Business Ethics and Corporate Governance, Second Edition

CASE STUDY-2: HMSI—BETTER WAGES CANNOT SUPPRESS WORKERS’ DEMAND FOR THEIR RIGHTS

(This case is based on report in the print and electronic media. The case is meant for academic purpose only. The writer has no intention to sully the reputations of the corporations or the executives involved.)

INTRODUCTION

The fairly well-paid—and by industry standards—better-off employees of Honda Motorcycles and Scooters India Limited (HMSI) had a few genuine grievances against the management and wanted to form a Trade Union to represent their interests. There was stiff resistance to this workers’ move from the management. It resorted to several unhealthy means such as lobbying with the Haryana Government to help prevent union formation and its registration, ...