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Unit 2 Case Analysis

Unit 2 Case Analysis

Q Chapter 2: Ethical Decision Making and Action Case Study 2.1: The Fall of an Auto Industry Icon Case Synopsis and Analysis At one point, Nissan/Renault CEO Carlos Ghosn was a star of the automotive industry, credited with saving Nissan and skillfully overseeing the global alliance of Renault, Nissan, and Mitsubishi. His reign as an automotive icon came to a sudden end in December 2018. He was charged with underreporting his income and was removed as chair of Nissan and Renault. Subsequent investigations found that Ghosn maintained an extravagant lifestyle at company expense, apparently driven by greed and excessive pride in his accomplishments. Ghosn argues that his arrest was a coup engineered by Nissan executives fearful of losing their jobs in a merger with Renault. Analysis Question: Analyze the apparent failure of Nissan and Renault to prevent Ghosn’s alleged misuse of company funds.

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There had been complete trust shown on Carlos Ghosn by Nissan as well as Renault after noticing his good performance. However, there had never been any supervisory board or auditing committee appointed to monitor the activities of Ghosn. There had been no one in the allied organizations to question the decisions, actions and authority of Ghosn because he had been the CEO and had been successful. The Board of Directors, shareholders, investors, sponsors and all the stakeholders could not identify the ways in which Ghosn had been exploiting the situation. This is because the exact amount of money earned as income by Ghosn from the allied organizations had been hidden by him.