Corrupt Culture Blamed for Olympus’s Financial Scandal
09 December 2011
The New York Times (NYT) reports that an independent panel has described the corporate culture at Olympus as “corrupt”, and a key factor in a recent financial scandal. The panel reportedly said that Olympus’s former management was “rotten to the core, and infected those around it”, requesting banks to submit incomplete financial statements and thereby cover-up failed investments. Olympus’s auditors, KPMG AZSA and Ernst & Young ShinNihon were also reportedly criticised for “failing to expose fraud”. However, the NYT reports that the panel did not find evidence of organised crime at Olympus.
Olympus has reportedly said that it takes the report’s findings “very seriously” and is considering further measures to restore confidence in the company.
NYT: The Culture Was Corrupt at Olympus, Panel Finds (6 December 2011)