Business scandal

• RMIT UNIVERSITY • Sothara Mony, • 3465308 • Ethics and accountability • Tutor : Greg Mcleod • 14. 11. 2015

Brief scandal

• OLYMPUS

• Accounting fraud ( misleading profit )

• Auditors partly involved• Wrong dismissal resignation

• TOSHIBA

• Profit inflation ( 1.2 billion )• Postponed financial record

4 main causes : • Accounting issues: • cookie jar, no disclosure

• Legal issues : • misleading the financial statement

• Cooperate governance issues: • shaky internal control , utilitarianism issues

• Ethical issues : • dishonesty, disloyalty, unethical culture

Comparison to Enron’s scandal

• Similarity : • Accounting irregularities • Top officers are the fraud makers

• Difference : • Timing • economic condition

Recommendations

• Regulation :

• Implement professional accounting standard & expertized checking

• Government: hold explicit law, merge committees

• Codes of conduct

• Individual : ethical responsibility and high standard skills/practices

• Encourage whistleblowing

• lower discretionary power

• Stronger ethical guideline

• Thank you.