Corporate Governance | Case/Opinion | An appropriate response

An appropriate response.

Please prepare your arguments about this case for and against terminating his employment as a first step in restoring the reputation of your airline.

You sit on the Board of Directors of a major airline that just experienced a horrendous customer service event. 

A severe snowstorm stranded several of your planes and caused a ripple effect throughout your flight schedule, stranding thousands of passengers at airports across the country and keeping dozens of passengers as virtual hostages on planes for several hours as they waited for departure slots at their airport. 

The press has covered this fiasco at length and is already calling for a passenger bill of rights that will be based primarily on all the things your airline didn’t do to take care of its’ passengers in this situation. 

Your CEO is the founder of the airline, and he has been featured in many of your commercials raving about the high level of customer service you deliver. 

The board is meeting to review his continued employment with the company.



Source: Ghillyer_Business Ethics A Real World Approach 2e

Corporate Governance | What is the argument in favor and against of merging the roles of chairman and CEO?

What is the argument in favor and against of merging the roles of chairman and CEO?

The argument in favor of merging the roles of chairman and CEO is one of efficiency. By putting the leadership of the board of directors and the senior management team in the hands of the same person, the potential for conflict is minimized and, it is argued, the board is given the benefit of leadership from someone who is in touch with the inner workings of the organization rather than an outsider who needs time to get up to speed.

The argument against merging the roles of chairman and CEO is an ethical one. Governance of the corporation is now in the hands of one person, which eliminates the checks and balances process that the board was created in the first place. This type of situation compromises the independence of the board, and the powers of the stockholders are minimized.



Source: Ghillyer_Business Ethics A Real World Approach 2e

CSR | Case / Opinion | Closing down a factory

Closing down a factory

Please prepare arguments for and against the following behavior:

Your company is managing to maintain a good profit margin on the computer parts you manufacture in a very tough economy. Recently, an opportunity has come along to move your production capacity overseas. The move will reduce manufacturing costs significantly as a result of tax incentives and lower labor costs, resulting in an anticipated 15 percent increase in profits for the company. However, the costs associated with shutting down your United States–based operations would mean that you wouldn’t see those increased profits for a minimum of three years. Your U.S. factory is the largest employer in the surrounding town, and shutting it down will result in the loss of over 800 jobs. The loss of those jobs is expected to devastate the economy of the local community.







Source: Ghillyer_Business Ethics A Real World Approach 2e