What options does Woodford have regarding his response to the information he discovers about the accounting irregularities and acquisitions that Olympus has made? Define Woodford's responsibility to Olympus's management and its shareholders?

Question

Social Studies

Mckinley Vasquez

3 July, 18:01

What options does Woodford have regarding his response to the information he discovers about the accounting irregularities and acquisitions that Olympus has made? Define Woodford's responsibility to Olympus's management and its shareholders?

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Gillian Rocha · Answer 1

What options does Woodford have regarding his response to the information he discovers about the accounting irregularities and acquisitions that Olympus has made?

Woodford's options regarding his response to the information he discovers about the accounting irregularities and acquisitions that Olympus has made are within the ethics frame as, to whether or not to blow the whistle on his own company.

Define Woodford's responsibility to Olympus's management and its shareholders?

Woodford's responsability to Olympus's management and its shareholders is within, again the ethics frame, as rather than come clean and admit the losses, management continued with higher risk investments.

Explanation:

Olympus Imaging Executives company hired his first Western President, Michael Woodford, after two decades following the tobashi scheme to offset the declining revenue with zaiteku, a form of speculative investment recording 2.1 billion losses in yen, so he became the first CEO to blow the whistle on his own firm, questioning these practices, which caused for him to be fired after two weeks on the job.

This case shows the ethics dilemma on Olympus management that rather than come clean and admit the losses, they kept on with riskier investments, like buying companies located in the Cayman Islands for exorbitant fees.