Mehreen’s Ethical Dilemma

Submitted by-
GROUP 7
 MEHREEN’S Ethical Dilemma
    “What decision should I make tomorrow in the board meeting?” Mehreen Kaleem, CEO of Vinn
Corporation plant, thought. Vinn corporation is a controversial factory which was in headlines for the
past 4 years due to the pollution it has caused. Mehreen was thinking of the events that happened
in the past.
 
         On 3 April 2018 Mehreen had a meeting with the protestors which was headed by Mr.
rd

Mugilan, an environmentalist and a social activist, Mehreen was listening to the concerns put forth
by Mugilan which were related to the environmental and health issues caused by the copper plant 
and soon realized that the concerns were valid, Mehreen who had an excellent performance in her
previous organization was poached by Vinn corporation a year ago and was given the position of
CEO for the Vinn, she was a bold and young girl who had a straightforward character and reached
the pinnacle of success through her innovative and skillful approach in problem solving.
 
          Mehreen drafted down the events and the cases against the factory as given below. 
 
Exhibit 1
1994-Launched in Tuticorin amidst great resistance from the locals-repression by police
1996-Gained TNPCB (TamilNadu Pollution Control Board) clearance to operate
1997- Was given a clean chit
1998-Sterlite violated various safety norms which was found by National
   Engineering Research institute
1998-Factory was to be closed-order by the court
1998-2001- Gas leak issues
2004-Unlicensed copper production (production of copper more than permitted amount)
2010-court ordered closure of the extra plants
2013-there was another gas leak
2016- there were protests erupting from nearby villages
 

Impacts and injuries due to the plant

Year  Incident Effect and affected people

2001 Gas leak-sulphur dioxide Respiratory disease to many people,1 small child named
Anita died of suffocation

2013 Gas leak -phosphoric acid Killed 2 children and 3 elderly people
for 45 min

 Mehreen inclination towards the protestors would mean that she has no commitment to her job and
also, she won’t be ethical to the organization she’s working for. If Mehreen didn’t communicate the
effects in the board meeting then she will be doing something against the society. But while she was
pacing through her balcony with these dilemmas, she had the thought of the employees working in
the plant. Also, in meeting with one of the senior marketing managers, he suggested that they could
get people on the side of the factory by stating that the factory serves bread and butter for
thousands of employees and how shutting down of factory might be a harmful decision (a way of
marketing). Rubbing salt at the wounds, she had another daunting task of facing the ex-CEOs of the
corporation -Alok and Vikas, who had been unethical to the society and are now the current board
members. They had earned the support of chairman through their operational efficiencies which
they did by unethical ways and had added tangible assets to the company. Now she had the
Herculean task of proving that the intangible assets she’s going to bring in now at the expense of
some tangible assets are going to garner more returns in future.

About Vinn corporation

The smelter – Vinn Corporation – is located within the State Industrial Promotion Corporation of
Tamil Nadu (SIPCOT) complex in Melavittan, Thoothukudi, where it has been operating since 1997.
There are numerous facilities attached to the smelter, including a refinery, a phosphoric acid plant, a
sulphuric acid plant, a copper rod plant and three captive power plants.

Vinn corporation is the Indian copper-producing unit of Veda Ltd., a subsidiary of Veda Resources,
the UK-based mining and metals conglomerate, founded by Akhil Sharma, an Indian citizen living in
London and its current chairman.
It was planned to set up the unit in Maharashtra and then Madhya Pradesh. But finally, it was set up
in Tamil Nadu.
The Vinn corporation is a powerful entity with a lot of political support and with power to subdue any
uprising with its political support, considering the crowd of 100 protestors only it would be easy for
them to disperse them. But a wrong move can totally harm the reputation and the share price may
drop due to this in its other businesses. So, to go on the right side they appointed Mehreen as CEO,
seeing her past records. Due to the 45 day long protest the board had called up for the board
meeting to get the insights and what plan Mehreen had in mind.

Environmental Impact
The Vinn corporation plant has one of the lowest costs of production of all copper smelting
operations around the world. However, the environmental impact caused by smelters is indisputable
and the effects extend to several tens of kilometres around the source. The Vinn corporation
complex is located within 25 km of four of the 21 islands in the Gulf of Munnar, a diverse and
sensitive marine ecosystem. This was a blatant violation of the coastal Acts. But the government,
political parties as well as the media were also with them. The Tamil Nadu government had also
reduced the width of the mandatory green belt around Sterlite from 250 metres to 25 at Veda’s
request. Also, a 2005 report by the National Environmental Engineering Research Institute
(submitted to the Supreme Court) found high concentrations of copper, lead, cadmium, arsenic,
chlorides and fluorides in a sample of groundwater taken from the plant’s neighbourhood.

 
What should Mehreen decision be?
Option 1-
Take decision to shut down the plant
Option 2-
Continue with plant operation in TamilNadu
 
ANALYSIS
Character traits

Mehreen CEO

 She is honest and hard working

 She thinks before acting and feel a sense of duty
 She isn’t afraid to speak up for wrong
 Treat workers well and think about the society

Vikas and Alok CEO

 Corrupt, unethical, money minded
 Politically involved for benefit
 Ignorant 

CONSEQUENTIAL ANALYSIS

STAKEHOLDERS OPTION 1 OPTION 1 OPTION OPTION 2

benefits harms 2 harms
benefits

Board of Appreciated by Risk their job promotion Involve in many unethical

directors the leaders and practices to hide the harm
society caused by pollution

company Revive the Loose Profit Have to face regular protest

reputation company from native which lead to
share and obstacle in production and
lose investors use of natural resource 

society Save the Loose jobs jobs Health issue and

environment  environment pollution

Schools and society run by

the Plant will stop
functioning

DEONTOLOGICAL ANALYSIS
STAKEHOLDERS obligation Reason Reason for Reason for
behind fulfilment of non-fulfilment
obligation obligation of obligation

Mehreen Plant operation is There was National the factory

harmful for incident of Environmental serves bread
society as well for Gas leak- Engineering and butter for
the environment sulphur Research Institute thousands of
dioxide found high employees and
concentrations of how shutting
copper, lead, down of factory
cadmium, arsenic, might be a
chlorides and harmful decision
fluorides in a sample
of groundwater taken
from the plant’s
neighbourhood

Alok and Vikas Increase the As the CEO of the Vinn corporation
company share the company plant has one of the Can avoid local
and maintain the they have to lowest costs of agitation from
consistent look for production of all people, NGOs,
operation company copper smelting Unions etc
regular operations around
operation and the world
profit

Company Increase the Brand equity The company’s

brand equity of is very much brand name is Sterlite seemed
the company by essential for already in a bad to have violated
having Corporate people to put shape due to its the basic
social in investments previous actions, by condition that
responsibility in the form of having Corporate hazardous
shares social responsibility industries were
they can build up the not to be located
brand  near habitations
with dense
human
populations.

society environmental Respiratory Save the

impact caused by disease to environment and Schools and
smelters is many concerned about the society run by
indisputable and people,1 small health of the people the Plant will
the effects extend child named stop functioning
to several tens of Anita died of
kilometres around suffocation
the source
 INTEGRITY ANALYSIS

DECISION Rational Result 1 Result 2 Result 3

(value positive/negative positive/negative positive/negative
based)

Vote for Remain Compromise with her Save her job Save plant and
board silent ethical morals and 1000+ jobs
decision society responsibility

Vote against Tell the Proceed according to Risk her job Risk 1000+ jobs
board harm personal interest and and plant 
decision caused by ethical practice
plant 

DECISION
After thinking nearly hundred times she took a deep breath and presented her opinion to the board,
which is to close down the plant! Along with that she came up with some suggestions that
company can lobby the government as many lives will be impacted by closing down the plant. Also,
since company has good political influence, they ask the government to shift the plant to make it
within norms of safety regulation.