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Corruption Case Study: Toshiba Accounting Scandal Student’s Name Institution Course Instructor’s Name Date Corruption Case Study: Toshiba Accounting Scandal Overview of the Case On July 21, 2015, the CEO of Toshiba, Hisao Tanaka declared his resignation despite an accounting scandal connected to nearly $1.2 billion in exaggerated operating profits (Ferrell & Fraedrich, 2015). The information about the accounting scandal surfaced on the eve of when an independent fact-finding board produced a report explaining the accounting indecencies comprehensively. Inappropriate accounting was determined to have occurred over the period of seven years, involving two ex-CEOs in the scandal together with Tanaka. The fact-finding report discovered that the CEOs failed to directly direct anyone to prepare the books but, instead, put an immense burden on junior staff and waited for the company’s corporate culture to bring out the outcomes they anticipated (Verschoor, 2015). Aside from these facts, it is important to identify a brief history and performance of the organization that relates to the accounting scandal. Toshiba Corporation tracks its origin in Japan to 1875 (Cavusgil, 2016). The firm devolved on the post-war Japanese flourishing in the late 1950s to high expansion and a growing collection of distinct and ground-breaking commodities (Verschoor, 2015). The company started selling items in overseas markets during this era and continued its growth and expansion of its businesses throughout the world during the following years (Cavusgil, 2016). In 2015, the multinational firm ran business branches at a global level in a wide range of diverse sectors, such as
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