Toshiba's Accounting Scandal- A Spotlight on Japan Inc’s Corporate Governance Systems

On July 21, 2015, the top management executives of Toshiba Corporation resigned over an allegation of encouraging irregular accounting practices across various divisions of the corporation. An enquiry committee formed to enquire into the allegations found that despite focusing on establishing standard corporate governance practices, the mechanisms failed to detect misappropriations in accounting practices. This case study focuses on various techniques followed by different entities of Toshiba resulting in escalating the profits, and provides a scope to discuss on reasons behind the scandal and corporate governance failure at Toshiba.