Carlos Ghosn is the CEO of the Renault-Nissan-Mitsubishi Alliance, making him the first person to lead two Fortune 500 companies. Under his leadership, he orchestrated Nissan's turnaround from losses to profitability within a year and increased sales to over 5 million vehicles by 2015. However, he was later accused of financial misconduct including underreporting income and misusing company funds for personal benefit.
Carlos Ghosn is the CEO of the Renault-Nissan-Mitsubishi Alliance, making him the first person to lead two Fortune 500 companies. Under his leadership, he orchestrated Nissan's turnaround from losses to profitability within a year and increased sales to over 5 million vehicles by 2015. However, he was later accused of financial misconduct including underreporting income and misusing company funds for personal benefit.
Carlos Ghosn is the CEO of the Renault-Nissan-Mitsubishi Alliance, making him the first person to lead two Fortune 500 companies. Under his leadership, he orchestrated Nissan's turnaround from losses to profitability within a year and increased sales to over 5 million vehicles by 2015. However, he was later accused of financial misconduct including underreporting income and misusing company funds for personal benefit.
Who is he ? • Houses in Brazil, Lebanon, Amsterdam. • In 2005, became the first CEO to lead two Fortune 500 companies. How the Alliance Works • In 1999, Renault Purchased 36,8% stake at Nissan • In 2002, Renault's stake at Nissan increased to 44 %, Renault – Nissan BV was formed to manage this alliance. In 2010, the stake down 1 % • In 2016, Nissan purchased a 24 per cent interest in financially troubled and scandal riddles, Mitsubishi. Nissan- Mitsubishi BV was formed the year after 3 Ghosn's Heroic Act Action Result Renaul • Restructure Operation and Cut Cost. t • Cost-Efficiency • Improved Operation post-Volvo Renault Merger. • Nissan Revival Plan • Turned Renault South America into • Close non-profitable plan. • Implement Merit-based system profitable company. • Challenge "Keiretsu" • Nissan 180 Plan • Increase Sales by 1 Million Unit • Operating Margin 8% at least. • Reduce interest-bearing debt. • Nissan turn profitable in one year (2000) • Nissan Value-Up + GT 2012 • Achieved Sales over 5 million. (2015) Nissan • 5-Year Plan for long-term performance through growth and • 6.9 % Operating margin. trust. Nissan • 6.1 % Market share. • Nissan Power 88 • Nissan become no.2 Automaker in Japan. • Sustain 8% OPS Margin. • Attained 8% Global Market Share. (2005) • M.O.V.E. 2022 • Increase global revenues to ¥16.5 trillion. • Generate cumulative free cash flow of ¥2.5 trillion Orchestrated the Strategic • Nissan Intelligent Mobility strategy • Sales of 1 million Electric Vehicle. Alliance of Renault, Nissan, and Mitsubishi. Ghosn's Villainous Conduct (Allegedly) Action Analyses • Under-reported Annual Income by • Violates widely-adopted principles such half. as: • Embezzlement of Corporate Fund. • Fiduciary Principle • Used company resources to fund • Property Principle family vacation. • Transparency Principle • Financed purchase, renovation, • Citizenship Principle maintenance of personal home. • Reliability Principle • Transferred personal losses to Nissan • Fraudulent contract with sister. • Misuse of Nissan's property. Analysis Ethical Dilemma Lesson Learned • Origin • Those with power tend to be abusive. • Came from Carlos's Position. (CEO) • Need to introduce Limit of Authority. • Self-entitlement. • Organizational Control. • Organization • Practical Code of Conduct. • Weak Internal Control • Bias Ethics vs performance Sources Who is Carlos Ghosn? | CNBC Explains YouTube video, added by CNBC International [Online], Available at https://www.youtube.com/watch?v=xappHpw_a9s&feature=yout u.be [Accessed 21 January 2021].