Business Law: Analyzing the Nissan and Carlos Ghosn Legal Case

This case study delves into the legal issues surrounding Nissan Motor Corporation and its former CEO, Carlos Ghosn, who was accused of financial misconduct, including embezzlement and filing false financial statements. The analysis adopts the perspective of a Nissan employee, discussing the legal implications from a business standpoint and exploring the personal and professional impact on employees. The case highlights the importance of corporate governance and the potential consequences of executive misconduct on employee morale, investor confidence, and national income. The study also references Japan's corporate governance code and the challenges in its effective regulation. The document concludes by emphasizing the need for robust internal controls and ethical leadership to prevent similar incidents and maintain stakeholder trust. Desklib provides access to this and other solved assignments for students.

[Business Law]
[Type the abstract of the document here. The abstract is typically a short summary of the contents
of the document. Type the abstract of the document here. The abstract is typically a short
summary of the contents of the document.]
2020
University
Student Credentials

Business Law
1
Nissan and Carlos Ghosn
Carlos Ghosn is one of those people who tried to take benefit of the situation he was in. He
has been accused of various crimes. He has been using Nissan’s financial resources for his
own benefit, embezzlement as well as filing false statements. Carlos Ghosn was the ex -
chairman of Nissan who was convicted of embezzling the company’s money and falsely filed
his financial statements which is why he was removed from his position (AFP-JIJI). He fled
the country and became a fugitive in Lebanon where he was found and arrested. In Japan,
three years prior, Prime Minister Shinzo Abe presented a corporate administration code or a
code for the corporate governance as such that set a certain rules on exposure, investors'
privileges and autonomous executives as a component of his "Abenomics" monetary
arrangements. Japan has proved to be naïve of the corporate related laws and their regulation
that has been clearly stated by the above case of Carlos Ghosn. Though such laws related to
strict corporate governance and as such will not in itself pose as a threat to such individuals
or people in power for the company but its proper regulation might (Economic times).
These kinds of activities make people working for the firm; question the administration
regarding their ways in which they work. Also the systems they follow and the effect they
have on the whole management as well as the policies they make and the way in which they
are implemented are also something that is being questioned. People working for companies
as such makes they wonder about the governance of the company itself. The employees as
well as at the others who have been working for the same firm for years lose the sense of
security related to job they are doing. Working hard is something that the employees have
been doing for the company but the benefits of the same have been extracted by the people as
such in power only as they have assistance to the same (Leggett and Palumbo). The thing that
needs to be questioned here is that the act in itself is something that administration or the

Business Law
2
management could not track or see before. Since it had been going on through the years, an
amount of millions has already been taken away. This amount could have been utilized by the
company in providing the incentives to the people working for them hence satisfying their
needs.
Carlos when entered the business insisted upon various methods in which the company could
recover from their losses. One of these was the cost cutting related to jobs of people working
for them. Another issue at hand is that people in power have been exploiting the financial
resources of the company as such and the employees have been working hard for the same.
Instead of being provided apt incentives, people like Carlos have been enjoying the benefits
from the same. The management or the administration, neither of them was able to figure out
the lack in the system itself sooner. This had been going on for years. Amounts worth
millions has been utilized for personal benefits and people who have been toiling for the
same have been working hard for it (Law).
On national level, this kind of crime is has affected the national income as well as posed as an
example for people as to how they can use the company they have been working for or
earning from for their own personal gain. As a result of these activities, since it has been
going on for so long, people have been losing interest in investing in the firm as such. Since
investors do not wish to invest in company, the company has been losing funds and
everything is on the downfall. Despite the fact, Carlos has been enjoying this money and paid
the bail amount of $ 8.9 billion (GEBEL).

Business Law
3
Bibliography
AFP-JIJI. Carlos Ghosn's escape proves to be a fresh headache for ailing Nissan. 2020. 29
February 2020 <https://www.japantimes.co.jp/news/2020/01/11/business/corporate-
business/carlos-ghosn-headache-nissan/>.
Economic times. Ex-Nissan chief Carlos Ghosn affair raises issues beyond one man, one
company. 2018. 29 February 2020
<https://economictimes.indiatimes.com/news/international/business/ex-nissan-chief-
carlos-ghosn-affair-raises-issues-beyond-one-man-one-company/articleshow/
67090211.cms>.
GEBEL, MEIRA. An inside look at the career of Carlos Ghosn, the disgraced former Nissan
chairman and Renault CEO who just posted $8.9 million bail after 108 days in a
Japanese jail. 2019. 29 February 2020 <https://www.businessinsider.in/An-inside-
look-at-the-career-of-Carlos-Ghosn-the-disgraced-former-Nissan-chairman-and-
Renault-CEO-who-just-posted-8-9-million-bail-after-108-days-in-a-Japanese-jail/
According-to-a-report-from-Bloomberg-Nissan-paid-over-8000->.
Law, Tara. Who Is Carlos Ghosn, the Businessman Who Fled House Arrest in Japan and
Turned Up in Lebanon? 2020. 29 February 2020 <https://time.com/5758075/carlos-
ghosn/>.
Leggett, Theo and Daniele Palumbo. Carlos Ghosn: Four charts on the Nissan boss scandal.
2019. 29 February 2020 <https://www.bbc.com/news/business-46321097>.

Business Law
4