Solved Case Analysis: Clarence Hall University and the Donation By Bidhan L. Parmar, Jenny Mead, Mallory Combemale, Lauren Purnell

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Description

Annalisa McGann, chair of London’s prestigious Clarence Hall University, together with the university’s board, must make a decision about whether to return a large monetary donation from the Natour Charitable Foundation, which was founded and run by a recent graduate who was also the son of the leader of a corrupt, authoritarian regime in an oil-rich region. Almost two-thirds of the money had already been invested in an innovative leukemia drug that could significantly increase patients’ chances of survival; the remainder had been earmarked for an endowment fund for low-income students. Each course of action?keeping the money, giving back the entire sum, or returning the unspent money?had complex consequences, particularly in the current environment in which all British universities were suffering financially and there was nationwide student unrest over rising university costs. The British press, by uncovering the connection between Natour and Clarence Hall, had forced the administration’s hand, and McGann and the board needed to make a quick decision after considering a number of complicating factors.

Publishing Authority:

Darden Business Publishing – University of Virginia

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