Cracks in Crown

Crown Footwear, a subsidiary of Crown Footwear International, was set up in April 1980. At the beginning it
was wholly owned by the foreign parent and by 1987, 25% of its shares had been purchased by Sri Lankans.
Except the General Manager, all other senior managers were Sri Lankans.

Sudheepa Jayarathne joined the company at the inception as Materials Manager and subsequently received a
promotion as production Manager. Jayarathne progressed in life with difficulties and through hard work and at
his age of 45, a promotion to a senior management post was considered an achievement. After eight years of
work in that post he realized that further promotional prospects for him in the management hierarchy were
very unlikely. He gave first priority to product quality and never tolerated deviations from standards. Deeply
committed to the progress of the company, he considered solutions to problems of quality as the key to profits,
and often considered the recurrence of such problems emotionally. Jayarathne, father of four children, did not
have sources of income other than his job.

Charmara Dunusinghe was a senior engineer who joined the company about two years ago and was now
working under Jayarathne, the Production Manager. Dunusinghe received his first degree in Engineering from
the University of Moratuwa and a Postgraduate degree in Engineering and Design from Asian Institute of
Technology in Thailand three years ago. Having graduated as an engineer recently, he was inclined to
experiment and as a result give freedom to his subordinates alike. He had new ideas about shoe designs which
he discussed directly with Deputy General Manager, without going through the Production Manager.
Jayarathne did not show any displeasure over this practice.

September 25, 1989 was a day of surprises for Dunusinghe. Those days, it was not unusual for someone to
receive a notice of treat through the daily mail or the telephone from an unknown source because it was a
period of violence in the country. Dunusinghe also received a note. The surprise for him was that it was from
his own boss! It was a memo which said that he would like to know in advance from member of the regular
staff meeting the matter which each member would like to discuss at future meetings. He welcomed a memo
to this effect from the members. To Dunusinghe, it was a step taken to curtail his free and open expression of
ideas at the weekly meetings.

On the following morning Dunusinghe saw Jayarathne on the corridor as he was coming to his office. “Good
Morning,” said Jayarathne. Dunusinghe continued to walk undisturbed and did not respond to Jayarathne. May
be, Dunusinghe did not here.

At 2.00 p.m. on the same day, Jayarathne called Dunusinghe to his office room and told him that he had paid a
visit to the factory during the lunch hour and observed unnecessary power consumption in certain floor areas
including the design offices. He further said that this was a deviation from standards and Dunusinghe should
take note of this. Dunusinghe left the room without uttering a word.

Two days later, Dunusinghe was scheduled to attend the annual prize-giving ceremony of his school, Richmond
College, Galle, as a special invitee. Dunusinghe thought of attending the ceremony because it would give him
an opportunity to meet some of his teachers and school mates. He applied for one day’s leave to go to Galle. It
was not approved.

Dunusinghe ran to the office of the Production Manager, “What is my duty, designing or switching-off lights?”
he shouted while forcibly entering the office. But, Jayarathne was not there.