Case Study Report; The Challenges Facing Graham at Philla Plc and Recommendations (Case Study Sample)

Case Study Report; The Challenges Facing Graham at Philla Plc and Recommendations Student’s Name Institution Course Instructor Date Executive Summary Corporate social responsibility (CSR) has gained significant popularity across industries. Traditionally, businesses operated within the economic framework. However, in the contemporary world, the social and environmental aspects of business management have become commonplace, resulting in increased adoption of CSR. In this report, the case of Philla Plc is explored. The report examines the key issues emerging in the case study and analyses them to identify the best courses of action. Issues revolving around workplace harassment, sustainability plans, tax avoidance, and discrepancies in the recruitment process are identified. The report recommends the formation of an independent team of inquiry to unearth the existence of allegations against Philla. Regardless of the team's findings, the need to deploy experts to design a CSR system for Philla is recommended. With a CSR system, the company will address these issues internally, maintaining a positive public image. Table of Content TOC \o "1-3" \h \z \u 1.0 Introduction PAGEREF _Toc156307815 \h 42.0 Key Issues PAGEREF _Toc156307816 \h 43.0 Analysis PAGEREF _Toc156307817 \h 53.1 Tax Avoidance PAGEREF _Toc156307818 \h 53.2 Criminal Investigations PAGEREF _Toc156307819 \h 63.3 Discrepancies in the Recruitment Policy PAGEREF _Toc156307820 \h 63.4 Lack of a Sustainability Plan PAGEREF _Toc156307821 \h 74.0 Conclusion and Key Recommendations PAGEREF _Toc156307822 \h 8Reflection PAGEREF _Toc156307823 \h 91.0 Introduction PAGEREF _Toc156307824 \h 92.0 The Role of CSR in Informing Recommendations for Philla Plc and Future Practices PAGEREF _Toc156307825 \h 92.1 Ethical Leadership PAGEREF _Toc156307826 \h 102.2 Stakeholder Engagement PAGEREF _Toc156307827 \h 102.3 Environmental Sustainability PAGEREF _Toc156307828 \h 112.4 Social Responsibility PAGEREF _Toc156307829 \h 113.0 Conclusion PAGEREF _Toc156307830 \h 12References PAGEREF _Toc156307831 \h 13 1.0 Introduction Corporate social responsibility (CSR) has garnered widespread recognition within this construct. The increased adoption of the CSR theory has demanded that businesses balance profit-making with societal and environmental well-being. This may entail regulatory compliance (Crane et al. 2008), business ethics (Carrol and Shabana 2010), and balanced triple bottom line (Elkington, 1997). In other words, businesses have moral obligations beyond the economic aspects. The case study of Philla Plc presents a scenario where a comprehensive CSR plan lacks in its operations management function. As Graham assumes office as the new Strategy Director (SD), he is faced with the urgency of addressing multiple issues plaguing the company to maintain its reputation to ensure business continuity. In this report, key issues are outlined, as they emerge in the case study, which as are analysed to inform recommendations for consideration. 2.0 Key Issues An assessment of Philla Plc under the management of Graham as the new SD indicates that the company is harbouring multiple issues that demand urgent redress to guarantee business sustainability. The company allegedly avoided tax of up to £254 million between 2019 and 2023. If the allegations go to public knowledge, they will undermine the reputation and legal position of the company. Besides, two senior directors, Sir Kolesh and Mrs. Tuna, are currently under criminal investigation for the physical and sexual harassment of three junior staff members, who, although leaving the company, had committed themselves to the nondisclosure agreements (NDAs). The case exposes Philla to significant legal concerns and reputational risks. Additionally, the HR manager has highlighted a mismatch between the company’s recruitment policies and practices, whereby there are reserved quotas for some senior directors, making the department intentionally avoid competent candidates. The practice has perceived impacts on staff recruitment and motivation, which could jeopardise its reputation. Finally, the company lacks a sustainability management plan in place. It means that its ability to access markets is reduced besides the impending risk of going bankrupt in the risk five. The company needs enhanced commitments to clean energy, equality, and circular economic principles. Attached to the lack of a sustainability plan is the concern about the product materials, which, according to recent audit reports, contain significant amounts of phosphorus and sodium nitrates. These issues harbour critical facts that could compromise Philla Plc.’s CSR commitment and public image. 3.0 Analysis 3.1 Tax Avoidance The alleged tax avoidance amounting to £254 million at Philla Plc for the past four years will significantly impact its reputation due to the accompanying legal consequences. There is a need that the new SD, Graham, to conduct an internal investigation by constituting a team of experts. If the allegations turn out to be true, Philla Plc will need to voluntarily disclose tax evasion to the authorities and show a commitment to address the issue. Graham should then proceed to guide the company to create a transparent, accountable tax compliance plan to prevent future avoidance scenarios. The company will then report the mitigative actions to shareholders, supported by a dedication to legal compliance and ethical business practices. Literature supports these decisions. Crane et al. (2008) observed that tax avoidance is one of the prominent examples of irresponsible business behaviours in developing economies, which often contradict the CSR claims of good conduct (p.491). Stephen and Stanberry (2018) developed a symbiotic relationship in any industry, arguing that firms need customers, while customers need employment, and the state needs taxes just as the businesses demand resources for survival (p.85). McWilliams et al. (2019) tied these concepts together, viewing them from a stakeholder theory’s standpoint. Considering the knowledge that stakeholder theory is an essential component of CSR, as established in these studies, Graham should help Philla Plc design a sustainable tax compliance plan and pay the outstanding taxes. 3.2 Criminal Investigations The active investigation involving Sir Kolesh and Mrs. Tuna for physically and sexually harassing junior staff members presents concerns related to business ethics and legal concerns. The senior staff also used NDAs. Graham should appoint a team of legal experts to investigate harassment allegations at the workplace to inform the necessary disciplinary actions. There is also a need for the use of NDAs at Philla Plc to be re-evaluated to integrate transparency and settlement during employee departures. An anti-harassment training to integrate safe reporting is required to incentivise employees voice emerging concerns (Sorensen et al., 2018). The company will then need to reassure employees that workplace harassment will not be tolerated in the future since such assurances will boast motivation levels (Atta et al., 2022). These efforts are aligned with the need to observe business ethics. Chandler (2020) views the violation of society’s ethical principles and cultural heritage regarding issues related to human rights and social justice as being unethical and socially irresponsible. Sir Kolesh and Mrs. Tuna provide an example of human rights violation by physically and sexually harassing three junior staff members. The proposed actions above will help Philla Plc maintain a positive public image, avoid human rights violation lawsuits, and motivate employees. 3.3 Discrepancies in the Recruitment Policy The indication by the HR manager that maintaining quotas for the senior staff members at Philla Plc is common raises worries. The quota system is a significant compromise on these policies, exposing the company to a potential scandal that could taint its public image. To address the issues related to recruitment, Graham, together with a team of experts, should review the related policies and practices. Since it is possible that the existing paradigm harbours deficits, a new merit-based recruitment policy should be established. The HR department should receive training on the new policies and procedures. The new guidelines should be communicated to the rest of the organisation to ensure everyone is informed. The move could also enhance employee satisfaction. Chandler (2020) argued that in a complete CSR adoption, responsibility must be adopted alongside honesty, fairness, respect, and compassion (p.12). Also integrating the concept of interdependence that should exist among stakeholders (McWilliams et al., 2019), the quota system compromises recruitment of deserving employees, disrespect the company’s recruitment policies, and lacks corporate citizenship. The new proposal for consideration will help Philla Plc boost its CSR practices as they emphasize fairness and equality. 3.4 Lack of a Sustainability Plan The CSR practices at Philla Plc depict multiple attributes that make them undesirable as indicated by the McClean Partners Plc survey findings, which showed that firms that do not have an active sustainability plan risk going bankrupt in the next five years, there is an urgent need for firms show a commitment to clean energy, embrace equality at the workplace, and adopt. The counteractive measure needed in this scenario is there is need for creating and adopting a comprehensive CSR plan. To increase adaptability, the new plan should be guided by clear and feasible goals, be time-bound, and contain measurable targets. The company should also consider collaborating with industry experts to improve compliance and adoption of updated policies due to the dynamic nature of the operating landscape. Industry experts also bring experience, expertise, and innovation into a company (Sarto & Sag...