CEO Can't Afford to Panic (case 1)

"The CEO Can't Afford to Panic" is a case study that explores the area of social responsibility. Gerald Smarten, CEO of Kaspa Financial Services is having a dilemma. While presiding over the usual Tuesday meeting of the company, a bomb exploded at nearby train station causing confusion, uncertainty, and even fatalities on the area. Given this circumstance, the city requested whether Kaspa Financial Services is willing to help to the community by providing its space to become a triage center and a temporary morgue. Standpoints of the members of the management team also exists at this point with some agreeing to the city’s request and others arguing against it.

Thus, our group recommendation is to offer the company’s lobby and cafeteria to the city to help the victims of the subway bombing incident. We believe that going beyond the boundaries of the ordinary course of business, as traditionally set by society, is the best action to take. This is because in the realm of ethics, moral conscience and civic responsibilities are expected to be exercised and mere compliance with regulations and a good achievement of one’s financial performance are outweighed by different things affecting society.

In addition, Mr. Smarten demonstrated his abilities to remain calm and logical in times of crisis. At the same time, he considered the different factors that will be influenced by his final decision. It was also exhibited that he believes that ethics must play an important role in making a decision and a positive response for people and victims of crisis will have a lasting impact on Kaspa Financial Services and its employees.

In this case, we also learned much about the important role of the CEO in an organization. The decision related to crisis, problem and major opportunities that must be overseen and integrated by the Chief Executive. CEOs are increasingly exposed to all kinds of pressure such as from the government, regulatory agencies, consumers and ordinary citizens. To deal with this, the CEO must learn to function effectively in an environment of openness and transparency, as well as learn to respond to such pressure and to unexpected events. A great CEO has the ability to turn threats into opportunities and crisis into solutions in a very humane and ethical manner.

“Let each of you look not only to his own interests, but also to the interests of others.” —Philippians 2:4