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1 – 4 of 4Business ethics corruption governance and compliance integrity management international management intercultural and cross-cultural management internationalization corporate…
Abstract
Subject area
Business ethics corruption governance and compliance integrity management international management intercultural and cross-cultural management internationalization corporate social responsibility (CSR).
Study level/applicability
The case has successfully been used with a wide range of audiences from masters/MBAs to Executives. It will also work with undergraduates.
Case overview
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.
Expected learning outcomes
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.
Supplementary materials
Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Subject code
CSS 5: International Business
Details
Keywords
Business ethics/corporate social responsibility.
Abstract
Subject area
Business ethics/corporate social responsibility.
Study level/applicability
From undergrad to executive education (the case series has been successfully used with MBA students and executives).
Case overview
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.
Expected learning outcomes
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.
Supplementary materials
Teaching notes.
Details
Keywords
Case B assesses the options available to the government and private operators in light of the SC judgment. It provides scope for examining the dimensions for auction design by…
Abstract
Case B assesses the options available to the government and private operators in light of the SC judgment. It provides scope for examining the dimensions for auction design by illustrating the subsequent exercise undertaken by the Telecom Regulatory Authority of India.
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Keywords
Olga Kandinskaia, Alla Dementieva and Olga Khotyasheva
In any company, there are conflicts of interest and different opinions on the business strategy. However, a well-established system of corporate governance allows us to minimise…
Abstract
Theoretical basis
In any company, there are conflicts of interest and different opinions on the business strategy. However, a well-established system of corporate governance allows us to minimise those conflicts and enables most disagreements to be solved in a civilised way. The case provides an opportunity to examine the specifics of corporate conflicts in Russia and improves decision-making skills with a view to increase business efficiency.
Research methodology
This descriptive case was written using the secondary sources from the Russian and foreign media, as well as other publicly available information about Norilsk Nickel. No information was disguised in any way.
Case overview/synopsis
This case study is a story of a dramatic corporate conflict at the Russian company Norilsk Nickel, one of the world’s leading producers of precious metals. In 2008–2012, the company went through a painful conflict between the majority shareholders (oligarchs Mr Potanin and Mr Deripaska) for the control over the business. The case of Norilsk Nickel was indeed a crucial case for Russia which helped define the “rules of the game”. In 2019, however, the situation looked prone to the escalation of the old conflict. The fact that from 2018 both oligarchs were under the US sanctions added further tensions.
Complexity academic level
This case is most appropriate for courses in corporate governance, business ethics and doing business in Russia at the undergraduate or graduate level. There is a sufficient number of extenuating circumstances to make for a good discussion of strategic and tactical factors in this type of a corporate governance decision analysis. The complexity of the case is a perfect illustration of the Russian business environment: it is never easy in the Russian business environment to figure out what is important and what is not.
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