Mysterious Terminations

Multi Global Finance and Insurance Corporation (MGFIC) was, by all accounts, a model insurance
company. Profits were strong and had been for several years in a row. The company carried the highest
ratings in its industry, and it had recently been voted one of the Top 100 companies work for the
Philippines in recognition of its "very employee-focused work environment". MGFIC offers very
generous benefits: free lunches in the cafeteria, on-site daycare facilities, and even free Starbucks
Coffee in the employee break rooms. In an industry that was still struggling with the massive claims after
a succession of typhoons and floods in the Philippines, MGFIC was financially stable and positioned to
become one of the major insurance companies in the country.

So, why were the CEO, Juan Paderez; the CFO, Lydia Sanchez; and the COO, Jose Aquino, all fired on the
same day with no explanation other that the terminations were related to issues of conduct?

Questions:

1. Who would most likely intervened to terminate the senior team overs issues of conduct?

- In this case for me it would be the board of directors because they are the ones who has a power to
select and terminate the senior team or the persons on the top management by deciding on voting, the
board of directors has an ultimate authority over the organization. But of course, before they terminate
those persons on the top management there should be a reason first.

2. Give some examples of the kind of ethical misconduct that could have led to the termination of the
entire senior leadership of MGFIC.

- For me, I think the kind of possible ethical misconduct that led to the termination of the entire senior
leadership of MGFIC is they manipulate financial statements or falsify financial reports and credentials,
and also the other possible misconduct is they abuse their power and regarding by these actions they
will face their consequences.

3. Was it a good idea to fire them all at the same time with no detailed explanation?

- No, it is not a good idea to fire them all without any detailed explanation, they have the right to know
the reasons why they got terminated on the company, and another thing is if they terminate them all
especially the CEO who will become a leader of the company? Who will operate the company? In this
case I think before they terminate and fire them all they should find a replacement first because if not
their decision will cause a downfall for their company.

4. How are the stakeholders of MGFIC likely to react to this news? Explain.

- They will become curious on what happen to the persons on the top management and become
worried about the news. And of course, on what happen it will create a big impact to the company
because those persons have a crucial role on the company, it will not operate properly if there is no
senior management is present.

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