Good Governance and Social Responsibility

Mini Case Study

Multi Global Finance and Insurance (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 to work for in 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
breakrooms. 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 Philippines.

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 than that the terminations were related to issues of conduct?

Questions:

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

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

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

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

Prepared by: Gino Calacsan, MBA