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As the regulatory system begins to recognize the role of social responsibility reporting, reliable disclosure measures will be required. Issues of transparency, reliability and assurance are likely to arise as securities regulators consider whether and how to require disclosure of non-financial information. Various reporting models are presented in the case to illustrate different ways that these issues can be addressed by privately held and publicly traded corporations.

The case uses the company, Etsy, Inc., which has established itself as a publicly traded, socially responsible corporation. Etsy must decide whether it will re-incorporate as a benefit corporation in order to maintain its B Lab certification. This decision introduces students to the various measures of corporate social responsibility, the interests of the stakeholders of a corporation and the regulatory environment in which socially responsible, publicly traded corporations operate. The case uses only publicly available information.

This teaching case addresses the decision faced by Etsy, Inc. when it became a publicly traded corporation. In order to maintain its certification as a socially responsible corporation by B Lab, it would have to re-incorporate as a Delaware Benefit Corporation. In making this decision, the company had to consider various measures used for corporate social responsibility reporting and transparency and how these might affect Etsy’s stakeholders.

Undergraduate or masters level case that could be used in a business law, commercial law, legal environment or auditing course.

The case uses primary source documents, such as the court cases brought forth by the SEC and US District Attorney, for the specifics about the fraud and secondary sources for further background information about the town and industry. The individuals in the case are not disguised. The authors have no connection to the case.

Thomas Laws was a CPA, a registered investment advisor and a real estate broker. Laws made a poor business investment. Instead of taking the financial hit, Laws orchestrated a complex Ponzi scheme using clients from his CPA practice and embezzling money from an employer, Santa Fe Gold Corporation. Laws’ scheme continued until his employer confronted him about missing funds. Frank Mueller, the CFO of Santa Fe, did not exercise the due diligence necessary until it was too late. Rest’s framework for ethical decision making is used to frame the ethical decisions Mueller can make. The case examines the conflict-of-interest guidance issued by the American Institute of Certified Public Accountants (AICPA) and allows students to examine the due diligence and controls needed by employers and prospective investors.

This case is designed for undergraduate accounting students taking Intermediate Accounting I, ACCT 0312 at the authors’ institution, typically junior-level students. It would be appropriate whenever you introduce the AICPA Code of Professional Conduct during an ethics discussion.

Quality management among multiple business units of a large organization is often difficult if each unit is run independently in terms on their quality standards. In this case, participants will discuss how Bukhari Group of Companies should establish a common brand image through standardized quality. Participants should also understand that common brand image for diverse products does not mean identical level of rejection or customer complaints. It should be understood that different markets have different tolerance for product failures. The participants can chalk out the measures the protagonist of the case should be able to take to effectively steer the Bhukari Group to achieve profits and excellence.

This case describes the challenges faced by Amul in organising dairy farmers into a co-operative and creating continuous opportunities for value addition. Participants in the case discussion are required to review the developments in the organisation and recommend a strategy for the future.

This case is based on Weatherford International’s settlement with the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). Both the SEC and the DOJ were critical of Weatherford for its violations of the Foreign Corrupt Practices Act and for its “inadequate internal controls.” This case explores the Foreign Corrupt Practices Act (FCPA) violations and issues related to internal controls.

Case study.

This case is based on Weatherford International’s settlement with the SEC and the Department of Justice. Weatherford provided equipment and services in the oil and gas industry. Because international markets were growing faster than domestic markets, Weatherford made a strategic decision to pursue growth in international markets. The oil and gas industry has high levels of operating risk as did the countries that Weatherford decided to pursue operations in. However, despite the decision to take on additional risk, Weatherford failed to implement adequate systems of internal controls. The title of the case “A Perfect Storm” refers to Weatherford’s trifecta of operating in an industry with high levels of corruption risk, countries with high levels of corruption risk and failing to implement adequate internal controls despite those high operating risks (Department of Justice, 2013). Weatherford was ultimately assessed a $152m penalty for its violations of the FCPA that included bribery, volume discounts, improper payments and kickbacks.

Undergraduate and graduate auditing classes.

After reading the case study, the students will be able to analyze the impact of post-pandemic “new normal” customer behavioral change on a start-up aggregator operating virtually. Recognize the need for the service marketing strategy to prepare a service provider/aggregator to sustain a dynamic and volatile consumer environment. Understand the importance of competitors’ analysis as a primary step of service marketing strategy in influencing “new normal” consumer behavior. Examine the utility of customer engagement through website blogs, social media posts, videos and continuously updated information on the mobile application in influencing the “new normal” customer behavior, from skinner operant conditioning behavior and Rusbolt’s investment model perspectives.

Rafeeg is a mobile application-based home maintenance service providing company, conceived and founded in 2017 by Khamis Alsheryani – who, as an Emirati entrepreneur, has a prior record of accomplishing successful mobile applications and business ventures since 2004. The unique selling proposition of Rafeeg in the Abu Dhabi market is its functioning as the home maintenance services aggregator bringing its suppliers and consumers under-one-roof alongside maintaining ensuring high quality, punctuality and security at competitive prices. Rafeeg has collaborated with approximately 1,000 licensed suppliers using nearly 5,000 technicians and maintenance workers with a customer base of about 70,000 households. Although it is formally situated in Al Salam St, Abu Dhabi, United Arab Emirates (UAE), the company communicates with its consumers virtually. However, with the outbreak of the COVID-19 pandemic in the UAE in March 2020, Rafeeg witnessed a considerable decrease in service requests. Consumers’ psychological fear of the pandemics spread into their houses through the technicians and maintenance workers and the degree of hygienic practices the latter follows before their service provision acted as the major reason behind the fall in requests. Despite Alsheryani’s assurance on the provision of only those suppliers who are verified of their hygienic practices, negative COVID-19 test reports and their availability to the consumers as proof and regular temperature checks of the technicians, the consumer apprehensions remained stagnant and the loss of new service requests, as well as revenue, continued. The pandemic’s spread and consequent lockdown of services in the UAE affected Rafeeg’s business operations gravely, as projected by its sudden drop-in service requests – from 53,638 average monthly customer requests in January and February to approximately 10,000 in March and April. The sudden drop of 81% in new requests drove Alsheryani to develop a service marketing strategy in May to boost consumer behavior, encouraging them to resume their requests without further apprehensions. However, with the continuous rise in the pandemic and vaccines still under trial and research, Alsheryani contemplates the viability of the new marketing strategy. Alsheryani took measures in supplier training programs, excommunicating with suppliers who fail to comply with his strict safety regulations, developing the app with clearly stated, uniform, safety procedures and bearing the additional safety-related costs small suppliers provide quality work as part of the strategy. Despite so, will there be an increase in new requests? Will the bearing of additional costs on the suppliers’ behalf jeopardize its competitive advantage in UAE? Should he consider an alternate business model to adapt to the new normal environment?

This case is written for undergraduate students majoring in consumer behavior, consumer engagement approaches, digital marketing approaches using websites, mobile applications, social media communities and service marketing strategies. Students, through this case, can relate the importance of virtual space in engaging consumers and the importance of the latter in addressing the dynamicity of consumer behavior, especially affected by sudden environmental change, such as the COVID-19 pandemic. The case study also subtly highlights the importance of collaboration with suppliers in an aggregator business model to capture the essence of changing consumer behavior. This case study is appropriate for students having previous knowledge of Rusbolt’s investment model and skinner’s operant behavioral model of consumer behavior and their application in service marketing. Besides, students must be aware of the online business model and aggregator businesses in the service industry of the UAE. The case study purports to motivate critical analytical thinking among students and build their understanding of the importance of consumer behavior for business sustenance.

Teaching notes are available for educators only.

CCS 8: Marketing.

Launched in 2014, Amazon's Echo and Echo Dot smart speakers led the category's rapid adoption by households and enabled the penetration of artificial intelligence (AI) voice assistants into the everyday lives of millions of people. By 2019, Alexa the virtual brains behind Amazon's smart speakers was able to play music, create reminders, get weather reports, control lights and other home appliances, shop, and do much more in response to voice commands. Amazon had developed significant new capabilities for Alexa, developed an entire ecosysgtem around it, expanded Alexa's user base to more than 100 million users, and made significant progress in monetizing its digital voice assistant. However, Alexa's progress also created new challenges for Amazon, its Alexa-enabled customers, and society at large. Amazon needed to identify and address these challenges in order to encourage continued consumer acceptance and preclude detrimental government or regulatory action.

After working through and discussing this case, learners should be able to:1. evaluate the financial condition of Ellerine Holdings Limited (EHL) at the time of the merger proposal and use it to make inferences about the company’s ability, at that time, to function effectively as a going concern;2. identify the conditions within EHL and in the operating environment that may have made it necessary for EHL to seek to change its business strategy;3. determine whether the acquisition price offered to EHL by African Bank Investments Limited (ABIL) was fair; and4. compute the value accretion/loss expected to be realised by the existing shareholders of ABIL and EHL under the merger proposal.

This case situates the directors of Ellerine Holdings, a furniture retail company that merged with African Bank Limited in 2007, reflecting on the events that led up to both entities being placed into business rescue in 2014 and asking whether the merger was the cause of the demise. If they had chosen an alternative partner, would the results have been different?

Masters Level students – MBA or Masters in Finance.

For instructors.The following material has been provided with the teaching note for instructors:- Teaching Note.- Johannesburg Stock Exchange News System (SENS) extract of related original filing.For students.The following supplementary material has been provided to accompany the case:- Financial information on the two companies (Excel spreadsheet).- Johannesburg SENS extract of related original filing.

CSS 1: Accounting and Finance.

This case is about “Red”, a cross-border e-commerce platform developed from a community which was built to share overseas shopping experience. With sharp insights into the consumption behavior of urban white-collar women and riding on its community e-commerce advantage, “Red”, a cross-border e-commerce startup, pulled in three rounds of financing within just 16 months regardless of increasingly competitive market. On the other hand, well-established platforms such as T-mall International and Joybuy also stepped in, and their involvement will also speed up the industry integration and usher in a reshuffling period. Confronted with the “price war” started by those e-commerce giants, in what ways can “Red” adjust its shopping experience and after-sales services to enhance the brand value and sharpen its edge?

The case is appropriate for courses in financial accounting and reporting, audit and assurance, forensic accounting, accounting practice and regulations and corporate governance. After studying the case, students should be able to explain the concept of control and power under IFRS; explain the concept of economic; discuss audit committee and external auditor independence issues and ways to strengthen auditor’s independence; assess the usefulness of the new extended audit report; and evaluate the role of gatekeepers such as financial analysts, audit committee, external auditor, institutional investors and regulators in enhancing the quality of financial reporting.

This case focuses on the accounting policy choices of the foreign associates of AirAsia Berhad. AirAsia Berhad is a phenomenal success, from a debt laden company to having been voted as World’s Best Low-Cost Airline in the annual World Airline Survey by Skytrax for eight consecutive years from 2009 to 2016 and the World’s Leading Low-Cost Airline in the annual World Travel Awards for four consecutive years from 2013 to 2016. In June 2015, an analyst report was leaked, and it led to heated discussion and exchanges in the market. The report questioned the non-consolidation of AirAsia Berhad associates. The share market also reacted. Various players in the market came into foray with their statements and opinions on the merit of the accounting policy choice by AirAsia Berhad. Whose views actually reflect the nature of accounting policy choice that is true and fair? Are these gatekeepers attesting to the accounting crux of substance over form?

Senior undergraduates; MBA; EMBA

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: 1: Accounting and Finance