Conflict at MRW: The New Employees

Pregnancy
Margarita Marti and Adolfo Montalvo, ESADE Business School - Barcelona, Spain

Silvia Vilthez, human resources director of the Spanish courier firm MRW, had a
surprise in store for her at her weekly meeting with Maria Jos Garrido, MRWs head of
recruitment, in mid-August 2010. Maria Jos informed Silvia that Sonia Reguant, newly
hired systems administrator, had just announced she was two or three weeks pregnant,
and that her pregnancy was a risky one that would force her to rest at home. Sonia had
joined the company some weeks earlier, at the beginning of July, to tackle serious
problems with the firms computing systems, Hr post was critically important to MRWs
strategy Maria Jos told Silvia that Sonias six-month hiring probationary period in the
systems department had not passed.
Throughout MRWs history, medical leaves related maternity had always
complied faithfully with Spanish law. However first time that a worker announced her
pregnancy at the period and (worse) in the middle of a belt-tightening situation for the
company. Both the context and the companys needs were urgent: What are we going
to do about this? asked Silvia,
MRWs SLOGAN: YOU US INTO MOTION
The MRW courier company a household name in Spain, and its delivery vans and trucks
plied the streets of villages and towns throughout the country. The company was wellknown for its corporate social responsibility (CSR) approach and its track record.
MRSs turnover (sales revenue) in 2010 came to 563 million. Based in Hospitalet
(Barcelona), the firm had become Spains largest courier company, with a 21 percent
market share. It had 1,350 franchisees in Andorra, Spain (which accounted for 77
percent the groups turnover), Gibraltar, Portugal (2 percent of group), and Venezuela
(20 percent of group turnover) (see Exhibit 1). The firm had 60 computer operating
systems and over 14,000 staff, 4,700 vehicles, and four planes MRW managed over 22
million dispatches a year.

Company History
The firm Mensajeros Radio (MR) (Radio Couriers) was founded in 1977 (see Exhibit
2) to provide urgent deliveries in Greater Barcelona. By 1988, Mensajeros Radio had
expanded its services abroad and incorporated W for Worldwide in the companys
mixed-language acronym MRW, as the company was now known.
Francisco Martin Frias, the firms founder and CEO (until 2008) and the father
of the current CEO-Francisco (Paco) Martin Villanueva-began the companys social
policies and left his mark on MRW. Frias, in his late sixties, had shaped a particular kind
of organizational culture. He often said that MRWs success was no mystery: it was all
based on common sense, rather than lessons from formal education. As Frias freely
admitted, he had left school at the age of eleven to help in his fathers grocery. As a
child, he arrived in Catalonia from a village in Segovia province, another part of Spain.
Between the ages of fourteen and eighteen, he worked with his father as a truck-drivers
helper.
MRWs Corporate Culture and Social Responsibility
MRW began emphasizing CSR back in 1993. In that year, Spains transport sector was
still reeling from the scrapping customs barriers and entry of U.S.-based courier
companies. MRW thought it was a good moment to embark upon an aggressive PR
campaign starring Anthony Quinn on Spanish State TV (TVE). However, the campaign
was clearly a flop 4n befo it en&d. A media study revealed that it was the wrong even
approach and failed to stress MRWs competitive advantages. The campaign added no
value for clients society or even for the company itself.
The firm was wondering what to do about its communication strategy when an
invitation arrived from the Athletes Against Drugs Association, asking the company to
sponsor gatherings in various cities. MRW quickly noticed the positive public reaction
to the initiative. Not only did the firm perform a much-need act of charity, but it also
awoke public sympathy. MRW admitted that if the PR campaign had not flopped so
badly or if the athletes had not approached the company, it might have taken a lot logger
for it to clamber onto the CSR bandwagon.

MRWs vision was enshrined in the Following aims (set out in internal
documents):
MRWs aim is to be the best courier firm in Spain, known for the quality
of its services and customer care; a model of business ethics, showing
respect for individuals, the environment, and society in general; a firm
greatly admired for providing staff satisfaction and equal opportunities
for all, regardless of race, gender, or handicap both with regards to
recruitment and career development.
In Silvias view, the culture of MRW is a strong one and the value of treating
employees well permeates the whole company (see Exhibit 3). Through thirty-seven
years of history, the firm had built a strong personality reflecting social values and
commitment to people. This fact was transmitted into a characteristic way of doing
business grounded in transparency; collaboration, and concern for humanity. MRWs
social initiatives were not only a cause for corporate pride but also put it in closer touch
with society. The firms declared values were honesty, social action, and respect for
people and the environment.
Paco Martin Villanueva became the second generation CEO at MRW officially
in 2008; however, from an operational point of view, the transfer of power from his
father lasted longer and took shape in 2009. Paco described his outlook for future
companies as living organizations that are constantly evolving in response to change.
He explained the firms commitment to a triple bottom line-Profit, Planet, People.
Profit: making sustainable profits for the company. Planet: Since we all
form part of a closed system with finite resources, it behooves us to
conserve natural resources and treat the environment wisely. This aim
needs to be pursued at the individual, community, corporate, and national
levels. People: companies compete for the most talented young people.
We have to make sure that MRW is an alluring prospect for such
individuals.
Putting this philosophy into operational terms, MRW had 12 percent of people
with disabilities, however the Spanish law only asked for 2 percent according to the
company size. The government also had an ethnic diversity goal of 10 percent, but in

2004 in MRW the percentage was below 2 percent. MRW had thirteen social plans in
place. The first one was solidarity, providing free couriers to students, the disabled,
senior citizens, large families, or even supplying guide dogs for the blind or for rescue
missions. This plan offered a 73 percent discount to any NGO; however, on many
occasions the courier service was fully free, as when MRW participated in campaigns to
ship blankets, food, toys, school materials, or prosthetic appliances. This concern was
transferred into promotion of the family as well. The PIA plan (Internal Adoption Plan),
for example, had the objective of helping couples adopt child with MRW contributing
3,000 to the couple, (and 6,000 if the child was disabled).
A list of awards won by the firm reflects the great store MRW set by CSR (see
Exhibit 4). Since 1993, the company spent over 1.5 percent of its gross turnover on
social initiatives. In 2009, MRW was the first Spanish company to receive EPR
(Socially Responsible Family Company) certification. The firm joined forces with the
world environmental movement in 2010, using fully bio-degradable packaging to
replace the polythene envelopes it had used hitherto.
Business Model Trends
Two issues had a fundamental bearing on business model trends in Spain and worldwide
during the summer of 2010: (1) the global economic crisis, and (2) the information
society. Business activity in the crisis and the lions share of MRWs revenue came from
courier services. On the positive side, the information society offered new possibilities.
In Silvias words, The proliferation of businesses suck as Amazon, Privalia, Grupo
Inditex, and others created niche opportunities for a new consumer oriented business
model (B2C or Business-to-Consumer), and thus we used e commerce to offset the
decline in traditional business.
At MRW, the B2C channel was growing by 40 percent a year. Silvia noted, We
are increasingly a technology company rather than a logistics one. This change raises
new demands and requires us to come up with a new business model. Everything from
detecting the clients needs to finding the organizational answer, from client prospecting
invoicing had to be done completely differently. From 2008 the company invested
between 3 and 4 million euros per year in people, software acquisition, and services to
assist in the transformation process.

THE HUMAN RESOURCES DEPARTMENT

HR director, Silvia Vilchez, felt at home with the organizations approach to fostering
talent at MRW; she was committed to the values dimension, and foresaw its strategic
importance. She had worked for the company for seven years and, as head of HR, had
implemented many projects that contributed to the corporate culture and the firms
external recognition. Maria Jos Garrido had studied psychology before joining MRW
As head of recruitment for the past five years, she knew her boss Silvia well.
The HR department had carried out various project to demonstrate its
recognition of the value its staff added. One project introduced flexible working hours80 percent of the staff worked up until 4p.m.; the working hours of the remaining 20
percent were linked to those of external stakeholders (mainly clients). The company
also added a child care center and provided a gym-solarium on the top floor of MRWs
headquarters. The walls at MRW were festooned with awards and press cuttings
covering the firms CSR initiatives. There were even floor markings to remind staff of
MRWs watchwords: commitment, excellence, results, technology, and clients. As Paco
Martin professed, We have to realize the firm is fuelled by its staff-its what puts the
firm at the top. That is why we take so much care of our employees.
Managing Diversity
Silvia understood that MRWs management was clear on the need to make the most of
social diversity. Indeed coming to grips with social diversity was seen as conferring
knowledge and thus a competitive advantage. Paco Martin realized that anyone was
potentially a client and that MRW had to spread the net as widely as possible when it
came to recruiting staff. Paco Martin explained the companys next move: The next
thing on the horizon is entry into the Mexican market. That means opening up to the
diversity of an even more globalized world. Diversity enriches the company.
In one MRW publication entitled Morning Breakfast, the firm targeted as
potential employees those over forty or fifty years old, people with disabilities, exconvicts, or people with technology gaps. This initiative reflected managements belief
that without this wide scope, society would be just for the youngest, healthiest, and
strongest people.

In the courier industry overall, men made up the lions share of the workforce.
MRW though, wanted a 50/50 gender split among staff at headquarters, and already
those sitting on the Management Committee were women. When asked about his
companys relatively greater employment of women, Paco Martin responded, If you
are asking me about gender, I really dont know what to say. I can only say that
discrimination makes no sense at all.
THE SYSTEMS DEPARTMENT
The organizational transformation of MRW started in the 1990s when the company
responded to the entry of foreign courier companies by replacing its network of branch
offices with a new franchise model. All of MRWs franchises shared the same corporate
culture and standard clear-cut procedures. The company considered this approach
essential for implementing a global policy. Internationalizing MRWs business meant
binding a patchwork of franchises together through a computing system that
underpinned all business processes. And the process of internationalization had only just
begun.
In the spring of 2010, the instability of MRWs computing systems was a key
issue that affected the whole company. The problems not only harmed MRWs
reputation for efficiency-something of vital importance to a courier firm-but also
jeopardized the companys business model and its invoicing systems. The organizational
efforts of the last two years still had not transformed MRW technologies into first-class
ones.
However, while MRW was not a software company, in the systems department
there were ninetey people out of a total of 700 employees in the headquarters. This fact
was explained because the company created its own software to operate, an also because
few tasks requiring technology had been outsourced. Unlike the rest of MRW, the
systems teams composition was not very diverse. There were no disabled people and no
foreigners, and the department was all-male, despite the firms effort for gender parity.
While within these parameters, the department had a good atmosphere and
collaboration; it came with a lot of pressure and a high work load. In this scenario the
HR department provided support by trainings, selection, and development processes.

Systems Structure
The systems department was located on the second floor of MRWs headquarters
building and was led by Luis Azoy, systems director, described by Sylvia as a
pragmatic, consistent man of action. Around forty-five years old, from a professional
perspective he had field work experience and training; Luis was the top technology
manager at MRW, commanding this field in all the different countries where MRW
operated. His employees were asked to be both available and dedicated. Luis knew the
systems department had to ensure the smooth running of the company, and said,
Communications are of key importance because all the firms practices link back to
us.
Reporting to Luis was Ral Rodrguez, head of systems. He was thirty years old
and was assuming new responsibilities and by doing to taking advantage of the existing
opportunities in the company; he was having his first experience leading work teams.
Earlier in the year, both men saw the need to create and staff a systems
administrator position. Looking back on to the situation leading to the creation of this
position, Luis noted that despite the size of the training investment, due to the
organizational needs, the systems department still lacked talent with a knowledge base
wide enough to assume this huge technological change:
People here have worked a long time in the firm. Many are technical
staff who have been retrained in computing . We carry out two million
transactions a day and our communication system and network are on the
brink of collapse. A typical situation might be a client who drops off a
package at a franchise with instructions to send it to Guadalajara. Well,
we have to synchronize operations and send the receiving franchise
information on the dispatch. The number of daily dispatches has been
rising fast and it has hard to handle the workload. We saw a danger that
everything would go to the dogs. Thats when we decided to recruit a
systems administrator.
Both Luis and Ral agreed on the urgent need for a systems administrator and
hoped that the new recruit would help us sort things out quickly. The systems

administrator would be in charge of adjusting the information systems to make them

work and flow optimally and also to lead the change into a new technology for
synchronizing courier operations. According to Luis the job was about making the most
of MRWs computers.
THE NEW SYSTEMS ADMINISTRATOR
As soon as the position was approved in February; 2010, Maria Jos and Ral swiftly
drew up the job description for MRWs systems administrator position (see Exhibit 5).
Maria Jos advertised the job through e-mail to foundations, job exchanges, and websites for the disabled, and sifted through applications.
While Ral assessed the technical skills of applicants, Maria Jos considered the
candidates suitability from the standpoint of corporate values:
We select for skills. Its something we have been doing for the last year
and a half or so. I pay a lot of attention to hardware skills and a strong
track record because people working on projects have to produce results
quickly. I start with telephone interviews and then draw up a short list of
those with the right skills for the company, the department, and the post.
I also run a battery of psychological tests. Ral carries out the final
interviews, and we meet up for feedback and discussion.
The global economic crisis had made system administrator profiles very
attractive as many companies were trying to use information technology to boost
efficiency. As a result, there were few applicants for the MRW job. It was hard to find
good resumes for the position. Two people, one male and one female, reached the final
selection stage with candidate Sonia Reguan chosen for the job. She had an excellent
professional track record. Maria Jos explained that in addition to meeting the job
requirements and having the right experience, Sonias extroverted, open personality was
a further point in her favor.
There was no hint of Sonias pregnancy during the selection process.
Sonia began work at MRW on July 1, 2010. Luis recalled that he had high hopes
for the recently-recruited systems administrator. He mentioned the contribution he
expected her to make to the company: She was web-trained and combined specialist

knowledge, experience, and the right profile. On the HR department side, Sonias
hiring was one step for reaching the goal of having 50 percent male and 50 percent
female in all the departments. Maria Jos felt that Sonia would suit the department as
well as the company.
Sonia knew she was about to have an initial intense period of immersion in the
company after this learning stage she was expected to assume a lot of important
decisions with autonomy to resolve problems involved in updating the firms
technology. Everyone realized just how important Sonias mission was to the company.
IF MRWs system failed, the company would find itself in deep trouble because the
firms servers a vital link to company headquarters and the franchises and countries
where MRW operated.
MRWs orientation plan for new employees included a host guide, guided tours,
a tutor (someone from the same department to contact in case of concerns, problems, or
just to facilitate the socialization process of the newcomer), one person from the HR
department accompanying the process in the first weeks, as well as frequent meetings
with the responsible manager, and communication with the team with whom the new
person would operate. According to Silvia, Sonia experienced no conflicts or resistance;
she was a very professional and skilled person technically and emotionally. Silvia
believed Sonia was very well received because the department needed her help.
SONIAS REQUEST FOR MEDICAL LEAVE
In early August, Sonia stayed behind at the end of a departmental meeting to break the
news to Ral about her pregnancy: I had stopped taking the fertility treatment but then
nature took charge, Sand I found that I am pregnant, about two or three weeks along.
Sonia had a history of difficult pregnancies; she explained that her doctors predicted a
risky pregnancy for her this time as well. The prognosis implied staying at home to rest
very soon, basically lying down, and making no physical effort whatsoever. This earlierthan-usual leave due to a high-risk pregnancy was considered a medical leave.
According to Spanish law, women could work until they gave birth or until a
doctor prescribed a leave of absence. At MRW if the job required physical effort or that
the worker remain standing while working, the pregnant employee was either relocated

or asked to work from home. Women in advanced stages of their pregnancy who
traveled a lot were also sometimes asked to work at home. The HR department studied
each situation and proposed solutions that conformed to the law or that improved
working conditions for the employee involved; however there was no formal written
policy on maternity leaves at MRW. The general framework was provided by Spanish
law, where the mother or the father had the right to take a leave. After giving birth, the
standard maternity leave was for four months, plus another month for breastfeeding
with some women also linking the maternity leave with their accrued vacation time.
As was common in Spain, Sonia simply requested to do whatever her doctor
ordered, with periodic visits and evaluations to determine the best option for the baby
and the mother. At this point Sonia could not provide further explanations or anticipate
what might happen. Sonia reported to Ral that it possible that the diagnosis could
change, into a standard pregnancy diagnosis. Within this hypothetical scenario she
would come back to work as soon as possible. According to the law the information
related to the leave was personal.
As Ral listened to Sonia, he had mixed feelings. He was pleased that Sonias
wish to become a mother would soon be granted, but he realized the enormous work
problems lying ahead. And, since the news came in August, when the vast part of the
Spanish population was on vacation it was the worst time possible. The whole countrys
vacation schedule revolved around August. According to labor law each employee had
the right to 2.5 days of vacation time per each satisfied working month. In other words,
each employee had the right to thirty vacation days per year, a month usually taken in
August. Besides being a matter of management control, it was also a widespread
cultural matter in Spain and Europe that reflected the demand for a balance between
work and personal life. As Silvia said, There is a need to rest in order to continue being
health productive, and creative people. Since firms reduced their activity and most
people would be on vacation, in Spain few selection processes were started in August
because the best potentially talented people might not be included.
By the time Sonia announced her pregnancy during the first days of August,
Ral had already run through his annual leave and was tied up trying to get the
companys computing systems back on an even keel. He was thus putting in fourteen-

hour work days, Ral next mentioned Sonias pregnancy to his boss, Luis, and they
discussed what should be done. It was urgent that a solution be found, but both Luis and
Ral were aware the situation was a delicate one. As Luis explained, stabilizing the IT
systems was the top priority for MRW.
We needed to cover the post, and that is when Ral asked me, what
should we do? We could simply have recruited someone else instead,
Another option was to wait a week or month to see whether Sonia started
flagging on the job. We didnt tell her we were in a bind. My first instinct
was to chuck her out and give the runner-up the job.
Spanish law permitted probationary periods of one, three, or six months
depending on the duration of the employment contract and the professional level of the
new hire. This probationary period was important because it was when the company and
the employee were expected to get to know each other in order to decide to continue the
relationship or end it. The company did not need objective causes to fire an employee
during the probationary period. However, there were legal precedents that considered a
layoff improper, even in the probationary period, when it concerned a pregnant woman,
because the relevant judicial decisions incorporated the Spanish discrimination law.
At MRW, at the end of the probationary period, the supervisor of the hired
person submitted a form that recommended whether to renew the person, and the
motives for the action based on the employees performance within the companys
competence model. This form was then sent to the responsible manager as well as to
HR. The HR department checked that everything was objective and well supported with
evidence. That would conclude the probationary period with the employee being
retained. Or if the form indicated a lack fit for the employee, HR researched the
situation to ensure that the decision was properly supported.
In Sonias case, Ral expressed that, the situation was murky because we chose
her for the job and she had no inkling she was pregnant when she joined the company.
That evening, he brought the issue up at his home and discussed with his wife such
arguments as, she could have told before she was hired, or maybe she did not know,
or this is just how life is.
Ral agreed on a strategy with Luis: his next step would be to ask for a meeting

with Maria Jos without mentioning the subject of the meeting beforehand. Maria Jos
recalled that, while he showed no signs of nervousness, I was sure he was worried.
Maria Jos listened carefully to Rals explanation; she believed Ral was a
serene person however, he seemed worried. She quickly realized that he suspected that
Sonia had concealed her pregnancy during the selection process: Ral had questioned,
If Sonia knew, why did she keep quiet? This is what makes Ral distrustful. It is clear
that the firms projects cannot be carried out by someone on leave. He is angry that
Sonias behavior is going to force his team to work overtime. He feels betrayed. Before
meeting with me, Ral had approached the second candidate, but he had already found a
job elsewhere.
THE HUN RESOURCE DEPARTMENTS RESPONSE
After Maria Jos surprised Silvia with the news about Sonia from her conversation with
Ral, she sought Silvias advice in dealing with the matter. Maria Jos explained how
she had handled the meeting with Ral, I tried to reassure him. I could tell he was
worried and upset. I told him we sought solutions on a case-by-case basis and whether
or not Sonia knew she was pregnant when we interviewed her, it was something we had
to grapple with. I gave her the benefit of the doubt.
Silvia realized that she could not contact Sonia directly because of her position;
dealing directly with Sonia would mean interfering with Maria Joss work, and also
she would alarm Sonia, and moreover create problems for the whole systems
department. Everybody at MRW knew that Silvia delegated these day-to-day tasks, even
more o since the internationalization process required her to travel regularly. Silvia
relied on Maria Jos, she was the person in the HR department who knew Sonia betterMaria Jos knew the internal client very well, too.
Silvia trusted Maria Jos and felt she was rigorous, meticulous, responsible,
diligent, mature, and careful, though she could be stiff in her approaches to others and in
her work habits. This is why after listening carefully, Silvia wanted to find all the
available information, I want you [Maria Jos] to tell me what you think about the
candidate and whether you think Sonia is trustworthy. They are hard questions about
someone you have known for only three and a half hours during the interview process.

During this meeting Silvia and Maria Jos agreed on being very conscious of how Sonia
would manage the situation. We should take Sonias attitude very much into account ...
whether she takes a devil-may-care attitude or is sorry about the turn of events and
willing to work from home. I do not mean that someone who is on leave must work, but
she knows the firms situation is critical said Silvia to Maria Jos.
Silvia considered her appraisal of Luis and Ral: These two men do not follow
the male stereotype; in fact, they are very open-minded. However, they are under great
pressure to come up with solutions to the firms serious computing problems, and they
cant just hire someone else. The firms critical situation was setting them at
loggerheads, and the responsibility for deciding what to do about Sonia was making
things worse.
The women agreed on managing this conflict at two levels with their respective
peers. Silvia would handle Luis, next morning at 9.00 as usual she would meet him in
the daily board breakfast. Maria Jos would be responsible for managing Rals
emotions. Silvia made sure that she and Maria Jos would manage the incident with
Luis and Ral in the same way, coming up with the following statement to approach the
men: Lets imagine she did know she didnt know she was pregnant; its quite possible.
Remember, she had had problems getting pregnant. Maybe she had thrown in the towel,
and the whole thing was as much a surprise for her as it was for us. Now imagine your
mother, sister, or wife in the same situation.
The Possibility of Exception
Despite MRWs commitment to CSR, the economic crisis placed demands on the
company and gave it little lecway. As Silvia explained, We all shoulder a lot of
responsibility. The company is committed to not firing people despite the crisis, but we
all have to tighten our belts. We need to focus on doing whatever is needed to pull
through.
In the beginning of the year in January, MRW limited organizational growth in
all departments and activated plans to save 3-4 million euros annually. These recent
budget cuts to address the deteriorating financial situation made no provision for
exceptions and this closed the option of hiring someone else to do Sonias work, unless

Sonia could be fired. Silvia explained: The company is in a very demanding time in
terms of profitability, austerity, cost control, and staff growth. We cannot hire anyone at
this time. At the same time, Silvia perceived management as focused on having good
people (chosen by good selection processes), giving workers development
opportunities, and fostering an environment where results would come from recognizing
that values were essential.

Exhibit 5: The Systems Administrator Job Description

JOB DESCRIPTION

MRW

Date: 31/03/10
JOB TITLE

Senior Systems Administrator

FIELD

Information Technology

SUPERIOR/DIRECT

Ral Rodriguez, Head of Systems

OR
REQUESTING

Management, Technology Dept., Spain

PARTY
LINKS TO OTHER

Hierarchical inks to the whole of the headquarters

POST

establishment and functionally with the corporate IT

department.

ORGANIZATION
CHART

JOB MISSION

To strengthen the IT systems dept. at MRW headquarters.

JOB

RESPONSIBILITIES

Active Directory, Exchange Server 2010, ISA Server,

Administration and management of Microsoft products,

SharePoint, SQL Server, Microsoft Dynamics.

Experience in Microsofts high-performance, mission-

critical systems.

Experience VM Ware virtualization systems ESX/ESXi,

Virtual Center.

Administration IIS6/IIS7, Apache, TomCat.

Knowledge of network and network hardware (VPN,

firewall, switches [Layer 3], DHCP servers, DNS servers, etc.).

Ability to work in a team, analysis, and documentation.

Pro-active attitude, ability to investigate matters.

Administration, supervision, and management of

corporate mission-critical systems.

POST LEVEL

PROFESSIONAL

Grade 1

CATEGORY
TRAINING

Training in computing o telecommunications engineering

essential.

Specialized additional training desirable.

LANGUAGE

Knowledge and use of English desirable.

EXPERIENCE

At least 3/5 years experience in similar tasks.

SKILL
Orientacion a los

Results-oriented

resultados

Integrity

Integridad

Planning/Organiz

Planificacin/Organiz
atin

ation

CONTRACT TYPE

Permanent, with a six-month trial period.

SALARY

Fixed = XX,000 to XX,000 gross/year

Variable = X,000 per annum

WORKING HOURS

From 8 a.m. to 4 p.m., 38-hour working week.

Rotating shifts:
Monday-Friday, 4 p.m. to 8.30 p.m.
Saturday, 9 a.m. to 1 p.m.

REASON FOR

To strengthen the IT systems and corporate information dept. at

HIRING

MRW headquarters.

HEALTH AND

SAFETY AT WORK

respecting the companys norms, and safety rules

TASKS

To incorporate heal and safety at work in ones tasks,

To keep ones work area clean, tidy, and well-

maintained.

To warn of any safety or health dangers.

To co-operate in emergencies and follow the

instructions of those in charge.

To ensure the compilance of service providers and staff

at MRW with the health and safety norms,

RESOURCE

Project management

MANAGEMENT
START DATE

ASAP

OTHER

Need for constant re-training.

OBSERVATIONS
Source: MRW

If Sonia spent a long time on maternity leave, Luis would have to decision of
retaining Sonia to the companys senior management. He was not allowed to hire a
freelancer; he knew that the entire organization was looking closely at all the activities
that had an economic impact. Regarding this context, about her own decision, The
company has internationalizes in hurry. I am worried that haste and tension could force
us to choose firing Sonia even though this runs counter to our CSR strategy. I have to
avoid being over whelmed by details and losing sight of the companys long-term
interests.
Silvia recognized several reasons not to ask for an exception to the budget cuts
so they could hire someone else for the post of systems administrator while Sonia was
on leave. First, she considered that the firms technology department was already too
big, Out of 700 workers at headquarters, no fewer than ninetey belong to this
department including both internal staff and external contractors; the department is both
large and expensive. Second, the economic crisis meant firms were seeking greater
efficiency; hence systems administrators were highly bought after and difficult to find.
Last but not least, having just completed his transition to CEO in 2009 amidst a crisis
situation, Paco Martin could not afford to make exceptions to his belt-tightening
message.
However, Silvia also knew that firing Sonia during her probationary period
could have legal, ethical, and public relations consequences. In legal terms, firing a
pregnant woman could lead to the firm being sued, and there were many legal
precedents in Spain. Thus Sonia might take the company to court, charging that her
termination was discriminatory. Within this hypothetical scenario, Sonia would need to
prove that she informed MRW that she was pregnant, and MRW would need to
demonstrate that the termination was nor related to her pregnancy. In terms of public
relations, a lawsuit would lead to media attention and harm the companys image in the
general publics eyes. Silvia also foresaw internal consequences of losing credibility
with the rest of the staff, and that could lead to the loss of very important talent that
MRW needed.
After meeting with Silvia, Maria Jos left the room, and Silvia thought about the
thorny question of Sonias pregnancy and the fact that Sonia was still on probation.

Silvia had to decide whether to support the systems department in its critical staffing
need by firing Sonia so she could be replaced, or to find a way to keep her employed
that would be consistent with both MRWs stated CSR values an its economic situation.
What should we do about this? thought Silvia.
NOTES
1. Case, MRW: Social Enterprise in a Franchise Network. Daniel Arenas and Maria
Pararera. Harvard Business Review.
2. Case, MRW: Social Enterprise in a Franchise Network, Daniel Arenas and Maria
Pararera. Harvard Business Review.