The Toshiba Accounting Scandal: How Corporate Governance Failed
In 2015, Toshiba, a conglomerate best known throughout the world for its electronics products, announced to the world that it has overstated profits by 151.8 billion yen (US$1.2 billion) over a seven-year period. The conduct of Toshiba's management and employees left a deep stain on Japan that threw corporate culture and corporate governance practices into turmoil. This case presents a comprehensive overview of the Toshiba accounting scandal. It examines how the accounting irregularities in evidence at Toshiba spread from a relatively minor case of accounting misrepresentation to corporate-wide deception ingrained in the cultural fabric of the organization. The research highlights how issues of corporate culture can undermine even the most robust corporate governance strategies, and examines some of the challenges Toshiba faces in its attempts to recover from the biggest accounting scandal in contemporary Japanese history.