As the financial crisis faded further into the rearview mirror, companies were getting back to business as usual and feeling some of the scrutiny on corporate governance practices recede slightly as well. That is, until the Olympus loss-hiding scandal emerged.
The 92-year-old medical photo-imaging equipment giant had allegedly been hiding losses—to the tune of $1.7 billion—since the 1990s, long before current economic pressures, slow job growth, and poor investor confidence. Now the fraud has some putting renewed focus on corporate governance practices, especially in Japan, including the lack of board independence and a corporate culture that makes it difficult for whistleblowers ...