CORPORATE

GOVERNANCE
FAILURE

Submitted to - Dr. Kapil Harit Sir

 Trouble Timeline 06

How it Started 07

Pressure 09

Table of Ethical Responsibilities 11

Content
Audit Failure 15

Whistleblower 18

Company Culture 20

Stakeholder Implication 24

Conclusion 26
 Japanese Multinational
Conglomerate

Founded in 1875
About
the
Company
9 9th Largest Semi
Conductor Manufacturer

Japan's largest producer

of Electronic Goods
 TOSHIBA
Diversified Business

Elevators & Personal

Power
Escalators Computers

Medical
Semiconductor
Equipment

Industry
Etc.. IT
 TOSHIBA TROUBLES
Timeline
2015 2016

3rd 21st 28th 21st 4th 17th

April July Sept Dec Jan Mar

Toshiba reveals use of President and CEO Hisao Toshiba sells entire stake in Toshiba announces Westinghouse Electric Toshiba announces sale of
inappropriate accounting Tanaka, Vice Chairman Norio Topcon for 49.1 billion yen estimated net loss of 550 announces acquisition of Toshiba Medical Systems to
practices in relation to Sasaki, adviser Atsutoshi ($435 million). billion yen, its largest ever, CB&I Stone & Webster Canon for 665.5 billion yen
infrastructure project; Nishida resign for year through March 2016 completed on Dec. 31
establishes special
Investigative committee

2017

14th 27th 18th 27th 16th

Feb Jan Jan Dec May

Toshiba announces 712.5 Toshiba officially announces Toshiba confirms media Toshiba announces possibility Toshiba announces nomination of
billion yen impairment charge spinoff, nuclear business reports that it plans to spin goodwill impairment for U.S. Satoshi Tsunakawa as president,
on its nuclear operations. dropped as area of focus. off memory business nuclear business will reach CEO, former WH President
hundreds of billions of yen. Shigenori Shiga as chairman
 01
How it Started
 Overview

On July 2015, Toshiba CEO Investigators found direct This accounting misconduct
Hisao Tanaka announced his evidence of inappropriate began under CEO Atsutoshi
accounting practices and
resignation in the face of an overstated profits in multiple Nishida in 2008 amid a GFC
accounting scandal tied to Toshiba business units, out deeply into Toshiba
about $1.2 Billion in overstated including the visual products profitability. continued also
operating profits. unit, the PCC unit and under Norio Sasaki and ended

semiconductor unit. under Tanaka.

 02
Pressure
CEO/President Pressure
 03
Ethical
Responsibilities
Where do Ethical
Responsibilities Lie ?
Ethical Standards being
compromised ?
Underlying Moral Values
 04
Audit
Failure
Failures
Failures
 05
Whitsleblower
System
Whistleblower
 06
Company
Culture
Company Culture
Company Culture
Company Culture
 07
Stakeholder
Implication
 Implications

Shareholders Employees
Lack of trust Loss of jobs
Stock Price decreased by 40% Headcount from 2,17,000 to 1,83,000
Removed from Japan Stock Index Cut 30% jobs from customer
Lawsuits electronic.
 08
Conclusion
Conclusion
THANK
YOU.