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Determine when to resolve conflict through arbitration and when to resolve conflict through the court system. Reflect upon the types of organizational misconduct and determine what behaviors constitute organizational misconduct. Argue whether the behaviors that constitute organizational misconduct are universal or may vary according to the context. Analyze whether actions that might be considered misconduct might be acceptable in certain situations and contexts. Build additional definitions of organizational misconduct that might pertain to non-Western, developed country contexts. Analyze how media and popular opinion might influence perceptions of organizational misconduct.

Carlos Mattos (he/him/his) was the founder/president/CEO of Hyundai Colombia Automotriz S.A. from 1992 to 2015. He and his company introduced the Hyundai brand to the Colombian market and made it one of the best-selling automobile brands in the nation. When the company began experiencing losses, Hyundai headquarters terminated the contract and awarded the distribution to an Ecuadorian firm.The contract between Hyundai Colombia Automotriz S.A. and Hyundai Motor Company stipulates that arbitration is the appropriate dispute mechanism. However, Mattos contemplates whether arbitration is his best option or if he should take Hyundai Motor Company to court. He also contemplates suing the Ecuadorian firm for unfair competition.As students analyze Mattos’ decision, they will determine whether the actions of the any of the parties might be considered organizational misconduct. This case is not about assigning blame. It is not about deciphering whether anyone is guilty. Instead, the case is designed to promote critical thinking about the concept of organizational misconduct. Most literature and understanding of organizational misconduct are from a Western, developed country point of view. In this case, there are three key actors, all from emerging markets. Each may have participated in some sort of misconduct, depending on how the term is defined.

This case is appropriate for advanced, undergraduate or master's level international business students in classes such as international management, intercultural management, international negotiation or business ethics.

Teaching notes are available for educators only.

CSS 5: International Business.

The learning outcomes are as follows: Students/participants can understand the type of financial fraud pertaining to the case; Students/participants can analyse the case using the fraud triangle perspective; students/participants can describe detection/anticipation strategies to prevent such acts from taking place in the future; students/participants can evaluate the case using the ethical decision-making framework; and students/participants can comprehend the importance of financial literacy when investing, especially in this digital era.

This case discusses the investment funds mismanagement accusations addressed to PT Jouska Finansial Indonesia (Jouska). Jouska is a financial planner business that was immensely popular among Indonesian young investors. It actively posted interesting content on its social media accounts, gaining attention from the millennial and Gen Z generations. However, in 2020, many of its clients reported and filed complaints that their portfolio values decreased significantly because of Jouska’s decision to invest their funds in low-quality stocks. Jouska was also alleged to violate its role as a financial planner by being able to perform several activities that fell under the authority of investment managers. This case attracted the attention of authorities so that the Investment Alert Task Force (SWI) stopped Jouska’s operational activities and initiated an investigation into the case. SWI also blocked Jouska’s websites, applications and social media accounts, in cooperation with the Ministry of Communication and Information. Despite settlement agreements that Jouska claimed had been offered to several clients, at the end of 2020 some of its clients and former clients filed a formal lawsuit. As of January 2021, several alleged criminal actions attributed to Jouska were still under investigation, comprised of money laundering, clients’ funds embezzlement, fraud, and insider trading. In October 2021, Aakar’s status was a suspect in the allegations. This case is another example of investment misconduct or fraud; to put it another way, it is the effect. It is expected that the participants can deliberate other perspectives during the discussion that could be the cause of such a case, hence viewing it holistically.

Undergraduate level.

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CSS 1: Accounting and Finance.

A room attendant in a small hotel with approximately 63 employees undermines her supervisors and disregards authority in deliberate defiance of company policies, rules, regulations and procedures. Disrespect is shown in several behaviours that include interfering with the work of other employees, spreading rumours, gossiping to other room attendants and complaining about unfair treatment.

This case was field researched and the company and individuals are disguised.

This case is suitable for third- or fourth-year undergraduate students. Within human resource management it is suited for use in a course or series of classes on employee relations or performance management. The case could also be used for an organizational behaviour course to explore conflict and struggle in organizations and the range of passive and active resistance practices that occur. In this particular case the context of women and minorities working in low-skilled roles could be examined.

In advance of this case students should have a background in performance management theory and practice, disciplinary systems and practice and the behaviours associated with workplace resistance, insubordination and misconduct.

This case on “Corporate governance: a farce at Volkswagen (VW)” is set in September of 2015. The precipitating events, which started with the Emissions scandal and tampering of the technology, unfold a history of threatening organizational culture, deliberate cheating, and failure of good governance. The case presents that though the outgoing CEO took the responsibility for the event but said that he was shocked by the event and stunned that the misconduct of such a scale could occur in the VW Group. Given the roles and responsibilities of board of management and the supervisory board, how could the scandal of such magnitude go unnoticed? Were robust corporate governance practices being not followed at VW?

The case is based on the material available in the public domain, records, press reports, published books, interviews published by key board members of Volkswagen and the company website.

This case can be used for undergraduate senior classes or graduate and executive education level courses in corporate governance and ethical practices. This case will sync best with the topics around Board Composition and size, Board Independence, fiduciary duties of supervisory board, board duality and leadership and its impact on organizational culture.

This case presents the leadership challenges that Chief Petty Officer Amanda Smith navigated as the first woman assigned to lead a Flight Line work center at NAS Ionian, an organization that was characterized by a culture of “hegemonic masculinity.” Failure to effectively lead the work center could have catastrophic consequences, including death of service personnel. Flight Line work centers, located in naval air stations throughout the world, serviced the air operations of aircraft carriers of the US Navy and provided allied air support. The assignment was a test of Smith’s leadership because the NAS Ionian Flight Line had experienced a spate of misconduct by personnel and had failed important maintenance inspections. Chief Smith was tasked to improve the morale and performance of the work center’s sailors who had diverse personal and professional backgrounds. She was also directed to ensure that the work center passed important maintenance inspections despite the challenges of dealing with subordinates, rank peers, and senior officers who had never previously worked with a woman in her role.

The case study is based on primary data collected from the protagonist, a.k.a. Amanda Smith. The primary data are supplemented with secondary data from published sources. The names of the air station and the protagonist have been altered to protect the identity of individuals in the case.

The case is applicable to senior undergraduate courses in HRM performance or talent management, training and development as well as in MBA or other Master’s level courses in management, industrial-organizational psychology, organizational behavior and leadership.

The case deals with leadership style (e.g. Initiating structure – organizing work, giving structure to the work context, defining role responsibility, scheduling work activities; consideration – building camaraderie, respect, trust, and liking between leaders and followers); organizational culture; diversity management; power and influence; and performance management.

The theoretical basis for this case is a focus on ethical decision-making based upon a decision-making tree proposed by Bagley et al. (2003). Once multiple options are determined as ethical, integrating authentic leadership into the decision-making process can help leaders made difficult decisions.

The authors conducted extensive research through IBISWorld, EBSCOhost, and academic journals to review ethical decision-making and authentic leadership. The authors successfully piloted the case with over 100 undergraduate and graduate students enrolled in leadership courses.

The case describes an ethical decision a young commanding officer must make. A soldier under their leadership has been charged with an inappropriate relationship with a minor. The officer must decide between two actions that are legal within the military justice system. Each decision has ramifications that will significantly affect the organization.

The case is best taught in undergraduate and graduate leadership courses. Course participants do not need a detailed understanding of military leadership or military law to apply fundamental concepts.

Information about Volkswagen’s human and animal testing was obtained from the secondary sources cited.

In 2014, Volkswagen (VW), BMW and Daimler funded an institute to conduct research to support their position that diesel engines are cleaner and safer than other fuel alternatives. One of the research studies conducted by the institute examined the effects of diesel fumes on humans and monkeys. Researchers put ten macaque monkeys in sealed rooms and pumped in exhaust fumes from a Volkswagen Beetle for four hours. For comparison, another group of monkeys was exposed to fumes from an older Ford pickup. The monkeys were later anesthetized and examined to see what the fumes did to their bodies. Other tests involved willing human subjects who were exposed to similar conditions.

This case is applicable to upper-level management or business ethics class.

Human Resources Management (HRM), Industrial Relations and Strategic Management.

Post-graduate students or executive post-graduate students, Core course in Human resources Management (HRM), Industrial Relations or Strategic Management or in elective courses in Industrial Relations and Strategic HRM.

The Personnel manager of Asian Paints Ltd., Cuddalore (Tamil Nadu) factory, found himself in a Catch 22 situation when a Union leader of the manufacturing unit refused to work. The Union leader had been transferred from the Quality Assurance department to the Production department. The case describes the sequence of events and the backdrop in which the aforementioned situation had unfolded. Given the circumstances that prevailed in the factory, the personnel manager’s decision was likely to have significant impact on the factory’s output.

The student will be able to understand the industrial relations/Union issues in a company and the role of different stakeholders, namely, management, Union, workmen and the government in a conflict scenario. The student will learn the application of principles of natural justice and will be able to evaluate the Industrial Relations (IR) strategy adopted by the organizations to prevent labor unrest at the workplace. The student will understand the impact of critical management decisions on the organization’s performance in an uncertain global environment.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 6: Human Resource Management.

This case can be used in teaching business ethics, organizational behaviour and human resource management. More specifically, romance in the workplace, discrimination, absenteeism, sneaking and cyberloafing in the workplace.

This case can be used for both undergraduate and postgraduate students particularly for business ethics, organizational behaviour, human resource management and leadership courses. Students/participants are challenged to identify the major issue in the case and help the decision maker to make a decision.

This case demonstrates the unethical behaviour of Natacha and Noman Ali. Natacha refused to comply with the company’s code of conduct and breached the company’s rules and regulations. Natacha used the company’s resources to carry out her personal business and also cheated on her attendance records, and the Director of Enforcement and the Inspectorate Division, Noman, continued to back and support her. Madam Siti Hajar had consulted and advised her many times, but Natacha did not pay attention to her advice. Madam Siti was in a dilemma: whether to report this unethical situation to the top management or to tolerate this situation and remain silent.

Expected learning outcomes are as follows: to identify and describe major issues related to workplace unethical behaviour; to provide examples of the concepts of commitment, dedication, fairness, discrimination and ethical leadership; to identify and analyse individual and organizational factors that may affect individuals’ unethical behaviour; to instruct students of the scientific methods involved in making decisions; and. to help students to think thoroughly, deeply and critically to make decisions that can solve the problem at hand.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 6: Human Resource Management.