GS4 · UPSC Mains

Anil Gupta, founder of ABC industries, decided to appoint his son Rohan Gupta as the new CEO of the company despite his distaste for family business. This decision side-lined several experienced and talented executives who had been with the company for decades. With Rohan Gupta at the helm, many senior executives found their roles diminished. Mr. Suresh Mehta, the former head of operations with over 25 years of experience, was moved to a less influential position. Similarly, Ms. Anjali Desai, a renowned marketing strategist, saw her projects shelved in favour of initiatives proposed by Rohan's close associates. This resulted in a significant portion of the company's top talent sitting idle, leading to frustration and a decline in morale. Rohan's tenure was marked by a series of poor strategic decisions. His decision to delve into unrelated sectors such as real estate and retail without adequate research or planning, just based on his friend's suggestion. These ventures drained the company's resources and failed to generate expected returns. The side-lining of experienced executives and the influx of Rohan's inexperienced associates led to significant internal conflicts. Disagreements on strategic directions and management practices became common, creating a toxic work environment. The board of directors was often split, with one faction supporting Rohan and the other backing the side-lined senior executives. This infighting made it difficult to implement cohesive strategies, weakening the company's market position. Soon, ABC Industries had lost a significant portion of its market share to competitors. The company's financial health deteriorated, and it was forced to lay off a substantial part of its workforce. (a) What are the ethical issues involved in this case? (b) What action should Anil Gupta take for the resurgence of the company? (c) What steps have been taken by the government to improve corporate governance in India? (20 marks, 250 words)

20 marks · 250 words · 2 toppers answered this

GS4 · Ethical issues in international relations & funding; corporate governance

See this question on Topper's Copy by Hashin →

More GS4 questions →