Takata Corporation — Ethics Grade F

Takata Corporation receives an overall ethics grade of F (12/100) on CancelCo's corporate accountability database. Sector: Automotive. Market cap: Small Cap.

Category scores

• labor: 40
• privacy: 60
• consumer: 0
• environment: 45
• humanRights: 50

Documented incidents (3)

• Exploding Airbag Cover-up (high, 2017) — Takata pleaded guilty to wire fraud for hiding a defect in their airbag inflators that caused them to explode, spraying shrapnel at passengers. The company knew about the issue for years before reporting it.
• Financial Concealment (high, 2018) — Company leadership engaged in deceptive financial practices to hide the mounting liabilities of the airbag recalls from investors and regulators until bankruptcy became inevitable.
• Falsified Safety Data (high, 2016) — Internal documents revealed that Takata engineers routinely manipulated test data provided to automakers to make the airbag inflators appear safer than they were.

Documented good deeds

• Victim Compensation Fund — As part of bankruptcy proceedings, a court-ordered fund was established to provide direct financial restitution to individuals injured by the defective products.

Ethical alternatives

• Autoliv Inc. — A leader in safety systems with a robust quality control history and transparent reporting.