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Japanese Broadcaster Fuji TV’s Sexual Assault Scandal Sparks Major Corporate Crisis

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Japanese Broadcaster Fuji TV’s Sexual Assault Scandal Sparks Major Corporate Crisis

Fuji TV has been accused of cover-ups, mismanagement, and botched crisis response following allegations of sexual misconduct involving a celebrity TV personality.

Japanese Broadcaster Fuji TV’s Sexual Assault Scandal Sparks Major Corporate Crisis

The Fuji TV headquarters in Tokyo, Japan.

Credit: Depositphotos

Fuji TV, one of Japan’s five major commercial television networks, has been rocked by a slew of scandalled executive resignations, advertiser exits, and public backlash. 

Fuji TV is accused of mishandling a scandal involving former member of iconic boy band SMAP, Masahiro Nakai, and an unnamed woman in her 20s, referred to as X in the Japanese media.

Nakai is alleged to have engaged in non-consensual sexual activity with the woman after a private dinner in June 2023. Fuji TV employees are thought to have arranged the dinner meeting between Nakai and X. Local media reports say Nakai’s team reached a settlement with X.

The woman reported the incident to a female Fuji TV announcer, who informed senior staff. However, while Fuji TV executives met with Nakai to determine the facts of the incident, the company failed to conduct an internal investigation or formally resolve the issue.

Public outrage against Fuji TV stems from the broadcaster’s failure to take action. Fuji TV has denied arranging the dinner but acknowledged awareness of the incident, stating that they chose to keep the matter confidential to respect the woman’s privacy.  

Fuji TV held its first press conference on January 17 but was heavily criticized by local media for not addressing why the privacy justification prevented an internal investigation. President Koichi Minato also gave vague answers surrounding the company’s role in arranging the dinner.

The initial press conference also faced accusations of secrecy. It was held in a closed-door format, with no TV cameras allowed and only a limited selection of media invited.

In response, Fuji TV held a second press conference on January 27 lasting over 10 hours – one of the longest in Japan’s media history. But the marathon press conference, attended by over 400 members of the media, backfired, with local media scrutinizing the lack of concrete answers from Fuji TV executives.

It’s a stunning fall from grace for a broadcaster long known as an entertainment powerhouse. Its influence on Japan’s pop culture was especially strong in the 1980s and 1990s, when Fuji TV aired a long-running variety show that featured SMAP, as well as the popular anime series “Dragon Ball Z” and “One Piece.”

A string of big name advertising partners, such as Toyota, Nissan, Nintendo, Seven & I Holdings, and Kirin beverages, have withdrawn commercials, citing poor corporate governance in the handling of the incident.  

The Japanese government also withdrew four of its advertisements from Fuji TV in light of the scandal. It clarified that government officials would continue to appear on Fuji TV news programs and be interviewed by the broadcaster.

Nakai has since announced his resignation from show business. Meanwhile, Fuji TV Chairman Shuji Kano and President Koichi Minato announced their resignations at the second press conference and acknowledged the loss of the company’s credibility. 

They both apologized for a lack of understanding of human rights. Minato said that necessary internal reporting and coordination within the company were not properly conducted, and that Nakai was allowed to continue appearing on programs without a thorough investigation into the allegations. 

Furthermore, he revealed that the company failed to examine the nature of social gatherings between talents and related parties. The admissions were part of a broader acknowledgment of the company’s failures in handling the incident and the subsequent erosion of public trust. 

Fuji TV faces a critical turning point. Since the scandal came to light, the company is grappling with a severe financial fallout.  A sponsor exodus has forced the company to downgrade its earnings forecasts. Its net profit has been reduced from 29 billion Japanese yen ($186.7 million) to 9.8 billion yen, while its operating profit projection has been halved to 18 billion yen.

The company has acknowledged that the future of the broadcaster rests on the need for significant reforms to its executive structure, corporate ethics, and displays accountability. It has launched a third-party investigative committee and is set to release its findings in March.  

Its ability to regain public trust and advertiser confidence rests on a corporate governance reboot and extraordinary crisis management.

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