The collapse of the department store operator Sogo Co. came as a shock to Japan's recovering economy. Even more shocking are reports that the company's union leader has been fired for disrupting "order" in the organization.
Sogo did not give any specific reason for dismissing its union boss. According to newspaper and magazine reports, however, he misused company expenses and spent union membership dues for private purposes. Reports also say he was close to former Sogo Chairman Hiroo Mizushima, who was forced to resign for having mismanaged the company.
Corporate management is checked by shareholders' meetings, auditors, certified public accountants and main creditor banks. It has been pointed out, however, that these checking mechanisms did not work properly in many of the corporations that went bankrupt or caused scandals during the recent recession.