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Jextra Neighbourhood Stores in Malaysia

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JEXTRA NEIGHBOURHOOD STORES IN MALAYSIA

NURULSAKILA BINTI JAFRI
MBS141092

BUSINESS ETHICS, RESPONSIBILITY AND SUSTAINABILITY
MRAA 1533

LECTURER: DR JIHAD MOHAMMAD

4TH APRIL 2015

-------------------------------------------------
Question 1: How should Tom Chong resolve the request from Mayor of Klang?
Tom Chong is in dilemma. He is very ambitious in penetrating the market and expanding Jextra in Malaysia. He believed Malaysia has plenty of growth opportunities for supermarkets investment despite various challenges that need to face. In order to accomplish his goals, he prepared an aggressive five-year investment strategy and identified Klang as the potential site for new Neighborhood Market. It was however, Mayor of Klang suggested that the application for zoning Jextra would be more likely to be approved if Jextra supporting new primary school and financing flyover.

Bribery can be defined as the offering, giving, receiving, or soliciting of something of value for the purpose of influencing the action of an official in the discharge of his or her public or legal duties (Bribery, 2008). The truth is Chong knew supporting new primary school and flyover is a bribe to obtain the permit and is illegal either in Malaysia or Hong Kong. Nevertheless his desire to develop the business within short time wavered his decision making. As a Country Manager, Chong should have very clear about Jextra’s Business Conduct Code in which no bribery is allow to obtain or retain the business as it would affected Jextra valuable reputation. Besides, the incidence involving bribery to local politicians in Philippines and what happened to that Jextra’s Country Manager should give better picture to Chong if he involved these sorts of behavior.

In this case, rather than complicating himself with the unnecessary payments and putting himself and Company reputation at risks, he…...

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