10 famous major corporate scandals from the past 10 years caused by poor Governance...

1. Wells Fargo Fake Accounts Scandal (2016 – U.S.)

• Issue: Employees created millions of fake accounts to meet unrealistic sales quotas.

• Governance Failure: Pressure from top leadership and lack of board oversight.

• Impact: $3 billion in fines and settlements; CEO resigned; damaged public trust.

  
  

2. Volkswagen “Dieselgate” (2015 – Germany)

• Issue: VW cheated emissions tests with illegal software in diesel vehicles.

• Governance Failure: Ethical lapses and lack of compliance monitoring.

• Impact: Over $30 billion in costs; CEO resigned; long-lasting brand damage.

  
  

3. Theranos (2015–2018 – U.S.)

• Issue: Falsified technology claims about revolutionary blood tests.

• Governance Failure: Board lacked scientific expertise; ignored fraud indicators.

• Impact: Company collapsed; founder Elizabeth Holmes convicted of fraud.

  
  

4. Wirecard (2020 – Germany)

• Issue: €1.9 billion in fake assets and fabricated transactions.

• Governance Failure: Weak auditor oversight and ineffective board controls.

• Impact: Company insolvency; CEO arrested; prompted EU audit reforms.

  
  

5. FTX Cryptocurrency Collapse (2022 – Bahamas/U.S.)

• Issue: Misappropriation of billions in customer funds for risky and personal use.

• Governance Failure: No board, no internal audit, extreme conflicts of interest.

• Impact: Bankruptcy; founder Sam Bankman-Fried convicted of fraud in 2023.

  
  

6. Toshiba Accounting Scandal (2015 – Japan)

• Issue: Inflated profits by $1.2 billion over seven years.

• Governance Failure: Top-down culture discouraging whistleblowing.

• Impact: CEO and executives resigned; led to stricter Japanese governance codes.

  
  

7. Credit Suisse Collapse (2015–2023 – Switzerland)

• Issue: Series of failures — Archegos, Greensill, and internal misconduct scandals.

• Governance Failure: Poor risk oversight and organizational culture issues.

• Impact: Loss of investor confidence; forced merger with UBS in 2023.

  
  

8. Luckin Coffee Fraud (2020 – China)

• Issue: Fabricated over $300 million in sales to inflate performance.

• Governance Failure: Weak internal controls and audit manipulation.

• Impact: NASDAQ delisting; executives fired; investors lost billions.

  
  

9. Carillion Collapse (2018 – U.K.)

• Issue: Construction giant collapsed under debt and accounting manipulation.

• Governance Failure: Reckless risk-taking and misleading financial reporting.

• Impact: Thousands of job losses; government scrutiny of corporate governance.

  
  

10. Boeing 737 MAX Crisis (2018–2020 – U.S.)

• Issue: Two aircraft crashes linked to flawed software and poor safety culture.

• Governance Failure: Prioritization of profit and speed over safety oversight.

• Impact: 346 deaths; CEO fired; billions in losses; major governance reforms.

  
  

Summary Table

How many of the above corporate scandals you heard about or remember? (or even being impacted?)

Learn from history and that is why "governance" is one of the important pillar in the "ESG" strategies.

#scandal

#corporate

#governance

#decade

#leadership

#shortsighted

#penalty

#rootcauses