LEADERSHIP LAB

CASE: Kerala Green Bank

Sameer Motiramani
Marketing A - 098

1. Should KGB accept Fracking loan application? If yes why? If no why?

ANS: After conducting additional research and analysis, KGB ought to accept the loan
application for fracking, in my opinion. According to my understanding, fracking is a technique
for extracting oil or gas from rocks by injecting water, sand, and chemicals.

The environment must also be given top importance by Kerala Green Bank because it is an
ethical organisation that focuses on environmental sustainability. However, since the goal is to
be a profitable bank, these ideals must coexist with profit-making. They may also contain a
clause mandating them to provide the quantity gradually and a fixed percentage of permitted
process impurities.

The following information should be requested by the bank in order to authorise the loan, and
only if it allays the bank's environmental concerns should the loan application be authorised:

● The specific chemicals used in the method and the effects they had on the environment
were listed.

● The Ministry of Forestry, Environment, and Climate Change has given its blessing.

● Report on how the new materials are safer than the previous ones.

● Expert papers and reports are being examined.

If the aforementioned facts are true, KGB will accept the Fracking Loan Application.

2. Should KGB accept S&F’s Gun loan application? If yes why? If no why?

ANS: My opinion is that the KGB should reject the loan application submitted by Singh &
Francis, or S&F, a joint venture company that produces small- and medium-caliber weapons
and sells them under both military and private licences, both of which pose risks. Even though
S&F is a strong performer, a growing employer in the community, and a good corporate citizen,
one person was killed by an S&F-made firearm in a recent event. We all know that media
attention helps KGB's brand image, and by lending to S&F, they would put their brand image in
jeopardy because everyone would know that the bank is lending to a company that increases
threats and criminal activity in society, which would be against the ethical values and principles
of the bank. Therefore, even though it was a significant opportunity, it would be advisable to turn
down the loan because KGB risked alienating its green investors as a result of negative media
coverage in the eyes of stakeholders and customers. Therefore, dealing with the gun industry
would be damaging for the Green Bank given the occurrence in which one of their products was
used to kill a person.

3. What is likely to be the impact on the business if KGB accepts to give loans to the
two firms?

ANS: According to me, the effects on the company if the KGB authorises Fracking and S&F's
Guns loan applications would be as follows:

● Accepting the application would likely result in more business, which would be advantageous
financially. Additionally, the bank will surely make money and won't fail in a month because its
objective is to do business ethically.
● There could be a number of moral and environmental issues if both loan requests are
approved.
● For instance, if the bank doesn't do its due diligence and approves the loan for fracking and
an environmental risk materialises, the bank's fundamental objective of environmental
sustainability will suffer greatly.
● If the application for the gun loan is approved, the quantity of firearms produced and their
availability will rise, possibly increasing crime.
● If the bank's decision is unsuccessful, there is a serious chance that it will receive negative
press and have its reputation tarnished. This would significantly affect its chances of surviving in
this market, and it might not be able to draw in new customers with a bad reputation for its
brand. Making the appropriate choice in accordance with the fundamental principles of the
business is crucial.

4. What are Jay’s strengths and shortcomings as a leader?

ANS: In this situation, Jayaram might be considered as a leader with morals and ethics who is
also motivated by profit. These are some of Jay's leadership qualities. First of all, he treats
everyone equally and respects each and every member of the board. He respects everyone's
perspectives as seen by the fact that he organised a meeting, solicited input, listened to
everyone's opinions, and included everyone in the decision-making process while determining
whether to provide the two enterprises a loan. He operated in accordance with organisational
values, which is one of the greatest strengths of ethical leaders. He refused to provide a loan for
the fracking application as a way of demonstrating his concern for the environment and respect
for the company's green principles. When Jay struggled to make a decision regarding whether
to grant the loan to the S&F or not, his flaws as a leader became evident. He considered his
success and profitability because S&F was a significant client and the guns they produced were
lawful, but he didn't consider the incident in which their products were solely used to murder a
person. This demonstrates that his beliefs are more important than Bank's objective, and his
commitment is more focused on personal success. Another possibility is that Jay would be
unable to make a choice or determine what was right or wrong, which would undermine the
confidence of customers, stakeholders, employees, and investors. Additionally, he lacks clarity
because there are numerous ambiguous goals, objectives, and guidelines that weaken a
leader's team because he failed to establish clear objectives of what must be done, what are the
company's rules, etc. This increases the risk that the employees won't be aligned with business
goals and the likelihood of disorganisation in the workplace. Because of a leader's numerous
unethical actions, businesses and their cultures will always be stained.

5. Going forward, what initiatives should KGB take to put the firm on strong footing?

ANS: To establish the company on a solid foundation, KGB must take the following actions:

● Formulating a clear Vision and Mission statement to guide all corporate objectives and
actions.
● Effective training for employees and individuals to act in line with and in support of the stated
values.
● Developing plans to achieve the organization's long- and short-term goals and ambitions.
● Recognizing the idea of environmental sustainability and developing a plan for concurrently
sustaining such goals commercially.
● Clearly defining the organization's core values, which will act as the basis and reason for
every choice that everyone makes.