Statement of the Problem

The case focuses on the independent director Mr. Neil Shah, who is also one of the board of directors of
Himachal Fertilizer Corporation. There are several ethical issues has arisen in this case. Which leads this
study’s aim to determine and assesses the associated problems as follows in that regard;

Compromised Decision-making. Given Neil’s claim to be of good moral character throughout the case,
this was challenged the moment Neil decided to meet with one of IPL’s executive, Mr. Paul, despite
knowing that it will break the code of ethics of the company. Both of them discussed the changes in the
bidding process. He then decided to question the decision of the board on the last minute change of the
bidding process. Because of the information he got from Mr. Paul, where he claimed BPL’s alleged
involvement of the said change in advance and that the change is executed for them to be disqualified.

Questionable Response to the Ethical Dilemma. After Mr. Neil meet IPL’s executive, Mr. Paul, he had a
choice, whether to state the meet and the information to the committee, informally say it to Mr. Anil,
the chair of the committee, or not to tell anything. He failed to communicate to the committee about it.
Then, after IPL win the contract, IPL’s executive, Mr. Paul offered him 5,000 shares. Now he have
choices, to accept it as a gift, purchase it at INR 100,000, or not to accept it.