In any business, there are challenges that the business faces. The management must establish these challenges and come up with strategies on how to counter them. Cross-border businesses are no exception. They are faced with challenges such as compliance with the rules and regulations of both countries. Decentralization could also lead to fraudulent activities. From the case study of C&L, fraud is evident. The fraud could be reduced through the improvement of its system of checks and balances. For instance, the company could implement sequential interdependence. This would ensure that there are no fraudulent activities being carried out.
Offering entertainment and kickbacks is not advisable. This is because cross-borders businesses cover a huge region. The final expense could lead to losses in the company.
Eddie Tse took advantage of the trust accredited to him. The company should never have trusted him to that extent. Professionalism should always have ruled irrespective of one's productivity.
When Antony Leng discovered the double accounting mishaps, he should have stood strong to ensure that action had been taken against Eddie and Quilling. He would have presented such information to the shareholders during the annual general meeting.
An analysis of the C&L case based on the six steps of the Ethics Decision Making Model
Choi and his wife, Winifred, lacked professionalism in being over friendly with their employees. Eddie abused the level of trust accorded to him. It was also unethical to have an affair with a fellow employee. Their fraudulent accounting methods and deceit was a complete loss of ethics. However, when Antony found out, he should have been firm with Choi. This would have saved the company some losses. Choi ought to have investigated the performance of Green Beauty before signing the contract.
Standards of Behavior that ought to have been maintained
If Antony had been firm about his findings, he would have enhanced professionalism. However, the company would have lost Eddie. This would have been inevitable because he had not acted professionally. On the other hand, Gaoyan would have saved the company from going against the environmental laws. Eddie acted unwisely as his personal values remained questionable. Choi should have enhanced a system whereby it was possible to talk openly about any doubts that anyone may have. This would have ensured that the activities of Eddie and Quilling were spoken openly.
The C&L Company should sue Eddie and Quilling because they went against work ethics. They also stole from the company through the Green Beauty contract and the orthodox accounting methods. They could also sue the Green Beauty company for joining forces with Eddie.