BUSINESS AND SOCIETY CASE ANALYSIS QUESTIONS

BUSINESS AND SOCIETY CASE ANALYSIS

CASE ANALYSIS QUESTIONS

1. 2023 Fall Q. No. 18
Read the case situation given below and answer the questions that follow:

Jane has just been hired as the head of the Payroll Section under the Human Resource Division at R&S Electronic Service Company. The company is medium-sized, with 75 full-time employees and 15 part-time employees. She was hired by Eddie, the General Manager of the company. During the process of hiring, Eddie clearly mentioned that she needs to maintain strict confidentiality regarding employee salaries and pay scales. He also informed her that he fired the previous payroll section head, Suzanne, for breaking that confidentiality by discussing employees’ salaries. She was also formally introduced to Brad, the chairman and owner of the company, who told her to see him if she had any questions or problems. Both Brad and Eddie made her feel welcome.

Brad is the major shareholder of the company, owning 75% of shares, and other shareholders are Eddie and Bryan, owning 15% and 10% of shares respectively. Both shareholders happen to be very good friends from their college days. The board of directors of the company comprises Brad and Eddie. Since Eddie is working as General Manager, he also takes most operational decisions, including strategic ones, and informs the chairman of the company over the phone. Being good friends, the board members and the chairman also trust Eddie. As usual, this year also Eddie informs Brad about increments in salaries and hourly rates of overtime. Brad asks him to sign on the decisions paper in his leisure time.

After three months of employment, Jane begins to wonder why Greg makes so much more, both in salary and overtime hours, than the other employees. She assumes that he must be highly qualified and must work rapidly because she has overheard Brad commending Greg on his performance on several occasions. She has also noticed Brad, Eddie, and Greg having lunch together frequently.

One day, Eddie gives Jane the stack of salary sheets, including overtime hours payment slips for the last month that need to be verified and signed by each employee against their names. This time, all employees are excited about signing their salary sheets since it will include their annual increments. After putting the salary sheets in the drawer where they belong, Jane remembers she has a doctor’s appointment the next morning and returns to Eddie to give Greg’s separate salary sheet and overtime payment slip. As she stands there, Eddie is giving the higher salary and more overtime hours work to Greg. Jane also realizes that Eddie does have the authority to do so to his brother. Jane also realizes that Eddie does have the authority to hire and fire her. Since she has only been at the company a short-time, she is also still on probation. This is her first job since college. She wonders what she should do.

Questions:

a. Identify the stakeholders and their interests.
b. Do you see any corporate governance related issues need to be addressed in this case?
c. What are the difference ethical issues faced by company in the case?
d. What would you do if you are in position of Jane? Should Jane be Whistle blower?

2. 2023 Spring Q. No. 18
Read the case situation given below and answer the questions that follow:

Kavin’s First Year

Kavin was a bright individual who was being groomed for the controller’s position in a medium-sized manufacturing firm. After Kavin’s first year as assistant controller, the officers of the firm started to include him in major company functions. One day, for instance, he was asked to attend the monthly financial statement summary at a prestigious consulting firm. During the meeting, Kavin was intrigued at how the financial data had been accumulated and transformed into meaningful and revealing charts and graphs.

The manufacturing plant discussion started with the company’s new manufacturing plant the company was adding to the current location and the per-unit costs of the chemically plated products it would produce. At that time, Joseph, the president, and George, the chief engineer, started talking about waste treatment and disposal problems. George mentioned that the current waste treatment facilities could not handle the waste products of the “ultramodern” new plant in a manner that would meet the industry’s fairly high standards, although the plant would still comply with federal standards.

Cost Increases: Kavin’s boss, Steven, noted that the estimated per-unit costs would increase if the waste treatment facilities were upgraded to include in recent industry standards. Industry standards are presently more stringent than federal regulations, as environmentalists were pressuring strongly for stricter regulations at the federal level. Joseph mentioned that since their closest competitors did not have the waste treatment facilities already existing at their firm, he was not in favor of any more expenditure in that area. Most managers at the meeting resoundingly agreed with Joseph, and the business of the meeting proceeded to other topics.

Kavin’s Dilemma: Kavin did not hear a word during the rest of the meeting. He kept wondering how the company could possibly take such a casual attitude toward the environment. Yet he did not know if, how, when, or with whom he should share his opinion. Soon he started reflecting on whether this firm was the right one for him.

Questions:
a. Who are the key stakeholders in the above-described case? Discuss their stakes as per the case.
b. How would you assess the firm’s CSR toward the environment and the community?
c. How do you think the concept of CSR in Ecological Environment is related in the case?
d. What do you do and why? If you were in the place of Kavin.

3. 2022 Fall Q.No. 18
Read the case situation given below and answer the questions that follow:

Something’s Rotten in Hondo

George Mackee thought of himself as bright, energetic, and full of potential. “So why is this happening to me?” he thought. George, with his wife, Mary, and his two children, had moved to Hondo, Texas, from El Paso four years earlier and was now the manager of the Ardnak Plastics plant in Hondo. A small plant that manufactured plastic parts for small equipment, the plant employed several hundred workers, which was a substantial portion of the population of Hondo. Ardnak Plastics Inc. had several other small plants the size of Hondo’s. George had a good relationship with Bill, his boss, in Austin, Texas.

The Emissions Problem

One of the problems George’s plant had was that the smokestack emissions were consistently above EPA guidelines. Several months ago, George got a call from Bill, stating that the EPA had contacted him about the problem and fines would be levied. George admitted the situation was a continual problem, but because headquarters would not invest in new air-pollution control devices, he didn’t know what to do. Bill replied by saying that margins were at their limits and there was no money for air-pollution control devices. Besides, Bill commented, other plants were in worse shape than his and were not surpassing EPA standards.

A Questionable Solution

George ended the conversation by assuring Bill that he would look into the matter. He immediately started calling his counterparts at other Ardnak plants. He found they were scheduling their heavy emissions work at night so that during the day, when the EPA took their sporadic readings, they were within standards. George contemplated this option, even though it would result in increasing air contamination levels.

The Double Bind

A month went by, and George still had not found a solution. The phone rang; it was Bill. Bill expressed his displeasure with the fines for the month and reminded George that there were very few jobs out in the industry. That’s when Bill dropped the whole thing into George’s lap. Bill had been speaking to the Mexican government and had received assurances that no such clean air restrictions would be imposed on Ardnak if they relocated 15 miles south of Hondo in Mexico. However, Ardnak must hire Mexican workers. Bill explained that the reason for relocating would be to eliminate the EPA problems. Bill told George he had one week to decide whether to eliminate the fines by correcting the current problems or by relocating.

George knew that relocating the plant on the Mexican side would devastate the infrastructure of the city of Hondo and would continue to put contaminants into the air on the U.S. side. When he mentioned the possibility to Mary, she reinforced other concerns. She did not want him to be responsible for the loss of jobs of their friends and extended families.

Questions:

a. Who are the stakeholders in this situation, and what are their stakes?
b. What social responsibility does Ardnak Plastics Inc. have to the city of Hondo?
c. How would you assess the firm’s CSR using the four- part CSR definition?
d. What are the ethical issues in this case?
e. What should George do? Why?

4. 2021 Spring Q. No. 18
Read the case situation given below and answer the questions that follow:

Walmart, the world’s largest retail business, built its business model around low prices, supply chain innovation, and the ability to offer goods more cheaply than its competitors. It came under repeated criticism for everything from minimum-wage jobs at its shops, the impact of its megastores on the local environment, to its encouragement of poor labor practices by its suppliers, especially in China and Bangladesh. For instance, news in Times magazine published the fact that Western companies including Walmart are promoting businesses like Chun Si in China, where workers are severely exploited.

Chun Si, a Chinese company, manufactures and sells handbags mainly for Walmart. The health and safety measures at its workplace are poor, there is differential wages to male and female, and some of the workers’ basic human rights are not properly respected. The international market took the criticism, pointing to its share price and for years, Walmart took this business model.

But in 2005, CEO Lee Scott admitted that the broadsides had taken their toll. While criticisms and lawsuits continued unabated, the share price no longer seemed so strong. The company took steps to strengthen its inspection program, hired “Business for Social Responsibility” (a non-profit organization) to help it engage with other organizations, and set up consultation groups with its major suppliers to look at how to make its supply chains more responsible. Scott is enthusiastic that Walmart can have a big impact and, at the same time, reduce costs by reducing their packaging, improving the efficiency of its store consume less energy. In 2009 for example, Walmart was able to save $200 million by reducing its packaging and rerouting its trucks. By doing these, it was able to not only save costs but also protect the environment.

Now, Walmart turns waste food into compost, animal feed, or energy through anaerobic digestion. Walmart has turned its garbage into an asset, just by thinking differently. Moreover, Walmart has simplified its supply chain to deal directly with farmers and eliminate some middlemen. “The logistics aren’t as difficult as you might think,” says Chief Sustainability Officer Andrea Thomas. “The farmer can actually drop off produce at the distribution center or at the store.” By doing so, farmers are able to get more prices for their products while at the same time Walmart is able to get fresh stuff with less cost.

However, its commitment to wind and solar power has been limited because they cost more than electricity from coal, nuclear or natural gas in most places.

Ten years ago, Walmart set out three aspirational goals tied to sustainability: create zero waste, operate with 100 percent renewable energy, and sell products that sustain our resources and the environment. At the Net Impact conference on Nov. 4, 2016, Walmart President and CEO Doug McMillon outlined new targets that build upon the three original goals as rational sustainability goals to guide the company on critical shared value priorities for the next decade.

Priorities include:

Provide great jobs and training that become great careers for its employees.
Support local, diverse, and small businesses.
Reduce energy intensity and emissions.
Eliminate waste.
Improve responsibility in value chains.
Help relieve hunger.
Enhance resilience in the face of disasters.
Develop local communities.

Says Scott, explaining why he was now prepared to talk to Walmart’s critics: “When you’re in retail, this idea of simply ignoring critics was okay. [But] as the share price slows, you have to get to this point.”

Asked why Walmart still stood accused of paying rock-bottom wages with few benefits, he answered that no company could forget what industry they were in and low wages were a fact of life in retail. He also said he saw “no benefit” in reaching out to unions and cautioned that Walmart would need to be careful about taking action that did not eventually lower its costs.

Questions:

a. What are the relevant ethical issues in this case? Discuss.
b. How did Walmart respond to the ethical issues raised against it?
c. Do you think it’s fair to expect Walmart’s control over its suppliers’ work place practices? Justify.
d. How would you evaluate the CSR practices and priorities of Walmart in the recent decades?
e. Is there any gap between projected philosophy of Walmart vis-à-vis CSR and its actual CSR practices? What are (or may be) the reasons behind such a state of affairs?

5. 2021 Fall Q. No. 18
Read the case situation given below and answer the questions that follow:

Chandani had just been hired as the head of the payroll department at R&S Electronic Service Company, a firm comprising 75 employees. She had been hired by Bikram, the General Manager, who had informed her of the need for maintaining strict confidentiality regarding employee salaries and pay scales. He also told her that he had fired the previous Payroll Department Head for breaking that confidentiality by discussing employee salaries. She had also been formally introduced to Asim, the owner, who had told her to see him if she had any questions or problems. Both Asim and Bikram had made her feel welcome.

Deepak’s High Commissions
After three months of employment, Chandani began to wonder why Deepak, a service technician and Bikram’s brother, made so much more in commissions than the other service technicians. She assumed that he must be highly qualified and must work rapidly because she had overheard Asim commending Deepak on his performance on several occasions. She had also noticed Asim and Bikram having lunch together frequently.

One day, Bikram gave Chandani the stack of work tickets for the service technicians for the upcoming week. The technicians were to take whatever ticket was on top when they finished the job they were working on. After putting the tickets where they belonged, Chandani remembered that she had a doctor’s appointment the next morning and returned to Bikram’s office to tell she would be late for work.

Bikram Shows Favoritism
When she entered Bikram’s office, she saw Bikram give Deepak a separate stack of work tickets. As she stood there, Bikram told her that if she mentioned this to anyone, he would fire her. Chandani was upset because she understood that Bikram was giving the easier, high-commission work to his brother. Chandani also realized that Bikram had the authority to hire and fire her. Because she had been at the company for only a short time, was still a probationary employee, and this was her first job since college, she wondered what she should do.

Questions:

a. What are the ethical issues in this case?
b. Is the family business different from other types of businesses with respect to employee treatment? If so, why?
c. What was Chandani’s ethical dilemma?
d. What should Chandani have done? Why?

6. 2020 Spring Q. No. 18
Read the case situation given below and answer the questions that follow:

“Something’s Rotten in Hondo”
George Mackee thought of himself as bright, energetic, and with lots of potential. “So, why is this happening to me?” he thought. George, his wife Mary, and his two children had moved to Hondo, Texas from El Paso four years earlier and was now the manager of the Ardnak Plastics plant in Hondo, a small plant that manufactured plastic parts for small equipment. The plant employed several hundred workers, which was a substantial portion of the population of Hondo. George had a good relationship with Bill, his boss, in Austin, Texas.

The Emissions Problem
One of the problems George’s plant had was that the smokestack emissions were consistently above EPA guidelines. Several months ago, George got a call from Bill, stating that the EPA had contacted him about the problem and fines would be levied. George was worried since this was a continual problem, but because headquarters would not invest in new air-pollution-control devices, there was little he could do. Bill replied by saying that margins were already slim, and there was no money for new air-pollution control devices. Besides, Bill commented, other plants were in worse shape and were somehow passing EPA standards.

A Questionable Solution
George ended the conversation by assuring Bill that he would look into the matter. He immediately started calling his counterpart in other Ardnak plants. He found out that the day when the EPA took their sporadic readings, they were within standards. George contemplated this option, even though it would result in increasing air readings, they were within standards. George contemplated this option, even though it would result in increasing air contamination levels.

The Double Bind
A month went by, and George still had not found a solution. The phone rang; it was Bill. Bill expressed his displeasure with the new fines for the industry. That’s when Bill dropped the whole thing into George’s lap. Bill had been speaking to the Mexican government and had received assurances that no such clean air restrictions would be imposed on Ardnak if they relocated 15 miles south of Hondo in Mexico. However, Ardnak must move to eliminate air restrictions. He explained that the reason for relocating would be to eliminate the EPA problem. Bill told George he had one week to decide whether to eliminate the fines by correcting the current problems or by relocating.

Questions:

a. Who are the stakeholders in this situation, and what are their stakes?
b. What social responsibility does Ardnak Plastics Inc. have to the city of Hondo?
c. How would you assess the firm’s CSR using the four-part CSR definition?
d. What are the ethical issues in this case?
e. What should George do? Why?

7. 2020 Fall Q. No. 18
Read the case situation given below and answer the questions that follow:

Three women who used to work at Google have filed a lawsuit against the technology giant, alleging it pays women less than men for comparable work. The suit says Google is aware of the situation but has not moved to fix it. It comes as companies in Silicon Valley face growing scrutiny over gender relations.

Google is also under investigation by the US Department of Labor over its pay practices.

“It is time to stop ignoring these issues in tech,” said Kelly Ellis, a former software engineer at Google and one of the women who filed the suit. She posted on Twitter that she hopes the suit will force Google and other companies to change their practices.

The lawsuit, filed in a San Francisco court, says Google discriminates against female staff with lower pay, more limited promotion, and fewer advancement opportunities compared to men with comparable qualifications. Ms. Ellis, for example, was hired in 2010 at a level typically assigned to college graduates, although she had four years of experience, according to the lawsuit. A male colleague with similar levels of experience started on a higher rung. She was also assigned to a less prestigious role, the suit says Ms Ellis resigned from Google four years later ” because of the sexist culture”, the lawsuit said.

The complaint is seeking class-action status that would cover women working at the company in California for the last four years, looking for unpaid wages, among other remedies. Google said it would review the lawsuit but disagreed with the allegations. “Job levels and promotions are determined through rigorous hiring and promotion committees, and we have checks in place, including checks to make sure there is no gender bias in these decisions,” spokeswoman Gina Scigliano said.

Like other companies in Silicon Valley, the company faces questions about how it treats women because most of its workforces are men, according to the company. Around 80% of staff in “tech” roles and 75% of leadership roles are men. The U.S. Department of Labor found systematic pay disparities during a 2015 audit, according to the lawsuit. The government in January sued Google to get access to more information about pay patterns held true across a more extensive probe, the suit reportedly said. Google also made headlines earlier this summer when a memo written by a senior employee criticizing diversity programs and hiring practices became public. Google later fired him.

Questions:

a. Is Google maintaining a diversified workforce in their organization? How could it be maintained in the corporate sector?
b. As students of business and society, what is your suggestion to settle such a dispute in an organization?
c. What could be the reason for the existence of such practices in the corporate sector? Express your opinion.
d. How could such discrimination be removed in corporate settings of developing countries like Nepal? Elaborate.

8. [2019 Spring Q. No. 18]
Read the case situation below and answer the questions that follow:

CSR Issues in Walmart

Walmart, the world’s largest retail business, built its business model on low prices, supply chain innovation, and the ability to source more cheaply than its competitors. It came under repeated criticism for everything from minimum wage jobs at its shops to the impact that its megastores had on the local environment, to its encouragement of poor labor practices by its suppliers, especially in China and Bangladesh. For instance, news in the Times Magazine pointed to the fact that Western companies, including Walmart, are promoting business like Chun Si in China, where workers are severely exploited.

Chun Si, a Chinese company, manufactures and sells handbags mainly to Walmart. The health and safety measures at its workplace are poor, there’s differential wages to men and women, and some of the internationally proclaimed human rights are not properly respected.

For years, Walmart took the criticisms, pointing to its share price and broadening sales to justify its business model. But in 2005, CEO Lee Scott admitted that the broadside had taken their toll. While criticisms and lawsuits continued unabated, the share price no longer seemed so strong. The company took steps to strengthen its worldwide labor inspection program, hired Business for Social Responsibility (a global non-profit organization) to help it engage with other organizations, and set up consultation groups with its major suppliers to look at how to make its supply chains more responsible. Scott is enthusiastic about improving these efforts.

For example, Walmart was able to save $200 million in 2009 by reducing its packaging and rerouting its trucks. By doing these, it was able to not only save costs but also protect the environment. Walmart turns waste food into compost, animal feed, or energy assets, just by thinking differently. Moreover, Walmart has simplified its supply chain to deal directly with farmers and eliminate some middlemen.

Walmart has committed to wind and solar power but is limited because it costs more than electricity from coal, nuclear, and natural gas in most places.

Ten years ago, Walmart set out three aspirational goals tied to sustainability: create zero waste, operate with 100% renewable energy, and sell products that sustain resources and the environment. At the Net Impact Conference of Nov. 4, 2016, Walmart President and CEO Doug McMillon outlined new targets that build upon the three original sustainability goals to guide the company on critical shared-value priorities for the next decade. Priorities include: provide great jobs and training that became great careers for its employees: support local, diverse and small business improving responsibility in value chains: help relieve hunger; enhance resilience in the face of disasters: and develop local communities.

Saya Scott, explaining why he has now prepared to talk to Walmart’s critics; when growth was easier; this idea of simply ignoring critics was okay. But as the share a price shows, you haveto get to this point’. Asked why Walmart still stood accused of paying rock-bottom wages with few benefits, however, he answered that no company could forget what industry they were in and low wages were a fact of life in retail. He also said he saw ‘ no benefit’ in reaching out to unions and cautioned that Walmart would need to be careful about taking actions that did not eventually lower its costs.

Questions:

a. What are the relevant ethical issues in this case? Discuss
b. How would you evaluate the CSR practices of Walmart before 2005?
c. How would you evaluate the CSR practices and priorities of Walmart in the recent decade?
d. Is there any gap between the projected philosophy of Walmart vis-a-vis CSR and its actual CSR Practices? What are( or maybe) the reasons behind such a state of affairs?

9. 2019 Fall Q. No. 18
Read the case situation given below and answer the questions that follow

Nestlé’s Milk Business in India

Nestlé’s approach to working with small farmers exemplifies a symbiotic relationship between business and social advantages. Ironically, while the company’s reputation is marred by a 30-year-old controversy surrounding infant formula in Africa, the corporation’s impact in developing nations has often been profoundly positive.

Consider the history of Nestlé’s milk business in India. When the company wanted to enter the Indian market, it took government permission to build a dairy in the northern district of Moga. Poverty in the region was severe; people were without electricity, transportation, telephones, or medical care. A farmer typically owned less than five acres of poorly irrigated and infertile land. Many kept a single buffalo cow that produced just enough milk for consumption. Sixty percent of calves died shortly after birth. Because farmers lacked refrigeration, transportation, or any way to test for quality, milk could not travel far and was frequently contaminated or diluted.

Nestlé came to Moga to build a business, not to engage in CSR. But Nestlé’s value chain exemplifies the philosophy derived from the company’s origins in Switzerland, dependent on establishing local sources of milk from a larger, diversified base of small farmers. Establishing that value chain in Moga required Nestlé to transform the competitive context in ways that created tremendous shared value for both the company and the region.

Nestlé built refrigerated dairies as collection points for milk in each town and sent its trucks out to the dairies to collect the milk. With the trucks went veterinarians, nutritionists, agronomists, and quality assurance experts. Medicines and nutritional supplements were provided for sick animals, and monthly training sessions were held for local farmers. Farmers learned that milk quality depended on the cow’s diet, which in turn depended on adequate feed and irrigation. With financing and technical assistance from Nestlé, farmers began to dig previously unaffordable deep bore wells. Improved irrigation not only fed cows but increased crop yield, producing a surplus of wheat and rice and raising the standard of living.

When Nestlé’s milk factory first opened, only 180 local farmers supplied milk. Today, Nestlé buys milk from more than 75,000 farmers in the region, collecting it twice daily from more than 650 dairies. The death rate of calves has dropped by 75%. Milk quality has increased 50-fold. As the industry cluster has developed, Nestlé has been able to pay higher prices to farmers, and the government and its steady biweekly payments have stabilized the local economy.

Questions:

Who are the stakeholders in this situation, and what are their stakes?
Assess the corporate social responsibility in this case.
Was it really necessary for Nestlé to fulfill the expectations of different stakeholders from the business perspective? Discuss.
What are the main lessons that can be learned from this case? Explain.

10. 2018 Spring Q. No. 18
Read the case situation given below and answer the questions that follow:

Kanchanjangha Tea Estate (KTE)

Kanchanjangha Tea Estate (KTE) is located at Ranitar in the remote hilly region of Panchthar district in eastern Nepal, at the foot of Mt. Kanchenjunga. The enterprise was launched in 1984 by local farmers on a cooperative model. Over 100 farmers joined hands, pooled in their marginal land holdings, and became owners of the first orthodox tea plantation covering nearly 94 hectares of land. The land, which was barely enough to sustain them, is now utilized to produce high-quality organic orthodox tea of the Himalayas. It produces and sells approximately 100,000 kilograms of green and black tea every year.

Kanchanjangha cares for its business by caring for its stakeholders. It has set good examples of CSR in the marketplace, workplace, community, and environment. It is the first certified organic tea garden in Nepal. It is NASAA, JAS, USDA, and ISO 22,000 certified. The area of the tea garden is inspected every year by the NASAA (National Association for Sustainable Agriculture, Australia) inspector to ensure its organic status. The fertility of the soil is maintained by the innovative and regular advice of the research team. It has also enforced a Hazard Analysis and Critical Control Point (HACCP) plan. HACCP is an organized procedure developed to ensure food quality through preventive measures rather than curative ones. It analyzes chemical and biological aspects of the products and advocates for the safety and quality of the products. It exports its products to different countries, including China, Japan, South Korea, Australia, Germany, Finland, the Netherlands, Canada, and the USA under the “Nepal Organic Tea” brand with proven quality, the tag line of KTE reads: “people and planet before profit”.

KTE has provided free housing to its employees so they don’t have to worry about shelter. This has not only saved their money for housing but also the time to reach the office or tea garden. Employees seem quite happy with KTE. Ratna Rai puts it simply, “It has been 19 years I have been working in the packaging section of KTE, and I am absolutely satisfied with the facilities and environment here at KTE.”

Likewise, another employee, Keshab Dulal, remarked: “I have been working for six years at KTE, and I proudly say that KTE has become my new husband. After my husband passed away, KTE has been responsible for the education of my two children. Besides, it has provided me with a place to live, food to eat, and a secure job. What else do I need? I am highly grateful to KTE for its support.”

KTE gives priority to local people, particularly women, in employment opportunities. It now has approximately 75 women employees. KTE is also providing scholarships to economically disadvantaged children of the local community who can later join KTE as loyal and dedicated employees. KTE started a “Cow Bank Project” in 2005, under which it initially distributed 36 high-yielding cows and a bull to small farmers in the village.

Hundreds of small farmers are now able to sell their cow’s milk in the local market to earn their livelihood and enhance their standard of living. Furthermore, it is arranged that they can sell the cow dung to KTE (KTE uses cow dung as organic manure for tea farming). However, farmers must give away the calves to KTE in case of reproduction. These calves are then distributed to other farmers.

The construction of eco-houses is under progress; these houses are proposed for two major purposes. The Tea Estate is committed to environmental protection and sustainable utilization of natural resources so that future generations do not compromise on their use. Vetiver (a grass that binds the soil) is planted on both sides of the road, and farmers are encouraged to plant Vetiver around their living areas to control soil erosion. It is also a source of extra income for them.

Kalo Siris (Albizia Sinensis), Asure (Adhatoda Vasica), Bakaino (Melia Azedarach), and Khirro (Sapium Insigne) are planted in the gardens. Training programs are conducted regularly to develop skills in IPM (Integrated Pest Management), composting, and environmental protection. Children are also educated to care for the environment.

Today, Kanchanjunga Tea Estate is not just a company but a center for education too. Every year, students from various countries, including France, Germany, and Japan, intern for months and contribute a helping hand while they acquaint themselves with the knowledge of organic agriculture and co-operative approach to a company. KTE has now established itself as an exemplary” responsible model” to create win-win situation between business and society.

Questions:

Who are the key stakeholders of Kanchanjanga Tea Estate (KTE)?
What kind of stakes do they have in KTE? Explain.
Explain the responsible business practices of KTE towards its different stakeholders.
Is it really necessary for KTE to fulfill the expectations of different stakeholders from the business perspective?
Discuss.
What are the main lessons that can be learned from this case?
Explain.

11. 2018 Fall Q. No. 18
Read the case situation given below and answer the questions that follow:

Little Enough or Too Much?

BRYAN IS HIRED
Bryan was recently hired by a large chemical company to oversee the construction of production facilities to produce a new product. Gossett Chemical Company developed a new industrial lubricant that it felt it could produce at a price close to those of its competitors. The plant to manufacture the lubricant was built on land adjacent to the East River. Gossett Chemical had already applied for and received the necessary permit to dump waste materials from the process into the river. Several other chemical plants in the vicinity are also releasing waste materials into the river.

Bryan’s Concern:
Bryan is concerned because the government agency that oversees the permit process granted Gossett Chemical a permit to release more waste into the river than previously anticipated. An additional stage in the production process that would have reduced the waste and recycled some materials became unnecessary due to the regulatory agency’s decision. Because this additional process would have added capital and production costs, it was not built as part of the existing plant. Yet, Gossett Chemical has always stated publicly that it would do all it could to protect the environment from harmful materials.

THE COMPANY:
The company had a mediocre performance for several quarters, and everyone is anxious to see the new product do well. Tests have shown it to be a top-quality industrial lubricant that can now be produced at a cost significantly less than those of their competitors. Orders have been flowing in, and the plant is selling everything it can produce. Morale in the company has increased significantly because of the success of the new product. Due to the success of the new product, all employees are looking forward to sizable bonuses from the company’s profit-sharing plan.

Bryan’s Decision

Bryan is upset that the company failed to build the additional stage of the plant and fears that the excess waste released today will cause problems for the company tomorrow. Bryan approaches Bill Gates, the plant supervisor, with his concerns. Bill replies:
“It’s up to the agency to protect the river from excess waste, and the company only had to meet the agency’s standards. The amount of waste released poses no threat to the environment, according to the agency. The engineers and chemists who originally designed the process must have been too conservative in their estimates. Even if the agency made a mistake, the additional recycling and waste reduction process can be added later when it becomes necessary.”

Implications:
Bill continues:
“At this point, building the additional process would require costly interruptions in the production process and might cause customers to switch to our competitors. Environmental groups might become suspicious of production being stopped to build in the additional process, as they might see it as an admission of wrongdoing. No one in the company wants to attract any unwarranted attention from environmental groups. They give us enough trouble as it is. The best thing we can do is make money while the company can and deal with issues as they come up. Don’t go trying to cause trouble without any proof. The company doesn’t like troublemakers, so watch your step. You’re new here, and you wouldn’t want to have to find a new job.”

Bryan Is Unsure:
Bryan is frustrated and upset. He can see all the benefits of the new product, but inside, he is sure the company is making a short-sighted decision that will hurt them in the long run. The vice president of operations will tour the plant next week, and Bryan is considering approaching the officer with his concerns. It might also be possible to contact the government agency and request that the permit be reviewed. Bryan is unsure what to do, but he feels he should do something.

Question:

What are the social or ethical issues in this case?
Are the ethical issues in this case those of the firm or of Bryan? Discuss.
Assess the corporate social responsibility of the firm based on the comments of Bill Gates, the plant supervisor.
What ethical responsibility, if any, does Bryan have in this case? What should he do? Why?

12. 2017 Spring Q. No. 18
Read the case situation given below and answer the questions that follow:

Nepalese rivers are heavily polluted by the organized sectors like city, dwellers, industries, hotels, hospitals and others. Likewise, main river streams are polluted by sand and stone collectors. The garbage, plastics and other bio-degradable and non – degradable wastes are directly disposed of in the rivers, which convert rivers into dumpling sites and sewage drain.

Since Long Community Based Organizations (CBOs), Non- Governmental Organizations (NGOs), International Non-Governmental Organizations (INGOs), and Governmental Organizations (GOs), engaged in an awareness campaign about river cleanliness and trying to make the general people aware of the negative effect of river pollution, though it is not satisfactory and much remains to be done.

Questions:

a. How do you think the concept of CSR is related in the case?
b. Are organized sector (industries, hospital, hotels etc) playing the role of corporate citizenship?
c. How can you link business ethics in the case of river pollution?

13. 2017 Fall Q. No. 18
Read the case situation given below and answer the questions that follow:

Raziya, a secretary has worked for your company for fifteen years. She joined the company at a very young age and has been a consistent performer and constantly scored high grades in her performance appraisal. Business continued to grow and in the due course of time, other secretaries and office assistants were hired who were better educated and had superior computer skills. These new hires outperformed Raziya a number of times too. During the ups and downs of the company, many secretaries and office assistants joined and left but Raziya stuck to her job and provided her able service to the company.

Recently Raziya was involved in a car accident in which she permanently lost the use of her right hand. Thus, she can no longer effectively type, file, or perform many of the other functions that she previously had performed and that are included in her job description.

Your company is facing difficult times. Your company is running on a very tight budget and does not have sufficient funds to pay for an additional secretary without reallocating budget items. The injured secretary has been very dedicated to your company and her superiors were satisfied with her work and dedication. She wants to stay at her job. Moreover, she does not believe that she could find other employment at this time.

Questions:
a. What action should the company take for Raziya?
b. If the company decides to fire Raziya, what consequences might the company face?
c. Will the company be following socially responsible behavior if it fires Raziya?
d. What are the various options available to the company to deal with Raziya’s case?

14. 2016 Fall Q. No. 18
Read the case situation given below and answer the questions that follow:

Amy Miller, manager of strategic planning for banking operations at Inland National Bank (INB), was facing a problem. Inland recently acquired another local bank, Home savings bank. INB’s senior management was reorganizing the company’s retail banking operations, and some of the branches were sure to be closed. Located in a medium-sized city in the Midwest United States, INB had a good reputation for community involvement and solid financial performance. The decision to reorganize the bank’s branches made economic sense, but Amy was troubled by how it would affect a number of local neighborhoods. She was especially concerned about two specific branches:

Rockdale Branch
This was a small savings branch. The problem here was obvious. The neighborhood was old and on the decline. Home savings had not modernized the facility for many years, and a major investment was needed to improve the facility. Amy estimated that the cost would be $500,000. It was unclear whether the financial potential of the neighborhood warranted such an investment. Some saving banks had closed their branches in Rockdale; the other center bank had closed their branches at least five years ago. If the local office was closed, Rockdale customers could use the branch in Culver Heights, about a 10-minute drive or bus ride from Rockdale. The Culver Heights branch was conveniently located on a local bus route.

North Madison Branch
Miller was also concerned about a branch office located in North Madison, a neighborhood adjacent to Rockdale. North Madison was a poor neighborhood, with an average income that was $2,000 per household below that of any other neighborhood in the city. Many of North Madison’s residents were on welfare and public assistance. Home savings banks had a branch office on the main street of North Madison’s commercial district. INB had closed its local branch in North Madison more than a decade ago.

The senior executive in charge of INB’s business strategy had talked about replacing branches with automatic teller machines in some locations such as the North Madison shopping district. The move would eliminate a total of 20 jobs at the bank. Only a few of these employees were likely to find other jobs within the bank. INB’s CEO had given a televised interview in which he discussed how the bank could better serve customers. The bank had announced that it would soon introduce new online banking services for its customers.

Other Factors
Rockdale residents had organized a group of picketers in front of the Home savings branch a few days after the merger announcement was made. A local television station sent a crew to cover the story. One local resident who was interviewed said, “INB just hates old people and poor people. We are all that lives in Rockdale! They care more about money than people.”

INB has also received angry telephone calls from several city officials. Sheila Thomas was an elected member of the city council whose district included both the Rockdale and North Madison neighborhoods. She was outspoken about the bank’s plan and questioned whether the bank was acting in good faith toward all of the city’s residents. During a television interview, Thomas said, “It’s wrong for this bank to cut the heart out of the neighborhood by replacing people with ATMs.” Amy Miller respected Sheila Thomas, but she also recognized that the council member was an ambitious politician with a talent for media coverage.

Inland National Bank operated under the regulatory supervision of several federal and state banking agencies. The bank had a good record with these authorities, but the branch reorganization plan created public pressure. Under the federal Community Reinvestment Act (CRA), INB had to disclose where its deposits came from and where they were invested. This was to help ensure that money was being fairly reinvested in the communities where depositors lived and worked. The CRA gave banking officials some leverage to force banks to pay attention to local community needs.

The protests from residents and merchants had gotten the attention of the state banking officials who had to approve INB’s branch closings. A key concern for state banking officials was whether the financial service of the bank would be improved or harmed by the proposed action. The governor had recently appointed a new state banking commissioner who had given a number of speeches urging banks to “invest at home,” and in people, as well as technology. Rockdale and North Madison were raising tough new issues.

The Decision
At a recent meeting with INB’s CEO and senior management committee, Miller learned that the state banking officials had told INB to submit a plan that responded to the issues raised by the residents of Rockdale and North Madison. She was named to a team that had to recommend a course of action to INB’s CEO by the end of the week. The team’s leader had called a meeting for this afternoon. He had suggested that one way for INB to get out of this problem was to close just one of the branches. Miller had been asked to bring her analysis of the Rockdale and North Madison branches to the meeting.

Questions:
a. Who are the stakeholders in this case? Which are primary, and which are secondary? What influence do they have?
b. If INB decides to close one or both of the branch banks, how will the business government-society relationship come into play? How might the issue develop?
c. What should Amy Miller recommend to her team? Does the “close one branch” option solve the problem for the bank or the community?
d. What steps can, or should, the bank take to soften the impact of a closing?

CSR, BUSINESS ETHICS AND CORPORATE GOVERNANCE ISSUES IN NEPAL BOARD QUESTIONS WITH ANSWER

BUSINESS AND SOCIETY CASE ANALYSIS