Case: KingJewels: Ethical Leadership Practice
November 30, 2010
1. Discuss how the leadership style may have 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 vision and direction were critical leadership qualities. He always said “you do not achieve commitment to, or an understanding of, a company’s vision and mission without actively pursuing and practicing it at every opportunity.” However, when he began spending most of his time travelling to the US and Canada and taking care of business development and marketing he put Clement Tam in charge of operations [ (KingJewels: Ethical Leadership Practice, 2010) ]. Tam’s primary responsibility was worldwide gem sourcing. Tam, however, looking at their bonuses began accepting lower-quality gemstones and continuing to sell them at the normal price. He was also using businesses owned by his uncle, Peter Tam, and was receiving attractive rebates for ordering from them. Johnathan Ho, the head of production and authentication used a dictatorial leadership style. He often made decisions without consulting his colleagues. He allowed 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 segregation 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 sign off on them anyway. He should not have been allowed to hold both positions in the business, especially when one was over the other. Also his sister, Tam Wai Man, was in charge of Finance. 3. Discuss how...
References: Chan, S. (2004, October). Proposed Revised Code of Ethics for Professional Accountants. Retrieved November 30, 2010, from Hong Kong Institute of Certified Public Accountants: http://app1.hkicpa.org.hk/professionaltechnical/ethics/exposeddraft/revised_IFAC_Code.pdf
(2010). KingJewels: Ethical Leadership Practice. In Accounting Capstone Strayer University (pp. 96-109). McGraw-Hill.
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