Uniwersyteckie Czasopisma NaukoweHow corporate governance weaknesses led to financial distress in Toshiba – some reasons and consequences (a case study) How corporate governance weaknesses
Słowa kluczowe:
regulations, corporate governance, malfeasances, ToshibaAbstrakt
The aim of the paper is to show how weaknesses in corporate governance, corporate culture and communication led Toshiba Corporation to commit accounting fraud and led the company into financial distress. The Investigation Report prepared by Toshiba’s Independent Investigation Committee reveals the kinds of malfeasances, the methods used, the reasons for their use, and persons responsible for them. This document enabled the working out of a rescue plan for the company.
The Toshiba scandal played a crucial role in the introduction of new regulations, and amendments to the ones in force, oriented towards improving the quality of corporate governance in Japan. The most important of them were mentioned, among them, the document (the first in the world) entitled Principles for Listed Companies Dealing with Corporate Malfeasance (JPX, 2016). It contains best practices that Japanese public companies must follow when investigating suspected cases of corporate misconduct.
The analysis and the conclusions included in the document helped Toshiba to solve its problems, and restore good financial health.
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