Jextra CaseFinal Report

Topics: Ethics, Mayors, Primary school Pages: 6 (1818 words) Published: March 26, 2015

An MNC has to confront a lot of ethical matters to conduct business in the overseas nation.  For the first times, Tom Chong is playing the position of the country manager of Jextra and he has to decide two concerns, which are very novel to him.  Our group members have to resolve these issues from Ethical point of view. Tom chong has to ensure the expansion of Jextra’s business at Malaysia as well as to keep up Business Conduct Code.  First issue, which Chong had to resolve, was about new investment at Klang. Klang was the most appealing cities in Malaysia for Jextra’s next investment for its growing community. To hurry up the land zoning process, Mayor of the klang wanted Jextra to provide at a primary school development fund. And Jextra had to pay for the flyover project. It was very first meeting for chong with the klang city mayor. So, there are many issues that were doubtful. There are- 1. Jextra had to disburse full 5 million ringgit or partial. 2. For the school project, when jextra had to pay, before or after the school was built. And which is legal. 3. For the flyover project, who will obtain the payment, contractor or the city? 4. If jextra do not pay for the flyover project, then will it influence the land zoning process or not? 5. Is mayor presented the same proposals to other rivals like Super-Value?  Chong may choose to donate at school project. If following situations are happened. There are – 1. Donation must be paid before the primary school project & benefit must go to the school and the community, not individuals. 2.  Malaysian law was not planned for the business payments for social purposes. 3. Earlier donation was made in an education fund. So it is not unlawful in Malaysia. Malaysian voters and legislators support these types of contribution. 4. Chong may consider this contribution as CSR. Here social benefits are higher than Jextra’s benefits. 5. Klang’s citizens had the positive right to get the contribution of Jextra’s aid for the school project. Chong cannot disburse for the flyover project. Because: 1. This project was ongoing before the Jextra’s investment proposal. 2. If jextra paid for the flyover project, company will not get remuneration. 3. Many elected officials had to withdraw from their position because of bribes. 4. Some Malaysian lawyers recommended making the payments for the school and flyover payments independent. So there is a chance to get own benefits by Mayor of klang. So, it will generate an enormous image crisis for Jextra & Chong. We have many unanswered questions. Answers of those questions may change the whole decisions for a primary school & flyover project. The second issue involved the job performances of Arif Alam, Jextra’s top-performing buyer. The retail industry in Malaysia is notorious for buyer accepting money and gifts from suppliers. Chong had a dilemma. Although he suspected that Alam was involved in “dirty” buying. Tom Chong can hire an outsider investigator. If investigator collects evidential information about Category Manager unethical practices, then Tom Chong should give warned to Category Manager to avoid the unethical practices such as bribery and kickbacks. So, Chong needed to keep growing the business and meet his financial targets.

Case-end questions & Answer

QUESTION 01: What are the ethical issues Tom Chong confronts in this case?

1. Investing primary school:
JEXTRA Company business conduct clearly said that employee can’t offer any benefit to third party, If JEXTRA contribute to a primary school and the benefit helps school development not any individuals its legal and it will consider as a corporate responsibility but mayor sister was on school board so there is risk of corruption. So Tom Chong should decline the mayor offer and work through regular process to get zonal approval. If they successful then they need to think about flyover. 2. Arif Alam

To resolve the suspecting Mr. Alam unethical buying...
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