Accuform Case Study

2140 Words Apr 7th, 2012 9 Pages
Case Study Analysis:
AccuForm: Ethical Leadership and its Challenges in the Era of Globalization

Nicolle R. Waddy
AMBA 660 Managing Global Business
Professor Dr. Elena Zavialova
January 22, 2012

Introduction The ethical environment of a company’s leadership heavily impacts business decisions, and thus impacts the public’s image of the company. These decisions and the process by which they are made will affect the world’s view of the company, and it is important for company’s to understand the significance of ethical decision-making particularly in international business relations on the company’s reputation. AccuForm was a joint venture company, organized by the joining of CreaseFree, a Hong Kong OEM manufacturer of
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What individual or situational factors encouraged the money-laundering scheme at AccuForm? AccuForm was developed as a joint venture between a Hong Kong and German company, inherently there were social and ethical challenges in this joint venture. European and Asian companies operate differently because of the differences in cultures. AccuForms first step is dealing with the differences was to hire a general manager for AccuForm that would be a good fit for the environment. Raymond Kim, an American-born Korean had extensive technical knowledge and managerial skills from his years with DynaCoat and was the company’s selection for AccuForm’s head in Hong Kong. His major responsibilities were to develop an AccuForm chemical supplier network, thus reducing AccuForm’s costs and dependency on a few large suppliers, and to oversee R&D in Asia (Lau & Wong 5). The first challenge was ethical and social, and the result of a lack of a joint ethical environment at AccuForm from the combining cultures of DynaCoat and CreaseFree. When the two companies entered into this joint venture they did so without developing a plan for differences in their corporate cultures. DynaCoat, was a German company, and placed a high importance on developing environmental sustainability programs, and enforced strict quality control systems. The European society placed a high value on safety and quality, while protecting the environment, and DynaCoat took

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