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Ziqitza Health Care Limited (Zhl) Responding to Corruption

In: Business and Management

Submitted By salifu2
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Pages 8
Ziqitza Health Care Limited (ZHL)
Responding to corruption

By: Chelsie Brantley
Salifu Cham
Donika Gibson
Ghofran Mahrouqi
Janeille Okpere

Course: BUAD 625: Organizational Leadership and Ethics
October 13, 2014
Ethical Issue:
Sweta Mangal, CEO and co-founder of Ziqitza Health Care Limited (ZHL), an Emergency Medical Service (EMS) must decide how to respond to an official insisting that ZHL bribe him in order for him to release payment for ambulance services ZHL has provided. Mangal is confronted by a newly hired financial officer, Sanhay Rafati, who argues that if the bribe is not paid his office, will not be able to make payroll or maintain its ambulances, and that the company will face a terrible financial situation. The only alternative ZHL can take at this point is to take out a loan with a high interest rate, which will result in lower profits and may not be financially sustainable long-term. The founders of ZHL have pledged to operate with complete transparency and never pay bribes in its business transactions. As Mangal explains to Rafati, their commitment to these principles is absolute-part of ZHL’s DNA. ZHL operate in a highly corrupt environment in which it’s trying to change by example. Bribery is so common place that it’s viewed simply as part of doing business. Refusing to bribe the official can be detrimental, but ZHL has not only grown rapidly but has earned an international reputation that has attracted the investors. Furthermore, Indian society appears to be evolving, spanning a grassroots movement to combat corruption. What is the right decision and how can it be implemented? This case explores the complex issue of conflict of interest versus corporate social responsibility. The case also examines the different moral models such as deontology-does ZHL have the duty to act in an ethical way based on founding morals regardless of the...

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...oikos Case Writing Competition 2013 Social Entrepreneurship Track 3rd Place Ziqitza Health Care Limited: Responding to Corruption N. Craig Smith and Robert J. Crawford, INSEAD This is an Online Inspection Copy. Protected under Copyright Law. Reproduction Forbidden unless Authorized. Questions relating to permission should be directed to: craig.smith@insead.edu Copyright © 2013 by the Authors. All rights reserved. This case was prepared by N. Craig Smith and Robert J. Crawford as a basis for class discussion rather than to illustrate the effective or ineffective handling of an administrative situation. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form by any means without permission. oikos case collection http://www.oikos-international.org/academic/case-collection/ oikos Case Writing Competition 2013 3rd Prize Introduction After a monthly staff meeting, a young employee approached Sweta Mangal, CEO of Ziqitza Health Care Limited (ZHL). Sanjay Rafati 1 had been hired as a financial officer the previous month, in November 2011. In view of the company’s strict ethical code, he was nervous about expressing his point of view, which was why he wanted to see Ms. Mangal in private: “The situation in one of the states where ZHL operates is getting critical. Unless the government pays what it owes us immediately, we will not be able to make payroll. We won’t be able to......

Words: 3484 - Pages: 14