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AccuForm: Ethical Leadership and its Challenges in the Era of Globalization                                                                                                                                                                                                            
Product Ref: 06/308C Company: AccuForm

Product Type: Case Industry: Materials

Related Product(s): Teaching Note
AccuForm is a German-Hong Kong joint venture specializing in the production of chemical coatings for application on garments. Confronted with a situation where an unauthorized Chinese manufacturer had stolen one of AccuForm's experimental coatings, applied to their own brand of clothing, and sold to the public as an AccuForm product. The product had caused allergic reactions in some children and the media had widely reported the incident. It was later discovered there were more to the situation than stolen coating, as some staff were found to have engaged in money laundering, misappropriation of company assets, acceptance of illegitimate rebates and bribes. The General Manager of AccuForm, in addition to having to deal with the media, also had to find a way to resolve the differences in business practices between the company's German and Hong Kong parents, which are thought to have been partially responsible for the incident, as well as rebuild staff morale and customers' confidence in AccuForm's products. This case illustrates how differences in company cultures can create difficulty for management and what are formulae for success in one country may be guarantee for failure in another.
Functional Area : Accounting & Control
Social Enterprises & Ethics

Issues: Money laundering, misappropriation, bribery, rebates, cultural difference, morale, corruption, fraud, embezzlement, Bribery, money laundering, illegitimate rebates, media crisis management, poor staff morale, Specialty Chemicals, ICAC
Length: Text: 12 pages
Exhibits: 1 pages
Country: Hong Kong SAR

Pub. Year: 2006 Level of Difficulty: 2
This product type is available in the following language(s):      English   Simplified Chinese
Related Information: N/A
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