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The case can be used in strategic management, international business or ethics courses. In strategic management courses, students will be able to identify political relationships as sources of a firm’s competitive advantage. Students will also understand the role of ethics in the firm’s competitive advantage. In international business courses, the students will be able to analyze the role that corruption and bribery play in the analysis of a country’s institutions. Students will also understand how corruption in a host country influences a firms’ decision to internationalize. Finally, students will understand the challenges that firms face when serving customers in other countries. In ethics courses, students will understand the nature of state/business corruption, i.e. the abuse of public office for private gain and the concept of state capture, i.e. managers controlling the political system for their advantage. Students will be able to analyze the decision of whether to collaborate with unethical partners or customers.

Bell Pottinger Private (BPP) was a British public relations (PR) firm with a successful but questionable reputation of helping famous critical figures and despots improve their public image. In 2016, Lord Tim Bell and the other leaders of BPP were asked to create a PR campaign for the Gupta family. The Guptas were a group of businessmen headed by three brothers who migrated from India to South Africa in the early 1990s. By the 2010s, they had built a business empire allegedly thanks to a corrupt relationship with the President of South Africa, Jacob Zuma and his family. The press and prosecutors were increasing their investigations on these relations. The case has two parts, which address two separate challenges and can be taught as standalone cases or in a sequence in two sessions.

MBA and Executive Education.

Teaching notes are available for educators only.

CSS 5: International business.

This case is focused on the allegations of corrupt practices within the strategic leadership at the board level of an international sports organization – the Asian Football Confederation (AFC). The theoretical premise is that the practices and decisions of the AFC’s leadership will have a profound impact on the AFC’s performance. However, because the AFC is the continental governing body, the impact is theorized to be far larger, across an entire industry. In writing the case, the authors were guided by upper Echelons theory (UET) (Hambrick and Mason, 1984; Hambrick, 2007; Hambrick et al., 2015), which argues that an organization’s strategic direction is directly influenced by its leader’s values. The authors selected UET for the theoretical framework, as it considered a spectrum of factors from industry, leader characters (values), their choices and the results of their actions. Such a comprehensive theory aligned with the complexities of the AFC and its leadership. In constructing the case roadmap using UET, the authors first adopted an ethnographic methodology. This was motivated by the fact that one of the authors had been embedded for many years as part of the leadership team at the AFC. His career work notes based on direct interactions and observations of these leaders helped in two ways: to identify the complex set of personal characteristics of these leaders (i.e. background, their careers outside football and financial standing) as they originated from 47 different nationalities. UET refers to these as observable factors to better theorize the hidden intentions of their alleged corrupt behaviors. UET identifies this second set of non-observable factors as psychological factors. These two different sets of observations combined helped to theorize their drivers, intentions and strategic decisions (options). For the second methodology, the authors accessed archival, publicly available media news and reports to understand the consequences of their actions to the AFC and the Asian football industry. This completed the final parts of the UET framework (Yamak et al., 2014).

This case relied on information that was widely reported within international media, press announcements by various organizations, published decisions by tribunals and publicly available information on the AFC. All of the names and positions in this case are actual persons.

This case focuses on the role and influence of the AFC as the Asian football governing body. The AFC is a member of the world football governing body – FIFA. With a US$1bn budget, the AFC has a strong impact on the future of football among Asia’s three billion people. Unfortunately, the AFC has been unable to create the value in its sports events or properties that attracts fans and investors. Central to this problem is the issue of corruption and corruption allegations within the AFC, especially with regard to its leadership. This case, therefore, attempts to highlight the various issues, discusses the circumstances around these challenges and brings forth the complexities of leading a truly international organization across 47 countries. Such factors are then tied to the value of the organization’s products or services in the marketplace.

The case is written and designed for a graduate level (MBA) class or an upper level undergraduate class such as corporate strategy, leadership, international management, international marketing, contemporary issues in management, cross-cultural management, sports management and sports marketing. In general, the case will also be a good fit for courses that discuss leadership, organizational strategy, organizational structure, organizational ethics and organizational behavior.

Judy was a high-performing professional manager who was with her company for 15 years and was a manager for six. She was a confident, positive, and happy person but recently lost her confidence in herself and her abilities. She dreaded going to work because she never knew what she would face from her boss, Dennis. Dennis was a brilliant man who was recently promoted to Senior V.P. He was condescending, and he humiliated people in public. Complaints to the CEO and a harassment claim produced no results. Dennis did the CEO's dirty work and served a role needed in a fast-paced and profit-driven corporate culture. Judy enrolled in an MBA program to build her resume and her self-confidence. She faced a critical juncture in her career. Should she quit, transfer, complain to HR, or confront Dennis?

The learning outcomes are as follows: identify the key challenges of leading a large organisation that is self-serving as compared to one that has people of integrity in its employ; understand how resilient leaders need to be to remain focussed on the task at hand while faced with resistance and controversy at every turn; demonstrate how to cultivate a culture of trust and integrity in an organisation bereft of both, and rebuild an organisation’s reputation; navigate the dynamics of having an unruly subordinate [chief operating officer (COO)] who in reality is more powerful; and develop key skills in practicing self-care in an environment where one is constantly undermined and devalued.

This case looks at the leadership of former GCEO Lulama Mokhobo at the South African Broadcasting Corporation SABC from 2012 to 2014 and her lived experience within the theme of empowered powerlessness. With an unsupportive board, destructive COO, and minister of communications at government level, Lulama is disempowered in her position and battles to make changes. Colleagues attest to the unusually complex dynamics that she had to navigate on a daily basis. The case details how this eroded Lulama’s self-confidence as well as her ability to lead the organisation and pushed her to resign. The SABC managed to undo the strides she made during her tenure and now finds itself in financial quagmire due to poor and questionable decisions made after her resignation as the GCEO of the organisation.

The target audience for this case comprises students enrolled in tertiary business education programmes who have already had some sort of work experience and hands-on exposure to real-world business. MBA and EMBA students, as well as executive education programmes. Including disciplines such as leadership, organisational behaviour and people management and strategy.

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CSS 11: Strategy.

To evaluate a difficult career choice under compelling organizational circumstances. To analyse a complex organizational culture to understand the nuances of career decisions. To relate career dilemmas to relevant conceptual and theoretical strands of organizational behaviour. To interpret the leadership style and its interaction with organizational culture. To determine possible strategic recourses to deal with the dynamics of destructive leadership and toxic cultures.

The case is about the experiences of Raamit Pell, a Middle-level Executive at Accadia Management Services, and his encounters with a new boss, Pret Sohn. Raamit Pell had joined Accadia at a time when the organization was undergoing some political and cultural turmoil. When Pret Sohn came in as the new Chief Executive Officer six months later, there were a lot of expectations. But, Pret Sohn too began following Accadia’s existing political culture, indulging in unhealthy organizational practices. He caused mental harassment to many executives. One such executive was Raamit Pell. Despite Raamit’s excellent performance, Pret Sohn denied him a well-deserved promotion. Sohn justified it by saying that performance alone did not matter. Raamit felt deeply disturbed and considered quitting Accadia. He was reluctant to leave as a defeated man. Subsequently, he received an offer from another subsidiary of Accadia’s holding agency. As he was undergoing a three-month mandatory notice period for his release, Raamit became concerned about his decision to leave Accadia. Deep in his mind he longed to redeem his hurt pride at Accadia. So, he was pondering whether he had taken the decision to resign in haste.

Level: Post-graduate/doctoral and executive education programmes in management and allied subjects. Courses: Courses in Career Decisions, Organizational Behaviour, Leadership, Organizational Culture and Organizational Ethics.

Teaching Notes are available for educators only.

CSS 7: Management Science.

Jefferson County was in a financial crisis as the commissioners faced a decision concerning whether the County should file for bankruptcy. The County was under an EPA mandate to update an outdated and overrunning sewer system. Estimates to do the work ranged from $250 million to $1.2 billion. The situation led to graft, corruption, bribery and illegal activities. More than 20 people were prosecuted in association with the illegal activities involved in financing and construction of the sewer system and four of the five commissioners were sentenced for their involvement in the corruption. Five new commissioners were elected and had to determine what to do after the down-grade of the County's bonds and warrants; the reduced revenues; and the corruption had put the County in a situation where funds were not available to continue to operate the County and provide services to its citizens. Should they declare bankruptcy or choose other paths open to them?

Data sources – this case is based on field research and interviews with a commissioner, court documents and from many other public sources. Extent of disguise – the case is not disguised.

The case can be used in graduate or upper division undergraduate courses in accounting, strategy, public administration or finance. There are several topics in the case that could be addressed: governance; economics, government and political issues, ethics, accounting, financial instruments, and strategy.

Business ethics/corporate social responsibility.

From undergrad to executive education (the case series has been successfully used with MBA students and executives).

The case series starts by describing how a fictitious company (called L'ArtiMarché) faced an individual corruption issue after entering the Russian market. After describing the company's creative reaction, the case shows that corruption issues can easily reoccur and might require a more systematic approach of L'ArtiMarché to fight corruption within the company and in the society at large.

Responding/reacting to (external) corruption; governance and compliance systems to prevent corruption; and contribution of companies to the development of the social/political/moral framework of their own operation.

Teaching notes.

Business ethics corruption governance and compliance integrity management international management intercultural and cross-cultural management internationalization corporate social responsibility (CSR).

The case has successfully been used with a wide range of audiences from masters/MBAs to Executives. It will also work with undergraduates.

This four-part case series can be used to discuss business ethics, compliance/governance, integrity management, reacting to and preparing against corruption in the context of internationalization and allows to also briefly touching upon the issue of CSR. Case (A) describes a challenge IKEA was facing, while trying to enter Russia in 2000. The company was preparing to open its first flagship store on the outskirts of Moscow, only the first of several planned projects. After substantial investments in infrastructure and logistics, IKEA focused on marketing, but quickly faced a sudden complication. Its major ad campaign in the Moscow Metro with the slogan “[e]very 10th European was made in one of our beds” was labeled “tasteless”. IKEA had to stop the campaign because it “couldn’t prove” the claim. Soon Lennart Dahlgren, the first general manager of IKEA in Russia must have realized that the unsuccessful ad campaign was going to be the least of his problems: A few weeks before the planned opening, the local utility company decided not to provide their services for the store if IKEA did not pay a bribe. What should IKEA and Lennart Dahlgren do? Was there any alternative to playing the game the Russian way, and paying? The subsequent cases (B), (C) and (D) describe IKEA’s creative response to the challenges described in case (A), and then report about new challenges with alleged corruption within IKEA and in the legal environment, and finally raise the question whether IKEA can be considered to have a (corporate social) responsibility to fight corruption on a societal level to build the platform for its own operation in Russia.

Responding to a threatening corruption demand (here: responding to an outside demand for a bribe), avoiding corruption from the outside, cross-cultural differences in drawing the line for corruption, preventing corruption within the organization, (corporate social) responsibility of firms to improve the political/legal/social/moral environment in which they operate are the expected learning outcomes.

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CSS 5: International Business

Corporate governance, privatisation.

Masters level programmes, with particular focus on corporate governance, privatisation, and organizational development.

Yutong Bus is a real and highly publicized case in China. It is a listed company carved out from a state-owned enterprise (SOE), Yutong Group. Later the management successfully bought out Yutong Group and thus indirectly controlled the company. The deal transformed Yutong Group from a SOE to a private company. The management was innovative in pushing through the management buy-out (MBO), but politically, it created a public outcry about the loss of state-owned assets. The key issue here is the selection of state owned enterprises suitable for privatization and, more importantly, the determination of selling price. In China “the market for corporate control is still lagging behind” (Shanghai Stock Exchange).

Students would be expected to gain an understanding of recent economic reform in China, Corporate Governance in the Chinese context and wider issues associated with privatization and MBOs.

Teaching note.

With the establishment of Competition Commission of India (CCI), Competition law-class actions, especially with regards to abuse of dominance by monopolists, are slowly becoming unhappy realities with both government-owned as well as private companies. This case used Coal India Limited (CIL), a public monolith which was penalized recently by CCI, as a subject of analysis to delve deeper into various conceptual understandings related to public sector functioning, such as public versus private provisioning, natural versus designed monopoly, dominance versus abuse of dominance, corporate governance versus government mandated governance, and finally natural resource allocation.