Link: https://en.wikipedia.org/wiki/Olympus_scandal

The Olympus scandal was precipitated on 14 October 2011 when British-born Michael Woodford was suddenly ousted as chief executive of international optical equipment manufacturer Olympus Corporation. He had been company president for six months, and two weeks prior had been promoted to chief executive officer, when he exposed "one of the biggest and longest-running loss-hiding arrangements in Japanese corporate history", according to The Wall Street Journal.

The matter snowballed into a corporate corruption scandal of more than 117.7 billion yen ($1.5 billion) of investment losses and other dubious fees and other payments dating back to the late 1980s and suspicion of covert payments to criminal organisations.

(a)Identify and explain two external and two internal factors that you would attribute as causes of Olympus Corporation's failure.

(b)For each of the four factors identified in (a), identify a relevant corporate governance principle that could be applied to avoid the corporate failure.