Identify a major business incident that occurred at least 2 years ago
Identify a major business incident that occurred at least 2 years ago. Briefly describe the incident and then provide an analysis of the way the company handled the issue drawing on the various theories covered in this unit (Management Communication). You will need to draw on news reports (written and video), press releases, interviews, and company reports and investigate these in light of the various topics in this unit. As it is an academic essay you are expected to draw on academic journal articles and other academic sources outside of the materials provided in this unit. Ensure that any video material accessed online is fully referenced and the link provided with your essay.
Ideally, organizations exist to achieve objectives set It is, therefore, the duty of management to ensure that effective strategies are put in place by in order to ensure that objectives are achieved. Management has a duty of representing the best interest of shareholders. However, there are instances where management acts not to the best interest of the shareholders’ who happen to be the real owners of the resource. Therefore, there arises a conflict of interest between the management and the shareholders in as far as the representation of shareholder interest are concerned. Because of the fact that shareholders want maximum return for their investments, management usually gets torn between maximizing shareholders value through profit maximization. Interestingly, shareholders are interested and concerned with maximum returns for their investments, sometimes not even considering how the high returns come about.
In Toshiba Inc. agency relationship or conflict contributed to the emergence of the scandal. Management together with employees colluded to alter books of accounts by overstating their annual profits. The company appeared profitable in the eyes of both existing and potential investors but the reality was that the “profit” had been cooked, an action not recommended as per international accounting standards. Besides, window dressing of books of accounts is unethical and goes against International Financial Reporting Standards. This essay, therefore, aims at critically evaluating the Toshiba scandal and also establishing what the organization did to handle the issue.
A brief description of Toshiba scandal
Toshiba Company is a big Japanese multinational conglomerate that was founded in the year 1938, and whose e headquarters is situated in Tokyo, Japan (Gandhi, 2015). Toshiba has diversified its products and services to include communications equipment and other information technology gadgets. Additionally, it focuses much on electronic components, electronic household appliances, among others. Based on revenue turnover,……………
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