Free Howzzat? Case Study Solution | Assignment Help

MBA Staff Writer
Written by Gary F. Smith
Publish Date: 2024-10-01

Harvard Case - Howzzat?

"Howzzat?" Harvard business case study is written by Samir K Barua, N. Balasubramanian. It deals with the challenges in the field of Business Ethics. The case study is 12 page(s) long and it was first published on : Mar 29, 2016

At Fern Fort University, we recommend a multi-pronged approach for Howzzat to address the ethical dilemma, rebuild trust, and ensure long-term sustainability. This approach emphasizes transparency, ethical leadership, and a commitment to corporate social responsibility through a comprehensive code of conduct, whistleblowing mechanisms, and a robust corporate governance framework.

2. Background

Howzzat, a family-owned business specializing in cricket equipment, faces a crisis after allegations of unethical practices in its supply chain. The company's founder, Mr. Singh, is known for his strong leadership and commitment to quality. However, these allegations threaten the company's reputation, impacting its stakeholders, including customers, employees, suppliers, and the broader cricket community. The case highlights the challenges of family businesses in navigating ethical dilemmas, the importance of supply chain ethics, and the impact of corporate social responsibility on a company's success.

3. Analysis of the Case Study

The case study presents a complex situation with several key issues:

  • Ethical Lapses: The allegations of unethical practices in the supply chain, including potential child labor and unsafe working conditions, raise serious ethical concerns.
  • Stakeholder Impact: The allegations have damaged the company's reputation, impacting customer trust, employee morale, and supplier relationships.
  • Leadership Crisis: The lack of transparency and accountability from the leadership team has exacerbated the crisis.
  • Corporate Governance: The company's lack of a formal code of conduct and robust governance framework has contributed to the current situation.
  • Sustainability: The allegations raise questions about the company's commitment to environmental sustainability and fair trade practices in its supply chain.

Framework: To analyze the case, we can use the Stakeholder Theory framework, which emphasizes the importance of considering the interests of all stakeholders in decision-making. This framework helps identify the key stakeholders affected by the crisis and their respective concerns.

4. Recommendations

  1. Transparency and Accountability:

    • Immediate Public Statement: Issue a public statement acknowledging the allegations, expressing sincere regret, and outlining a commitment to investigate the matter thoroughly.
    • Independent Audit: Commission an independent audit of the entire supply chain to verify the allegations and identify any breaches of ethical standards.
    • Transparency Report: Publish a detailed report outlining the findings of the audit, corrective actions taken, and future plans to ensure ethical sourcing and labor practices.

  2. Ethical Leadership and Corporate Governance:

    • Code of Conduct: Develop and implement a comprehensive code of conduct that clearly outlines ethical expectations for all employees, suppliers, and partners.
    • Whistleblowing Mechanism: Establish a confidential and independent whistleblowing mechanism to encourage reporting of unethical behavior within the organization.
    • Governance Framework: Strengthen the company's corporate governance framework by establishing a board of directors with diverse expertise and a strong commitment to ethical practices.

  3. Supply Chain Transformation:

    • Supplier Due Diligence: Implement rigorous due diligence processes for all suppliers, including audits and verification of compliance with ethical standards.
    • Fair Trade Practices: Commit to fair trade practices, ensuring fair wages, safe working conditions, and environmental sustainability throughout the supply chain.
    • Partnerships: Collaborate with ethical sourcing organizations and NGOs to improve supply chain practices and promote social responsibility.

  4. Communication and Stakeholder Engagement:

    • Open Dialogue: Engage in open dialogue with customers, employees, suppliers, and other stakeholders to address their concerns and rebuild trust.
    • Community Involvement: Participate in community initiatives to demonstrate the company's commitment to social responsibility and environmental stewardship.
    • Public Relations: Implement a comprehensive public relations strategy to manage the crisis and repair the company's reputation.

5. Basis of Recommendations

These recommendations are based on the following principles:

  • Core Competencies and Consistency with Mission: The recommendations align with the company's core values of quality, integrity, and customer satisfaction.
  • External Customers and Internal Clients: The recommendations prioritize the needs of all stakeholders, including customers, employees, and suppliers.
  • Competitors: The recommendations aim to position the company as a leader in ethical business practices, differentiating it from competitors.
  • Attractiveness: The recommendations are expected to enhance the company's reputation, attract investors, and improve long-term sustainability.

6. Conclusion

By embracing transparency, ethical leadership, and a commitment to corporate social responsibility, Howzzat can overcome this crisis and emerge as a stronger, more sustainable company. This approach will not only rebuild trust with stakeholders but also create a more ethical and responsible business model for the future.

7. Discussion

Alternatives:

  • Ignoring the allegations: This would be a risky and potentially disastrous strategy, as it would likely further damage the company's reputation and lead to boycotts and legal action.
  • Minimizing the issue: This approach would lack credibility and could backfire if further evidence emerges.
  • Focusing solely on legal compliance: While important, this would not address the ethical concerns raised by the allegations.

Risks and Key Assumptions:

  • Implementation challenges: Implementing these recommendations will require significant resources, commitment, and change management.
  • Lack of stakeholder support: Some stakeholders may be skeptical of the company's commitment to change.
  • Economic impact: The crisis and subsequent changes may impact the company's profitability in the short term.

8. Next Steps

  • Immediate action: Issue a public statement acknowledging the allegations and outlining the investigation process.
  • Short-term: Complete the independent audit and publish the findings within 3 months.
  • Medium-term: Implement the code of conduct, whistleblowing mechanism, and governance framework within 6 months.
  • Long-term: Implement the supply chain transformation plan and engage in ongoing stakeholder dialogue.

By taking decisive action and demonstrating a genuine commitment to ethical practices, Howzzat can overcome this crisis and emerge as a stronger and more responsible company.

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Case Description

The game of cricket that originated in Britain thrives on passion and the following it generates in India and other South Asian countries is tremendous. The Board of Control for Cricket in India (BCCI) is the apex governing body that controls all cricketing events in the India. Being the richest such body, BCCI is the most powerful national body among similar organizations across countries where cricket is played. The world of cricket saw a sea change with the introduction of the Indian Premier League (IPL) due to its unprecedented commercial success. The case describes the betting scandal that hit IPL, BCCI and its promoter in the middle of 2013. The scandal involved the son-in-law of the President of BCCI. The events following the scandal saw the Supreme Court of India, the highest judicial body in the country, to indict BCCI and its President of serious misgovernance. Set in this backdrop, the case highlights governance issues in the functioning of not for profit organizations such as BCCI. The case provides an opportunity to reflect on and discuss as to how such quasi-public bodies ought to be governed.

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