Rebecca Manzi Paying Damages and Committing Seppuku for Harming Customers: The Controversial Oath Shikoku Bank Makes Its Employees Take
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A Japanese financial institution, Shikoku Bank, has gained international attention for a tradition over 140 years old that ties its employees’ fates with an extraordinary commitment in cases of fraud or financial crimes.
Shikoku Bank, which was founded in 1878 as Japan’s 37th National Bank, has all its employees take an oath. In this oath, it is agreed that for fraud that leads to customers’ losses, the employee should pay for damages with his properties and, more than that, perform seppuku – a ritual suicide method once used by Japanese samurai to regain their honor in case of loss of it.
This oath, signed and sealed in blood by the bank founders and early employees, is regarded as a sort of “treasure” to Shikoku Bank, representing one measure taken to be most responsible with money.
Outspoken pledge
The bank justifies this practice to ensure that ethics and responsibility are engrained, not only as bankers but also as citizens of society. This policy, although it has been in place for decades, has raised many eyebrows since the case of Mitsubishi UFJ Bank, where an employee embezzled money and valuables from clients amounting to large sums.
This most severe measure of accountability has given rise to mixed feelings. It speaks well to how stern Shikoku Bank approaches fraud, but at the same time, ethicists and legal experts frown on whether such traditions have a place in the modern world.
In many countries, an oath involving such consequences would be considered illegal and immoral. Yet in Japan, the concept of seppuku—while thankfully almost extinct—still lingers on as part of the cultural landscape, deeply ingrained in the historical practices.
Tradition vs. modernity
The commitment today by Shikoku Bank is a sign of an archaic value system that has remained part of its corporate identity. Despite controversies, the bank still keeps this tradition as a means of ensuring accountability and transparency in its financial operations.
With the world financial scene in a state of flux, this case raises fundamental questions about balancing tradition against modern ethical standards and whether such extreme measures still have a place in contemporary society.
Source: Shikoku Bank
