Amrut is a Director (Finance) of a Mutual Fund Company. The Board had requested Amrut to work towards introducing effective internal control systems and enhance inter-departmental and stakeholder relationship. He was giv
CS Professional · Multidisciplinary Case Studies · PYQS · June 2021
Amrut is a Director (Finance) of a Mutual Fund Company. The Board had requested Amrut to work towards introducing effective internal control systems and enhance inter-departmental and stakeholder relationship. He was given the liberty to choose his own team for this work. He recruited a deputy, Kalpa, who, was technically competent but seemed to have attitudinal issues. Some of his team members informed him, that Kalpa prefers to hold back information and her behavior is at times rude towards the team. However, no staff has formally complained or yet left the organization. As such there was friction between Amrut and Kalpa. She seems to ressent any suggestions that he provides and is not open to feedback. She has implied, several times, that she feels she is being unfairly harassed and bullied. Amrut discussed this situation informally with the Managing Director. Although he has found Kalpa awkward and defensive, and he knows that another director also considers her somewhat abrasive, he has identified nothing that would warrant disciplinary action. Kalpa informs Amrut that she has been shortlisted for a role as Director (Finance) at another Mutual Fund house. Quietly, Amrut felt elated at the prospect that she might be leaving. The following day he receives a letter from Kalpa's prospective new employer. Kalpa had given his name as referral without informing him. The letter asks questions concerning the ability of the candidate to work in team, to motivate volunteers and to accept advice. For several reasons, Amrut would very much like Kalpa to be offered the position with the other employer. However, he is concerned that an honest response to the enquiries would jeopardize his desire of keeping her out of the organization, as such a response can only be negative. Based on the above fact, answer the following: (b) As a Company Secretary and Compliance Officer what would be your suggestion to Amrut, for further course of action?
Answer & Explanation:
A compliance officer, or compliance manager, ensures a company functions in a legal and ethical manner while meeting its business goals. They are responsible for developing compliance programs, reviewing company policies, and advising management on possible risks. As a Company Secretary / Compliance Officer, the following course of action could be advised to Amrut to settle the moral / ethical dilemma before him: Analyse the available options: List the alternative courses of action available. Consider the consequences: Think carefully about the range of positive and negative consequences associated with each of the different paths of action available. Who/what will be helped by what is done? Who/what will be hurt? What kinds of benefits and harms are involved and what are their relative values? What are the short-term and long-term implications? Analyse the actions: Actions should be analysed in a different perspective i.e. viewing the action per se disregard the consequences, concentrating instead on the actions and looking for that option which seems problematic. How do the options measure up against moral principles like honesty, fairness, equality, and recognition of social and environmental vulnerability? In the case you are considering, is there a way to see one principle as more important than the others? Make decision and act with commitment: Now both parts of analysis should be brought together and a conscious and informed decision should be made. Once the decision is made, act on the decision assuming responsibility for it. Evaluate the system: Think of the circumstances which led to the dilemma with the intention of identifying and removing the conditions that allowed it to arise. In the case study presented, Amrut should set aside his personal desires and provide an honest and fair feedback to the new organisation which would enable them to take a proper decision on hiring or non-hiring of Kalpa. In giving the feedback, Amrut should not allow his personal vendetta to taint his mind, rather he should analyse Kalpa's attitude and behaviour in a non-partial manner leaving the choice with Kalpa and the new organisation to decide where she should work going forward. On the other hand, being the Director (Finance) and the team head he should discuss the issues he and the other team members faced while working with Kalpa to afford her the opportunity to present her side of the facts and take corrective action wherever required.
Topics: Business Ethics / Corporate Governance
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