Samsung Scandal : Japan's Government

1207 Words Mar 10th, 2016 5 Pages
Toshiba
The Toshiba scandal has Japan’s government concerned that the investors will begin to lose confidence in the country. Toshiba’s billion-dollar accounting scandal brought to light a corporate culture in Japan plagued by collusion of its senior members. The corporation was hit with embarrassing revelations that the top executives were pressuring underlings to inflate their profits by about $1.2 billion dating back to 2008 (Nishimura-Poupee, 2015). Senior managers instilled a rigid system that has powered Japan’s post-war boom with lifetime employment in exchange for total loyalty to the corporation. Most of upper management spent their career at the company, climbing the ranks to the top.
The firm hired outside directors and
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Enron was given government deregulation which permitted the company’s executives to maintain the agency over the earnings reports that were subsequently released to the investors and their employees. This allowed for the earning reports to become extremely skewed and losses were not illustrated in their entirety. The positive reports resulted in more and more investments on the part of the investors who wanted to partake in what seemed to be a profitable company.
The executives were taking advantage of the misrepresenting earnings reports and continuing to enjoy the revenue provided by the investors who were unaware of the actual financial condition. These executives began to embezzle funds from the investments while reporting the fraudulent earnings. The acts of embezzlement undertaken can be defined as criminal activity involving unlawful and unethical attainment of funding by employees. With the funds being pocketed from the investors, subsequently the funds were being stolen from the company which led to the bankruptcy of the company.
Tyco International Tyco International makes a variety of products, from healthcare supplies to alarm systems. The former CEO and finance chief were exposed for pilfering around $600 million from the company and living extravagant lifestyles, in which they pleaded not guilty. They were accused of civil fraud and theft, giving themselves

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