DPB3043 Case Study 1

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MATRIC NUMBER:

Answer all questions with any possible approaches

Fashion Village is a Multinational company and the headquarters of Fashion Village is located at
Seksyen 7, Shah Alam, Selangor. This company produces latest design of traditional attire and hijabs,
and always been invited for fashion show in Paris and New York and even won the Most Promising
Company for year 2018. The company is making profit of millions ringgit Malaysia. Manager of
Fashion Village is Ms. Nadine, daughter of one of the shareholders of the company.

However, Ms. Nadine always came late to the office, not respect her employees and spend
unnecessarily using Fashion Village money such as organizing Party at Maldives with her best
friends, getting higher paid for her salary, . Things getting worse when she tried to hide financial
status of the company. Work Culture at Fashion Village is getting worst.

After being warned by other shareholder, Ms. Nadine promised to change to be an ethical leader and
create positive culture at Fashion Village. She even plan to organize CSR educated poor kids at
Semporna Sabah.
i. Name and briefly discuss FIVE (5) issues which can be highlighted based on above scenario?
(CLO2/ C2) [10 marks]

Manager of Fashion Village company, Ms. Nadine always came late to the office.
This set a poor example for the other staff members and will possibly be viewed as poor
leadership the entire company. This will lead to lost productivity that directly affects the
profit of a business as well as damages employee morale if the problem is not dealt with
directly.
Besides, Ms. Nadine also not respect her employees, this shows Ms. Nadine is an
ineffective manager. Ms. Nadine does not listen to their employees, don’t want to learn
constantly and not respect for her employees. Employees want to feel that their opinions
matter and that their manager value their input. Make them feel that every day by giving them
responsibility and respecting them enough to step back and do what you hired them to do.
When they feel respected, they will respect you in return.
Next, Ms. Nadine also spend unnecessarily using Fashion Village money such as
organizing Party at Maldives with her best friends. In this case, Ms. Nadine prove that she
embezzlement company money due to her position in the company and Ms. Nadine misused
this authority for their own gain. Ms. Nadine needs to change her attitude because using
company money for personal gain is wrong. It is also something that should not be done if
Ms. Nadine wants to change into an ethical leader and also a leader who gives a positive
culture in her company.
Other than that, Ms. Nadine gets a higher salary than the others, maybe this is due to
the position she holds as a manager, but this is an issue because Ms. Nadine did not do the
work equivalent to the salary that she earned.
Lastly, Ms. Nadine tried to hide financial status of the company, this could tarnish
the image of the Fashion Village company, as shareholders would be afraid to invest in this
company. In this issue we can call this an accounting scandals, are business scandals which
arise from intentional manipulation of financial statements with the disclosure of financial
misdeeds by trusted executives of corporations, Ms. Nadine. Such misdeeds typically involve
complex methods for misusing [spend unnecessarily using company money] or overstating
revenues [higher salary], overstating the value of corporate assets, or underreporting the
existence of liabilities this can be done either manually, It involves an employee, account, or
corporation itself and is misleading to investors and shareholders.
ii. Discuss how corporate culture can impact Fashion Village. (CLO2/ C2) [10 marks]

iii. If you are one of the shareholders, how will be your respond, and what is your next action on
Ms Nadine? (CLO2/ C3) [4 marks]

iv. Determine the ethical aspects of corporate governance by Fashion Village. (CLO2/ C2)
[10 marks]

v. Illustrates TWO (2) activities can be suggested to ensure the Fashion Vallet can achieve its’
CSR objectives? (CLO2/ C3) [6 marks]

vi. List down FIVE (5) members of a stakeholder to Fashion Vallet. (CLO2/ C3) [5 marks]
[Total 45 marks]

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