An In-Depth Analysis of Corporate Governance at Toshiba Corporation

This report provides an analysis of corporate governance within Toshiba Corporation, a multinational electronics and hardware company. It delves into key aspects of corporate governance, including the importance of ethics, risk management, CSR (Corporate Social Responsibility), and effective leadership. The report examines governance issues, such as ethical considerations in business conduct, the significance of risk assessment and mitigation strategies, and the role of CSR in sustainable business practices. It highlights the need for strong leadership to balance stakeholder interests and maintain a positive corporate image. The report concludes that robust corporate governance is crucial for the long-term success of any enterprise, using Toshiba as a case study to illustrate these principles. The report also references various academic sources to support the analysis.

ACTION PLAN

Table of Contents
Introduction ..........................................................................................................................................3
Background of company........................................................................................................................3
Governance issue...................................................................................................................................3
Conclusion ............................................................................................................................................5
REFERENCES..........................................................................................................................................6

Introduction
Corporate governance is one of the modern approach to carry out a business in a sustainable
and ethical way. This is one of the issue for every business unit is to understand these aspects
and implement in their operational practices. This report is based on Toshiba which is one of
the leading company in the electronics and hardware. This report will discuss about the
various aspects of governance and its role in the company success.
Background of company
Toshiba is the Japanese multinational company having its head office in Tokyo, Japan. It is
deal in variety of products and services which includes: information technology ans
communication equipment and systems, electronic components and materials, power systems,
industrial and social infrastructures systems, household appliances, consumer electronics,
office equipments, medical equipments, as well as on lighting and logistics.
Toshiba was founded in 1939 as Tokyo Shibaura Denki k.k through the merger with shibaura
seisaku-sho ( founded in 1875) and Tokyo Denki ( founded in 1890). After getting into
establishment they company name changed to Toshiba corporation 1978. Toshiba is
organized there groupings into four group: digital products group, electronic devices group,
home appliances group and the social infrastructure group. Toshiba is the multinational
company which used the corporate governance to run there business. Corporate governance
helps the Toshiba to understand the business aspects and to implement the operational
practices. Ethics also helps the company to maintain the good human conduct in the company
which helps in completion of the tasks effectively and to motivate the employees.
Governance issue
It is essential for a company is to implement corporate governance in their business practices
and other issues. It is a systematic approach of conducting business as par the policies,
framework, guidelines etc. which crate an ideal image of an enterprise. Toshiba is electric
hardware manufacturer and operate its business at worldwide (action plan, 2017). The firm is
always implement its operation at different part of the world which required to implement its
task in different time manner in order to attain its goals and objectives in a limited period of
time. There are various issues which related with the governance:

Ethics:
Ethics includes the concept and principles of decent human conduct. It includes the study of
the values of the employees which are working in the company, it helps the company to
know about the behaviours of the employees. It also includes the study of equality of men
and women, human or natural rights, obedience to the law of land, concern for health and
safety and also for the natural environment. The study of rights of men and women in
organisation helps in making the equality and to give the powers to women in the
organisation as the men has. Toshiba uses the ethics to maintain the equality and to protect
the health of the employees working in the organisation. This will helps in build the
confidence of the workers and motivates them to work harder for the achievement of the
personal and the organisational goals. By the study of the right and wrong conduct of the
employees it helps to understand the issues which are faced by the employees and to provide
the solutions regarding them.
Risk management:
Business environment is too complex and competitive for an organization in order to attain its
short and long term targets in an effective manner. It is a systematic approach to evaluate and
analyse various aspects of risk and try to manage such risk in order to minimise its adverse
impact on business operations. In the context of Toshiba, the firm is make sure that they must
be use government guidelines to reducing risk factors and not having unethical for a fair and
free competition level. For instance, the cited frim is operate its business in UK where
various laws and legislation should be considered by the company. These are:
C.2 Risk Management and Internal Control states: According to this principle, the board
director or top management should be conduct a review meeting on the effectiveness of risk
management and internal control system of the company.
CSR:
A business organization is part of society which create various roles and responsibilities
towards the community. Therefore, this is role of enterprise is to contribute their role through
CSR. Toshiba operate its business practices in a sustainable way which create an ideal image
in the market in the longer run. They having four dimension of their CSR activity towards
community, sustainability, reusable etc. Further, it also having legal compliances that
company need to be managed. For this, they can provide financial and technical assistance to

the poor people for various aspects such as education, health, food and so on. In the case of
environment, company is using various eco-friendly idea in their production process which
having a limited impact on the environment. Toshiba also reducing the use of chemical and
its related element on their process. It helps to develop their business in a longer run and crate
an example for corporate governance.
Leadership: The role of leader is the business organization and its current and future
performance very significant. A leader is a person who motivate their subordinates towards
attaining organizational goals and corporate objectives. Therefore, this is responsibilities of
leaders or manager is to maintain balance between stakeholders such as management,
customers, suppliers, finance etc. In the context of Toshiba, where board of directors required
to provide all relevant information such as financial statement such as balance sheet, trading
& profit and loss account in order to present an actual position. It helps to create a good
corporate image in the public which is very significant for the company in order to attaining
its short and long term goals.
Conclusion
From the above mentioned report it has been concluded that the role of governance plays a
vital role in the success for each and every enterprise. This report explained about the major
problem of governance such as leadership, CSR, risk management and ethics in the context of
Toshiba.

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action plan. 2017.[Online]. Avilable through: <http://whatis.techtarget.com/definition/action-
plan>. [Accessed on 30th october 2017].