Mini Case

Mysterious Terminations

Multi Global Finance and Insurance Corporation (MGFIC) was, by all accounts, a model insurance company. profits were strong and had been for several years in a row. the company carried the highest ratings in its industry , and it had recently been voted one of the top 100 companies to work for in the Philippines in recognition of its "very employee-focused work environment". MGFIC offers very generous benefits: free lunches in the cafeteria, on-site daycare facilities, and even free starbucks coffee in the employee break rooms. in an industry that was still struggling with the massive claims after a succession of typhoons and floods in the Philippines, MGFIC was financially stable and positioned to become one of the major insurance companies in the country.

So, why were the CEO, Juan Paderez, the CFO, Lydia Sanchez, and the COO, Jose Aquino, all fired on the same day with no explanation other than the terminations were related to issues of conduct?

Questions:

1. Who would most likely have intervened to terminate the senior team over issues of conduct?

2. Give some examples of the kind of ethical misconduct that could have led to the termination of the entire senior leadership of MGFIC.

3. Was it good idea to fire them all at the same time with no detailed explanation?

4. How are the stakeholders of MGFIC likely to react to this news? Explain.