This concept largely occurs in relationships that are of a fiduciary nature such that the involvement of trust becomes mandatory. Moreover, Boatright also outlines the nature of agency relationship in the context of conflict of interest in which an employee is expected to not only safeguard but also advance the interests of the employer and the organization as a whole. An analysis of the operations and activities of Manfold Toy Company Ltd. reveals that the interests and relationships between the individuals controlling the firm have resulted in the incidence of several conflicts of interests. The founder of the company Joseph Wan intends to sell the business to Mitchell & Meyer, however, the board of directors of Mitchell & Meyer is only interested in the pursuing this decision if Manfold Toy Company is able to demonstrate a 20% growth in its year-end audit report. The first conflict of interest which can be reported is that Mitchell & Meyer’s consultant firm titled Big Capital is owned by Maggie Mok who also serves as an executive director for Manfold Toy Company and would be paid HK$20 million on Big Capital’s account if a takeover bid is recommended by her firm. Maggie Mok however has failed to disclose this relationship to the CEO of Mitchell & Meyer for the sake of protecting the valuable account. In order to enhance the accounts of Manfold Toys for the sake of a successful transaction, Joseph Wan took advantage of his relationship with Wu Jiaxong and Daniel Kot to influence them into improving the company’s financial performance. In doing so, Jiaxong contacted the production manager Peter Lee to approach suppliers who were willing to supply lower quality material at cheaper rates in a bid to cut costs rather than identifying ethical means to improve the cost efficiency of the business. Peter Lee’s position as the production manager and his personal relationships with suppliers that were established through interactions at night clubs also serves as a conflict of interest. On the other hand, Daniel managed to secure undisclosed agreements with distributors which classifies as the fourth conflict of interest to be identified. In both scenarios Jiaxong and Kot are misusing their authority and position within Manfold Toys to improve the accounts of the business. In another conflict of interest, Daniel Kot strengthened his relationship with Francis Yen by offering a trip to Phuket and numerous scuba trips to receive an exceptional and highly positive coverage regarding Manfold Toy’s stock performance from Yen’s firm. The external auditor Ken Tse identified the inconsistencies in Manfold Toys’ records that were a result of the actions conducted by Jiaxong and Kot to improve the financial performance of the company however, Ken’s firm was not only responsible for the auditing service but also handled the taxes at Manfold Toys additionally, it appears that Tse also shares a relationship with Wan on a personal level which is why he refused to investigate further into the matter and passed a biased judgment, which yet again reflects conflicting primary and secondary interests which is a grave violation of his responsibilities as an external auditor as per the code of conduct created by Hong Kong Institute of Certified Public Accountants. Fred Wong, the chairman
Manfold Toy Company: Corporate Governance and Ethics for Directors and Professionals With the emergence of several high-profile cases revolving around organizations that collapsed due to the occurrence of ethical issues and problems, the key consideration with regards to the departure of these firms from the business arena is that of conflict of interest (Boatright 100)…
It provided the researcher with enough evidence on ethical lapses present within an organization particularly in the pharmaceutical sector. The report has been divided into two tasks. Task 1 is based on the case study, “GlaxoSmithKline experiences high cost of product quality issues” which identifies the ethical lapses that may have affected the product quality at GSK.
It produces a number of pharmaceutical products ranging from biologics, vaccines and drugs targeting neglected diseases in the sub-Saharan Africa. The multinational was formed following merger with other pharmaceutical and related companies like smith Kline Bicham, Glaxo welcome plc in the United Kingdom and smith Beckman Corporation all based in the United Kingdom.
How a company is affected by the social policies that it makes and implements for the welfare of its stakeholders as well as for the welfare of the society as a whole. How the social needs of the company are addressed and how the social responsibility of the company is fulfilled by it.
The growing of this kind of soybean is greatly facilitated by the rainforest climate of Amazon. Hence the production of soybean has boomed in this region and extensive savanna like ecosystem (known as Cerrado) is being converted into industrial soybeans farms, which is highly detrimental to the environment.
When the company was functioning with full fledged capacity, Fred Wong, the independent non executive director warned Joseph about the impending danger of bankruptcy of On Yee. Despite being warned Joseph decided not to give
The 2008 financial crisis is one of the main ethical case studies owing to the global implications that result from the decisions made by people against the ethical requirements in the society. The 2008 financial crisis is well highlighted by moral
2 pages (500 words)Case Study
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