Answer to Question #314345 in Marketing for lee

Question

MYSTERIOUS TERMINATION

QUESTIONS:

1.

Who would most likely have intervened to terminate the senior team over issues of

conduct?

2.

Give some examples of the kind if 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 all the same time with no detailed explanation.

4.

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

Answer 1

1] The one who most likely has intervened to terminate the senior team over issues of conduct would be the Board of Directors since they are the one who is capable of selecting and appointing those persons on the top management. The board of directors has very defined roles and responsibilities within the business organization. Essentially it is the role of the board of directors to hire the CEO or general manager of the business and assess the overall direction and strategy of the business. Therefore, they are also the ones who are responsible for terminating.

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

An example of ethical misconduct that could have led to the termination of the entire senior leadership of MGFIC would be the collaboration or teamwork of these three executives in practices such as falsifying financial reports or any other reports. Another possible misconduct is the selling of stock when the company is performing poorly while still portraying great health to the public. In this case, they do not exercise transparency and they deceive the public, especially the shareholders regarding the current and true state of the company.

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

It is not a good idea to fire them all the same time with no detailed explanation unless there is a

replacement. But if they have a replacement right after they fire those people and it was proven that they really commit those unethical misconduct then, firing them all at the same will be okay and justified. However, every employee has the right to know why they got terminated and of course, those reasons should be just and fair. Let’s say that there were enough reasons to fire them, the Board of Directors of course can fire them right away, but at least let them know the reasons behind their termination because it is their right, for it to be fair and for them to understand and accept it.

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

The stakeholders of MGFIC will be shocked, worried, and will be curious about what really happened after hearing the news, given those positive things about the company. If you are one of the stakeholders, you will become more worried about your company due to the firing of your top management, the company will not operate properly without the top management and the stakeholders will be worried about their interest in the company.