Ethics

1. Muzammil Ahmed
Lecturer
Dadabhoy Institute of Higher Education

2. ETHICS
&
BUSINESS
ETHICS

3. Mini CaseStudies
By
Muzammil Ahmed
All characters appearing in this work are
fictitious. Any resemblance to real
persons, living or dead is purely
coincidental.

4. DEDICATION
I dedicate my this work to DIHE,
my learning and work place and
specially its students
without whom I would be nothing.

6. PREFACE:
Welcome to Business Ethics. Most of the people may not be familiar with the word
Ethics and its meanings. Ethics is the study of morality. It’s common to hear from
people to say that Business Ethics is an oxymoron, means contradiction of terms.
They might say Businesses don’t have ethics! But, it’s not true because business
people do not want to think about ethics.
I feel great pleasure in introducing the work “ETHICS & BUSINESS ETHICS”---Mini
Case Studies. This humble effort expects to raise great hope for individuals in all
fields especially Management Sciences.
I think there is a great need to work on ethics in businesses to raise productivity and
profitability. In Islam, Prophet Mohammad (SAW) has demonstrated the practical
application of ethics in Business. The results achieved by following the guidelines
given in our religion will bring happiness and prosperity.
According to Donald C. Buraham, Chairman, Westinghouse Electric Corporation,
Ethics is applicable to every field of human activity. The success of any organization
largely depends on the attitude of people and willing to accept challenges.
Ethics is a vast subject and it was not possible to cover all the aspects in this work
but efforts have been made to arouse interest and create realization of the need for
ethical practices in business through short case studies.
The case studies on ETHICS & BUSINESS ETHICS” is based on the practices
(ethical or unethical) in business and our daily life. These case studies have also
been presented in the course Business Ethics of MBA program and can also be
presented in other courses of Management Sciences.
The response from the business students has been very encouraging during the
course. I am grateful to all my students who took keen interest and helped me in

7. developing case studies on Business Ethics in the light of their analyses and
discussions.
I hope that experts from all fields will devote their time and energy to develop this
work further, for the service of humanity.
MuzammilAhmed
Lecturer/ProgramIncharge
BusinessAdministration
DIHE
CONTENTS
1. Food shortage
2. Professional Behavior
3. Duty versus Personal Conflicts
4. Returning back unspent money from the grant
5. Decision making:
6. Resolving religious disputes
7. Moral attitude
8. Violation of rigid rules
9. Sacrificing career or blood relations
10.Facing harassment by female staff
11.Sincerity with the workplace

8. 12.Punishing a poor girl on snatching
13.Hiding true facts
14.Being biased and racist
15.Change Management:
16.Loving or leaving employees
17.Unethical practices of food industry
18.Ethical practices in business
19.Priority on sales over reputation
20.Application of the skin care products
21.Selling expensive insurance policies
22.Handling weaker students

9. Case Study 01:
Food shortage:
Rana is a sharp minded business man. He is quite updated and seeks opportunities
to earn money. Along with his business activities he is also engaged in the social
circles around him. He is an active member of several NGOs and welfare societies.
Donating a part from his income on welfare work is his practice.
He comes to know that there is a severe food shortage in an underdeveloped city. A
bright idea comes to his mind to avail the opportunity to earn huge profit. He arrives
to that city with a lot of food stuff to sell to starving people. He plans to sell all the
food stuff at higher prices as poor people are ready to spend all their life savings to
buy and store food.
After few hours of his arrival, he is informed that few heavy vehicles with food items
from different NGOs are on the way to supply food free of cost. The poor people are
still unaware of this news and not expecting help from the government and
independent welfare bodies.
Rana can make a huge profit if he does not tell the locals about the incoming of the
vehicles to supply food. Informing people will give him nothing.
Question:
What should Rana do?

10. Case Study 02:
Professional Behavior
Asma, one of the junior female staff members of an organization returned back and
joined after taking special leaves to take care of her mother who is ill, dependent and
needs special care. She has to work full time for financial reasons. She has been
facing difficulties in managing her mother’s home care arrangement. Due to this she
usually misses team meetings which usually take place early every day. With late
comings, she has to leave work place early. She is hard working and competent in
her work but her absences cause pressure and over workload on her colleagues.
You are the manager and you are aware of the practice causing different
disturbances around. A few male colleagues have started making comments such as
“a woman’s place is in the home”, and is disappointing and discouraging her at every
opportunity, putting her under greater stress.
Question:
How would you handle the situation to protect Asma without discrediting yourself,
your profession or the practice for which you work?

11. Case Study 03:
Duty versus Personal Conflicts:
Zafar is a clerk in Commissioner’s office. Zafar also performs extra work due to
shortage of staff. Raising and taking down the flag over the office building every
morning and evening is one of his extra work, although it is not part of his official job
description.
Zafar comes to know that Badshah Khan, a politician having criminal background
dies. Few years ago, Zafar’s best friend was shot dead during a riot allegedly
orchestrated by Badshah Khan. An order passes from Governor House to all the
District offices of the city, to keep National flag at “half-mast” over their offices, to
mourn the death of Badshah Khan.
Zafar gets angry with such degradation of the National flag after watching this news
on TV. He decides to stay at home next day and keeps the door keys of roof top with
himself. Zafar is confident and thinks “this was not part of my official duty; I was
performing extra work so no formal punishment can be given to me. Commissioner
Sahab will definitely scold me informally but I don’t care because Badshah Khan
killed my innocent friend”.
Question:
Has Zafar made the right decision? Yes/ No/ Why?

12. Case Study 04:
Returning back unspent money from the grant
Aslam runs an NGO to help underprivileged street children who are not getting even
basic education. His NGO is against child labor and convinces parents to let them
learn free of cost.
Aslam receives a grant of Rs five lacs from government for a project to teach those
children who are out of school and doing odd jobs like working at tea-stalls, washing
cars, do boot polishing etc. The granted money is for a year only.
After a year, Aslam managed to utilize only three lacs from the grant and according
to terms and conditions on the agreement paper he has to return the unspent
money.
Aslam is an honest man. Despite putting all his effort he couldn’t convince parents to
join his NGO for this project.
One of his friends Nadir gives the following suggestions:
a) If we return back the unspent amount then government may not grant us for
any project next year.
b) Our reputation will be at stake and government will put our name in the
category of in-effective NGOs.
c) Most of the NGOs are having the same practice, no objection will be raised.
d) We should consult a Chartered Accountant to manipulate our Accounts Book
showing no amount left from the grant for project.
e) Even, official in charge of this project will not come to us for an audit if a little
percentage from the grant is given to him.
f) We will not utilize a single penny on our personal needs; the remaining
amount will be spent on street children only.

13. g) In brief, not returning unspent money is ethical and justified.
Question:
Should Aslam return back the unspent money to government from the grant or
not? Justify
Case Study 05:
Decision making:
Zia is an intelligent young man with lots of qualities. He is consistent and determined.
Qualifying civil services exams is one of his dreams. He was working with an IT
company but he quit his job and started preparing for the exams to make his dreams
come true.
In the first attempt he couldn’t score desired marks in the optional subjects. In next
two attempts he couldn’t qualify for the personality test and interview. In the third
attempt he was expecting to be in the final list.
According to rules he had the last chance to attempt for the CSS exams. He decided
to take a break and not attempting in the fourth year. He put all his efforts to make
himself competent. He started preparation with groups having the same goal. He
also started taking coaching classes to prepare himself for personality test and
interview. He was so determined as he had spent five years for CSS exams with no
job.
Luckily, in the fourth and last attempt he passed all the optional and compulsory
subjects as well and made himself eligible for an interview, the last stage. He read
widely. He contacted experts and consultants, discussed with them extensively and
took feedback on his grooming, body language and communication skills. He was
quite confident. Within few days he received an interview call letter, he was mentally
prepared and confident to face his final test.
On the previous day of his interview, he was relaxed and had a sound sleep. The
next day he was relaxed and calm as his interview was scheduled in the second
session i.e. in the afternoon.

14. He had his lunch with family with a happy mood and left home driving his old bike as
he wanted to reach the venue before half an hour of the time given to avoid any kind
of difficulty and risk. Zia was driving his bike with safety having lots of thoughts and
dreams in his mind. The road was almost empty. On the way, a speedy bike collided
with the footpath in front of him. Zia stopped his bike and rushed to the accident
scene. The man was seriously injured and crying with pain. The blood around the
accident could be seen. With that man, a girl around three years was lying around
him and was unconscious. Zia looked around to help them and tried to stop two or
three cars to take them to the hospital but not a single car stopped to help him.
Zia had only 20 minutes left to reach the centre for a final interview. Helping out the
victims would lose his dream of becoming CSP officer.
Question:
What should Zia do in this situation? Justify your answer:
Case Study 06:
Resolving religious disputes
You are a Mayor of a small city. You received a complaint that in a small village,
people associated with the religious community are constructing an illegal religious
structure nearby mosque in village as they didn’t have a proper place for their
prayers and congregation. The complaint is filed from a local leader belonging to a
religious community having minority in the village but majority in the state, where as
the community constructing the structure is having the majority in the village but
minority in the state.
The construction is about to complete. The investigation shows that the construction
is illegal and according to the laws it must be demolished. The poor villagers
contributed from their savings to construct that structure.
The demolition of the structure might lead to communal clashes in the village and it
would cause inferiority complex, discrimination and sense of insecurity in the
villagers.
Question:
As City Mayor, how will you resolve this issue?

15. Case Study 07:
Moral attitude
Zahid comes back to his village after having intense training for joining a charity
based welfare association to have a nice time with his only friend, Fareed, who is
preparing for the civil services.
Zahid is always a nice dresser and as usual he is wearing a clean white shirt with
expensive pant and branded shoes. They visit to a roadside tea shop to have a cup
of tea.
A nine years old boy works at tea shop brings two cups of tea with biscuits to them
on his master’s order. Zahid is on a phone call, unaware of his standing behind him,
accidently touches the tray carrying tea cups. Hot tea spills over his white shirt and
cups are broken into pieces on the ground. The owner of the shop beats the boy
badly with a stick in front of all.
Question:
What would be your reaction as a human being keeping yourself in Zahid’s place?

16. Case Study 08:
Violation of rigid rules
Yousuf is the Principal of a reputed private college. Farhan, one of the most brilliant
students of the college comes to him with a request to increase his score. He has got
79.99% in the final semester but he requires at least 80% or above in each semester
to meet the eligibility criteria to get admission in highly reputed universities for
professional degree.
Yousuf is an honest person and a man of principle. He was never involved in such
kind of practices before. Farhan humbly requests his college Principal to consider his
case to save his career.
Question:
Should Yousuf revise his score to 80% realizing his future career or let him suffer
following rigid rules of the college? Justify.

17. Case Study 09:
Sacrificing career or blood relations
Faraz is a software engineer and works in a software company whose most of the
businesses with clients abroad. The company has more than 20 braches all over
USA and Europe. His salary is not good and searching for a better opportunity in
other software houses. He is a divorcee living in a small rented house with his
parents who are old and dependent.
Faraz is an obedient son of his parents and takes care of them. After a long
sickness, his father was taken to the hospital where doctors diagnose him lungs
cancer. Now, his father is on chemotherapy.
Faraz is facing financial problems. Half of the salary is spent on his father’s
treatment. He starts borrowing money from friends and relatives to bear the
expenses. His mother is depressed and due to continuous depression, she has
become heart patient.
The company explores his talents and recognizes his hard work with dedication. He
is offered a posting in USA where the company’s headquarter locates. He is offered
a job of higher designation with handsome salary in US dollars.
Faraz becomes excited, by availing this opportunity he can get rid of financial
problems in a short time. He decides to leave for USA. He has got few days to
depart and joining. He takes his parents into confidence and convinces them to let
him go happily. He also promises to send them money every month. He plans to
take his parents with him to USA after few months, if all goes well.

18. His father reaches to the last stage of the cancer but he decides to leave to resolve
the financial issues. On the day of departure to USA, just before an hour of his
boarding time, he receives a call from his mother. She tells him that his father needs
treatment and would die if not taken to the hospital immediately. Faraz is not sure
whether his father would survive or die even he is taken to the hospital right away.
Faraz is confused now, if he takes his father to the hospital and misses the plane
then he may not get an opportunity again like this. If he decides not to miss the plane
and leaves for USA, then he could manage all the financial problems including huge
debt that has to be paid off.
Question:
What should Faraz do now? What should be his decision?
Case Study 10:
Facing harassment by female staff
After completing the Summer internship in a well reputed organization right after
graduation Nazia gets an opportunity to join that organization full time as a marketing
executive. She loves her work and tries to perform her duties with dedication. She is
energetic and social. She has established very strong relationships with her
co-workers. The workplace encourages and allows interns and newly appointed
employees to interact with the upper management including Directors to keep the
environment friendly.
Nazia notices that one of the Directors has started paying extra attention to her. The
different kind of behavior by the Director can only be seen with Nazia. He also
approaches Nazia through social networking sites. Besides this, he sends friendly
messages and jokes to her via mobile phone. He has invited Nazia to his home
many times for a party. Some of the co-workers have started passing comments to
Nazia about the extra care and attention paid by him.
Although, the director has not done or said anything explicitly inappropriate but
noticing by the co-workers, comments and working with him making Nazia
uncomfortable. At the time of hiring she was told to report her manager if she feels
any difficulty and issues. Nazia is afraid to make complain in writing as he has not
done explicitly wrong with her. Nazia is quite satisfied with the office environment
and salary offered to her. She expects promotion and grooming in future and any
action against the Director could put her in trouble surviving in the same
organization.
Question:

19. What kind of action should Nazia take against the Director?
Case Study 11:
Sincerity with the workplace
Shakeela was fired from a company due to her irresponsibility, irregularity and
lateness. She was working as an office assistant. After few weeks she comes to her
former manager and informs that she has applied in another company for the same
post and has given his name as a reference. She needs a job as she is a single
parent with two children. She requests him to give good recommendation and
feedback and not mentioning her weaknesses if enquired.
Shakeela asks her manager to make a character and experience certificate
mentioning that she left the company voluntarily due to her family issues and the
company didn’t want her to leave.
The manager knows Shakeela personally and has a soft corner for her; however, he
would not recommend his own company hire her back.
Questions:
I. What should the manager say to the employer who calls him for Shakeela?
II. What if the employer was manager’s friend?
III. If Shakeela asks her manager to be a reference before applying somewhere
else, what should be manager’s response?
IV. What should be manager’s role in resolving Shakeela’s issue keeping the
dignity and image of his company positive and transparent?

20. Case Study 12:
Punishing a poor girl on snatching
Jameel is driving a car and gets strucked in traffic. A little poor girl approaches him
and starts begging for money. By nature Jameel is an emotional and kind hearted
man who is always ready to help others. He takes out his wallet and finds a twenty
rupees note for her. The girl who was standing very near to him snatches his wallet
and starts running. Another man on a motor bike who is also strucked in traffic like
Jameel sees the whole situation runs after her and catches her. He starts beating the
poor girl badly. Now the traffic starts moving with no chance for him to stay any
more.
Question:
What should Jameel do in such a situation?

21. Case Study 13:
Hiding true facts
Zahid works in an organization as an assistant manager in IT department and
recently promoted to the designation of senior manager. Waleed, Zahid’s department
head calls him to his office. Waleed shares with Zahid that the CEO has received a
letter from one of the employees of IT department. The CEO has kept the name
confidential. The letter states that software installed recently does not perform well
as expected and the department has not achieved the desired results.
Zahid is aware of this problem by the software installed and reported to his
Department Head, Waleed several times before. Waleed is in favour of that software
and the only supporter and has been providing positive feedback to the CEO about
its performance.
Waleed asks Zahid to draft a reply to the letter that should support the system. It
should say that the system is performing well with desired results.
Zahid is confused and mentally disturbed. He wants to give the true facts to the
higher management about the performance of the system and does not want to hide
anything. Zahid has worked very hard to get the promotion and Waleed, being a
department head, supported him as well to achieve that position. If Zahid goes
against Waleed then his career could be at stake.
Questions:
1. What should Zahid do?
2. Which of the following alternatives should Zahid choose? Why?
a. Replying as Waleed requested

22. b. Providing true facts
c. Refusing to write a false report
Case Study 14:
Being biased and racist
Bilal works in a bank as an Assistant Manager in the Training and Development
Department. He was appointed last year. He has worked part-time for the bank
during his Master’s degree in Business. His main responsibility is to train fresh and
newly appointed employees. The bank wants to hire and promote minorities to avoid
the allegation of adapting racial discrimination that it has been facing for the last two
years. The bank wants to change its image from being a “biased and racist”
organization to an equal opportunity employer.
Usually it takes a week to train the fresh employees. The bank has also provided a
room for this purpose facilitated with equipments. The trainees are trained with
written and audiovisual material provided by the bank. The bank takes the test at the
end of every training session. The failed employees have to attend the session again
in order to give the satisfactory performance in their work. The employees cannot
participate in the different bank operations until they pass the test. The class usually
consists of ten to twelve trainees.
Today, after two days of a session, Bilal has been hit with a serious complaint.
Alan Desoza, one of the newly appointed employees for the bank belongs to
Christian Community. All the other trainees are Muslim. Alan feels difficulty in
learning as much of the training involves quizzes and computer work. Bilal is a very
cooperative teacher and wants Alan to improve and explains how to correct
mistakes. Alan takes it negatively and does not like Bilal’s constructive criticism. Alan
thinks he has been treating differently because of his community. Alan decides to file
an official complaint if Bilal does not pass him and signs satisfactory report.

23. Question:
How should Bilal handle this sensitive issue?
Case Study 15:
Change Management:
Sameer has been performing well in an organization as an Assistant Manager
Accounts since his graduation in finance. He has spent around five years in that
organization. With the passage of time Sameer has learnt the ways to survive in
such a conventional bureaucratic environment.
Haris, an experienced and competent employee who has recently joined this
organization as a manager accounts. His reputation is good and famous for
organizing and improving the daily operations in the previous organization. He has
been appointed on a pay scale with benefits better than the last one. Haris is self-
motivated and determined to bring changes in the department that will increase the
productivity and efficiency of accounts.
In an informal welcoming ceremony, Haris introduces himself and wants to be
familiar with other staff members of the department. He also asks for better
suggestions from each subordinate to make it a better work place. He finds Sameer
reluctant to accept new challenges. Sameer suggests his newly appointed manager
not to bring any change in the current system as it will put them in trouble. Sameer
criticizes the different policies made by the higher management. He also shows his
belongings to a political party indirectly.
Haris calls Sameer to his office next day and says to him that he will not tolerate
those subordinates who are not in the interest of the company and do not want to
work as a team. Haris says to him that it will be taken seriously if he tries to be a
barrier in implementing new system that is more effective and productive. Haris
warns Sameer to leave or improve.

24. Question:
I. How could Sameer be motivated?
II. Do you think Haris lacks leadership qualities? Justify
III. Do you think bringing a change in the existing environment is a threat? Why
or why not?
Case Study 16:
Loving or leaving employees
Salman works for a university as an administrative officer. He has been working
there for more than fifteen years. He is considered one of the most experienced
employees of the university. Salman is a graduate and has not upgraded himself in
his tenure. His performance is satisfactory in the routine work but has shown no
interest and active participation in changing the existing environment.
Hasan is a Chairman of university. He is a kind hearted person and always has a
soft corner for his employees. He has not fired a single employee from the university
on the basis of poor performance. He gives a good raise in salaries to those
employees who perform well and keep upgrading themselves.
Salman is a middle aged person having three school going children. He is a bread
earner of his family and the survival totally depends on his salary. Due to his below
average performance his salary has not been raised since the last few years. Hasan
knows very well about Salman and his family.
Saeed has recently joined as a Director, HR and Administration Department. He has
got a vast experience in HR departments of different well reputed universities.
The meeting of the board of directors is held regarding annual increment in the
employees’ salaries. Evaluating each employee’s performance is one of the meeting
agenda. The meeting is chaired by Chairman, Hasan.
When the discussion comes to Salman, the board gives suggestions not to raise his
salary due to his poor performance throughout the year. Saeed is against the board
and its suggestions. He says that not raising any employee’s salary for many years

25. is unethical and cannot be justified. He supports Salman by saying that he has given
more than fifty percent of his professional life and he deserves promotion as well as
increment. Saeed suggests Chairman Hasan to fire Salman or promote him. Saeed
strongly believes that not raising salaries is a demotivating factor and has a negative
effect on employee’s behavior and performance. Saeed suggests Chairman Hasan
to love or leave him.
Case Study 17:
Unethical practices of food industry
Tasty meal is one of the largest foodservice retailer having more than 200
restaurants across country. It has more than 3000 employees including staff
members, waiters and chefs.
However, Tasty Meal has been criticized for
 Unfair treatment with its employees by taking too many hours of working
against very low wages. Tasty Meal has no difficulty in hiring its employees on
low wages due to poverty and unemployment in the region. It has also been
criticized for taking work from children against one time meal. The situation is
even worst in under developed cities of the country.
 Meals served are mostly junk food, oily, having high calorie and could cause
health issues if eaten regularly.
 Tasty Meal is not even environmental friendly. Using disposable stuff like
wrapping paper, straws and tableware are comparatively cost effective but
harmful to the environment, especially those which are non-recyclable. It has
been criticized for over packaging and using extra wrapping papers.
Questions:
I. Do you think treating employees in Tasty Meal is unfair? Justify. Keep the
unemployment factor, poverty and economical environment in mind.
II. Should Tasty Meal be accused for health issues by providing unhealthy food?

26. (Note: Tasty Meal never sells its product forcefully. Customers have choices)
III. Do you think Tasty Meal is running an ethical and socially responsible
business? Why or why not?
Case Study 18:
Ethical practices in business
With the passage of time the Tasty Meal starts realizing the importance of CSR
(Corporate Social Responsibility). Tasty meal now understands that being socially
responsible is the key to success in the business world. It has taken a few
responsible steps in the interest of its stakeholders. These are;
 Raising hourly wages of employees
 Addition of healthy food such as green salad with each menu free of cost and
removing unhealthy and high calorie meals from menu
 Start donating money from its net profit to NGOs to take care of the
community
 Using recyclable products instead of disposables such as tableware and
containers
 Promoting environmental protection by launching campaigns like Save Earth,
Green Day, Save the Beaches etc.
Questions:
I. Should government regulate business ethics and social responsibilities?
Why or why not?
II. In your opinion what are the reasons behind Tasty Meal’s steps?
III. Do you think that Tasty Meal will increase its profitability by taking such
steps?
IV. Ethical practices in business have always conflicts with huge profit. Do
you agree with this statement? Yes or No? Justify your answer

27. V. Is this the only government’s responsibility to aware business sector about
ethics in business and being socially responsible? How can the awareness
of CSR be promoted?
Case Study 19:
Priority on sales over reputation
Zara is a college student and works as a waitress in a popular restaurant Sea Shells.
She does a part time job to cover her educational expenses. Sea Shells is located at
the beach that is considered one of the most ideal locations of the city. This
restaurant is well known for its sophisticated and peaceful environment. The uniform
for Waitresses in Sea Shells is Jeans or pants and T-shirts.
The Sea Shells gets good business during the months of Spring and specially
Summer and there is a decline during the months of Winter. Junaid, the owner of
Sea Shells wants to improve sales during the off-season months. He formulated a
few strategies to attract more customers and enhance sales. One of his strategies is
making waitresses’ uniform more seductive and revealing. He expects from
waitresses to wear low-cut and sleeveless tops with tight-fitting jeans.
The sale improves by turning plans into actions including new uniform. But, few
issues have also been observed. The incoming of male customers is greater than
the families. Customers make abusive remarks to the waitresses. Zara is tired of
such practices by customers but cannot leave the job. She wants to complete her
studies by the end of this year to grab the better opportunity as another part time job
with such flexible timings is almost impossible at this level.
By the frequent practice of customers making abusive comments, Zara decides to
talk to the restaurant’s owner, Junaid. Zara requests him to allow her wearing the
last uniform. Junaid is reluctant to allow Zara to go back to the old uniform since he

28. is convinced that his restaurant badly needs the new, revealing clothing to draw
customers’ attention and does not want a decline in business this time.
Questions:
I. What actions should Zara take?
II. Which of the following alternatives should be chosen? Why or why not?
 Allow Zara and other waitresses to return back to the original uniform.
 Fire Zara for not wearing the new uniform
 Develop other strategies to improve sales
 Zara must go for harassment charges against Sea Shells
Case Study 20:
Application of the skin care products:
Hina is a fresh business graduate and works as an Assistant Manager Marketing in
Fantasy Cosmetics, a leading manufacturer of skin care products. Hina has recently
joined Fantasy Cosmetics and lacks practical exposure. To familiar Hina with the
environment, routine work and in depth knowledge of the products, Fantasy
Cosmetics expects her to work with all the departments for a week as a part of her
orientation.
In the fourth week Hina had an opportunity to work with the department of Research
& Development. She spent time with marketing research group and listened to the
discussions with regular customers.
After a week Babar, Marketing Manager asks Hina to work on the packaging of the
fairness cream that is to be launched next month. Babar instructs her to design and
mentioning the desired results by applying the cream thrice a day. Hina is excited to
get the first challenging task. Now, the time has come for Hina to prove herself.
When Hina starts working on the task given, she recalls that consumers interviewed
by the department of Research and Development, revealed the fact that just one
application a day really worked. She is confused and thinks that changing the actual
facts on the packaging will increase the sales volume but will not benefit the
consumers.
Questions:

29. I. Do you think that it is unethical to recommend consumers to apply the
fairness cream thrice a day if it really works by applying once? Justify
II. What should Hina do as she is working for a leading cosmetics manufacturer
and has to prove herself by following the directions given?
Case Study 21:
Selling expensive insurance policies:
Hamza works for a life insurance company as a sales representative. He has been
working in that company for more than five years. He has got good communication
and presentation skills. He has attended several workshops on sales and marketing
to enhance his skills. The company is happy with his performance and gives good
salary and commission on the policies he sells.
Hamza has several plans to sell. One of the insurance products is a plan that is a
combination of savings and insurance both. Hamza is convinced and focused more
to sell that plan because company also appreciates and encourages more to its
sales representatives by giving handsome commission on its sales. The product
promises to protect the family in case of premature death as well as a good return on
investment after retirement.
The language used in the agreement paper is hard to understand. Usually, clients do
trust on Hamza and do not read the agreement thoroughly. Hamza knows the facts
very well. The product is expensive and provides a little protection in case of
premature death. Another disadvantage of having that product is a low return on
investment after its maturity. The company pushes its sales because it is more
profitable. Hamza has other cheaper products to sell that can give more benefits to
his clients including greater protection and return but the commission on sales by the
company is too low.

30. Hamza cannot earn more if he sells products considering consumers’ benefits. His
family will suffer if he thinks good for others and the management frowns on cheaper
policies being sold.
Questions:
I. What should Hamza do?
II. Is this ethical for insurance companies to promote expensive policies hiding
the facts? Justify
III. Can Hamza justify himself by saying that hiding the facts doesn’t mean lying?
Case Study 22:
Handling weaker students:
Rehan works in a well reputed multinational company as a Manager. He has been
giving his services in different companies for the last ten years. He has a command
over management skills. He has also been conducting workshops and training
sessions for subordinates. He loves to teach as teaching has always been his
passion. He also realizes the importance of corporate academia linkage. Keen
interest towards teaching and to meet industry requirement for business graduates,
he decides to teach at university level in the weekend program.
Rehan faces no difficulty in joining a well reputed private business institute as a
visiting faculty member. He starts teaching management courses. He wants to share
his practical exposure with students. His teaching methodology includes learning
material (handouts), reference books and case studies based on corporate and
industrial issues.
He faces problems while delivering lecture to students. He notices that few students
are not up to the mark. Their educational background is quite weak, therefore,
unable to absorb and understand what he says. On enquiring he came to know few
strange facts. Admissions were granted to all the students even to those who could
not qualify the entry test. The instructions were given by the Director Admissions.
Rehan is puzzled what to do. If he decides to teach according to course
requirements then few students will remain in loss. If he focuses the weaker students

31. then completing the course outline seems quite difficult. Rehan thinks to take catch
up classes (other than regular lectures) for weaker students to improve their reading
and writing skills.
Rehan discusses his problems with one of his friends who suggests him not to take
extra classes as he is not responsible for their educational background.
Question:
I. Do you think Rehan is not responsible for students’ weaker educational
background? Justify
II. Should the weaker students given an opportunity to improve themselves?
III. Should Rehan leave that institute and join another one that grants admissions
on merit based? Why or why not?