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A top Honda executive has resigned abruptly after an allegation that he had engaged in inappropriate conduct during a social gathering, becoming corporate Japan’s latest business leader to depart in ignominy.
Honda said in a statement late on Monday that its number two executive Shinji Aoyama submitted his resignation after the audit committee conducted an investigation into the allegation and was ready to take a decision on disciplinary action.
Japan’s second-largest carmaker said that Aoyama, a key part of the management team, had been accused of “inappropriate conduct during a social gathering outside of work hours”.
It was “deeply regrettable” that its executive vice-president, who was “expected to set an example for the respect of human rights and compliance with relevant laws and regulations, has become the subject of an allegation of conduct contrary to these principles”, the company added.
Honda chief executive Toshihiro Mibe will voluntarily return 20 per cent of his monthly pay for two months “in light of the seriousness of this matter and based on his role as leader of the management team”.
A spokesperson for Honda declined to provide further details on the nature of the allegation. Aoyama could not be immediately reached for comment.
The departure of Aoyama, who joined the company in 1986 and rose up its ranks, comes after its attempt to take over rival Nissan to create the world’s fourth-largest carmaker fell apart two months ago.
His exit comes as Japan grapples with a series of other high-profile executive misconduct scandals.
Fuji Media Holdings held a 10 hour news conference in January, at which it announced executives stepping down over the network’s handling of a sexual misconduct investigation related to former entertainment star Masahiro Nakai.
Japan’s top oil company Eneos has parted ways with a trio of executives since 2022 due to allegations of sexual harassment of women outside of work.
Japanese labour law is increasingly shifting towards the consideration of employee behaviour outside of the office that could negatively impact the company.
