The aim of this paper is to shed light on the occurrence of corporate scandals by considering intrinsic factors of organizational culture. Corporate governance is now widely considered a crucial part of domestic and international management. Nevertheless, corporate scandals have continued to occur. These scandals can be thought of as a pathological phenomenon in organizations. Against this background, the following two points are examined in this study: (1) the organizational culture in which corporate scandals have occurred, and (2) the intrinsic factors of the organizational culture. From these two viewpoints, questionnaires survey of Japanese small and medium firms were conducted and the results are analyzed. As a result, However, Japanese small and medium firms tend to have a high possibility that scandals occurs. In particular, the promotion methods have a comparatively strong tendency which is the own discretion of the election from same family, or a manager. This is a problem on corporate governance. There is corporate governance of Japanese small and medium ﬁrms developing still more. Then, in the globalization, for the firm to manage, this corporate governance may be strengthened and there is necessity.