profit over customer protection<\/h3>\n\n\n\n
Even if there is a possibility of a data leak, we will use it for sales as long as it passes the audit. Even if the legal risk is 90%, the board will swallow it if there's a profit. Make the customers fall entirely in line.<\/p>\n\n\n\n
Fifthly, maintaining the listing is the only absolute red line.<\/h3>\n\n\n\n
Damages, data leaks, breach of contract, and accounting discrepancies will be accepted if the company can endure them. However, delisting must be avoided at all costs.<\/p>\n\n\n\n
This is not the compliance required for a publicly traded company; it's a game of seeing how far one can engage in risky behavior without getting delisted.<\/p>\n\n\n\n
This is not a matter that ends with Makoto Watanabe's personal slip of the tongue.<\/h2>\n\n\n\n
These remarks are not casual chats at an izakaya. They are judgment criteria officially presented by the representative as training to the core departments of the company: legal, labor, human resources, general affairs, accounting, information systems, and sales.<\/p>\n\n\n\n
If employees followed those instructions, the blame cannot be placed solely on them. The extent to which the board of directors, the audit and supervisory committee, executive officers, internal audit, and accounting auditors understood, approved, or stopped the actions must also be scrutinized.<\/p>\n\n\n\n
Expectations for Last Mile Inc.<\/h2>\n\n\n\n
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- Please announce whether or not the seven training videos are authentic in-house training sessions.<\/li>\n\n\n\n
- Please answer item by item whether the policies presented in each training session were actually implemented.<\/li>\n\n\n\n
- Please conduct a special investigation\u2014including third parties\u2014regarding customer information, social insurance, company credit cards, accounting procedures, wages, and document retention.<\/li>\n\n\n\n
- Please clarify when the Board of Directors and the Audit and Supervisory Committee became aware of the training contents.<\/li>\n\n\n\n
- Please state clearly that responsibility will not be placed solely on employees who followed inappropriate instructions.<\/li>\n\n\n\n
- Please establish an independent channel through which current and former employees can provide information without fear of retaliation.<\/li>\n\n\n\n
- Please disclose the survey results, the target period, the number of target participants, and the corrective actions to shareholders and employees.<\/li>\n<\/ol>\n\n\n\n
Operating profit is not a license indicating the amount one is allowed to violate.<\/h2>\n\n\n\n
It is only natural for a company to pursue profit. It is also necessary to reduce wasteful approvals and tasks, and to delegate authority to the front lines.<\/p>\n\n\n\n
However, laws, contracts, customer information, employee wages, social insurance, and accounting accuracy are not extra costs that can be cut just because profits are large.<\/p>\n\n\n\n
Did Makoto Watanabe teach his employees economic rationality? Or was it detection-probability compliance, teaching them that as long as the probability of getting caught is low, the company can absorb the losses, and it doesn't result in delisting, anything can be justified as a business judgment?<\/p>\n\n\n\n
The Board of Directors and the Audit and Supervisory Committee of Last One Mile Co., Ltd. have the responsibility to review the seven videos from beginning to end and explain the answers to shareholders, employees, and customers.<\/p>\n\n\n\n