HGB Company based in Sohar is a food and beverage company with 10 branches across Oman. They also operate a chain of restaurants in more than 20 locations across the country. The company employs more than 500 staff and workers assigned in the different departments like production, marketing, distribution, sales department among others. The company started operations in January 2015 and the have been very successful in their operations. They have registered huge profits for the past 5 years. However, in 2020 when the Pandemic started the companys profits decreased tremendously. HGM has existing liabilities to pay and they do not have enough funds to sustain their operations. Hence, the management decided to implement the following steps: First, they will terminate all workers from Bangladesh and Pakistan. It was the advice of the General Manager Mr.Asif, an Indian, who believes that these workers are very lazy and always complaining. With this decision, a total of 200 workers will be terminated. The second step is that the remaining workers are required to work 12 hours every day to meet the production requirements. They will not receive additional pay, on the contrary, their salary will be reduced by 40% per month. However, this salary deduction will only apply for the production workers and rank and file staff. Supervisors and department managers will not get any salary deduction. In order to help the workers in their financial needs the company will offer loans payable in two years with 10% compounded interest. The third step for the company is to purchase their supplies from an Indian company who sells dead meat from typhoons and other calamity at a reduced price. Also these supplies will be smuggled from India to Oman so it will not go through any government agency and the company will not pay any tax. This will save the company a lot of money and will reduce their operating expenses. The fourth step is for the company to create an artificial shortage by hiding their stocks . Once the price goes up thats the time that they will release the stocks and sell it at a very high price. The fifth step is for the company to promote their food products specially their breads and snacks as healthy products with vitamins and minerals added to the ingredients. However, the reality is, its only made of flour and sugar and other fattening ingredients. The company paid big money to social media influencers to promote their products in Facebook, Instagram, Twitter and other platforms. A group of department managers demanded an increase in their salary but top management refused to give in to their demands. The Accounting department manager, Mr.John decided to connive with the head cashier Mr. Peter. Cash collections from credit customers were not recorded but stolen by the two. They did this for a period of 3 months and later decided to resign. Also, a group of production workers led by Jamal made a plan to leave the company and find another job somewhere else but first they want to steal from the stockroom as much as they can. In the month of December 2020, the group was able to steal inventories amounting to OMR 50,000 with the help of their friend who works in the IT Department who destroyed the CCTVs so they will not get caught. They also befriended the security guard and promised him a share in the proceeds. The group sold all these inventories in the black market and divided the money among them. At the end of 2020, HGB Company registered a net loss percentage of -200%. Apparently all the steps did not work out and top management is thinking of closing down. Questions for Case Analysis 1. What are the prohibited matters in business that exist in the case? Explain in full details 2. What are the problems/ issues or violations to any fundamental ethical principles that exist in the case? Explain in full details. 3. If you are to give an advice or recommendations to HGB Company to solve all their issues, what will be your recommendations? Write any three recommendations in full details citing any ethical approach. 4. In your own personal experience, in this time of Covid Pandemic, what are the biggest challenges that you have encountered and how did you manage or face this challenges? Cite any ethical approach or ethical principles that guide you in facing and solving these challenges.