Tag: Scandals

Financial Times: ”String of scandals puts Japanese investors on edge”

2016-06-03 posted by

The FT comments on what seems to be a string of scandals in Japan.  It is our opinion that such governance or compliance issues are not necessarily more frequent than in other developed nations – it is difficult to compare – , but (1) they arise from different gaps in governance and management structures; and (2) whistle-blowing is becoming more frequent in Japan.

”From carmakers and electronics groups to housebuilders and the constructors of the nation’s roads and runways, a government-led transparency drive has accelerated a record surge of accounting and data fraud scandals across corporate Japan.

Read More

Research Paper by Rahman & Marc: ”Accounting Irregularities at Toshiba: An Inquiry into the Nature and Causes of the Problem and Its Impact on Corporate Governance in Japan”

2016-05-11 posted by

”Abstract: This research describes the largest financial scandal in recent Japanese corporate history. It explains how the Toshiba scandal expanded from a relatively simple case of accounting fraud to a company-wide deceit that involved dozens of managers and three generations of top executives. There are five main causes: domineering top management, compliant middle-managers who embody the worst of the salaryman mentality, duplicitous auditors, percentage-of-completion method accounting abuse, and the secular decline in several of the company’s business lines. The research links the scandal to broader issues with corporate culture, governance, and accounting in Japan and suggests ways to improve the situation……………….”

Read More

”MMC’s culture of disregarding legal compliance behind data falsification”

2016-04-23 posted by

The Yomiuri Shimbun: 

”Mitsubishi Motors Corp. was found to have manipulated data to overstate the fuel economy of minicar models.

Fuel efficiency is an important element for consumers to consider when they buy cars. Falsification of such data is an extremely malicious act.

MMC overstated the fuel economy by 5 percent to 10 percent by intentionally underestimating figures concerning tire resistance and other resistance while the vehicles are in motion.

Read More

Gary Giampetruzzi et al ”Another Life Sciences Company Gets Hit Hard: Olympus Pays $646M to Resolve Corruption Allegations in a Unique Dual FCA / FCPA Resolution”

2016-03-30 posted by

”Demonstrating the continued focus of the Department of Justice (“DOJ”) on the life sciences industry, on March 1, 2016, the U.S. Attorney’s Office for the District of New Jersey (“USAO”) announced a major settlement with Olympus Corporation of the Americas (“Olympus”), the U.S. subsidiary of Olympus Corporation, a Japanese company and the largest U.S. distributor […]

Read More

”Hoaxwagen – How the massive diesel fraud incinerated VW’s reputation—and will hobble the company for years to come”.

2016-03-20 posted by

vwg-opener

”In late 2008 a publication called Green Car Journal compared the five finalists of its annual Green Car of the Year award. “Fulfilling this growing desire for vehicles with better fuel economy and overall environmental performance is no easy thing,” it noted. “Rising to the top is the 2009 Volkswagen Jetta TDI.” The car was the winner because its “groundbreaking clean diesel” engine managed to meet America’s “stringent tailpipe emissions standards” while also delivering “admirable fuel efficiency,” “satisfying performance,” and “a very reasonable” price.

That award was recently rescinded.

Read More

”Rebuilding trust – Lessons on the importance of staying ethical”

2016-03-13 posted by

”The end of the financial year reveals the true depths of the self-inflicted wounds at Toshiba, as it seeks to drag itself out of the quagmire created by one of several major accounting scandals to have hit the country’s corporate sector in recent years.

The global consumer electronics firm said it was forecasting full-year losses of $6 billion, and would have to cut more than 10,000 jobs.

Like other Japanese companies currently embroiled in scandals — the optical equipment maker Olympus, the air bag-maker Takata and the construction materials firm Asahi Kasei — Toshiba is also counting the cost of the damage to its reputation, both at home and abroad.

Read More

”3 factors driving better corporate governance”

2016-02-24 posted by
By Lucy Marcus, Founder and CEO, Marcus Venture Consulting, Ltd.

”Around the world, the corporate governance landscape is shifting, as efforts to improve business practices and policies gain support and momentum. The wave of reform has become visible everywhere – from tough new regulations in Japan to sovereign wealth funds like Norway’s Norges Bank Investment Management taking a more active approach to their investments – and it is certain to continue to rise.

Read More

”Olympus settles with whistleblower after 8-year battle”

2016-02-21 posted by
Olympus settles with whistleblower after 8-year battle
In this 2013 file photo, Masaharu Hamada, an employee of Japanese medical- device maker Olympus Corp, listens to his lawyer during an interview in Tokyo.AP Photo/Shuji Kajiyama

”A corporate whistleblower’s eight-year courtroom battle against Japanese medical device maker Olympus Corp ended Thursday with a financial settlement and a promise from the company to stop harassing him.

Read More