MBA 1st Business Ethics Case Study 1 With Question Answer

MBA 1st Business Ethics Case Study 1 With Question Answer


MBA 1st Business Ethics Case Study 1 With Question Answer
MBA 1st Business Ethics Case Study 1 With Question Answer

Case Study 2 (Business Ethics)

Indian leather exports, an important foreign exchange earner for the country has been reportedly hit hard by the decision of some major vs retail chains like Eddie Bauer, L.L. Bean, Timberland and Casual Corner and a German company, Badeer to boycott leather goods from India in protest against the ill treatment of animals here. This move came shortly alter a decision by global retail chains Gap Marks and Spencer, Liz Claiborne and J.Crew not to buy Indian leather goods. This development has a lot to do with the lobbying by the US based animal rights group, People for Ethical Treatment on

Animals (PETA) for a ban on leather goods from India by documenting evidence of ‘Cruelty to animals killed for making leather. It has been reported that the overseas firms have officially communicated to the indian outfit of PETA that they will not be sourcing leather products from India until there is strict enforcement of animal protection laws. Following this, the Mumbai based Teja Industries, the Official supplier of leather goods for Marks and Spencer in India, started outsourcing leather from other countries to manufacture products for the global chain.

MBA 1st Business Ethics Case Study 2 With Question Answer


Q.1. In the light of the above discuss the implications of social activist groups for business. 

Ans. Implications of Social Activist Groups 

Social activists affect the business to a great extent along with political activism. Many social Activists are involved peaceful protests and collaborating with governmental organisations. This can affect business at national as well as international level and can interrupt the normal flow of trade.

here, the US based animal rights group People for Ethical Treatment of Animals (PETAJ altected many business groups to boycott leather goods from India against ill-treatment of animals in India. PETA asked for ban on leather goods so as to protect the animals.

Implications of social activist groups on business can be: 

1. Social activists affect the image of business at national and international level as these are related to the activities for balancing the society. Thus, any activity damages the image of business 

2. Social activists can affect the sale of goods and services in the market. 

3. Social activists can also affect the profit in business activities. All retail chain buyers of leather goods decided not to buy the goods from Indian exporters that causes a loss to them. 

4. Social activists can also affect the norms of business in case of any unethical activity

Thus, social activist groups affect the business to a large extent and hence increases the risk against ill treatment of animals.

MBA 1st Business Ethics Case Study 2 With Question Answer

Q.2. With reference to this case, discuss the failure to the governments, council for leather exports and the leather industry and the lessons of this case. 

Ans. Failure of Government, Council of Leather Exports and Leather Industry

The government, council of leather exports and leather industry are failed to keep the trust of customers of leather export industry.

1. Failure of Govt.: Govt. in India is not able to enforce the animal protection law properly in the country due to which unethical activities are seen by the social activists.

2. Failure of Council of Leather Export: This council is failed to maintain the trust of its buyers and lost them. A promotional campaign is responsible for keeping good image of producer’s goods and services to a large extent

3. Failure of Leather Industry: Leather industry is failed to ensure ethical activities of gettine leather so as to prepare goods from it. Unlair practices of killing animals to get leather are used in it

Lessons of this Case: Following lessons can be drawn from this case:

1. Social activism affects the international business to a large extent 

2 The govt. should ensure enforcement of laws that are related to international business 

3. Provisions should be ready to protect the image of companies in foreign markets

4. Export companies should understand all the sensitive areas in case of international business 

MBA 1st Business Ethics Case Study 2 With Question Answer

Q.3. What should the governments council for leather exports and the leather industry do to overcome the problem?

Ans. To overcome the problem, the following measures can be adopted by the various organisations or industries. The govt. of countries is a major concern for international business:

1. Government: It should take critical steps to stop the ill treatment of animals and hence to ensure the firms about the protection of animals by making strict enforcement of laws.

2. Council Leather Export: It is an autonomous non-profit company registered under Indian Companies Act, 1956 for the development of Indian leather industry. It acts as a facilitator for building relationship between overseas buyers and their Indian counterparts to promote exports from Indian leather industry

Thus, council for leather exports must: 

(a) Promote, facilitate and attract foreign buyers and should make strategies to attract new buyers. 

(b) Participate in international fairs and specialised trade shows across the globe. 

(C) Use better product development and the marketing techniques to rebuild the image of leather industry of India 

(d) Work to build the trust of foreign buyers for Indian leather goods.

3. Leather Industry: It is India’s oldest manufacturing industries that cater to the international market from the middle of nineteenth century. To overcome the problem and to strengthen the image in foreign market, it should ensure the proper treatment of animals by social activists.

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