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Kitchen Best Ethics

774 Words4 Pages

Kitchen Best: Ethics When Doing Cross-Boundary Business in Southern China

Case Assessment 1
Submitted to
Dr. Prachee Sehgal
BUS 202 | Contemporary Management
University of Fraser Valley

Mandeep Kaur Chahal
300147567
MPDC
University of Fraser Valley ISSUES

In the case “Kitchen Best: Ethics when doing cross-boundary business in Southern China”, the major ethical issues faced by the home electrical appliances company were nepotism, bribery, lack of quality assurance and kickbacks. The first crisis was The Shago Incident in 2009. There was an issue of nepotism and conflicts of interest since Sze, the purchasing and production manager awarded the project to his brother-in-law’s factory in return for a free package tour to …show more content…

Next crisis was related to House de Metro (HdM), a German retail chain involving the serious issues of bribery and low quality of products. Kitchen Best subcontracted HdM’s order to Qinghua Electrical Appliance Ltd because of engagement of their production lines. However, Qinghua used low quality paint to cut down the production costs. Kitchen Best appointed Keemark Testing Services, an independent testing agency for the inspection and testing of Qinghua as per the requirement of HdM. Keemark did not state infringements of Qinghua since the team leader was bribed to permit Qinghua for substitution of selected samples instead of random samples to showcase a better quality result. The last crisis was Honghua appliances in May, 2010 which involves the issues of questionable gifts and misuse of company finances. In Kitchen Best, it was normal to give gifts, kickbacks and embezzlement to maintain useful relations with customers. Henry Chan, CEO of the company was against such practices, but never tried to stop them believing these practices to be an inevitable part of doing business in Chinese culture. However, when the management of Honghua changed Kitchen Best was in a state of risk of losing business with Honghua since the former could no more use …show more content…

The company should adopt strict policies against corruption to motivate their staff (Macy Wei in this case) to report related incidents. Unhealthy influences should be excluded by maintaining the secrecy of person who reports such incidents. Employees should be informed and updated regularly about the respective laws to keep a check on unethical behaviour in the company. In addition, regular inspection of work process should be done to keep an eye on

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