MBA402 Assessment 2 Case Study : The Loyalty Dividend

Global FinTech Solutions is recognised for its commitment to customer friendly technology in finance. Alex Johnson, the newest board member, joined 6 months ago. Alex had been looking for an opportunity to join a board for a while, after completing his AICD accreditation. Fortunately, a previous colleague and an old friend were both on the Fintechboard,whichgavehimachancetobeconsidered.Asaresult,hewasnominated and voted on to the board by shareholders.

Alex always considered himself a little idealistic, but was confident that a company as reputable as Global Fintech would easily meet his standards. Now, he’s not so sure. As his familiarity with the company increased, Alex realised that some financial data was beingdeliberatelyomittedormodifiedinreports.Thismeantthatthecompanywasbeing misrepresented to the media and to investors. The information being missed was not obvious, but emerged from inconsistencies in information scattered across various documents.

At first, Alex thought there must be a simple error, so he asked his close board colleaguesaboutit.Theirresponsesurprisedhim.Insteadofacceptingthattheremaybe an issue, his colleagues told him to forget about it. They seemed to be well aware of the situation. They explained that the business has some deep flaws, but that no-one has worked it out yet. So they told him to keep it to himself.

Alex found himself in a very awkward position. These individuals, who have been his mentorsandchampionswithinthecompanyareapparentlywithholdinginformation.How can he play along with that? And why are they doing it?

Alex knows there is an important broader principle involving shareholder trust here. Informationaboutthestateofthecompanyshouldbedisclosedinatimelyway,sothat shareholders can make decisions based on fact.

Howcanheremainloyalto them,butalsodowhathethinksisright?

REQUIREMENTS

Focusedanswers tothefollowingthreequestionsare required:

1. CaseAnalysis(Approximately600 words):

AnalysethissituationusingtheGVVframework.

• Identify the ethical issue, values at stake, and potential rationalisations of allthe key parties.
  • Evaluatethepotentialimpactonstakeholdersandtheorganisationifthisissueis not addressed.
• Considerthebarrierstospeakingupandstrategiestoovercome them.
  • ProposealternativeactionsalignedwithGVVprinciples.

1. ScriptDevelopment(Approximately600words):

Develop a script where you give voice to values and address the ethical issue in thecase.

• UsetheGVVframeworktostructureyour script.
  • Clearlyarticulateyourvaluesandthereasonsbehindyour stance.
  • Addresspotentialrationalisationsandcounterthem effectively.
  • Considertheaudienceandtailoryourmessage accordingly.
  • Proposespecificactionsorsolutionstoaddresstheethical issue.

1. Reflection(Approximately300words):
   • ReflectontheprocessofapplyingtheGVVframeworktothecase.
   • Discussanychallenges youencounteredandhowyoudealtwith them.
   • Considerhowthisexperiencehasinfluencedyourunderstandingofethical decision-making in professional settings and how this may be of value in future.