A private company is known for its efficiency, transparency and employee welfare. The company though owned by a private individual has a cooperative character where employees feel a sense of ownership. The company employs nearly 700 personnel and they have voluntarily decided not to form a union. One day suddenly in the morning, about 40 men belonging to a political party gate-crashed into the factory demanding jobs in the factory. They threatened the management and employees, and also used foul language. The employees feel demoralized. It was clear that those people who gate-crashed wanted to be on the payroll of the company as well as continue as the volunteers/members of the party. The company maintains high standards in integrity and does not extend favours to civil administration that also includes law enforcement agency. Such incidents occur in public sector also. (a) Assume you are the CEO of the company. What would you do to diffuse the volatile situation on the date of gate-crashing with the violent mob sitting inside the company premises? (b) What could be the long-term solution to the issue discussed in the case? (c) Every solution/action that you suggest will have a positive and a negative impact on you (as CEO), the employees and the performance of the employees. Analyze the consequences of each of your suggested actions.
Subtopic: Case Study · industrial coercion and integrity
How to structure your answer
Written within the word limit
257 words · target 250 words · 20 min
Facts and stakeholders
An ethical, employee-friendly private company faces a violent mob of about 40 political-party workers who have gate-crashed demanding jobs while wishing to remain party volunteers. Stakeholders: the CEO (me), the 700 employees, the mob and its party, the police, and the company's reputation for integrity.
Ethical issues
- Safety of employees versus a violent, coercive intrusion;
- Upholding merit-based, lawful recruitment against extortionate pressure;
- Maintaining integrity by not seeking illicit favours from law enforcement;
- Rule of law versus expediency of appeasement.
(a) Immediate steps to defuse the situation
- Ensure employee safety first - move staff to secure areas and stay calm to prevent escalation.
- Engage the mob's leaders in dialogue, hear their grievance, and firmly explain that jobs follow only a fair, transparent process.
- Formally lodge a complaint and call the police, insisting on lawful protection - not favours - since the company's integrity permits a legitimate request for security.
- Avoid provocation and any on-the-spot promise made under duress.
(b) Long-term solution
- Institute a transparent, advertised recruitment policy open to all, including local youth on merit.
- Undertake skilling and CSR programmes for local employability, reducing hostility.
- Build community goodwill and engage local administration through legitimate channels; strengthen premises security.
(c) Consequence analysis
Firmness protects integrity and employee morale but risks short-term confrontation and political displeasure. Dialogue de-escalates yet may be seen as weakness if mishandled. Appeasement would end the crisis quickly but destroy the company's ethical character and invite repeat coercion - hence rejected.
Conclusion
Safety and firmness within the law, paired with transparent recruitment and community outreach, resolves the crisis without compromising integrity.
What an examiner expects to see
- Prioritise employee safety and de-escalation before any negotiation.
- Uphold merit-based, transparent recruitment against extortionate mob pressure.
- Seek lawful police protection - a legitimate request, not an illicit favour.
- Make no promises under duress; refuse appeasement that rewards coercion.
- Long-term: advertised recruitment, local skilling/CSR and community goodwill.
- Consequence trade-offs: firmness protects integrity but risks confrontation; appeasement ends crisis but destroys ethical character.
- Balances safety, rule of law, integrity and stakeholder welfare.
Concrete cases, schemes and judgments
- Transparent, advertised recruitment as an antidote to coerced hiring
- CSR-linked local skilling to raise employability and reduce hostility
- Legitimate police protection under law versus seeking illicit favours
- Refusal to yield to duress preserving organisational integrity