Introduction
This recommendation report is being written as requested by the CEO. Upon conducting investigation, we found that many problem areas that concern the CEO existed in Kitchen Best. The purpose of this report is to identify those major problem areas in Kitchen Best. Once the problems are discussed, recommendations will be provided to solve one problem, based on what is seen to be the problem needing urgent attention.
The causes of the problems were mainly lack of a common objective between the managers and also lack of a proper system in place to face problems such as corruption and bribery. The recommendations suggested might be the answer
Summary and Conclusions
The major problems we have identified in the company are as follows
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Instead of focusing on becoming more competitive by improving product quality and providing faster delivery time, the management of Kitchen Best relied on paying bribes to the regional general manager of Hongua. As the CEO might be aware, the new management of Hongua is considering cancelling future orders with Kitchen Best if they find out about the bribery. The company will not only suffer financial loss but has also put the company at risk as the DMMD manager contravened the law, Prevention and Suppression of Bribery in the Private Sector in Macao by bribing the general manager of Hongua …show more content…
This does not set a good example for the employees and can be harmful to the future of the company. Ensuring that bribery stops can solve many of the problems discussed above. Some feasible solutions are being recommended to help the company in both short term and long term. First of all, all employees including managers should be given training and education about bribery, corruption and what’s deemed illegal according to the law. Explicit measures should be suggested on how they can avoid supporting corruption and also where they can report to in case a situation where dishonesty is involved arises.
To help individuals report, it is suggested the management should start a whistle blowing hotline. Such a hotline can be a critical component of the company’s anti corruption efforts as tips can be a common way of detecting frauds.
Along with education and reporting, comprehensive anti corruption policies and guidelines should be formulated. The company should define a scope of these policies; define what corruption is and how corruption cases will be handled. If staff members are found receiving or giving bribes, then it is suggested that decisive action be taken against them. Kitchen best may also consider imposing penalties on corrupt clients like Qinghua and suspending their contract for a period to ensure such situations don’t repeat
Establishing corporate policies and addressing issues of corruption within the organization that set an example for all employees to follow is important. Canada may prosecute the individual and the business involved in bribery.
Now this is an intriguing part, the kitchen manager’s job is to evaluate food. The benefit of this is when the portions of the food are standardized it will be automated. With this they are able to determine the amount of food being using in each dish thus being able to calculate the cost. They are not only able to control the quality of the food but also standardize the food which is crucial to the business. Now with this inspection or evaluating system that cheesecake factory uses is not everything is inspected to specify the only inspect so much that they don’t either slow themselves or over inspect. By inspecting only the finished products and the raw materials, this type of inspection occurs more often offsite than an on-site inspection. Next, there is the system of using forecasting for their quality control. What this system does it use all of the calculated date to evaluate a forecast for the next month or year, this system basically forecasts the amount of raw food that will be on demand for the next forecasted time. This system estimates the amount of food that should be purchased; this minimizes the waste of food tremendously and helps the company have control over their materials and quality dramatically. Finally, the cheesecake factory is heading downhill in Dubai. The Cheesecake factory not only imports a little portion of their products but they import most of the goods. This directly relates to their quality control of their dining experience. The importing costs can be lowered dramatically. However, the taste would change due to the nature of the goods that are and have been
OECD published Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and Related Documents to prevent bribery and corruption. The aim of this convention was making the bribery of a foreign public official a crime under their laws (International Monetary Fund, OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, 2001). This document recommends to member countries that:
(Wells, 2011, p. 241). Bribery can come in many different forms but generally is defined as an act in which something of value is offered, given, received or solicited with the intent of influencing an official act. Illegal gratuities can be similar to bribes except these are usually given as a reward. Economic extortion is basically the demanding of money. “A conflict of interest occurs when an employee, manager, or executive has an undisclosed economic or personal interest in a transaction that adversely affects the organization.” (Wells, 2011, p. 242). These are not all corruption schemes that exist but have been determined to be more common than others and ones that should definitely be watched for when completing an audit or a full financial status review.
According to my analysis, the problems are distrust between the managers and employees and unfairness of rewards between the employees and supervisors. In order to keep productivity and profitability of the plant, it should resolve the issues urgently before the situation deteriorated further. I recommend the option two is better for Bent to deal with these problems for the plant. Firstly, communication is the most important factor that affects the relationship between managers and employees. If the managers could listen advices of the work in time from their employees, it not only will be more easier to handle the existing problem in the company, but also will improve the relationship between managers and employees because the staff feel the company takes, to respect and to trust them, feel oneself is in enterprise's one, and they can have the confidence and the sense of responsibility for the development of their company. Secondly, it is to give the appreciation by managers to employees frequently that will improve the employee morale because they will feel more attached to their company. As the result of this, employees will devote to their work without any complaint. Consequently, because of the improvement of relationship and employee morale, the efficiency and productivity of company will improve with the efforts of all staff and give them corresponding reward. Although the first option is probably to resolve the crisis
Another situation illustrating the effectiveness of the moral corrupt leaders is a case where leaders employ corruption in acquiring tender or achieving organizational desires. The move to corruptly influence the tendering board into awarding the organization is morally inappropriate, but effective mechanism of achieving the organizational goal. In this case, the approach of acquiring the tender is ill, but the consequence of the action
Both Internal and external factors were vital in the bribery case in China. Making one factor more important than the other would cause an unbalance. Foreign companies were not being accepted in china so in order for them to be, they had to find a way to show do business due to the large population in China. Bribery was a way to make their products know but the Chinese people and what better way than having the doctors who prescribe treatments to patients. This will make for an easier transition because the patients are confortable with their doctors and trust the advice from their doctor.
On any given day, if you were to tune into a news channel or browse the internet, there would be a good chance that a story of corruption would be uncovered. Corruption has been taking place since the beginning of time (literally). Some would say that is customary, and many would even argue that it is inevitable. In the book, ¬Global Corruption: Money, Power and Ethics in the Modern World, Laurence Cockcroft attempts to identify and educate others on the ethical (or unethical) dilemmas that many individuals, companies, and/or governments are facing throughout the world. Global Corruption provides the reader incredible insight into a wide array of instances of corruption. Mr. Cockcroft begins by giving the reader a brief overview of what defines corruption, along with several examples of corruption that has occurred throughout the globe. Then the author transitions into why corruption occurs by identifying the common drivers of unethical behavior, and concludes the book by offering some analysis on what measures need to be taken in order to fight global corruption.
Mr. Chong knows about recent cases of corporate bribery in Malaysia and in the retail industry. There had been scandals regarding foreign investors who bribed public officials or financed government programs to obtain business privileges or competitive advantage (Inkpen, 2010). Moreover, there was a recent case of bribery involving a Jextra’s country manager in the Philippines. More likely, this manager also encountered similar ethical dilemmas like Mr. Chong. Some individual factors that may have driven him to act unethically in the Philippines could have been pressure from the company to expand and gain competitive advantage in the region. Alternatively, he might have simply wanted to advance his career as a country manager, lacked of ethics or did not know the local laws regarding bribery. Additionally, he might not have received or requested support from the top management regarding the social and ethical issues raised in the Philippines. Mr. Chong, as an experienced manager, should have anticipated that he would encounter legal and ethical risks in Malaysia.
So what I see the most critical part is they have high turnover in the organisation and HR manger is always busy in selection process and training. And she was not getting good time to develop the coordination. So she was not been able to find out the actual cause of turnover from the origination. Every other manager has the department head to assist them but in HR section no HR focal person working in the department. So the staffing and the coordination part is lack.
It is very important to be aware of the potential corruption schemes within the company. The most common form of corruption that can occur within the organization is bribery where the vendors are bribed to get business. This scheme involves exchange of value to get a contract or secure a project. The illegal payments can be made to maintain business relationships. One of the widely known corruption schemes is a conflict of interest. A conflict of interest is usually occurs when a company or an employee is involved in multiple interests that can corrupts the motivation for in act in others. Extortion is another type of corruption which can occur in any company. In this scheme, a vendor is ordering to make a payment for
When each nation that deals with either gas, oil and mines decide to make bribery as a normal affair then bribery will always be on the rise because when there is new management, they always try and make profits as the old ones and do not really concider what is ethical or not as long as the tasks are done and profits are made in the organisation.
Based in Hong Kong, Kitchen Best, a family owned business, is a home electrical appliances company that has grown rapidly and is now a major player in the manufacturing and distribution of small kitchen appliances. Its manufacturing operations are located across the border in southern mainland China, and sell its products to customers worldwide. Due to a deteriorating health, the owner and founder, Chan Dong-hwa, stepped down from the day-to-day management of the operations and has brought in his U.S. university-trained (MBA) son, Henry Chan, to be the CEO. The newly appointed executive director, has ambitious plans for business plans of doubling sales in four years and selling their products more globally. As management at Kitchen Best changed in 2010, a series of misconduct and unethical behavior in 2010 has made Chan understand that the company suffers from a lack of internal control, which were awkward for him to control, as he was unsure of whether or not he should report the unethical practices. The new CEO has to now deal with these matters in order to restore Kitchen Bests business reputation and competitive advantage. Chan wanted to expand the business to other territories such as the United States, but knew these matters had to be fixed before even attempting to gain new business.
The suggested recommendations in this report can be helpful to Magic Kitchens to improve the current business and also to be secured in market in future.
Post-Independence India has witnessed a very impressive growth not only in corporate sector but overall. With the development of the country the instances of corruption also increased. As noted earlier, whistleblower has a great role in controlling this corruption and illegalities. Let us examine India’s efforts to tackle corruption and to have good governance measures.