Sunshine Fashion: Fraud, Theft and Misbehaviour among Employees Case Solution
Section 3: Stakeholder Analysis
The case defines the issues which are impacting on the stakeholders of the company which could bring high loss if the prompt initiatives would not be done immediately. Moreover, the stakeholders for Sunshine are its employees, customers, management, shareholders and suppliers.
3.1 Employees
The employees are effected most because those who are involved in unethical behaviour and fraudulent activities are creating trouble for those employees who are working ethically and honesty. This can bring the loss to company to lose such employees which are honest and doing their jobs virtuously. Virtuous means the right things can give virtue to the people. But by seeing such worst condition, the virtuous can be low.
3.2 Customer
The customers are affected because they are mistreated, as they are purchasing the goods in given price. This can make the company to lose its current customer as the brand image gets down in the market. Theory of justice reveals that you should see your customers as an end not as a mean which says to value your customers and treat them with justice
3.3 Shareholders
The shareholders will lose their trust in the company if they analyze the annual report which continuously showing loss in the revenues. The market value of the company would decline in such condition.
3.4 Management
The management is ineffective in this case where it cannot control the situation. Managers must do the things right in order to make the operations transparent and free from corruption. But unfortunately, there are is involvement of managers in such unethical behaviour. A manager is also a leader and theory of Utilitarian says that one must have ethical behaviour because the consequences reflect on others too.
Section 4: Analysis:
4.1 Research
The Sunshine case defines the unethical behavior of its employees, which is causing numerous obstacles to the company. The first is the sale is declining and the company has to bear the high cost because of it. The other is the inefficient management and lack of leading strategy in the organization. The possible issue is that employees are demotivated that’s why they are not honest with the organization and do not take it as an end but taking it as a mean just for personal benefits.
4.2 Recommendations
4.2.1 Role of Managers
Managers are the leaders of the company. They have the leading responsibility towards it:
- Motivate the employees.
- Control and monitor the business operations.
- Make appropriate strategies for the growth of business.
- Responsible for the shareholders and profit maximization.
- Responsible for check and balance of activities.
The above roles of managers are need to be accurately done for resolving the issues in the organization.
4.2.2 Motivation
The motivation can make the employees to know the value of their job and organization. The demotivation can help the employees in being ethical. The organization must provide the incentives to the employees and also the motivational speaking should be given to them. Moreover, the win-win strategy should be applied as it provides the benefit to the employees and organization simultaneously.
4.2.3 Monitoring and Controlling
Sunshine should make the data entry system computerized through bar codes so that it can replace the manual data entry system and the chance of fraudulence would be decreased. Moreover, there should be surveillance system implemented in order to overcome any theft and unethical activity.
4.2.4 Penalties and Rewards
The company should make the reward system in order to motivate the employees that rewards and increments should be given to virtuous employees and the penalties should be given to those who are in deeply involved in any unethical and fraudulent activity.........................
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