Justin Gwin, Risk Advisory Services Manager, Kaufman Rossin

Many recent high-profile scandals, such as those at Toshiba, Volkswagen, FIFA, and Wells Fargo, have shown the adverse effect of having a poor corporate culture. 

Toshiba’s $1.2 billion profit inflation scandal, which occurred over seven years and came to light last summer, was called “the most damaging event for the brand in the company’s 140-year history” by the outgoing CEO.  The Independent Investigation Committee concluded that “there existed a corporate culture at Toshiba where it was impossible to go against the boss’ will.” In less than six months from the initial announcement, the scandal had wiped roughly $8 billion off Toshiba’s market value.