Wilson Chemicals (Ghana) Ltd

Only available on StudyMode
  • Download(s) : 228
  • Published : April 19, 2008
Open Document
Text Preview
Since 1952 a subsidiary of British Company for chemical manufacturer was established in Ghana, named Wilson Chemical (Ghana) Ltd. There were three reasons for its success: 1.Fertilizer as the primary product in an agricultural based economy 2.The company employed many natives in top positions

3.Appointed a native Ghanaian graduated from Oxford, Joseph Okono, as the president of Wilson Chemical (Ghana) Ltd. Under Mr. Okono’s management, the company achieved a great success in sales and profit. Moreover, because of his ability to work hand in hand with any local regimes and loved by his employees and clients as well.

An independent auditor firm found some accounting discrepancies in 1984 at the total amount of £50.000 as incentives to local bureaucratic in governmental agencies to gain advantages for the company. This obviously worried the headquarter company. There came a very serious discussion whether Mr.Okono did the wrong thing and should be fired or not.

Based on ethical point of view, what has been done by Mr. Okono was totally wrong, although there were excuses that it was done for the sake of the company to justify this so called bribery.
This matter was discussed intensely at the Headquarter of Wilson Chemical and according to the facts from the auditor cover letter, it was clearly stated for an intentional error in procedure as incentives to increase or maintain business and no attempt was done to cover it even though seemed to be in the past it has happened and written off as sales promotion cost and as a result the subsidiary could not be certified financially clean.

Another thing to consider is the ruling regime of Mr. Rawling, which at first seemed really focused on fighting corruption fro the boards of directors’ point of view. On the other hand, after given a chance to clarify why there was an error of £50.000 in the subsidiary 1984 annual report, Mr. Okono admitted of doing so only at...
tracking img