Rajwant Engineering: Ethical Values or Business Survival?

Case Study #3 – Rajwant Engineering: Ethical Values or Business Survival?

Ethics & Stakeholders Management

Table of Contents

Introduction        3

Symptoms        3

Define the Problem / Opportunity        4

Problem Analysis        4

Brainstorming Solutions        4

Recommendation        7

Conclusion        8

References        9

Introduction

The case of Rajwant Engineering Pvt. Ltd. highlights problems that are faced by most SME’s in the business world. Even if the company is in existence for more than 3 decades now, their market share is not that significant.  The ethical issue that they are facing is in regard to one of their major client named ClientCo, where the new Procurement Manager – Mr. Gupta is demanding that he needs to be satisfied before the contract is awarded to Rajwant Engineering Pvt. Ltd. However, beside this ethical dilemma, the company also have many other internal problems which should be addressed in order to be successful in the business world. They are mostly internal problems, such as, poor management, conventional infrastructure, staff not up-to-date with new business practices and not competent, poor money and asset management, threat from competitors or new market entrants. A business like Rajwant Engineering Pvt. Ltd. who is at the verge of business failure and bankruptcy, does not have many choices to adopt from in order to survive in the market.

Symptoms

Below are the main symptoms based on the case:

• New Procurement Manager of ClientCo demanding for bribery in order to award contract to Rajwant Engineering Pvt. Ltd.

• Lack of competent staff at REPL and outdated technology to meet the demands or needs of clients

• No forecasting carried out by REPL and unable to grab growth opportunities existing in the current market

• REPL’s inability to increase market share and losing business to competitors or new market entrants

• Improper bookkeeping practices

• REPL’s debt is increasing and no plan in place to pay debt off

• Reliance on few major clients, or no initiative taken by REPL to attract or get new clients/contracts

Define the Problem / Opportunity

Mr. Sokhi is in ethical dilemma, whether he should go against his ethics and agree to pay the bribery or not, in order to get a grip of the business. He needs to take a swift decision as the Procurement Manager wants a reply within a week. This decision will decide the future of REPL.

Problem Analysis

Problem 1 – REPL’s strong ethical practices are in question or dilemma