Case Solution for BYJU’S In Search of Reviving Reputation among Stakeholders

BYJU’S: IN SEARCH OF REVIVING REPUTATION AMONG
STAKEHOLDERS CASE STUDY SOLUTION




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SYNOPSIS
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By August 2023, Byju Raveendran, chief executive officer of Think & Learn Private Limited (doing
business as BYJU’S), was facing corporate governance challenges related to financial reporting, ethical
challenges of exploitative sales tactics, and delays in payment to the employees’ pension fund. As a result,
regulatory authorities were scrutinizing the company. BYJU’S valuation, at $21.2 billion in March 2023
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and one of the highest in the ed-tech sector globally, declined to $5.1 billion by June 2023. Critics accused
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Raveendran of leveraging aggressive growth strategies, resulting in a decline in the company’s performance
and experiencing corporate and ethical challenges. Raveendran was under increasing pressure from
stakeholders and critics to step down from BYJU’S board for the sake of the future of the students in India.
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Should Raveendran step down as the chief executive officer? How could he undo the wrongdoing with
stakeholders? What could have driven him to pursue aggressive growth at the cost of ethics and governance?
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OBJECTIVES

• Examine if an entrepreneur creates value for society through aggressive growth measures.
• Understand the reasons why an entrepreneur indulges in unethical behaviour.
• Examine ways of reviving lost reputation among stakeholders.




The Case Solution Starts From page 5

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ASSIGNMENT QUESTIONS

1. Critically analyze if Raveendran’s entrepreneurship offered any benefits to society and BYJU’S.
2. Explain if Raveendran should resign as BYJU’S chief executive officer. What are his alternatives?
3. What could have driven Raveendran to engage in unethical behaviour?
4. How can Raveendran improve BYJU’S reputation among stakeholders?




The Case Solution Starts From page 5

,3. What could have driven Raveendran to engage in unethical behaviour?

The case discusses whether Raveendran should be held responsible for the wrongdoing at BYJU’S or
whether other stakeholders also be blamed for the same. Although no comprehensive framework explains
how other stakeholders could be cumulatively held responsible for wrongdoing in an organization, the fraud
triangle emphasizes the role of chief executive officers in committing fraud based on their inherent
rationalization, the opportunity they have to commit wrongdoing, and perceived pressure.10
Inherent Rationalization

Inherent rationalization implies that a chief executive officer may feel justified in doing whatever they are
doing; to them, it may not seem like wrongdoing.11 K Yatish Rajawat, a public policy expert, when
explaining Raveendran’s inherent rationalization, said he suffered from the “God Complex,” where an chief
executive officer’s hubris and overconfidence makes them believe they are infallible. Raveendran may have
felt justified to shift priorities from delivering quality products (which he could do) to the relentless pursuit




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of growth. By treating him as the blue-eyed boy of India’s start-up landscape, the media also made
Raveendran believe he was a hero who could do no wrong.




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Personal traits of chief executive officers also drive their illegal behaviour.12 Chief executive officers are



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The Case Solution Starts From page 5

, EXHIBIT -1: STRATEGIC ENTREPRENEURSHIP—INPUT-PROCESS-OUTPUT MODEL




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The Case Solution Starts From page 5