The article “Another One Bites the Dust!” authored by one of our partners, Shivangi Prasad, was published in the Huffington Post on June 30, 2017. Here is a snippet from the article:
“But why do resignations take place? To put it simply, it is for protecting brand image. One thing common in all these examples is that they were widely publicized by the media. It began with the complaint against Tejpal, to minute details of Pachauri’s propositions to his colleague, to Uber’s Susan Fowler’s blog and an anonymous blog about Kumar, all of which were in the public domain and extensively talked about. This certainly took the management of these organizations by surprise. With ‘Image’ being the most important contributor to profits, management could not be expected to remain attached to a bad name! Hence, a simple, quick fix is severance.
Moreover, today, with the outburst of the start-up culture and investors investing millions in startups to build a brand name, a complaint against the leaders of such start-ups can be a severe blow to their efforts. It is, therefore, not surprising to see reports stating Kalanick had to resign as CEO of Uber after pressure from five big Uber investors. Similarly for Kumar, from reports, it seems the decision to keep him away from TVF was taken by hedge fund Tiger Global Management, which owns a 25% stake in TVF with an investment of about Rs. 70 crore.
But apart from protecting brand image, do these resignations serve any other purpose? These people can simply continue with new businesses, new jobs, etc., so how does it help? Well, if…”
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