Kitchen Best is a Hong Kong based electrical-appliance company. The company has a manufacturing facility in China and sells it wares to customers across the world. Henry Chan, the newly appointed CEO has ambitious plans for the business. However, a series of instances of misconduct and unethical behavior makes him realize that the business is suffering from a lack of internal control. What type of internal control mechanisms should he put in place to ensure the future success of the company?
The case highlights legal and cultural differences that pose a challenge in maintaining ethical standards when doing business internationally. The reader is asked to explore structural and internal control mechanisms that may be used to manage such differences. The case also underlines the importance of personal ethics and system integrity.