Ans: in My Opinion, The KGB Should Not Accept A Private Engineering Company's Application

Name: Anurag Yadav
Roll number: 17030120129
Assignment number : 01
Q1)Should KGB accept Fracking loan application? If yes why? If no why?
Ans: In my opinion, the KGB should not accept a private engineering company’s application
involved in the Fracking Process. The company wants to expand into polymer, emulsion, and
surfactants and the company executive says that this will be less toxic than the products
currently in use. However, there are many side effects of the fracking process that directly
impact the environment. Many western countries have used this process, and it's doing much
more harm to the environment than doing good. There are various risks that are associated
with the fracking process:
• Fracking requires a huge amount of water that needs to be transported to the site of
fracking at the cost of the environment.
• There are chances of escaping the carcinogenic chemicals during the drilling process.
• Huge risk of contamination of groundwater around the fracking site.
• Lastly, instead of heading towards renewable resources, the company is going for the non-
renewable resource.
Considering all the above-discussed factors, we can conclude that even though the company
applying for the loan is trying to produce less toxic products, it will harm the environment.
Since the Kerala Green bank is focused on promoting environmental sustainability, it should
not compromise its principle. Giving loans to such companies may gather colossal media
attention, ultimately damaging the “green image” of the bank.
Q 2)Should KGB accept S&F’s Gun loan application? If yes why? If no why?
Ans: In my opinion, KGB should accept S&F’s Gun loan application. The main concern of the few
board members is that S&F is gun making, and apart from supplying guns to the military, it also sells to
the general public. However, if we see the bigger picture, we cannot blame a company if small fractions
of its customers are misusing its products. Further, these are few conditions that make it's necessary for
KGB to give a loan to this company :
• The company is providing jobs to the local community and acting as a good corporate citizen.
• There is pressure from the regulators to be a profit-making bank first and then the green bank.
• Also, from the data, we can see that the loans that fully satisfy the condition of green loans only
constitute about 7 percent. This is because there are very few companies in India, which are
genuinely 100% green. Hence, it becomes difficult for any bank to find such a company.
• It is rightly pointed out by Lalit Hegde, selling weapons to our military is not only legal but also
laudable.
• Selling small weapons at Gun show is not unethical unless the weapon is used for illegal activities.
KGB should ask the company to conduct sessions for its customers on how and when to use
weapons.
Media coverage can make or break the image of the bank. Therefore, both KGB and the S&F should
make an effort to get a real and correct picture of this deal published in the media by giving interviews
in various print and electronic media and honestly answering the journalist's questions. This step will
build the trust in investors, borrowers, and other organizations and ultimately benefit both the
stakeholders in the future.
Q3)What is likely to be the impact on the business if KGB accepts to give loans to the two firms?
Ans: The private engineering company involved in fracking will harm the environment by contaminating
water, air, and land. Even though the company is trying to produce less toxic products, the process it's
using is not good for the environment. And suppose KGB, the bank that has recently entered the green
banking sector, approves such a loan. In that case, it will attract substantial negative attention from
media, international organisations, and organizations working for sustainable development. This will
ultimately affect the trust of the depositors and investors who have invested money in this bank, thinking
that this will be used for sustainable development.
However, gun-making company, S&F, is not much of a concern. And if the bank makes an effort, it can
attract favorable attention from everyone. It needs to build the image that a bank is giving a loan to a
company that supplies arms to our military and contributes to India's defense sector. Also, the bank
needs to tell its depositors and investors that the company is providing employment to local people
and ultimately benefitting society. If everything works out as expected, this can be a game-changer for
the Kerala Green Bank.
Q 4)What are Jay’s strengths and shortcomings as a leader
Ans: Based on the case study, I found out Jay’s strengths as a leader as follows:
• Experience: Everyone learns from the experience, and Jay has experience of founding a bank and
successfully expanding it to 6 branches.
• Team-building ability: The kind of board members he selected (from every field) shows that his
vision regarding establishing a green bank is evident.
• Practical: He's realistic when it comes to doing business. Although the bank's focus is to provide
green loans, Jay is also considering another factor, such as the bank's profit.
Now, let us see some of the shortcomings:
Sometimes, Jay lacks clarity and gets confused. Also, I felt sometimes that he's trying to impose his view
on other members, which is not good from a leader's perspective. Further, he has a good team, but a
leader should try to bring all the members together around at the same table. But we can see that Jay
failed to do that.
Q5 )Going forward, what initiatives should KGB take to put the firm on strong footing?
Ans: Some of the initiatives, that KGB should take to put the firm on strong footing :
• Becoming more clear about their vision of green bank.

• Setting clear procedures to be followed for providing loans to avoid conflicts at the later stage.
• Align their goals according to Indian standards.
• Try to include few experts (environmentalists, social workers etc) in their board members to get an
holistic view.
• Conducting sessions in partnership with sustainable development organisations to create
awareness among their stakeholders.

Ans: in My Opinion, The KGB Should Not Accept A Private Engineering Company's Application

Uploaded by

Copyright:

Available Formats

Ans: in My Opinion, The KGB Should Not Accept A Private Engineering Company's Application

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ans: in My Opinion, The KGB Should Not Accept A Private Engineering Company's Application

Uploaded by

Copyright:

Available Formats

Name: Anurag Yadav

Roll number: 17030120129

Q1)Should KGB accept Fracking loan application? If yes why? If no why?

Q 4)What are Jay’s strengths and shortcomings as a leader

Now, let us see some of the shortcomings:

• Becoming more clear about their vision of green bank.

You might also like