You need to read the article “Ethical leadership and its challenges in the era of Globalization” and do a presentation summarizing the article and then answering the following:

Mr. Raymond Kim the General Manager of AccurForm if facing an ethics crisis that can undermine the viability of the company. AccuForm, a joint venture company between a fabric coatings producer DynaCoat of Germany and a Hong Kong garment manufacturer Crease Free. Mr. Kim the General Manager of AccuForm, was assigned by his company, DynaCoat, to set up a regional headquarter in Hong Kong to lead and co-ordinate the company’s development in China. Although the two companies had very different working cultures, it had not posed a great management problem to Kim until a crisis occurred which uncovered a string of unethical business practices. In October 2005, children in Guangzhou in China developed skin allergies after wearing clothes applied with AccuForm's untested experimental coatings. Mr. Kim wants you to analyze the situation and come up with a set of recommendations for AccuForm, as to how should it resolve the current situation, and develop a procedure so that similar situations do not arise in the future.

1. Coral Wear promoted the fact that its garments were manufactured with AccuForm branded coating. What legal implications does this have for CoralWear?

2. Given Ching’s defense when confronted by Kim with the evidence of malpractice and his argument that many business people in China accepted “referral money”, what would be your argument for or against Ching?

3. How is consideration of the local culture important in the implementation of management controls of multinational companies?

4. What can Kim do to establish AccuForm’s ethical standards and build its corporate culture for the long term benefit of the company?