This case recounts the story of Rajat Gupta, a Goldman Sachs board member and seniorpartner emeritus of McKinsey & Co., who was accused by the government of giving critical nonpublicfinancial information to Raj Rajaratnam, Galleon Group founder, during the financial crisisof 2008. The information passed along to Rajaratnam was about a pending $5 billion investment byWarren Buffett’s Berkshire Hathaway in Goldman Sachs at a time when its stock had been faltering.The government alleged that based on this information, Rajaratnam purchased a (...) large number ofshares in the company and then sold them when the deal became public and Goldman’s stock rose.Rajaratnam purportedly made $18 million on these trades. (shrink)

This case recounts the story of Rajat Gupta, a Goldman Sachs board member and seniorpartner emeritus of McKinsey & Co., who was accused by the government of giving critical nonpublicfinancial information to Raj Rajaratnam, Galleon Group founder, during the financial crisisof 2008. The information passed along to Rajaratnam was about a pending $5 billion investment byWarren Buffett’s Berkshire Hathaway in Goldman Sachs at a time when its stock had been faltering.The government alleged that based on this information, Rajaratnam purchased a (...) large number ofshares in the company and then sold them when the deal became public and Goldman’s stock rose.Rajaratnam purportedly made $18 million on these trades. (shrink)

General Electric has a rich history of being in the center of public discourse regarding the intersection of corporate strategy and environmental concerns. During Jeffrey Immelt’s tenure as Chief Executive Officer, G.E. has taken a proactive approach to coupling corporate social responsibility with organizational profitability in its Ecomagination initiatives. Critics abound with some investor groups questioning the utility of Immelt’s approach for shareholder returns while other stakeholder groups question G.E.’s motives and methods. This case study reviews G.E.’s past CSR efforts (...) and the more recent Ecomagination program and its efficacy and sustainability. The case was developed from public sources. (shrink)

General Electric (G.E.) has a rich history of being in the center of public discourse regarding the intersection of corporate strategy and environmental concerns. During Jeffrey Immelt’s tenure as Chief Executive Officer, G.E. has taken a proactive approach to coupling corporate social responsibility with organizational profitability in its Ecomagination initiatives. Critics abound with some investor groups questioning the utility of Immelt’s approach for shareholder returns while other stakeholder groups question G.E.’s motives and methods. This case study reviews G.E.’s past CSR (...) efforts and the more recent Ecomagination program and its efficacy and sustainability. The case was developed from public sources. (shrink)

This case recounts the founding of HealthSouth Rehabilitation, its rapid growth, financial mishandlings and the struggle former CFO Aaron Beam had in dealing with a conscience that kept him awake at night. Beam had met HealthSouth founder Richard Scrushy when applying for a job with Lifemark Hospital Corporation in Texas in 1980. After Lifemark was bought by AMI in 1983, Scrushy invited Beam to join him in the launching of his new company in Birmingham, Alabama. The uniqueness of the hospital (...) was that it would provide inpatient surgery for those who had suffered an injury, but it would also provide outpatient services such as rehabilitation, nutrition guidance and psychological counseling. This type of structure was appealing to insurance companies because it would move the patient out of the hospital much quicker and save the cost of extended hospitalization. The company experienced rapid growth and went public within three years of launch. By 1996, the top executives of the company realized that they would not be able to meet Wall Street analysts’ forecasts which would affect the price of their stock and reduce their holdings. They decided to “cook the books” temporarily to meet quarterly expectations. However, once the financial mishandling had begun, the executives found it difficult to reverse their actions and report accurate numbers to the public. Beam decided to retire from the company in 1996; and after this action, he continued to find it difficult to sleep at night because of his involvement in the fraud. The issue in the case is whether Beam should consider coming forward and revealing to the Securities and Exchange Commission how the books had been doctored so that he could salvage his damaged conscience. (shrink)