A manager’s power harassment has taken a life and is now threatening the very survival of the company.
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Chapter 1: The Folly of a Leader Can Ruin a Company
A major cosmetics company was rocked when its president’s power harassment drove a new employee to take her own life. The president resigned, and the company paid massive compensation, but neither the life nor the trust could be restored. The problem is not “personal misconduct” but a risk that shakes the foundation of management itself. One leader’s outburst destroyed an employee’s future and dragged the company’s reputation into the dirt.
Power harassment is not just misconduct. It is a serious management risk and a costly liability. Unless executives see it this way, the same failures will repeat.
Chapter 2: Lose Trust, Lose the Brand
A brand is not made of products or services but of trust. Once news breaks of a harassment case, society labels the company as one that “doesn’t value its people.” Customers and investors alike walk away. In the age of social media, this spreads instantly, and neither apology nor compensation is effective. Trust can vanish in a moment, and rebuilding it takes years.
Consumers now care less about whether a product is good and more about whether the company itself is trustworthy. Power harassment, therefore, is a trigger for brand collapse.
Chapter 3: Anger Management Is a Management Skill
This is not about “being nice to employees.” It is about the fact that bringing personal emotions into business is inefficient and risky. Yelling may silence staff temporarily, but it produces fear, not commitment. As a result, honesty disappears, initiative is lost, and innovation halts.
In contrast, a manager trained in anger management can:
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Stay calm and analyze facts
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Communicate issues constructively
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Maintain trust while giving feedback
This is not a matter of courtesy or personality. It is a strategic skill essential to protecting the company.
Chapter 4: In the West, Yelling Bosses Are Risk Factors
Western workplaces also once tolerated shouting bosses. But as lawsuits and human rights awareness grew, organizational psychology and EQ (emotional intelligence) changed the culture. Today, about 65% of U.S. companies and over 60% of U.K. companies include anger management and EQ training for managers.
Why?
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To manage diverse teams (D&I)
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To reduce turnover
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To avoid lawsuits
Companies like Google treat “psychological safety” as a prerequisite for productivity. In the West, an executive who cannot control emotions is seen as a liability.
Chapter 5: ESG — Protecting People Reduces Capital Costs
Though still less familiar in Japan, ESG (Environmental, Social, Governance) is already a global standard for investors and financial institutions. Power harassment directly undermines the “S” and “G.”
| Element | Focus | Link to Power Harassment |
|---|---|---|
| E (Environment) | Environmental responsibility | Indirect connection |
| S (Social) | Labor conditions, human rights, diversity | Harassment damages S scores, leading to divestment |
| G (Governance) | Management, compliance, board structure | CEO misconduct lowers G ratings and funding access |
Examples: Norway’s GPFG pulled billions from low S/G firms. CalPERS halted investments over diversity and human rights concerns. Banks raise interest rates or cut loans to low ESG companies. Firms that don’t protect employees are cut off from markets.
Chapter 6: The Future Closing in on Japan
“Trends in America come to Japan in 10 years.” With ESG, it may be five. GPIF and Japan’s major banks are already applying ESG criteria in investment and lending.
The risks looming for Japanese companies:
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Higher financing costs (interest premiums)
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Lower investor ratings (weaker stock prices)
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Hiring disadvantages (rejected by talent)
Power harassment is no longer an “internal matter.” It is now an external risk that threatens survival.
Chapter 7: Those Who Cannot Control Emotions Cannot Lead
Power harassment is not guidance. It is simply an outlet for personal frustration. If you cannot control yourself, you cannot control a company.
Real management requires:
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Delivering clear feedback calmly
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Delegating instruction to supervisors
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Lowering evaluations according to rules if issues persist
That is enough. Yelling is unnecessary. In fact, it undermines governance. Cold, procedural enforcement of rules is far healthier than uncontrolled anger.
Anger is a personal impulse. Management requires suppressing it in favor of rational judgment and consistent execution. Leaders who cannot do this are unfit for management. Organizations that tolerate them are effectively abandoning governance.
Power harassment is not just an “ethical issue” but a management issue. Replace anger with systems, emotions with reason. That is the minimum requirement for modern companies—and the foundation of sustainable competitiveness.
Read in Japanese↓
パワハラ経営者・管理職が生き残れないESG社会がやってくる（2025.9.12）
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