Sunshine Fashion: Fraud, Theft and Misbehaviour among Employees Case Solution & Answer

Sunshine Fashion: Fraud, Theft and Misbehaviour among Employees Case Solution

Section 1: Introduction

Shenzhen-based Sunshine Fashion Co. Ltd “Sunshine” is a Sino-Japanese venture, specialized in manufacturing the cashmere sweaters and its retailing. It has almost 220 retailing points allover in China. The company has managed it’s headquarter and regional office to maintain stock and inventory and monitoring process on it. The RFID/ERP system is implemented to track the inventory and sold goods. The implementation aids the company in its operations like to report the available goods and retailing in domestic level. There are some issues which are faced by the company like it’s the fraudulent behaviour of employees that cost 5% in retail chain. Moreover, there are also some challenges which are faced by the company to overcome this unethical behaviour of the staff. There are also some root causes in the case where the data is entered manually by the employees in the ERP which is integrated with the headquarter and the wrong information is also entered in order to take the benefit for themselves. The possible outcomes need to be sorted out to overcome such issues and making the business operations transparent and clear.

Section 2: Situational Analysis, identification of issues, problems and objectives

2.1 Situational Analysis

The case possess the zero-sum game where one gets the benefit and other gets the loss. In Sunshine, the employees are playing zero-sum game because they are having benefit by fraudulent behaviour and the company has to bear the cost in retailing. The management should focus on the win-win strategy where nobody would get loss and the coordination with be with everyone. The win-win strategy will help the management to overcome such misbehave of the employees and the deception condition will be declined.

2.2 Identification of issues

There are several issues in the case like the most considering is fraudulent behaviour of employees which leads the company to face the loss. The other is the manual data entry of stock which is inaccurately entered. The other serious problem is not having transparency in the business operations which leads to decrease in profit.

2.3 Problem Statement

The main problem in the case is decrease in sales of 50% in the revenue because of the fraudulent behaviour of the company’s employees. Moreover, it faced the loss of 10 million approximately in 2008. The unethical behaviour of the staff is causing  corruption in the company and the ineffective management is unable to control the situation. The top management is cautious about the issues to be overcome as soon as possible.

2.4 Objectives

The main objective is the company to identify where the root cause of the issues and to correct the unethical behaviour of the employees. The company’s employees have less  motivation and that’s the main reason of fraudulent behaviour because the employees are unaware of the company’s vision and mission statement. Another main objective is to make the management effective to control and monitor the business operations.

2.4.1 Deontological theory:

This theory interprets the individual and the organizational agreement. It signifies that an individual must tell the truth whether the results are positive or negative but one must have ethical behaviour with the organization.

In this case, the most important object is the ethical behaviour of the employees with the organization and they must inform the top management if they see any unethical behaviour, whatever the consequences would be either negative or positive……………………

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