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Abstract

This is part of a case series. Fairphone, a pioneer in ethical consumer electronics, built its reputation on transparency, sustainability, and responsible sourcing. However, the company faced a major test when a corruption scandal emerged: two buyers in Taipei had accepted kickbacks from a Chinese supplier in exchange for preferential terms. This breach of trust jeopardized Fairphone's credibility and mission as an industry role model. The case focuses on how CEO Eva Gouwens and CFO Noud Tillemans managed the crisis, raising questions about supply chain transparency, corporate ethics, governance, risk management, anti-bribery safeguards, and stakeholder communication. Unlike typical white-collar scandals, the incident challenged the very identity of a company known for championing ethical business practices.

Teaching and learning

This item is suitable for postgraduate and executive education courses.

Time period

The events covered by this case took place in 2022.

Geographical setting

Region:
World/global
Countries:
The Netherlands; China

Featured company

Fairphone
Type:
Privately held
Industry:
Electronics

Featured protagonists

  • Eva Gouwens (female), CEO
  • Noud Tillemans (male), CFO

About

Abstract

This is part of a case series. Fairphone, a pioneer in ethical consumer electronics, built its reputation on transparency, sustainability, and responsible sourcing. However, the company faced a major test when a corruption scandal emerged: two buyers in Taipei had accepted kickbacks from a Chinese supplier in exchange for preferential terms. This breach of trust jeopardized Fairphone's credibility and mission as an industry role model. The case focuses on how CEO Eva Gouwens and CFO Noud Tillemans managed the crisis, raising questions about supply chain transparency, corporate ethics, governance, risk management, anti-bribery safeguards, and stakeholder communication. Unlike typical white-collar scandals, the incident challenged the very identity of a company known for championing ethical business practices.

Teaching and learning

This item is suitable for postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2022.

Geographical setting

Region:
World/global
Countries:
The Netherlands; China

Featured company

Fairphone
Type:
Privately held
Industry:
Electronics

Featured protagonists

  • Eva Gouwens (female), CEO
  • Noud Tillemans (male), CFO

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