Product details

The case examines the charges of (Foreign Exchange Regulation Act) violations against tobacco major, Imperial Tobacco Company of India (ITC), in the 1990s. The case details the dubious international trading deals by ITC and its partners, the Chitalias, the Enforcement Directorate''s investigations and the arrests of ITC executives. The case also looks at charges of excise duty evasion and share price manipulation against ITC. The case ends with a discussion on the measures taken by the company to restore its corporate image in the light of the various charges. The case is structured to enable students to: (1) understand the corporate governance structure and causes that led to unethical behaviour in a large company engaged in international business; (2) discuss the ethical dimensions of stringent economic laws that resulted in violation of laws and regulations and analyse the circumstances leading to such situation; (3) examine the consequences of violations on the company, its impact on the organisation''s reputation, structure and policies; (4) study the measures undertaken by the company to remedy the situation and evaluate their effectiveness; and (5) create awareness of the roles and responsibilities of the board of directors in ensuring efficiency and good corporate governance. The case is intended for MBA/PGDBM level students as part of the economics, politics and business environment curriculum.