Case Study On The Japanese 'Economic Miracle (Toshiba'

Toshiba, a multinational conglomerate company tracing back to 1875, Japan. The company mounted the post WWII Japanese “Economic Miracle” (Crawford, 1998) during the conclusion of 1950, to high growth and a dilating inventory of distinctive and innovative goods. Toshiba took advantage of its newfound economic stability and began exporting and retailing to foreign markets, and continued it’s augmentation throughout the globe in the following decades. To current date, the enterprise conducts business units on a worldwide scale, with its hands in a variety of diversified industries comprised of: infrastructure, semiconductors, home appliances, personal electronics, and medical equipment. This vast enterprise employs 200,000 workers worldwide and
The malpractice was sourced to the company as far back as 2008, which at the time was under the management of Atsutoshi Nishida (CEO). The illicit activities carried uninterrupted and unabated under the following successor, Norio Sasaki, and the scandal was terminated under the leadership of Tanaka. In addition, the unprofessional accounting techniques adopted by Toshiba were found to be slightly varied amongst the distinct department units. Investigators detected evidence of unconventional methods being utilized: booking future profits early, pushing back losses, pushing back other invoices, other similar means that constituted in overstated profits. Regardless, of the varied methods used by Toshiba, investigators dug up a single primary set of direct and indirect origins to thoroughly expound how the inappropriate executions took hold across the extensive global conglomerate. Toshiba’s own corporate leadership, it’s guiding hands, were the root of its undoing. Top level executives imparted business unit presidents with stern profit target margins (known as challenges), too often with conspicuous indication that “failure would not be accepted”
In addition, to permanently avoid any recurrence of sorts, an “Improvement Plan and Situation Report” was drafted/compiled (March, 2016), as demanded by Securities Listing Regulations of the stock exchange, Toshiba presented a written confirmation of internal management system to the Tokyo and Nagoya Stock Exchange, which will be the basis for evaluating and inspecting Toshiba’s newly reformed internal management systems, and post-examination there will be a decision to either alter the current designation of Toshiba’s shares in the stock market, or not move it from the Securities on Alert. Moreover, a more efficient and simple manner to prevent fraud on such a high scale, was to integrate directors with more financial education and awareness on how to detect fraudulent activities within a company’s units. New CSR policies, include: reformation of fair and equitable corporate culture, abolishing the Challenge system of profit aiming, and reestablishment of the internal controls and strong corporate governance. Additionally, some policies are behind the creation and stimulating of a robust whistleblower system that can be utilised by subordinates without