Case Study 4: Ethics over Profits

Background:
You are a Russian banking professional living in Bishkek, and you have been hired as the new CEO
of a large multinational corporation based in the United States. The company has operations in 10
countries around the world, and it reported revenue of $5 billion in the previous fiscal year. The
company is known for its aggressive growth strategy, and it has set a target to increase revenue by
25% in the next fiscal year. However, the company has a history of prioritizing profits over ethics,
which has led to several scandals and controversies over the years. Employees are under intense
pressure to meet aggressive performance targets, and there is a culture of fear and intimidation
within the organization. There is also a lack of transparency and accountability, which has eroded
trust among stakeholders.

Problem:
The company has been embroiled in several scandals in recent years, including a bribery scandal in
Brazil that resulted in a $500 million fine. In addition, the company has been accused of
environmental violations in several countries, and there have been concerns about labor practices
in its factories. Employees have reported feeling pressured to meet unrealistic performance targets,
and there is a lack of communication and transparency within the organization.

Mission:
Your mission as the new CEO is to transform the company's culture and build a strong ethical
foundation that prioritizes transparency, accountability, and integrity. You must find a way to
balance the company's growth objectives with its ethical responsibilities, and create a workplace
that promotes trust, respect, and collaboration.

Challenges:

 Balancing growth and ethics: The company's aggressive growth strategy may be at odds with
its ethical responsibilities, and finding the right balance can be challenging. The company's
revenue target for the next fiscal year is $6.25 billion, which will require significant expansion
into new markets and aggressive sales targets.
 Resistance to change: Many employees may be resistant to changing the company's culture,
especially if they have benefited from the old ways of doing things. There may be pushback
from senior leaders who are invested in the current culture and may feel threatened by changes.
 Changing mindsets: Changing the culture of an organization requires a change in mindset,
which can be difficult to achieve. Employees may have become accustomed to the culture of
fear and intimidation, and may not know how to operate in a more collaborative and transparent
environment.

Questions:

1. What steps would you take to create a culture of transparency and accountability within the
organization?
2. How would you balance the company's growth objectives with its ethical responsibilities,
especially given the aggressive revenue target for the next fiscal year?
3. What strategies would you use to overcome resistance to change among employees and senior
leaders?
4. How would you measure the success of your efforts to transform the company's culture?
5. What role do you think leadership plays in creating an ethical workplace culture, and how would
you model ethical behavior as the new CEO?