- What are typical corporate governance challenges faced doing cross-border business? What could be done to improve C&L’s system of checks and balances?
Doing cross-border business has various corporate governance challenges. The typical challenges in doing cross border business are differences in terms of culture, legal policies and business differences, which makes the upholding ethical organizational behavior across the different settings a difficult task to the corporation. In order to improve C&L’s system of checks and balances, the company should aim at developing a strong organizational culture that puts into consideration the diverse needs of its members in the different countries. In addition, the company should establish a well outlined internal control procedures in order to facilitate the smooth running of the business at the local level. Another way of enhancing corporate governance at the C & L Company is to foster the top-level management’s commitment in ensuring the success of the business (Enderle, 2006).
- There is a culture of offering entertainment and kickbacks at C&L. What risks does this pose to the company? Should a company ever provide entertainment or kickbacks when doing cross-border business?
Entertainments and Kickbacks at C&L pose significant risks regarding to the ethical organizational culture within the company. Entertainments and kickbacks serve to undermine the core ethical values of the organization. Entertainments and kickbacks also provide an opportunity for which the company accountants can exploit the double accounting method through overstating, therefore resulting to personal gain at the expense of the company. In addition, kickbacks do not provide a framework for the development of strong ethical standards for the company. This means that it is not recommended for a company to embark on the culture of giving entertainment when conducting cross border business (Enderle, 2006).
- Many of the problems the company faces are related to Eddie Tse. How did he obtain a position where he could do so much damage to C&L? Where did the company go wrong?
It is evident that Eddie Tse was the root cause of all the problems to the company. Eddie got to this position because he was not bound by any employment terms, in the sense that his employment contact lacked a non-competitiveness clause. Since there were no limiting procedures bound by his employment contract, Eddie was at liberty to join a competing company, which was later realized that he was a major partner. In addition, as the purchases manager, Eddie had a great opportunity to negotiate with the C&L clientele and this resulted to Eddie misusing the position for his own good at the expense of the company’s integrity. The C&L could have avoided this setback if they had implemented strong internal control procedures and strong ethical standards that could have helped the occurrence of such an ordeal.
- If you were Anthony Leng, what would you have done differently? How could you have prevented everything from spinning out of control?
Antony Leng being in the position of financial controller at the company had the responsibility of making sure that the financial accountability is ensured. This means that he should have been the first to notice any accountability flaws from the accountant, Xiang Quiling. This means that as the financial controller, he was in a position to detect the deviance behavior by the accountant and purchasing manager. In order to prevent things from getting out of hand, he had the responsibility of deploying internal control procedures that are based on ethical standards and accountability. This would have helped in avoiding the company’s shady deal with Green Beauty somewhat resulted to flaunting of environmental laws, which is the root cause of the problems that the company was facing (Enderle, 2006).
- Ethical Decision Making Model and Standards of Behavior to assess the ethics involved with this case
The facts and ethical issues involved in the case is the possibility of the company flaunting environmental laws by coordinating with Green Beauty. The key parties involved during the ethical dilemma case were Eddie Tse, who was the purchasing manager; Xiang Quiling, the company’s accountant and Antony Leng, the company’s financial controller. The accountant reports to the financial controller and coordinates with the Purchasing Director, who in turn reports to the Chairman. At the organizational level, the case implicates both the Green Beauty and the C&L Company. The viable alternatives with the case at the internal organizational level are to access each party’s involvement in the case and the resulting effects on the integrity and operational activities of the organization. For instance, the company’s production license could be revoked in case they are found to have been flaunting environmental laws.
Enderle, E. (2006). In Search of a Common Ethical Ground: Corporate Environmental Responsibility from the Perspective of Christian Environmental Stewardship. Journal of Business Ethics , 173.
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