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The case and supporting teaching note were developed through the use of secondary sources such as company documents and archives, news articles and academic publications.

Jane Fraser, Citigroup CEO and the first woman to lead a major Wall Street bank, found herself at a crossroads. Weeks prior to the company’s 2022 annual shareholder meeting, Citigroup announced it would provide reproductive health-care benefits to employees traveling out of state for an abortion. Prompted by legal developments that hinted at the potential for a widespread ban on abortions, the announcement resulted in threats from Republican lawmakers to change course or suffer financial consequences. Through the case, students explore the role of business and corporate leadership in response to controversial political issues, including the potential opportunities and threats.

The case is best-suited for management or other business students at the undergraduate or graduate/MBA level. The learning objectives of the case would fit well within any of the following courses: Corporate Social Responsibility (CSR)/Business and Society; Business Ethics and Decision-Making; and Strategic Management. Instructors should position the case after students have been introduced to the topic of corporate social responsibility, ethical decision-making and/or CEO activism.

UrbanClap was setup in October 2014 to address the opportunity of bringing the workforce from the unorganised sector into the mainstream using the power of technology. It was an on-demand marketplace for services available through a mobile app. In the initial years, UrbanClap, developed as horizontal marketplace, saw intense competition from existing and new players who were operating in the hyperlocal services space. It competed in the on-demand service marketplace by categorising its services into a lead generation business (where it connected customers with the service provider and charged a fee for matchmaking) and a fulfilment business (where UrbanClap took end-to-end responsibility for quality of service delivery). After three and half years of operations, the three co-founders wondered if it was time they moved out of lead generation and instead focussed on the fulfilment business.

UrbanClap was setup in October 2014 to address the opportunity of bringing the workforce from the unorganised sector into the mainstream using the power of technology. It was an on-demand marketplace for services available through a mobile app. In the initial years, UrbanClap, developed as horizontal marketplace, saw intense competition from existing and new players who were operating in the hyperlocal services space. It competed in the on-demand service marketplace by categorising its services into a lead generation business (where it connected customers with the service provider and charged a fee for matchmaking) and a fulfilment business (where UrbanClap took end-to-end responsibility for quality of service delivery). After three and half years of operations, the three co-founders wondered if it was time they moved out of lead generation and instead focussed on the fulfilment business.

Northern Textiles (NTL) used highly complex derivatives to hedge its currency risk, and these structured products have been profitable in the past. But in 2008, unanticipated movements in exchange rates have led to serious losses. Seth, the Chairman of NTL, has come to know about the losses on a specific deal, but the Treasurer has ensured that he is the only person who understands the derivative book in its entirety. Though Seth is not aware of how grave the problem is, he realizes that he must review NTL's risk management policies and perhaps even replace the CFO.

This case teaches students the importance of maintaining a strong FICO score by illustrating the consequences of paying bills late or not at all. The protagonist is David Molina, a waiter at a struggling Italian restaurant located down the block from where he lives. Money is tight for Molina right now—his limited income means he lives paycheck to paycheck. However, Molina knows things will be looking up for him soon because he recently accepted a job as a bank teller across town—his first desk job.

Molina has been putting off paying two of his bills: a cable bill and his Bank of America credit card bill, both of which are late and have been issued, this time, in the form of threats to impact Molina's credit score if he doesn't pay them. He has just enough money to afford the minimum payments on each overdue bill. But then he receives a phone call from his friend, Jim Lindsey, reminding him about an invitation to go to Myrtle Beach for the upcoming weekend. Molina knows he cannot afford it, but a woman he's attracted to, Jessica, will be there too. Should Molina put off the bills yet again, and if so, how exactly will being late on them hurt his credit score?

After reading the case, the students shall be able to explain the concept of insider trading and differentiate between illegal insider trading and legal insider trading, business ethics, financial institutions, financial markets and accounting; to interpret the legal framework for prevention of insider trading; to identify the role and significance of the market regulator, Securities and Exchange Board of India (SEBI), in detecting financial crimes such as insider trading; to demonstrate the association between information, stock trading and stock prices within the framework of efficient markets; and to appraise the ethical dilemma in a family-owned firm, where the family members of the promoter group are alleged to have indulged in a financial crime.

The case revolves around allegations of insider trading against the promoter and the promoter group of the family owned and controlled firm, Lux Industries Limited. On January 24, 2022, the SEBI, the regulator of securities markets in India, accused Udit Todi, the Executive Director of Lux Industries Limited, of engaging in insider trading through a chain of 14 connected parties. Udit Todi was also the son of the Managing Director, Pradip Kumar Todi, and the nephew of the Executive Chairman, Ashok Kumar Todi. In its interim order, SEBI alleged a breach of insider trading regulations by a group of 14 connected entities that had built up long positions starting from May 21, 2021, before the quarterly financial results (Q4) and the annual results of the financial year (FY) 2021 in the equity shares of Lux Industries Limited, with its registered office in Kolkata, India, were announced. Subsequently, they squared off the long positions to make a profit of ₹29.43m. To restore the confidence of the investors, the Executive Chairman, Ashok Kumar Todi, needed to review the matter expeditiously and impartially. Taking into consideration the family ties of the accused, it was not going to be an easy task, yet, it had to be done. The case highlights the role of the regulator, SEBI, in unearthing financial frauds such as insider trading in an emerging market such as India.

Postgraduate programs in management, Executive education programs.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance