The Relationship of Organizational Scandals, Strategy and Performance

The main subject of this is article is the phenomenon of corporate scandals, their impacts and causes. With the aim of elucidating processes that facilitate these scandals, a true entity’s strategy paper is detailed to reveal the story of its scandal, and the literature about other scandals and corporate governance is reviewed. In addition, material findings of regulatory authorities on these issues are also utilized. In conclusion, this study finds that top managers and other powerful stakeholders would rather prefer performance based corporate strategies even when it is imbalanced. As for opinion about corporate strategy formulation and implementation, some ideas, based on scrupulous consideration of the structure of risk and benefit among stakeholders, are suggested