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Tom Smith began his career at Bio-Bank in 1983 as a financial controller and worked his way up the corporate ladder to become CEO in 1999. As CEO, although Smith was behind the company's growth and success, he also became known for his over-spending lifestyle. He left the company in 2005 while debates surrounded his compensation and personal spending. In 2010, Smith was convicted of crimes in relation to alleged unauthorized bonuses of $90 million, in addition to other large purchases and investments all for himself. Sara served as an external member of the board at Bio-Bank in 2005 and was asked to a report clarifying her advice as to what she believed should be done in regards to Smith's compensation. Sara asked to be given two days extension as she was not so sure which advice would be for the "greater good".
a. Which of the board's committee(s) do you think Sara serves in? Explain why you think so.
b. Explain the ethical dilemma in the above case. Also, state who is experiencing the dilemma?
c. You have covered 4 types of conflicts in chapter-2 of your textbook, state which of these types of conflicts mostly suit the above case. Explain why? (You may select more than one type)
d. Explain to Sara how "greater good" would apply to this case?
e. Which of the 3 CSR types (Ethical, Strategic, or Altruistic) has Bio-Bank violated? Explain why you think so.
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