What Are the Ethical Issues Henry Chan Confronts in This Case

1. What are the ethical issues Henry Chan confronts in this case?

Answer: In this case Henry Chan needs to handle two situations, shago a major distributor of Kitchen best wants some microwaveable tableware to give gift to their customers. Another situation is Honghua a key customer of Kitchen best but their products are not maintaining the quality.

In this case Henry Chan Confronts all three issues, which are elaborated below:

Systematic Ethical Issue: Involve ethical questions about social, political, legal or economic system.  Shago asked Kitchen Best to set these gifts which they will give. After these appliances with gift sets had been distributed in the market; Shago soon received customer complaints that the bowls and plates in the gift sets were not. Shago immediately lodged a complaint and demanded both a refund and compensation from kitchen Best.

Kitchen Best’s contractor Qinghua bribed the team leader of a testing agency in.Hong Kong via financial bribes deposited into the team leader’s wife’s Hong Kong bank account.

 Mr. Ma, used erroneous invoices for reimbursement of expenses for gift-giving and entertainment to customers. Mr. Ma gave monetary advantages to Mr. Lau, Honghua’s General Manager for Greater China, by depositing bribes into Mr. Lau’s personal account. Persuade Mr. Lau to direct Honghua’s Purchasing Manager to place orders for home Appliances with Kitchen Best.

Corporate Ethical Issue: Involve ethical questions about politics, culture and actions about a particular corporation. Sze is offering free package tour to Europe to his brother-in-law to place the order of shago. He is giving bribe for placing the order, it’s totally unethical.

Kitchen Best’s contractor Qinghua has given bribe the team leader in testing agency to pass their electric water dispenser.

In other situation Mr. Ma is giving monetary advances to Mr. Lau’s account to place the orders for home appliances of Kitchen Best. It’s against the company’s law.

Individual Ethical Issue: Involve ethical questions about a particular individual’s decision, behaviors or character.  Sze is offering package tour for his personal benefit as he can meet his target in placing order to his brother-in-law.

Qinghua team leader of testing agency, test the bowl they get to know that microwaveable bowl was not meet the quality. Still he remains silent and passes the product as he has good relation with Sze. In return Sze sent money to his wife’s account. Both did this incident for their personal benefit. They give and take bribe.

1. Identify primary stakeholders for both the issue?

Answer:  stakeholders of Kitchen Best are:

Henry Chan: Chief Executive of Kitchen Best brought a more western and less paternalistic management style to the company. To expand the company’s reach in the European and American markets.

Horatio Sze: Sze is Purchasing & Production Manager of Kitchen Best. Who is responsible for sourcing the gift set of Shago.

Supplier: Supplier of shago who is borther-in-law of Sze.

Macy Wei: Quality Control Manager who knew the personal relationship between Sze and factory owner.