In a recent rich list interview with the NBR, the founder and CEO of specialty packaging company - PGL, Simone Hendricks, lashed out at kiwi-Indian judge of Master Chef NZ, and co-founder of lunchbox company, ‘My Deluxe Tiffin’, Hamish Patel. Hendricks stated that “When you’ve got someone like Hamish Patel trying to capitalize on their ‘browness’ to sell lunchboxes to immigrant apologists, you know you’re in trouble, and you can quote me on that”. The comments have been widely condemned by business leaders, the Race Relations Commissioner and even the Prime Minister. Hamish himself called them “saddening”, and upon hearing of Hendricks’ comments, KiwiSaver fund, Ethical Investments Ltd, has added PGL to its ‘Do Not Invest’ list. They stated that PGL’s CEO’s “objectionable behaviour presents elevated reputational risks to the company which could be financially material and should raise serious concerns for any investment manager serious about returns or sustainability, let alone reducing racist rhetoric in public discourse.” PGL’s shares have been in freefall since Hendricks’ comments came to light, prompting its board to convey its “deep disappointment in Hendricks” to the Media, stating that they will “ be taking steps to ensure there is no repeat of this incident.” 3 Thinking back to the management challenges of cultural diversity discussed in class, choose ONE of the following options and explain why it is the most relevant to PGL’s situation in your opinion: 1. Mindsets about diversity 2. Organisational Culture 3. Education Programs 4. Higher career involvement of women Your answer should be 1-2 paragraphs in length
Question
In a recent rich list interview with the NBR, the founder and CEO of specialty packaging company - PGL, Simone Hendricks, lashed out at kiwi-Indian judge of Master Chef NZ, and co-founder of lunchbox company, ‘My Deluxe Tiffin’, Hamish Patel. Hendricks stated that “When you’ve got someone like Hamish Patel trying to capitalize on their ‘browness’ to sell lunchboxes to immigrant apologists, you know you’re in trouble, and you can quote me on that”. The comments have been widely condemned by business leaders, the Race Relations Commissioner and even the Prime Minister. Hamish himself called them “saddening”, and upon hearing of Hendricks’ comments, KiwiSaver fund, Ethical Investments Ltd, has added PGL to its ‘Do Not Invest’ list. They stated that PGL’s CEO’s “objectionable behaviour presents elevated reputational risks to the company which could be financially material and should raise serious concerns for any investment manager serious about returns or sustainability, let alone reducing racist rhetoric in public discourse.” PGL’s shares have been in freefall since Hendricks’ comments came to light, prompting its board to convey its “deep disappointment in Hendricks” to the Media, stating that they will “ be taking steps to ensure there is no repeat of this incident.” 3 Thinking back to the management challenges of cultural diversity discussed in class, choose ONE of the following options and explain why it is the most relevant to PGL’s situation in your opinion:
- Mindsets about diversity
- Organisational Culture
- Education Programs
- Higher career involvement of women Your answer should be 1-2 paragraphs in length
Solution
In my opinion, the most relevant management challenge to PGL's situation is 'Mindsets about Diversity'. This is because the incident revolves around the CEO's controversial comments about cultural diversity, which have been widely condemned. It suggests that the CEO has a mindset that does not value or respect diversity, which is a significant problem in today's globalized business environment. This mindset has led to reputational damage for the company, with its shares falling and being added to a 'Do Not Invest' list. Therefore, changing this mindset about diversity is crucial for PGL to recover from this incident and prevent similar incidents in the future. This could involve diversity training for the CEO and other leaders in the company, as well as a clear statement from the company about its commitment to diversity.
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