Companies Toshiba crisis throws Japan’s corporate culture into stark relief BL PREMIUM

Tokyo — The troubles at crisis-hit Toshiba are the latest in a string of business scandals that highlight how the backbone of Japan’s corporate culture — unwavering employee loyalty — can sometimes lead to disaster, analysts say. The venerable firm’s stock has been sliced in half since late December when it first flagged multibillion-dollar losses at US nuclear unit Westinghouse Electric, and revealed allegations of accounting fraud by senior managers at the division. On Tuesday, Toshiba said it was delaying the release of its October-December earnings for a second time as it investigated the embarrassing allegations, with fears growing that the pillar of corporate Japan could be delisted from the Tokyo bourse. The scandal came less than two years after its reputation — and balance sheet — was hammered by separate revelations that top executives pressured underlings to cover up weak results for years after the 2008 global financial crisis. Many questions remain unanswered. But Toshi...