Kitchen Best
Most of the SME proprietors like to run the business with paternalistic style, with simple structures to operate, especially the Chinese family business. They are founded the business based on personal experiences and try to do eveything hands on at the start up of the business.
The focus of SME normally will put on growth of business and market expansion. Therefore, they will feel difficuties to oversee all the factory operation and different job function as the business grows. At this phase, the proprietors will start to delegate the power and responsibility of management to the trusted subordinates. However, without having a management system with clear objectives but just simply trust the subordinates unconditionally based on their previous good working attitude, they may take advantage of loopholes in the system for personal gain.
For a SME doing cross-border business such as company based in Hong Kong while having manufacturing factory at mainland, a lot of problems can occur if a good management system is not established. At the cross-boundary, the difference in cultural, economic and legal systems will create a grey area where the judgement of ethical and unethical is unclear. In this situation, some unethical activities may happen such as getting personal profit from supplier, awarding contract to relatives, wining and dining as well as receiving brides and kickbacks.
In the absence of clear guidelines regarding to acceptance and offering of advantages, checks and balances as well as feeback on a timely basis, the employees will have a false impression that the company do not take these issues seriously and start to seek for their own advantages when dealing with others business parties. As a result, corruption practices experienced by the company can cause severely loss of profits and damage of company reputation.
Hence, the internal operating procedures should be periodically reviewed and system controls should be introduced company-wide to each
The focus of SME normally will put on growth of business and market expansion. Therefore, they will feel difficuties to oversee all the factory operation and different job function as the business grows. At this phase, the proprietors will start to delegate the power and responsibility of management to the trusted subordinates. However, without having a management system with clear objectives but just simply trust the subordinates unconditionally based on their previous good working attitude, they may take advantage of loopholes in the system for personal gain.
For a SME doing cross-border business such as company based in Hong Kong while having manufacturing factory at mainland, a lot of problems can occur if a good management system is not established. At the cross-boundary, the difference in cultural, economic and legal systems will create a grey area where the judgement of ethical and unethical is unclear. In this situation, some unethical activities may happen such as getting personal profit from supplier, awarding contract to relatives, wining and dining as well as receiving brides and kickbacks.
In the absence of clear guidelines regarding to acceptance and offering of advantages, checks and balances as well as feeback on a timely basis, the employees will have a false impression that the company do not take these issues seriously and start to seek for their own advantages when dealing with others business parties. As a result, corruption practices experienced by the company can cause severely loss of profits and damage of company reputation.
Hence, the internal operating procedures should be periodically reviewed and system controls should be introduced company-wide to each