
According to the BBC, securities regulators started probing Toshiba’s balance sheet at the beginning of 2015. There had been concerns that executives were setting unrealistic targets for new operations after worries that the 2011 Fukushima disaster may hit the company’s nuclear division.
While a report established by an independent panel did not specifically refer to Fukushima, it did say that pressure within Toshiba was strong in the accounting years of 2011 and 2012. Furthermore, it found that the company’s three most recent CEOs had played active roles in inflating Toshiba’s operating profit. “Within Toshiba, there was a corporate culture in which one could not go against the wishes of superiors,” the report said. “Therefore, when top management presented ‘challenges’, division presidents, line managers and employees below them continually carried out inappropriate accounting practices to meet targets in line with the wishes of their superiors.” These findings have meant that as part of a reorganisation of Toshiba’s corporate leadership, 16 high-level executives – including Tanaka, Muromachi and Sasaki – have resigned. At a media event, where his resignation was announced, Tanaka said: “I deeply apologise to all stakeholders for causing these problems. This has resulted in the largest damage ever to our corporate image.” Read more about fraud and accounting scandals:- 4 of the most dramatic accounting scandals in history
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