BEC整合版.doc

Outline一、 Summary二、 Analysis & Recommendations三、 Implication一、 SummaryHello everyone. Today is our case analysis time. We will share a case with you about business ethics in the company. Our team member are 韋丹、曾文婷、許少萍、陳慧華and me 趙燕麗.Here is our case:James lee Clayton is the hero of our case, who is an entrepreneur of a mobile-home manufacturing company. For the past 15 years his company had grown rapidly, between 1990 and 1993 Clayton Homes stock rose more than 400 percent. Clayton used to making his own decisions, but he didnt realized that threaten is on the way.The peace was broke up by the investigation of the Tennessee Department of Revenue, but there is no result. When all the people believe that this company had no tax problem, a partnership owned by Clayton and his mother sued former Clayton Homes employee Warren Schede in civil court for the tax oversights and corruption(貪污).Until now did Clayton realize that he had given Schede too much operational latitude and not enough supervision. Jim Clayton doesnt have a lot of use for accountants, he thinks of them as overhead. But the finances of the company and his personal finances was really in a mess.As a result of this slapstick(鬧劇), Clayton Homes share price dropped 18 percent. Clayton had spent hundreds of thousands of dollars and couldnt get the lawyers to uncover the crime of Clayton. Clayton fell victim and as a result victimized shareholders. He employed another law firm to reinvestigate the tax problems.From this case we can see that there is really some ethic problem in the company. How did it happen and how can we avoid it? Our team members will have an analysis of it.二、 Analysis & RecommendationsProblem 1: Neglect of Financial Management Financial affair is a managerial chunk in companies. Management should devote enough attention to internal finance. According to the case, there are three primal problems causing the financial crisis. First, Schede was responsible for marketing and finance at the same time, as well as the use ratio of accountants was low. And we could find that the accounting personnel divides the work not reasonably. People who belong to financial department should cope with financial affairs only as financial department should be separated from other departments. Second, External financial supervision is necessary for the companys internal finance. Obviously, Clayton Homes has not done so.Solution 1:(1)The importance of accountants should be aware and paid much more attention. The company should readjust the whole financial system： a. The managing hierarchy of company should renovate the management concept and constantly adjust the financial function. b. The financial function suit to the company should be defined clearly. c. New financial structure suit to the development of operation and management should be established. And it will be conducive to clarify the duty of positions in all levels. d. The business and finance should be integrated organically and the company should strengthen the financial analysis and supervision. e. The accounting statement should be regulated to guarantee the truth of account.(2).In daily operation, the company should fetch in outside financial supervision, such like the law and accounting firms. Integrated with inside financial supervision, the outside one can monitor the income and expenditure account of company to protect it from corruption and other illegal behaviors. Problem 2: Empowerment & SupervisionTo some extent, Empowerment could be a good way to motivate employees to work harder. However, chaos in the companys internal management would arise without enough supervision. As we can see in the case, Schede was given too much operational latitude, not only worked as retail division controller but also involved in financial region, but lack of supervision. As a leader, James empowered Schede too much.Solution 2:Companies should build up an overall supervision system that adapt to its operation. Personnel in the company should be supervised by his boss, peer, subordinate, and so on. The two key sectors of the supervision system are Responsibility Mechanism and Benefit Mechanism. Companies should pay more attention to those parts. To build up an effective supervision, the opening of information especially finance information is very important. Also, its necessary to review and revise the system from time to time. While giving empowerment to subordinate, keep balance between empowerment and supervision is of great concern. If the person was given too much empowerment and not enough supervision, it will lead to the abuse of power or even lead to crime. So it will be better if the company creates a restraint mechanism instead of giving too much empowerment to one personnel.Problem 3: Not distinguish Official business from Personal Affairs In the case, a deal of Claytons personal finances was done by Schede. Actually, from a professional point of view, official business and personal affairs cant be mix up for companys better operation. The managing hierarchy should be scrupulous in separating public from private interest. Solution 3: The company should establish supervision system and related regulations. Clyton Homes should set up a kind of supervision system to regulate the behavior of managing hierarchy .Problem 4: Management Mode didnt reform timelyClyton Homes, Inc insists on centralized management since it was found as James is used to making his own decisions. This management mode is available in the state-up. However, company structure should be dynamic according to the actual state of the company. As the company got larger and larger, Clayton should change the company structure depending on the organizations strategy, and he didnt. Solution 4: As the company get larger, its necessary to change its management structure to adapt the situation. In the case, Schede was charged with overseeing 143 sales outlets, thats not reasonable. It may bring about the misuse of functional authority and the loss of control. The company should revise its job analysis and give assignment to personnel according to it. One rule should be mentioned is that the amount of task to everyone should be proper. An reasonable management structure can improve the companys efficiency, motivate its all staff and avoid the situation in the case.三、 ImplicationAll in all, Clayon can take measures to maintain an ethical position.One is exercising the strong leadership in ethics , empowering and inspireing employees, leading they towards the same direction and making the strategies easier to be carried out. Another is focusing on Corporate social responsibility, making positive engagement in the communities in which they operate.Next, we will have a look at what steps leaders could take to exercise strong leadership in ethics.First and most basic level, an ethical leader should set moral examples for his followers before expecting them to be able to act morally and set up core values. Second, he also has to have the power and characteristics to influence and inspire his people towards a common vision. Third, Ethical leaders are open to listen to followers voice, and thus they welcome peoples conversations as well as criticism. Leaders make choices based on peoples opinion and ideas. Followers are also treated as important elements in guiding leaders. Leaders are responsible for sound moral judgment. There is much strict requirement on ethical leaders moral values. Furthermore, an ethical leader should try hard to build a culture that has grown and evolved to meet the complexities of todays business world and the challenges of a global society. An ethical culture builds the company on a foundation of integrity. That legacy could continuesto guide the company and its people.Corporate social responsibility(CSR) has gained an increasingly high profile in recent years. CSR can be defined as the ways in which a business seeks to align its values and behaviour with those of its various stakeholders.