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Product cover image for Governance at ICICI Bank: Chairman's Dilemma

Governance at ICICI Bank: Chairman's Dilemma

Barua, Samir K.; Varma, Jayanth

Product #:F&A0566
Supplier:Indian Institute of Management Ahmedabad
Discipline:Organizational Behaviour/Leadership
Setting:India
Details:Case (PDF) • 9 pages • 2022-02-09

Subjects:

Organizational cultureOrganizational behavior

Industries:

Transportation and distribution

Geography:

IndiaAsia
Your Price:$10.54

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The Board of ICICI Bank was meeting on January 30, 2019, to decide the action to be taken against the Bank’s former MD & CEO, Chanda Kochhar, in response to an independent investigation report that found her guilty of violation of the Bank’s code of conduct pertaining to conflict of interest. The non-executive Chairman of the Board of Directors of the Bank, Girish Chandra Chaturvedi, must decide the possible actions the Board might consider against Kochhar. Punitive action against Kochhar would be a reversal of an earlier decision of the Board to allowing Chanda Kochhar to resign without any cause (Termination Simplicter). Maintaining status quo on the decision could hurt the credibility of the Board and the reputation of the Bank. While evaluating the choices, Chaturvedi must maintain professional integrity and be fair to Kochhar. He had to frame the justifications for the choices he would put before a possibly divided Board.

Learning Objectives

The case highlights the central role of the Board and its Chairman in Corporate Governance, particularly in a crisis precipitated by the exit of the CEO. The learning sought to be imparted by the case include a. understanding the core tenets of Corporate Governance, especially the Board of Directors’ fiduciary responsibility towards the shareholders, b. understanding the importance of reputation for an organization and its board, c. analysing the implications of the choices available from governance and ethical perspective, d. understanding the importance of corporate communication, e. understanding the board dynamics and the need for skillful navigation of discussions for effective governance.
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Case Study: Governance at ICICI Bank: Chairman's Dilemma (English version) | Ivey Publishing