KingJewels: Ethical Leadership Practice Essay

1. Discuss how the leadership style may produce contributed to unethical behavior. When the company was first founded by Andy Wong it was ran using a hands-on leadership style. He believed a good resource and direction were hypercritical leadership qualities. He always said you do non arrive at commitment to, or an understanding of, a companys vision and mission without actively pursuing and practicing it at every opportunity. However, when he began pass most of his time travelling to the US and Canada and taking care of dividing line development and marketing he put Clement tammy in charge of operations (KingJewels Ethical Leadership Practice, 2010) .Tams capital responsibility was worldwide gem sourcing. Tam, however, looking at their bonuses began accepting lower-quality gemstones and go on to sell them at the ruler bell. He was excessively using businesses have by his uncle, Peter Tam, and was receiving attractive rebates for ordering from them. Johnathan Ho, the h ead of production and trademark used a dictatorial leadership style. He often do decisions without consulting his colleagues. He totallyowed the lower-quality gemstones to be used in manufacturing the jewelry. By Wong leaving Tam almost overseeing the whole company and not keeping better checks on him this allowed Tam to engage in unethical behavior.2. Discuss how the proper separatism of duties could have prevented Tam from fraudulently sourcing the gems. Tam was Operations Director and in charge of Gem Sourcing. This would allow him to fraudulently source the gems because he had to fool off on them anyway. He should not have been allowed to hold some(prenominal) positions in the business, especially when one was over the other. Also his sister, Tam Wai macrocosm, was in charge of Finance.3. Discuss how the companys compensation plan contributed to the deceptive behavior. The companys annual bonuses are tied to the offshoot target. If the growth target is not met the emplo yees do not receive their bonuses. Tam imagination that by buying a lower-quality gemstone at a cheaper price and then selling it as a high-quality gemstone at the normal price that he could ensure that the company met their projected growth target, whence receiving their bonuses.4. Discuss how culture may have influenced the employees attitude towards exposing Tam. however if the employees were not involved, most of them would be afraid to express their opinions or to foreland unethical and potentially illegal business practices. Furthermore, such(prenominal) practices were common and went uncontroversial in China. Employees were handsomely rewarded for their job efforts and it was of no interest to them to fib such incidents that could jeopardize the job stability (KingJewels Ethical Leadership Practice, 2010) .5. How would you recommend Wai Man proceed? According to HKICPA a master copy accountant should not be associated with reports, returns, communications, or othe r information where they believe that the information a) contains a materially false or misleading statement, b) contains statements or information furnished recklessly, or c) omits or obscures information required to be included where such neglectfulness or obscurity would be misleading (Chan, 2004) . According to function 100.17 When initiating either a formal or informal conflict resolution process, a skipper accountant should consider the following, either individually or unneurotic with others, as part of the resolution process a) pertinent facts, b) ethical issues involved, c) extreme principles related to the matter in question, d) established internal procedures, and e) alternative courses of military action.Having considered all these issues, a professional accountant should determine the appropriate course of action that is consistent with the fundamental principles identified. The professional accountant should in any case weight the consequences of apiece pos sible course of action (Chan, 2004) . According to contribution 120.1 The principle of objectiveness imposes an obligation on all professional accountants not to compromise their professional or business conception because of bias, conflict of interest or the unwarrantable influence of others. Section 120.2 states that a professional accountant may be exposed to situations that may impair objectivity. It is impracticable to define and prescribe all such situations. Relationships that bias or unduly influence the professional judgment of the professional accountant should be avoided (Chan, 2004) .According to section 140.2 A professional accountant should maintain confidentiality even in a social environment. The professional accountant should be alert to the possibility of inadvertent disclosure, particularly in circumstances involving long association with a business associate or a close or immediate family member (Chan, 2004) . According to section 150.1 The principle of pr ofessional behavior imposes an obligation on professional accountants to travel along with relevant laws and regulations and avoid any action that may bring brush off to the profession. This includes actions which a reasonable and informed third party, having knowledge of all relevant information, would conclude negatively affects the good reputation of the profession (Chan, 2004) .According to section 310.1 A professional accountant in business should gage the sure and ethical objectives established by the employer and the rules and procedures drawn up in support of those objectives (Chan, 2004) . After reviewing the HKICPA Codes of Ethic for Professional Accountants Wai Man should prepare a report containing all the information that she has found and go to Wong with it. She should be prepared for her blood brother to be properly punished for what he did while understanding that she could also be punished for not saying anything when it first came to her attention.She should suggest that Wong not leave Tam in charge of operations since that places him as her supervisor. She should also suggest that Wong employee an internal control group that would help prevent something worry this from happening again. If Wong does not agree or is unwilling to do anything somewhat the issue at hand Wai Man, as a professional accountant, should relinquish from her position with the company.