The Toshiba Corporation Accounting Scandal
The Toshiba Corporation Accounting Scandal
Jajuan P. Wiggins
GB 450 Business Decisions
Miles College
Instructor: Miss Williams
April 9, 2017
Executive Summary
In this paper, I will talk discuss about the history, the scandal, and the business decisions that cause Toshiba Corporation to commit the scandal and what lead them out of the scandal. Toshiba corporation is a Japanese multinational business corporation headquartered located in Tokyo, Japan. It was founded in 1938 as Tokyo Shibaura Electric K.K. through the merger of Shibaura Seisaku-msho founded in 1875 and Tokyo Denki founded in 1890. Toshiba is the seventh largest semiconductor maker in the world by revenue. The products and services that Toshiba carries are information technology and communications equipment and systems, electronic components and materials, power systems, industrial and social infrastructure systems, consumer electronics, household appliances, medical equipment, office equipment, lighting and logistics. In 2008 Toshiba corporation had a global financial crisis that cut deeply into their profitability. The 3 former CEO’s who played a role in this scandal are Atsutoshi Nishida, Norio Sasaki, and Hisao Tanka. The Scandal cause Toshiba to be 300 billion -400 billion yen ($2.4 billion - $3.2 billion) in charges related to improper accounting in an expanding investigation that cause set to force chief Executive Hisao Tanka to step down from the CEO position in 2015. Currently, Toshiba Corporation plans to make its core memory chip business a separate company and seek outside investment in it, aiming to avoid being crippled by an upcoming multi-billion dollars write down for its U.S. nuclear business.
The Toshiba Corporation Accounting Scandal
Toshiba is a Japanese multinational business corporation headquartered located in Tokyo, Japan. It was founded in 1938 as Tokyo Shibaura Electric K.K. through the merger of Shibaura Seisaku-msho founded in 1875 and Tokyo Denki founded in 1890. The company name was officially changed to Toshiba Corporation in 1978. Toshiba is the seventh largest semiconductor maker in the world by revenue. Their products and services include information technology and communications equipment and systems, electronic components and materials, power systems, industrial and social infrastructure systems, consumer electronics, household appliances, medical equipment, office equipment, lighting and logistics. There are three things you should know about Toshiba Corporation their extended history, accounting scandal, and the business decisions that lead them to get into the scandal and out of it.
Toshiba America Inc (TAI) was founded in 1965 in New York, NY. It is a subsidiary of Tokyo-based Toshiba Corporation and the holding company of six Toshiba operating companies that offer a broad range of products and solutions for the residential, commercial, and industrial sectors. There are currently 18,000 employees in the company. The Company’s customer markets consist of comprise retailers, enterprises, municipalities, utilities, universities, businesses and other high technology manufacturers. Their annual sales a year are $11.3 billion.
Toshiba company philosophy and policy are based on their total commitment to people and to the future. By their commitment to people they will serve the needs of all people specially their customers, shareholders, and employees, by implementing forward-looking corporate strategies while carrying out responsible and responsive business activities. And by their commitment to the future they are continually developing innovative technologies centering on the fields of Electronics and Energy, we strive to create products and services that enhance human life, and which lead to a thriving, healthy society. As good corporate citizenship, Toshiba contribute to further their goals of the society. Toshiba is constantly seeking new approaches that will help them realize the goals of the world community, including ways to improve the global environment.
Their corporate mission statement is to design and build industrial machines which will provide optimum productivity and profitability for the customers. And provide a superior level of service and support, enabling the customers to maximize the return on their investment. In pursuit of their goal Toshiba will endeavor to; conduct business activities in a responsible and respectful manner, contribute to the industrial foundation and help create a high-quality society by continually developing innovative technologies focused on mechanics, electronics and systems, and, as good corporate citizens, actively contribute to further the goals of society including improvement of the environment and management of resources.