Ethical Leadership for the New Generation Training Program

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Ethical Leadership for the New Generation
Training Program

• Case Study Competition
• Team 100

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Case Study 2

• Ethical Leadership and its Challenges in the Era
  of Globalisation

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Rundown

• Case Background of AccuForm
• One problem existed in AccuForm
• Solutions/ course of action
• Q A Session

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Case Background AccuForm

• German-Hong Kong joint venture company AccuForm
• Raymond Kim (Head of Hong Kong)
• Albert Ching (RD Manager)

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Case Background AccuForm

• Ching has involved in money laundering
• Referral money to supplier for overstating price
• Bribery money for lip sealing of the employees
• Ching has obtained the testing materials from
  AccuForm ? Allergy outbreak in the society ?
  Hospitalization of children

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Problem existed in Accuform

• Referral money as Guanxi establishment tool
• Abusing the use of Guanxi

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Problem existed in Accuform

• Causes
• Management problem
• Failure to abide by codes of conducts
• Consequences
• Macroeconomic Level
• Reducing inward foreign direct investment
• Cooperate level
• Reducing the competitiveness of AccuForm

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Solutions

• Formulating a company code of ethics
• Strengthening systems of control
• Adopting top management leadership
• Initiating ethics training
• Establishing channels of complaints

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Formulating a company code of ethics

• Develop guidelines for staff code of conduct
• Declaration form on the acceptance of gifts
• Declaration form on conflict of interests
• Clearer criteria and procedure for the use of
  outside services

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Strengthening systems of control

• Implement authoritative management practices
• Check summary reports strictly
• Review detailed procurement procedures
• Prevent overstating of price
• Centralize power
• Avoid team building

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Adopting top management leadership

• "If the upper beam is crooked, the lower beam
  won't be straight
• Ethical leader selected to foster the building up
  of ethical atmosphere
• ?Modeling effect

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Adopting top management leadership

• Review employee selection process (especially for
  management recruitment)
• e.g. Integrity test

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Initiating Ethics Training

• Cultivating an Ethical Corporate Culture
• Collectivism
• Reinforcing all the employees as a whole
• Avoiding individualism
• Staff training
• Promoting anti-corruption messages

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Staff Training

• Raising awareness on ethical issues
• Gaining better understanding
• Common corruption loopholes
• Ethical dilemmas

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Promoting anti-corruption messages

• Putting up publicity posters
• Distributing pamphlets
• The importance of work ethics

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Establishing channels of complaints

• Making easy access to report corruption
• Protecting the identity of the whistleblower
• Formal Protective Mechanism
• Organizing an ethics committee

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References

• Hofstede, G., Cultures and organizations. 1991,
  London McGraw-Hill.
• ICAC, Ethical management guide for managers.
  2004.
• ICAC, Ethical management guide for cross-boundary
  businessmen. 2004.
• Li, S.T.K., Management development in
  international companies in China. Education and
  Training 1999. 41(6/7) p. 331-335.
• Stephen P. Robbins, Mary Coulter., Management,
  Saddle River, NJ Pearson Prentice Hall, 2005.

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Thanks!