Presentasi SPM Case Tugas Minggu Ke 11 Kelompok 10

Summary

The transcript discusses Toshiba’s challenges in corporate governance and culture, highlighting the accounting scandal of 2015. It examines how the company’s conservative culture, hierarchical structure, and lack of innovation hindered progress. Recommendations for improvement include leadership reforms, empowerment of employees, diversity initiatives, and a stronger focus on corporate governance. The company’s recovery efforts through the 'Rebuilding Initiative' emphasize internal control reforms and a shift towards sustainable, transparent business practices. Ultimately, the company must balance strong leadership, ethical practices, and inclusivity to rebuild trust and drive long-term success.

Takeaways

• 😀 Toshiba is committed to providing opportunities for foreign employees and women, with increasing trends in the number of non-Japanese employees and female managers.
• 😀 Despite progress, the percentage of female employees and managers in Toshiba is still small compared to male counterparts, indicating a need for further improvement in gender diversity.
• 😀 The company faces a conservative culture, where resistance to change and reliance on traditional business practices hinder innovation and adaptability.
• 😀 To overcome conservatism, Toshiba could benefit from leadership changes, rewarding innovation, and creating a more flexible decision-making framework.
• 😀 Corporate governance and CSR (Corporate Social Responsibility) at Toshiba are interconnected, with a focus on human safety, legal compliance, and contributing to societal problems through innovative solutions.
• 😀 Toshiba's corporate governance practices must evolve to align better with CSR values, ensuring transparency and ethical practices at all levels.
• 😀 Internal control failures and weak oversight contributed to the 2015 accounting scandal, requiring more robust internal audits and clearer accountability structures.
• 😀 The leadership's unrealistic targets and a rigid hierarchical structure are identified as significant challenges in Toshiba’s internal culture, requiring decentralization and better decision-making processes.
• 😀 To rebuild trust after the accounting scandal, Toshiba has launched the 'Toshiba Rebuilding Initiative,' aimed at improving internal controls, revising business structures, and ensuring greater financial transparency.
• 😀 A disconnect between corporate culture and ideal governance practices at Toshiba was identified as a key issue, with a focus on the need for decentralized decision-making and improved audit functions.
• 😀 Strengthening external expertise, clarifying executive responsibilities, and improving transparency in reporting are essential to regain stakeholder confidence and improve governance.

Q & A

What efforts has Toshiba made in terms of diversity and inclusion?

Toshiba has been increasing the number of non-Japanese employees and female managers over time. While the percentage of female managers has been growing, it still remains lower compared to male counterparts. The company has created spaces for foreign employees and women to rise into leadership roles.

What are the main cultural and governance challenges Toshiba faces?

Toshiba struggles with a conservative corporate culture, which resists change and innovation. The company also faces issues like over-reliance on traditional business practices and hierarchical structures that hinder employee input. These challenges affect its corporate governance, leading to slow decision-making and lack of adaptability.

How does Toshiba's corporate governance connect with its corporate social responsibility (CSR)?

Toshiba's corporate governance is closely tied to its CSR efforts, as both emphasize human welfare, safety, legal compliance, and contributions to global societal issues. The company aims to solve global social problems by providing high-value products and solutions, while also committing to sustainable practices.

What specific actions does Toshiba need to take to address its conservative corporate culture?

Toshiba needs to promote leadership changes by appointing leaders with proven track records in driving innovation. It also needs to offer incentives for innovation, provide training to empower employees to voice their ideas, and create a more flexible decision-making framework to encourage adaptability and faster decision-making.

How can Toshiba improve its corporate culture and employee engagement?

Toshiba can improve its corporate culture by implementing initiatives for employee empowerment and providing training programs that encourage employees to express their concerns and ideas. Additionally, launching diversity and inclusion programs and cultural exchange initiatives could help create a more open and inclusive work environment.

What steps did Toshiba take after the accounting scandal to rebuild trust?

After the accounting scandal, Toshiba launched the 'Toshiba Rebuilding Initiative,' focusing on strengthening internal controls, reforming corporate culture, and restructuring its operations. These actions aim to regain stakeholder trust by ensuring more effective governance and a commitment to ethical practices.

What issues were highlighted in the accounting scandal at Toshiba?

The accounting scandal at Toshiba exposed contradictions between the company's commitments and its actions. Issues included a lack of internal controls, over-centralization of power, unrealistic management targets, and a corporate culture that discouraged questioning authority. These factors contributed to significant governance failures.

What governance changes are suggested to address Toshiba's challenges?

Toshiba should implement decentralization of decision-making, establish realistic goals, and strengthen the independence of its board of directors. Enhancing internal auditing processes, increasing transparency in reporting, and ensuring clearer accountability for executives are also essential steps to improve governance.

How does the conservative culture at Toshiba affect its innovation and decision-making?

The conservative culture at Toshiba limits innovation by resisting change and focusing on traditional practices. The hierarchical structure discourages open communication and idea-sharing, which delays decision-making and stifles creativity. This leads to a slower response to market demands and innovation opportunities.

What are the proposed solutions to improve Toshiba's internal checks and balances?

To improve internal checks and balances, Toshiba should clarify executive responsibilities, enforce accountability for past decisions, and strengthen the role of the audit committee. It is also recommended to recruit external talent to help refresh the leadership team and ensure a more balanced power structure.