MUDAKIR HAFEEZ .FA10BBA-068 QASIM RIAZ..FA10BBA-093 ABDUR RAHMANFA10BBA-079 ZAIN TAHIR GHAURI.

FA10BBA-228 SYED DANISH HASANFA10BBA-210

CASE STUDY

SUBMITTED TO MADAM NABILA NAZIR. ON 24TH DECEMBER 2011

Case study:Q#1) Evaluate the situation from the viewpoint of David Edmondson ethical leadership .what could RadioShack have done differently? Answer:- As the individual character of David Edmondson he lies in the external locus on a level of Pre-conventional stage as he thinks what was happen was by luck or by chance and as his moral development he was sticking to the rules only when doing so is in his immediate interest he offered apologies to the investor just because it was the need of the time and due to obvious pressures .Else obviously he knew about his false educational background all along . The RadioShack could have taken stricter action against this deception and firstly should have clarified its criteria for hiring and promotion of an individual. Whether they base their decisions solely on talent and experience or academic credentials. The apology which was later provided by David Edmondson should have an announced and called by the company itself .This would have saved the image of the company to an extent in the eyes of investors .which could have also gained the trust of stakeholders that would have improved the

businesss stock price in the long run .And there would have been no need of a Turnaround Plan of closing down around 700 stores. Q#2) what stakeholders might be impacted by this situation? What concerns might each stakeholders have had? Were any of the stakeholders concerns in conflict with each other? Explain .What impact might this have had on employees? Answer:-The stakeholders like contractors, customers, vendors, retailers, franchisees and many other in an organization environment have stakes in or are significantly influenced by what the organization does. And they are highly impacted by this situation . They might have different concerns as thinking nonmeritorious position of the CEO or by thinking of favourism of upper management towards selected employs(remarks of Len Roberts) or by thinking the projection of loss in future. And this situation creates bad name for all the stakeholders too. While it is not clearly mentioned that whether there are any conflicts among the stakeholders but the apologies of Len Roberts and David Edmondson clearly shows that there might be a conflict of thinking between stakeholders. If the situation would have lasted a little longer the employees would have started questioning the top management regarding Edmondsons promotion or is he worthy to be the CEO.

Q#3) Do you think the boards decision to fire Edmondson was tough, as Len Roberts suggested? Why or why not? Why do you think Mr. Roberts would Have described this decision as such?

Answer:-Yes it was tough for the board to decide to fire Edmondson as there was no parallel to him at that time for Len Roberts he only believed in Edmondson as he was the one who made Edmondson, CEO after him, he worked with him and knew every bits and bytes of David while putting his complete faith in him. Being the chairman of the board of directors it was tough for Len Roberts. Because his own name and credibility was at stake. Q#4) what impact do you think the companys severance package to Mr. Edmondson might have? Answer:-The impact of companys severance package might affect the name of the board of directors as they are directly involved in the promotion or demotion of Edmondson and is answerable to the general public and media including their other employees of why Edmondson was getting such a lavish severance package. This

raises questions directly targeting the organizations top management regarding an unlawful act of corporate disobedience. Q#5) Could an organization ever prevent a situation like this from happening? Why or why not? What could they do? How could the companys code of ethics play a role? Answer:-Of course an organization can prevent situations like this before happening , as RadioShack also could have done the same by mentioning its clear and vibrant code of ethics and the criterion of standards of promotion of an employee .The companys code of ethics played an important role here which creates standards among employees to not to do any unlawful or unethical act . Now the RadioShack has setup a full-fledge office for the code of ethics of their employs and stakeholders. As the RadioShack current status of code ethics can be determined from here. (From the website) (http://phx.corporate-ir.net/preview/phoenix.zhtml?c=84525&p=irol-govconduct)

Ask the Ethics and Compliance Team at RadioShack

Don't be afraid to ask. In some cases, the right thing to do will be obvious, but in other more complex situations, it may be difficult to decide what to do.

When faced with a tough ethical decision or whenever there are any doubts as to the right thing to do, we encourage team members to talk to someone else such as a supervisor, another manager, or contact the Ethics and Compliance Team.

In addition to our Code of Ethics, we rely on the good judgment and decisions of our team members to maintain our company's ethical reputation. All questions, comments and issues are handled in a professional and confidential manner.

ETHICS AND COMPLIANCE TEAM AT RADIOSHACK

Email: Fax: Mail: MS CF4-228

ethics@radioshack.com (817) 415-3756 RadioShack Ethics and Compliance Team

300 RadioShack Circle Fort Worth, Texas 76102

Q#6) In march 2004 issue of wired magazine, it reported that 44 percent of Americans lie about their work history. Whats your reaction to this statistic? What problems can lying on resume create for an organization? Answer:- According to us, it might be to some extent right that many Americans use to lie in their resume but not up to 44 percent it might be true to around 30-35 percent as 2 of our group members(Syed Danish Hasan and Zain Ghauri) working in American outsourcing environment since 3 years. As it creates an image in the managers eyes that this individual employee can perform certain task as he presented in his resume and manager and the organization depend on that individual directly which doesnt ends well as that certain employee actually lied in his resume par CV. Later on, this becomes managers great dilemma to how to obtain work from this certain individual.

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