About the Author- Nitish Kumar Pandit. I have completed graduation from University of Delhi. currently i am pursuing PGDM from Institute of Marketing & Management. Hello all, this is the presentation on Toshiba scam. In this i have done deep research and try to cover all the aspects of the scam of Toshiba. This is very useful presentation for the the students of MBA/PGDM. Initially i have discussed about the company and different era of fraud. The company however rectify and handle that fraud in very efficient manner.

1. Toshiba Accounting
Scandal
Institute of Marketing & Management
A report by - Nitish Kumar Pandit

2. ➢ Company was founded in 1875
➢ Manufacture and sells
electronics and energy
products
➢ Biggest manufacturer of
personal computer and home
appliances
➢ Toshiba ranked 9th for good
governance
About

3. Toshiba's Commitment
The Toshiba Group is a global enterprise. Our fundamental policy is to make a
positive contribution in every country and region in which we operate, and to
earn the trust and respect of the community through our business activities.
Toshiba Group proactively meets its social responsibilities and responds to the
expectations of communities in which it does business on the basis of the
guidelines provided by the Toshiba Group Standards of Conduct.

4. THREE ERAS OF FRAUD
Atsutoshi Nishida
2005-2009
Norio Sasaki
2009-2013
Hisao Tanaka
2013-2016

5. WHAT WENT
WRONG
❖ 2008: Global financial crisis
reduces profitability.
❖ Techniques.
➢ Booking future profits only
➢ pushing back losses and charges
➢ Improperly valued inventory
❖ Profits were overstated by 1.2
billion dollars.

6. THE FRAUD
TRIANGLE
02
03
01

7. MOTIVES BEHIND THE SCAM
❖ Investigators decides how Toshiba’s
corporate leadership handed down strict
profit targets known as challenges, to
business unit presidents, often with the
implication that failure would not be
accepted
❖ In some cases , quarterly challenges were
handed down near the end of the quarter
when there was no time left to materially
affect unit manufacture performance
❖ It soon become clear within individual
business units that the only way to achieve
these challenges was to do so through the
use of irregular accounting technique.
➢ The investigative panel concluded that
Toshiba’s corporate culture, which
demanded obedience to superiors, was
an important factor enabling the
emergence of fraudulent accounting
practices.
➢ The culture operated on the level of
business unit presidents and on every
level of authority down the chain to the
accountants who ultimately employed
the accounting techniques.

8. ❖ Toshiba a pillar of Japan's
industrial establishment, is having
huge loss of about US$ 6.4 billion
❖ Toshiba took total job losses to
14,000 in 2015
❖ Sales in US decline about 4%
❖ Japan economy was also
affected
COMPANY’S LOSSES

9. STAKEHOLDER IMPLICATION
Shareholders
➢ Lack of trust
➢ Stock price decrease: 40%
➢ Removed from stock index of best
Japanese companies
➢ Lawsuits
EMPLOYEES
➢ Loss of jobs
➢ Reduction from 217,000 to 183,000
➢ Cut 30% of jobs from customer
Electronic

10. ➢ Reputation
➢ Consumer confidence
decrease
➢ Potential earning loss
➢ Japanese market distrust
CONSUMERS

11. ❖ Improvements in internal controls
➢ Budgetary control
implementation
➢ Employee training
➢ Financial closing and reporting
processes
➢ New internal Audit Division and
Audit Committee
❖ New CEO
➢ Reorganization
➢ Loss of board of Directors
COMPANY
RESOLUTIONS

12. THE
TAKEAWAY
❖ Fraud can happen for a long
time without being caught
❖ Often many people are involved
in large-scale fraud
❖ A company keeps better
business by keeping integrity
❖ Shareholders take a lot of
damages
❖ Don’t be fraudulent!