Name- Ashish Gupta
Course - PGDM - CORE
Subject- Organizational behaviour
Assignment
Rise And Fall of a Business leader-
Floored After Hitting the glass ceiling
Ques-1 What are the major issues involved in the case?
Ans-1 As of my last knowledge update in January 2022, Chanda Kochhar, the
former CEO and Managing Director of ICICI Bank, faced a high-profile case
involving allegations of a conflict of interest and impropriety. Here are the major
issues involved in the case up to that point:
1. Conflict of Interest:
- Chanda Kochhar was accused of a conflict of interest related to loans provided
ICICI Bank to Videocon Group, a business conglomerate in India.
- The allegations suggested that there was a quid pro quo relationship between the
loans sanctioned by ICICI Bank under Kochhar's leadership and certain financial
transactions involving her husband
2. Business Dealings with Videocon:
- ICICI Bank, during Chanda Kochhar's tenure, provided significant loans to the
Videocon Group.
- It was alleged that there were irregularities and improprieties in the approval and
disbursement of these loans, with questions raised about whether Chanda Kochhar's
personal and familial connections influenced these business decisions.
3. Undisclosed Transactions:
- The case involved allegations of undisclosed financial transactions between
Chanda Kochhar's husband, Deepak Kochhar, and the Videocon Group.
- Questions were raised about the financial transactions and business dealings that
allegedly took place without proper disclosure.
4. Corporate Governance and Ethical Concerns:
- The case raised broader issues related to corporate governance and ethical
standards within ICICI Bank.
- There were concerns about the adequacy of the bank's internal processes, board
oversight, and the need for transparency in dealing with potential conflicts of interest.
5. Resignation and Legal Proceedings:
- Chanda Kochhar resigned from her position as CEO and Managing Director of
ICICI Bank in October 2018, amid an ongoing inquiry into the allegations.
- Legal investigations by regulatory authorities, including the Central Bureau of
Investigation (CBI) and the Enforcement Directorate (ED), were initiated to examine
the allegations against her and others involved.
Ques-2 What were the ideologies that Chanda Kochhar followed in her career?
What was her leadership style?
Ans :- Chanda Kochhar, during her tenure as the CEO and Managing Director of ICICI
Bank, was known for her pragmatic and results-oriented approach. Her leadership
style reflected a blend of several key ideologies and characteristics:
Customer-centric Approach: Kochhar emphasized a customer-centric Customer-
centric Approach: Kochhar emphasized a customer-centric approach in banking. She
focused on understanding and meeting the needs of customers, which is essential in
the financial services industry.approach in banking. She focused on understanding and
meeting the needs of customers, which is essential in the financial services industry.
Innovation and Technology: Kochhar recognized the importance of innovation and
technology in the banking sector. Under her leadership
Risk Management: Given her background in banking, Kochhar placed a strong
emphasis on effective risk management. This became particularly crucial during the
global financial crisis of 2008, and she was credited with successfully navigating ICICI
Bank through those challenging times.
Ethical Leadership: Kochhar was known for her commitment to ethical business
practices. However, her resignation in 2018 amid a case of conflict of interest raised
questions about corporate governance and ethical standards.
Results-Oriented and Pragmatic: Kochhar was recognized for her results-oriented
and pragmatic approach to leadership. She focused on achieving tangible outcomes
and driving the bank's growth and profitability.
Team Collaboration: Kochhar believed in fostering a collaborative working
environment. Effective teamwork and collaboration were essential elements of her
leadership style, especially during times of crisis.
Global Perspective: Kochhar had a global perspective and recognized the
importance of international markets. Under her leadership, ICICI Bank expanded its
presence internationally.
Ques-3 How was Chanda able to break the glass ceiling and raise to the helm of
affairs at ICICI bank
Ans-3 Chanda Kochhar's ability to break the glass ceiling and rise to the helm of
affairs at ICICI Bank can be attributed to several factors:
Proactive Initiatives and Leadership Skills:
Chanda Kochhar demonstrated proactive initiatives and strong leadership skills
throughout her career. Her ability to take on challenges and lead by example helped
her gain recognition and opportunities for advancement.
Transformative Leadership:
Chanda Kochhar's leadership style was transformative, allowing her to lead ICICI
Bank to great heights. Her strategic vision and effective execution played a
significant role in the bank's success, especially in the retail banking sector.
Recognition of Initiative by Senior Leaders:
Her proactive initiatives and leadership qualities caught the attention of senior
leaders within ICICI Bank. Notably, when she presented changes she had made in the
Western Regional office to K.V. Kamath, the Managing Director and CEO, she
received appreciation for her initiative.
Strategic Roles and Achievements:
Chanda Kochhar's career progression included handling strategic roles within ICICI
Bank. Her contributions to the bank's strategy and E-Commerce, particularly during
the period when ICICI Bank entered the retail business, showcased her strategic
acumen.
Financial Industry Expertise:Chanda Kochhar's educational background and
expertise in areas like cost accountancy and management studies equipped her with
the necessary financial knowledge to excel in the banking industry.
Successful Leadership in Retail Banking:
Under Chanda Kochhar's leadership, ICICI Bank became the largest private player in
the retail banking industry in India. Her success in expanding the bank's operations
and market share in the retail sector contributed significantly to her career growth.
Recognition on Global Platforms:
Chanda Kochhar's leadership abilities gained recognition not only within India but
also on a global scale. Her appearance on major power lists of influential people and
receiving awards like the Woodrow Wilson award reflected her international acclaim.
Gender Equality Advocacy:
Chanda Kochhar's advocacy for gender equality and her success as a woman leader
in the traditionally male-dominated banking industry contributed to breaking gender
stereotypes and promoting diversity in leadership.
Financial Inclusion Initiatives:
Chanda Kochhar played a crucial role in the financial inclusion of Indian citizens. Her
efforts to spread ICICI Bank's operations to rural areas, opening accounts for millions
of people, and setting up ATMs in rural households contributed to the bank's success
and positive social impact.
Ques-4 What went wrong in Chanda decision making?
Ans-4 The specific details of what went wrong in Chanda Kochhar's decision-
making are subject to investigations and legal proceedings. However, based on the
information provided in the case, some potential issues and concerns in her
decision-making process can be identified:
Conflict of Interest:
Chanda Kochhar faced allegations of a potential conflict of interest in relation to the
loan sanctioned to the Videocon Group, as her husband had business ties with
Videocon's Venugopal Dhoot.
The allegation of conflict of interest raises questions about whether Chanda Kochhar
appropriately managed and disclosed potential conflicts when making decisions
related to the loan.
Lack of Transparency:
There were allegations of a lack of transparency in Chanda Kochhar's dealings with
the Videocon Group, particularly in the loan approval process and subsequent
financial transactions involving her husband's company.
Lack of transparency can erode trust and confidence in leadership, especially in the
context of financial institutions where openness and clarity in decision-making are
critical.
Ethical Violations:
The Justice BN Srikrishna’s panel accused Chanda Kochhar of violating the bank’s
code of conduct in the Videocon loan case.
Ethical violations could include actions that deviate from accepted standards of
behavior, integrity, and professional conduct expected from leaders in the banking
industry.
Perceived Quid Pro Quo:
The allegations suggested a potential quid pro quo arrangement, where Venugopal
Dhoot invested in NuPower Renewables, a company owned by Chanda Kochhar's
husband, soon after the Videocon Group received a loan from ICICI Bank.
The perception of a quid pro quo arrangement raises concerns about the integrity of
the decision-making process and whether the loan approval was influenced by
personal relationships.
Reputation Management:
Chanda Kochhar's decision to step down from her position as CEO and MD of ICICI
Bank, seeking early retirement, could be seen as a reaction to the reputational
damage caused by the allegations.
PLAGIARISM SCAN REPORT
Date 2023-12-16
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