Answered: QUESTIONS: Who would most likely have…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

Earnestwo Salvador Insurance Corporation (ESIC) 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 in the Philippines in recognition of its “very employee-focused work environment”. ESIC offers very generous benefits: free lunches in the cafeterias, on-site daycare facilities, and even free Starbucks Coffee in the employee break rooms. In an industry that was still struggling with massive claims after a succession of typhoons and floods in the Philippines, ESIC was financially stable and positioned to become one of the major insurance companies in the country. So, why were the CEO, Caleb Briones, the CFO, Kristan Chua; and the COO, Vince Javier, all fired on the same day with no explanation other than that the terminations were related to issues of conduct? QUESTIONS: Who would most likely have intervened to terminate the senior team over issues of conduct? Give some examples of the kind of ethical misconduct that could have led to the termination of the entire senior leadership of ESIC. Was it a good idea to fire them all at the same time with no detailed explanation? How are the stakeholders of ESIC likely to react to this news? Explain.

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