Situation 2 A company- Company ABC has decided to use an opaque management and holding structure to run its risky business of operating chemical production plants. The employees of the Company ABC are unaware of the true identity of the shareholders and board members of the Company ABC. These employees are also under tremendous pressure to perform and in the recent pandemic were forced to attend office mandatorily so that ethanol which is used in the manufacture of hand sanitisers is continuously produced. Unfortunately, a few days ago there was a major accident in one of the plants of Company ABC which was operating at more than full capacity due to instructions from the board of Company ABC. This was followed a few days later by an outbreak of Covid-19 in one of the manufacturing plants. Question 4: Discuss the management style and holding structure of Company ABC from a corporate governance perspective. Identify the improvements which could be made and how the Company ABC would benefit from such an improvement. Question 5: Based on the situation above, explain the balancing exercise between employee welfare and interests of other stakeholders and how conflicts may be best resolved in such scenarios
Situation 2
A company- Company ABC has decided to use an opaque management and holding structure to run its risky business of operating chemical production plants. The employees of the Company ABC are unaware of the true identity of the shareholders and board members of the Company ABC. These employees are also under tremendous pressure to perform and in the recent pandemic were forced to attend office mandatorily so that ethanol which is used in the manufacture of hand sanitisers is continuously produced. Unfortunately, a few days ago there was a major accident in one of the plants of Company ABC which was operating at more than full capacity due to instructions from the board of Company ABC. This was followed a few days later by an outbreak of Covid-19 in one of the manufacturing plants.
Question 4: Discuss the management style and holding structure of Company ABC from a corporate governance perspective. Identify the improvements which could be made and how the Company ABC would benefit from such an improvement.
Question 5: Based on the situation above, explain the balancing exercise between employee welfare and interests of other stakeholders and how conflicts may be best resolved in such scenarios
Step by step
Solved in 4 steps
