As per the information given in this case study, it can be observed that the young entrepreneur here started a business idea where he wanted to make a safe place for his users by following strict ethical guidelines and ensuring that the users are not exposed to any harmful or deceptive advertisements or to some unsuitable materials. The main users of this social platform are tweens and the entrepreneur here feels responsible to ensure its user's safety and prevent them from any kind of bullying.

The Vice president of the company is planning for the IPO and for this, she recommends lowering the advertising limitations so that the IPO becomes successful and the company's financial position is increased. However, during this planning only, the CEO comes to know that an advertiser has infiltered the company's business and the tween users of the social platform have been exposed to unsuitable material. Due to this, the company is receiving negative publicity and the accounts are being closed by the parent of the users.

In this scenario, the CEO has to come forward and issue a public apology on the social platform describing the issue that occurred and how it was not the intention of the social platform. Along with this, the CEO has to look into the source from which the infiltration has been done and find out the parties responsible for the same. The security protocols and servers of the social platform have to be modified so as to prevent any such infiltration in the future.

Also, the IPO preparation has to be stopped temporarily as right now the business is facing high opposition from the parents, and the reputation of the business has also suffered severely. An IPO makes the internal operations of any business open to the public and the regulating authorities which means it falls into keen scrutiny of the public which is not desirable for this business right now. Also opting for an IPO is beneficial when the profits of any business are very high or the demand for its shares is high.

First, the management of the company has to repair the damage done to its reputation due to this incident and look for new ways of promoting the business and gaining the trust of users again. And once that is done, the company can move towards IPO.