Q1.

) Answer
Two Ethical issues in the ICICI Bank case
1. Symbolic Governance
The problem in India, as well as the wider world, is that companies are taking part in
symbolic governance to fulfill external demands for increased accountability. However, this
comes at the expense of actual governance through bankruptcy. The decline is when formal
structures are hired to respond to the needs of external stakeholders, while actual activities
are in line with the needs of internal stakeholders.
So, yes, they have independent directors, constitute various committees as required by
company law, participate in annual CEO audits, announce long-term incentive plans, and file
all required party reports. This they are also promoting the use of the official language in the
community.
However, as research has shown, this helps to bring in the CEO power because it controls
those ineffective governance processes.
In other words, boxing exercises have the effect of replacing and giving boards a license to
avoid dealing with the real hard problems associated with business management.
Indians are among the most law-abiding citizens outside of India for fear of the
consequences of infringement. The problem in India is that independent directors were not
supposed to pay for even the worst behavior related to business management. We don't
need more rules and regulations; just punish the other candidates for abusive behavior.
Only the shareholders and employees of ICICI Bank will be responsible for the cost of the
management of the organization. The rating agency Fitch has already warned of adverse
effects and many analysts are now seeing the cloud in stock. Since ICICI Bank is heavily
held by foreign investors, a suite of high-quality initiatives in the United States is possible.
Ironically, the incident only feeds the negative narrative of India such as the corrupt
capitalists, the massive asset crisis in the public and private sector, poor corporate
governance, and the misconduct enjoyed by top people.

2. Conflict of Interest
Recovering a conflict of interest in ICICI Bank: In 2012, ICICI Bank extended a Rs 3,250
crore loan to Videocon, 85% of which is unpaid today and has been declared as a non-
performing asset (NPA). Six months before the loan was issued, Venugopal Dhoot,
chairman of Videocon, had loaned ICICI Bank's husband, Deepak Kochhar, Rs 64 crore to
run the solar power business. He then improperly transferred the loan company to Mr
Kochhar later for Rs 9 lakh. Does the CBI investigate if there is a negative correlation
between the two payments?
The scandal and fraud have brought the Indian banking system to an end. Public trust in
banks and banks has never diminished. Last week, after PNB reported a fourth-quarter loss
of Rs 13,400 crore, bankers held 12 percent. ICICI Bank also reported a decrease of about
45 per cent on the consolidated profit of Rs 1,142 for the quarter.
Poor performance and greater reliability have hurt rates in the banking sector more than
ever. In the last six months, the government and the public have lost Rs 1.29 lakh crore in
treasury-managed wealth in banks. At the same time, state-owned banks have seen their
interest rates fall from 16 percent to 60 percent.
In this case, those who are skeptical of the doubt, even if it is yet to be proved, should be
cast aside. The ICICI Board supported Chanda Kochhar, saying in public that they could not
find any wrongdoing. Officially, nothing has been proven against husband Deepak Kochhar
yet, it is alleged. These arguments will not wash. When there is an obvious conflict of
interest and the bank loses money on loan repayments, the best practice is to step aside,
even if the matter is still being investigated.
Negative Impact on the stocks due to ICICI-Videocon loan case
India’s federal investigating agency -- the Central Bureau of Investigation -- filed a FIR (first
investigation report) against former ICICI Bank CEO and MD Chanda Kochhar, husband
Deepak Kochhar and Videocon group MD Venugopal Dhoot in connection with alleged
cheating and irregularities in loans of Rs 3,250 crore sanctioned by the bank to Videocon
group companies in 2012.This is the latest move in the series of events that have untraveled
so far at ICICI Bank after the controversy around Kochhar first surfaced in March last
year.Kochhar has been caught up in allegations of corporate misconduct and quid pro quo in
sanctioning of loans to the Videocon group. The board, which initially backed its CEO, acted
belatedly but appropriately, constituting a committee headed by former Supreme Court
Judge BN Srikrishna to probe the matter. While Kochhar’s term was scheduled to end in
March, she went on leave in June last year till the probe into her conduct was completed by
an independent agency (Srikrishna committee) but finally resigned in October 2018.

Q2.) Answer
Various department like legal, Research & Development, financial, marketing, brand
management, operation & logistics have worked very hard to relaunch the Maggi Noodles.

When the ban was put on the Maggi back in 2015 with nationwide stop the entire sales of
maggi went down to 5-10% during controversy.
The marketing department work hard and developed the various adds to make the impact
and brand recall to the consumers by running the campaign
“Kab wapas ayegaa yaar? Miss You”
“I miss you yaar.Comeback,man”
“Ab aa bhi jao. Miss you yaar”
With a logo saying # we miss you too
They run the campaign 2 month prior to relaunch of the maggi with announcement
“Your Maggi is safe, has always been”
Social media launch with full capacity like Facebook, Instagram and Twitter. A combination
of BTL, TTL and, ATL is the best way that maggi should adopt where traditional
advertising will help to educate customer, digital media will help them to connect and engage
targeted customers to create a strong brand voice again and events and other activities can
help to generate brand activation on local ground. Indian customers are smart and educated
now a days, it will be a tough job for nestle to get the things done right again.
The R&D department work extensively to prove FSSAI that they have lead free maggi for the
eaters.

Target Online sales

A large percentage of people use Maggi as food people who are too busy and don't have
time to cook. These categories of people are usually found within cities and suburbs. People
living in cities urban areas tend to buy online on a much larger scale. Therefore, Maggi
should start focusing on the community product online.
Adding a Product Line
Maggi should restart by adding new products to it product line. Adding now products will
refresh
Customers to try out new and useful products a company to produce sales. Maggi should
basically introducing a new flavor to the market under the veg again the non-veg category.
For example, it can make Maggi with Potato flavor under veg category and Mutton flavor
under the non-veg category.
Getting Involved in a Good Community
For six months, Maggi has been the victim of a negative community, so something new must
be done that will benefit them grab the attention of the media and then the public. Because
For example, a company may launch an ad campaign with some art or you should come up
with a new product that should be capable of holding media attention.
Target Children and Women
Children should be guided as they will be soft stones. Ads should be made more focused as
well to guide children. After the children, the women played an important role in determining
what their family members are what they should eat and what they should not do. Therefore,
the focus should be given to women, which shows that they are women to make a wise
decision by choosing Maggi.

Here are some of the internal discussion which had helped the maggi to do comeback and
create a powerful impact on India Society.
Q3a) Answer
The question provides the breadth of popular philosophy - but let's keep it simple for now.
Surely at the grassroots level, reporting on misconduct should be ethical?

Whistleblowing can create breeding conflicts between personal, organizational and social
structures. Much of this conflict comes from the context in which whistleblowers are
concerned: either as a person who shares misconduct information for the benefit of others or
as a person who practices "dishonesty" in their organization.
The principle of whistle blowing is a tricky story. Whistleblowing brings two moral issues,
injustice and honesty, into conflicts. Doing good or just (e.g., promoting a talent-based
employee alone) is often at odds with demonstrating honesty (e.g., encouraging a long-term
but unskilled employee). When viewed as excessive in view of honesty, whistleblowing may
entail worrying conflicts if, for example, it involves violating the trust of co-workers or
jeopardizing the status of a "teammate" against the spirit of an organization that promotes
misconduct.

From a moral standpoint, while honesty is a moral imperative it should not be placed above
the individual's moral obligation to act responsibly and accountable for one's actions
including negative reporting on the good intentions of the organization and its stakeholders.
Responsible people blow their whistle when they believe that there is more harm to good
when someone blows the silent whistle. The whistleblower is doing something right when he
truly believes that there is an important responsibility to protect society. Such a person is
willing to accept the consequences of his actions. e.g., she will be held accountable for her
actions.

A good person is one who receives strong personality traits built on courage and is informed
by the belief that integrity is the result of decision making. The whistleblower is willing to
stand up in the face of pressure from the elite to remain silent. Not because you may have
received a whistle-blower award. Instead, a whistle-blower believes in good behavior and
earns his living according to ethical values.

But, what if the whistle-blower's motive is to receive financial reward as a finding of

whistleblower complaints under the False Claims Act and Dodd-Frank? Is it still a good
practice?

The most important consideration in assessing whether whistleblowing is ethical is the

purpose of a single act. Is it wrong to be wrong? Is giving a voice to one's values in the face
of crazy power? Or, are you the basis of the action to pursue your selfish interests, which
can be seen in whistle-blowing to win the whistle-blower award? However, greed is a
powerful force when considering whether whistleblowing is financial.

While most would agree on the value of negative reporting and acknowledge the good
management of an organization, external circumstances can color acceptance and
perspective. There are chicken-and-egg items, such as workplace promotions increasing on
the street - if businesses develop good public relations practices, whistleblowers would not
be considered bad or as keeping business or community leaders at bay.

From a purely human point of view, it can be said that it is not true that human nature
reflects loyalty to the governing body because it is made up of many different people. This
clever environment can confuse the perception of the person whistling about their affiliation
to the company or their ability to effect change, and damage their sense of responsibility and
motivation for reporting.
As long as the whistle-blower is confident that their motives are reasonable and confident in
the process, they should not hesitate to pass on that information and be asking

Q3b) Answer
In your personal life, you may not be giving much thought to the importance of good
behavior. Just try to do the right thing. But just like making those ethical judgment calls can
have a huge impact on your life, it can affect your business success in big ways. Your
business may offer a great service or product, but with questionable behavior, it may not
matter. Good business ethics are important for businesses for a number of reasons.

1. Ethics Improves Your Business reputation

Business ethics help to ensure a good reputation for your company. Not only does it feel
good to be part of a reputable company, but it's good for business. If you have a reputation
for consistently good behavior in the way you create and build products, and manage
employees, customers and the community, most people will want to do business with you.
Even the ethical standards of social media are important to your reputation.

This means that you will appeal to a variety of individuals and organizations who will be able
to grow your business such as:

 Customers and customers believe in your company and want to support it

 Labor and civil society organizations that want you as a member
 Investors who want to help your business grow
 Communities that want to host your business or events
 Other businesses want to work with you
 Newspapers, magazines and other media want to give you a special
 Business Principles help you retain top talent
Good ethical principles at the start of a business up. If you are a business owner or
manager, it is important to lead by example. When employees see you make good
decisions, it informs them that they can have confidence in the company; they know you will
do well for them and your customers. This increases morale and as word spreads about how
you treat employees well, you will have good employees. Having strong retention rates will
help you save money over time with recruitment and training costs.

2. Limit the risk by good business ethics

Businesses that make good business decisions face less risk of fines and other legal
suffering. Of course, the law and principles are complex, but much trouble can be prevented
by doing what is morally right. If business decisions are made in that sense, you can save
the pressure to protect your company from lawsuits and penalties.

Overall, when managers and employees at all levels of the company make good and ethical
decisions, it is good for the company. All of the above factors help the company grow, with
huge profits and a strong line.

At Charter College, learning ethics is an integral part of our business plans, as well as other
foundations that can help you build a long and successful business career. Contact us today
for details.