This case study presents a scenario inspired by real-world events and scandals in the automotive industry, when corporate decision-making has been driven by financial metrics rather than ethical considerations. It is designed to engage third-year Business Administration students at EDEM Business School enrolled in a Financial Statement Analysis course, in critical discussions about Environmental, Social, and Governance (ESG) considerations.

It challenges the traditional shareholder primacy model by exploring the ethical dilemmas faced by a fictional automotive company, Doyona Inc., as it discovers a potentially fatal flaw in its popular "Capricce XYZ" model's airbags. Facing a decision between a costly recall and potentially lower payouts for possible accident claims, the company's management team initially opts to prioritize short-term financial gains over consumer safety. The case unfolds over a two-week period in the company’s operations, revealing the devastating consequences of this decision when the information is leaked to the media, leading to a stock market crash, reputational damage, and leadership changes.

A key focus of this study is Good Governance, emphasizing the responsibilities and ethical obligations of corporate leadership. The governance structure of a firm plays a crucial role in achieving long-term sustainability, as its policies define essential elements such as internal controls, executive compensation, transparency, and stakeholder protection. At the beginning of the case, a survey was conducted to assess whether students, in the role of Risk Manager, would support a vehicle recall. The results showed that 36% of respondents did not support the recall. This finding highlights the need to reinforce the teaching of ethical decision-making within the framework of Good Governance. Encouraging managers to adopt a sustainability perspective fosters a more balanced approach to risk and opportunity, ultimately enhancing the company's long-term value creation.

The methodology used consists in guided discussions and questions, where students are prompted to evaluate the risks and implications of the decision for various stakeholders, consider the balance between financial and ethical responsibilities, and analyze the role of transparency and crisis management in corporate governance. The case aims to foster an ESG mindset among students, emphasizing the importance of integrating environmental, social, and governance factors into corporate and financial decision-making for long-term sustainability and value creation. It reiterates the need for future business leaders to act as if "office walls were made of glass," ensuring accountability to all stakeholders. Additionally, after the case was explained and discussed, a second survey was carried out among students. Results indicated that 96% considered that the case had helped them to understand the ESG concepts and 92% expressed a desire to work for companies integrating ESG concepts into their strategies

Keywords: ESG, business ethics, stakeholder theory, crisis management, ethical decision-making, good governance.