Success at What Cost? - A Case Study in Managerial Ethics & Compliance

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Case Details:

Case Code : HROB106
Case Length : 06 Pages
Period : -
Organization : -
Pub Date : 2008
Teaching Note :Not Available
Countries : India
Industry : Pharmaceutical

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Please note:

This case study was compiled from generalized experience of the author, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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The chairman of SuperDrugz, Dhirubhai Patel (Patel), was livid. His company was in the news, and for all the wrong reasons.

SuperDrugz had grown from a small start-up in 1985 to a mid-sized pharmaceutical company by the year 2000, thanks to Patel's vision and hard work. Though in the initial years it was run like a family business, Patel realized as the company increased in size that it was important for the business to be run by a professional management group.

In 2000, he started the process of handing over the day-to-day operations of the company to a team of professional managers.

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He handpicked each member of the core management team. Since the company started showing sound growth within a few months of the new management team taking over, Patel gradually distanced himself from the day-to-day functioning of the company, opting to play more of a figurehead role.

But the happenings of the past few days left him ruing the fact that he had not been more involved in the company's activities. What had happened had put in jeopardy everything that he had toiled for over the last three decades.

Patel called for an emergency board meeting to decide the future course of action for the company. The company was in trouble as just over a week ago, a whistleblower¹ had revealed some serious ethical shortcomings within the company. The situation had since snowballed into a major public relations (PR) nightmare for the company...

1] A whistleblower is someone (most often an employee, former employee, etc.,) who provides information about an employer's supposed misconduct.

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