Management of Kitchen Best and Recommendations- myassignmenthelp

Question: Discuss about theManagement Issues of Kitchen Best and Recommendations. Answer: Introduction A business organisation follows a code of principles for the smooth functioning of the organisation. The code of principles is called business ethics. The business ethics highlight the duties and responsibilities of the individual employee and management of the organisation to follow so that no corruption unethical activities are conducted ( Goo Loo, 2011). The serious incidents that occurred in the Kitchen Best have made Henry Clan to realise that the expansion policy will not be effective without a systematic style of management. The business ethics have to be followed and the organisation should also know that the rules that are to be followed by the organisation. The offerings and accepting kickbacks have to be avoided by the organisation. Findings The major issues that Kitchen Best Appliance co. Ltd has faced show that the personal gains have been made by the employees of the organisation. The instances of the misconduct of the employees show that internal control mechanisms are not functioning properly and Henry has to take stringent actions in order to ensure that no such actions are committed by an employee of the organisation in the future(ccac.org.mo, 2012). Shago incident Kitchen Best was given production order for the anniversary collection appliances of Shago. A special gift set of microwavable tableware was given with some of these appliances. Kitchen Best was asked by Shago to source these gifts and also to package these items together with the appliance. The complaint was made by the customers that the bowls and plates given to them were not microwavable. Shago demanded compensation from Kitchen Best for the breach of the conduct. The fault was made by Sze, the purchasing and production manager of Kitchen Best who awarded the contract to his brother-in-law. In return, he was given free package tour to Europe. Wei ignored the fact and kept silent for the personal relationship of Sze with the factory owner. Sze told that he would manage the issues and he did not take any remedial action( Goo Loo, 2011). Issues related to the testing and certification Henry received a letter related to the failure in meeting the safety requirements of the company. Henry found that Qinghua made a deal withKeemark,the team leader of the testing team, to pass the test. He deposited bribe money in the bank account of the wife of team leader. The issue was not made public by Henry as he did not want to lose the customers. Kitchen Best did not have any guidelines for the expenditure made for winning and dining offered to suppliers and customers. Ma was preparing fake invoices which were booked as the expenses for entertainment. Chan avoided such practices as Ma was instrumental in generating the new business relationship. Due to own cultural barriers, Ma was given the chance. Analysis As per the law of Hong Kong Cap 201 about the prevention of bribery ordinance, no employees can accept the bribe. Section 9 ( 12) of the law states that no employee of the private sector can neither accept the bribenor offer thebribeto any employee of theprivatesector.( Goo Loo, 2011). Section 9(3) states that the employees cannot use false documents for getting benefits. Article 387 of the criminal law of the peoples republic of China talks about the acceptance of the bribe. The article states that the employee or the organisation cannot offer the bribe or involve in the illegal activities. Article 393 states that any company cannot offer the bribe to get illegitimate benefits. Article 163 states that the employee of a company cannot take any advantage of his or her position. The law strictly states that no person can demand benefits for the service he or she provides. Article 164 states that offering the bribe to any person for seeking illegal profits are not allowed as per the law. Article 229(1) and 229 (2) state that the individual cannot show false testimony ( Goo Loo, 2011). The incidents which occurred in Kitchen Best show that they are violating the laws of both the lands of Hong Kong and China. The employees have not followed the individual ethics and they do not follow the business ethics as well. These incidents show that there has been a breach of conduct and the management has failed to steer people in the correct direction(academia.edu, 2017). Recommendations The organisation should communicate the law to all the stakeholders of it(Heskett, 2011). The employees should be intimated that they cannot solicit or accept any benefits for his or her work without the prior permission of the owner. The business organisation should also communicate to other related organisation that prior permission of the owner is required to offer any bribe or advantage to the employee of the private sector. Under the act of PBO, use of forged documents to cheat the authority is a crime. The law of China states that the employee should not follow the illegal advice of the intermediaries. The employees should be communicated that on the Mainland it is an offence to bribe an employee of a company. Conclusion The report finds that therehavebeen misconducts in the organisation. The leader of the organisation should establish business ethics and the employees are required to be trained about the governance policies. The management should see that the employees of Kitchen Best follow the rules and regulations of the company. Bibliography Goo, S., Loo, G. (2011, 06 21). Kitchen Best: Ethics When Doing Cross-Boundary Business in Southern China. Retrieved from https://hbr.org/product/kitchen-best-ethics-when-doing-cross-boundary-business-in-southern-china/HKU948-PDF-ENG academia.edu. (2017). ETHICAL ORIENTATION AND PERSONAL BENEFIT IN INSIDER ... Retrieved 11 01, 2017, from www.academia.edu/.../ETHICAL_ORIENTATION_AND_PERSONAL_BENEFIT_IN. ccac.org.mo. (2012). Case Study. Retrieved from www.ccac.org.mo/PrivSec/en/poster/gl2012/ch7.pdf cqpress.com. (2011, 05 06). Business Ethics: CQR. Retrieved 11 01, 2017, from library.cqpress.com/cqresearcher/document.php?id=cqresrre2011050600 Heskett, J. (2011, 05 05). How Ethical Can We Be? - HBS Working Knowledge - Harvard ... Retrieved 11 01, 2017, from hbswk.hbs.edu/item/how-ethical-can-we-be icsi.edu. (2014, 06 18). ethics, governance and sustainability - ICSI. Retrieved 11 01, 2017, from https://www.icsi.edu/docs/webmodules/Publications/EGAS_04_Sep_14%20pdf.pdf icsi.in. (2010, 02 16). ethics, governance and sustainability sustainability - ICSI. Retrieved 11 01, 2017, from www.icsi.in/Study%20Material%20Professional/NewSyllabus/EGAS.pdf justice.gc.ca. (2017). Youth Risk/Need Assessment: An Overview of Issues and Practices. Retrieved 11 01, 2017, from www.justice.gc.ca/eng/rp-pr/cj-jp/yj-jj/rr03_yj4-rr03_jj4/rr03_yj4.pdf