BPMN 3123 MANAGEMENT ETHICS

(GROUP H)

SEMESTER (A211) SESI 2021/2022

GROUP ASSIGNMENT

CASE STUDY 1

LECTURER:

DR. AMER B HJ DARUS

PREPARED BY: EQUINOX

SUBMISSION DATE: 27th December 2022

1.0 Case Summary

1.1 Does Malaysia have laws to nix ‘offensive’ brand names or ones that cause
‘public anxiety’? Lawyers explain

Recently, a Malaysian liquor brand was criticized due to its brand name,
“Timah”. This issue was highlighted by N.V Subbarow who is the education officer
of Consumer Association of Penang (CAP). He even advised the government to ban
the locally-made whisky because the name “Timah” was insulting towards the
Muslim community as it resembles a Malay name shortened from “Fatimah”. N.V
Subbarow proceeded to condemn the involved authorities for allowing the drink to be
sold in the country. Eventually this caused an uproar among the public and resulted in
many divided opinions. Furthermore, “Timah” proceeded to clarify this issue on a
Facebook post by stating their name has been misinterpreted, they viewed the name
“Timah” to represent tin mining during the British Malaya era. (Ping, 2021) This
issue was eventually brought to the attention of the Cabinet to be reviewed. Firstly,
the Cabinet had decided not to allow the manufacturing of the liquor because it caused
public anxiety. The manufacturers of “Timah” even agreed to change their brand
name. Upon further discussion, the cabinet allowed “Timah” to keep their name but
has to include an additional label that explains the name is a reference to tin ore to
avoid confusion among the consumers. (Channel News Asia, 2021)

1.2 Growing concern over illegal stalls

Illegal roadside stalls have always been a nuisance to authorities because they
may cause danger to road users by disrupting the traffic flow and do not practise
proper hygiene. Recently, many illegal roadside stalls are operating along PJU 10 at
Damansara Damai, Selangor. While some locals are worried about their growing
presence, there are also people who think there is no issue with these roadside stalls.
In their defence, these roadside stalls owners are just trying to make a decent living
especially during Covid-19 when many of them have lost their income. On top of that,
the public supports these roadside stalls because they offer a variety of food and
drinks that are priced reasonably because they do not have to bear overhead costs.
However, Petaling Jaya City Council (MBPJ) has been issuing summonses because
too many of them at one location are causing traffic hazards. Nevertheless, the

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 roadside stall owners would just shift to a new location. Many suggested that Petaling
Jaya City Council (MBPJ) has to find a new spot for them to operate legally to
continue their livelihood as a permanent solution rather than issuing them summons
monthly.

2.0 Issues

2.1 Unethical but Legal

On the issues of “Timah '' whiskey produced by Winepak Corporation (M)

Sdn. Bhd. had received public attention from the Malaysian citizens. This was due to
the use of the word “Timah'' as their product brand name which later caused
controversy and raised unethical but legal issues. To further understand this issue, the
unethical practices raised when the use of the “Timah'' word had caused public
anxiety in the context of race and religion. The word is known to be closely related to
the Muslim’s female name which is “Fatimah” and as we all know that Muslims are
prohibited to consume alcoholic drinks as it is against Islamic practices. Malaysian
population consists of approximately 19.5 million Muslims, which holds about 61.3%
of the total population (Department of Statistics Malaysia Official Portal, 2015). By
looking at this population, absolutely the use of “Timah'' word is unethical to the
society even though the intention of the company using the word is referring to ‘can’
which in Melanau language is called ‘tin’ (DayakDaily, 2021) and in Malay word
means “Timah'' due to the historical origins of the whisky liquor. The use of this
Malay word has addressed the question among Malaysians whether the intention is to
target and reach the Malaysian Muslims? It is also improper as it is like showing that
the one who is drinking the “Timah '' whiskey is like drinking a Malay woman
(Carvalho & Rahim, 2021).

According to the utilitarianism approach, this scenario raised big issues on

race and religion among the Malaysian society especially for Muslims which gave
a bad impact and portrayed a low standard among Malay women. Indeed, this
scenario leaves and generates a huge cost rather than delivering benefits to the
society. This shows that the action taken by the company’s stakeholders caused
unhappiness or dissatisfaction among society and this is supported by John Stuart

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Mill, who proposed that an action is right in the proportion which it can promote
happiness, and turns out to be wrong when it produces otherwise. Furthermore, the
government plays an important role as a stakeholder in this issue by taking the
obligation to represent public interest as a guardian. In this scenario, the government
can take action via Intellectual Property Corporation of Malaysia (MyIPO) to stop
the registration of the trademark that caused public anxiety. This shows the
government has taken the ethics of care approach which refers to the obligation in
showing special care and responding to the needs of specific people whom we have
a valuable close relationship with. Indeed, a morality of care defined that it is based
on the idea that relationships are a response to another in their own terms.
Compassion, caring, love, friendship, and kindness are all emotions or traits that are
typically associated with a care ethic.

Moving on to what makes this scenario a legal issue can be seen from the
action taken by the company on the trademark registration. According to Foong
Cheng Leong, co-chair of the Bar Council’s Intellectual Property Committee, any
business in Malaysia is free to use whatever brand name as long as it does not hold
another person's brand name or that can cause confusion, deceptive or contain false
trade description. The non-registration of the trademark was not prohibited the
company from using it and it is only effect that the trademark did not get protection
under Trademarks Act 2019. As for “Timah” whiskey, even though the company was
not applying for MyIPO registration at first, the trademark is able to be used. But once
the registration is made, then the law according to Trademarks Act 2019 will be
applied. MyIPO has accepted the company registration on the “Timah” trademark in
August 2019 and effective until August 2029. (Lim, 2021) This registration and
acceptance show that contractual rights have been made by both parties which
addresses the parties entering into a legitimate contract with one another, they are
given a set of rights. However, when this trademark started to cause public anxiety, it
was still legal and the ministers and government representatives had requested the
board of directors of Winepak Corporation (M) Sdn. Bhd. to change both the name
and image of its 'Timah' whisky product. Generally, legal rights are a legal system
that allows or authorises a person to act in a specific manner, or that forces others to
act in a specific manner towards that person. Thus, through the scenario of “Timah”
trademark, it addressed the unethical but legal issues.

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2.2 Ethical but Illegal

The case on “the growing concern over the illegal stalls” has gained the
attention from both the public and activists from the ongoing battle between the
public users and the owners of the roadside hawker stalls. The public have mixed
feelings when it comes to these hawker stalls; some are in favour of these stalls
because the owners are only trying to make a living during these COVID-19 times; a
time of challenge face not only the Malaysian but the whole world while others are
opposed of them because the way these hawker stalls operate tend to be hazardous in
terms of the community’s health and it can obstruct the flow of the traffic. Under the
Local Municipal Council Laws which is the Act 171 Local Government Act 1976, the
hawker stalls by right of legal jurisdiction have no permission from the local authority
and permit to erect their stalls at the corner of the roadsides. (Government of
Malaysia, 2006) The council has stated that they must be fair to those who operate
their business legally since these hawker stalls tend to be operating illegally without
the concern to the overhead cost that the brick-and-mortar shops have. In this case, it
is considered ethical in terms that these roadside hawkers are selling their trade for
generating income for living during these tough times but the way they are selling
them is in an unstable and unhygienic environment where they are operating
sometimes illegally. They are operating without the right business license needed for
such activities, the permission from the authorities to do such activity in a crowded
space or the right equipment to ensure a safe environment for the customers,
sometimes their stalls can also block the view for the road users for oncoming
vehicles which can be dangerous, operating without access to a direct tap water
resource, and a washroom or even a proper washing area to clean their utensils.

This case can also be related to the moral right approach, in which it can be
classified into such as legal rights and moral or human rights. The local authorities’
lack of attention, monitoring and turning a blind-eye on the situation has led the
hawker stalls to brush the law aside easily and without fear of the consequences;
consequences that may prevent unnecessary risk to the communities. This action has
led to the growing number of hawker stalls within Malaysia town’s areas without the

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 proper permit and regulations. Besides the responsibilities from the local authorities,
the government also plays a greater role either to appease the growing tension in the
public or finding the solution to this issue which will still be affected by countless
Malaysians facing the COVID-19 challenges. Furthermore, the action of the roadside
hawker stalls can only be categorized as morally right if it were carried out for a
reasonable reason; reason that will not put others in jeopardy or harms-way. Although
their action of selling their trade to generate income for their family in this time is not
wrong but it must be done in a legal way which will improve the image the public
have of the roadside hawkers.

3.0 Suggestion to Improve

3.1 Unethical but Legal

]Relating to the first case in which Winepak Corporation (M) Sdn. Bhd. on
both their name and image as “Timah'' for their whisky product have attracted
controversy over their brand name which caused public anxiety related to race and
religion. This issue is very sensitive especially when it relates to race and religion.
The government plays an important role to overcome this issue. It depends on the
situation where the company registered their name. In this case, they registered their
company name in Malaysia.

Even though it is legal based on the law in Malaysia, it contributes to the

public anxiety related to race and religion in Malaysia. The Consumers' Association
of Penang (CAP) representative who is Subarrow, criticized that how the
government allowed the company to register the name that will contribute on issue of
public anxiety of their religion and race. However, the company did not breach the
law based on Trademarks Act 2016. The action done by the company is still legal
because they did not breach the law of Trademarks Act 2016. But in other
perspectives, it becomes unethical because the company’s name “Timah” raised
questions in relations with the race and religion.

The company should include additional information on the label which

explains more that the name “Timah” refers to tin ores (C. 2021). It is important
because at least people are aware that the name was created not related to race and
religion sentiments. So, from that people would not misunderstand the creation of a

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name by Winepak Corporation (M) Sdn. Bhd. Besides, the company should spread
awareness to people about their main purpose on choosing that name for their
whiskey through social media such as official company website, Facebook, Instagram
or newspapers. From that, people would be aware on the meaning of the brand name
“Timah '' and there is no issue related to causing public anxiety which includes the
context of religion and race because citizens in Malaysia know the meaning behind
the name.

Next, the government and other multiple ministers including relevant agencies
and Islamic Development Department (JAKIM) through MyIPO should improve the
procedures related to the approval of registered brand names of other companies. It is
to avoid similar issues occurring in the future. The process to approve the brand name
by other companies should be strict, so there will be no overlooked issues that can
raise serious and sensitive problems such as involving race and religion. The rule of
law which is Trademarks Act 2016 should be improved and some amendments made
by Judges and the Court. It is because the company that wants to choose the brand
name must make sure that the name does not relate with the sensitivity regarding the
race and religion based on the new law implied in the Trademarks Act 2016. Other
companies would be aware and be more careful to choose the right name for their
company. So, with the change of law, it will maintain the good name and respects
sensitive issues related to religion and race of the different citizens in Malaysia.

3.2 Ethical but Illegal

People in Malaysia have rights to open their own businesses as long as they
have proper licensees to do it. There are people who started their small business
beside the road without proper documents and approval, it can be illegal. So, to avoid
these illegal hawkers, Local Municipal Councils should immediately transfer all of
these roadside stalls into municipal food courts or cafes, so that they (the owners) can
continue to make a living, by finding a suitable location to erect a few strategically
placed structures from housing areas to the stalls. At the same time, make sure that no
newcomers are allowed to take root anywhere without permission, and expel them as
soon as they do. (Priya, 2021)

Then, the government can also establish 'legal hawking zones' in various
locations, taking into account people's proclivity to buy from them. As a result, the

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 government can provide a designated area near shops, bus stations and housing areas
for hawkers to exploit open ground with proper infrastructures other than a walled
perimeter. They can charge the vendors a tiny fee for the upkeep and maintenance of
this.

Furthermore, the government could launch a mandatory registration campaign

for all street hawkers and set out temporary off-street places for them to operate. The
hawker centres, which are open-air and semi-enclosed by design feature need dining
places, permanent cooking place, food storage area, preparation area, and hygienic
amenities such as restrooms, sinks, and waste receptacles. The finished outcome
satisfies the government's desire for urban cleanliness as well as the country's culinary
traditions.

By helping the hawkers, they can continue their business for their daily basics
and also be able to maintain this hawker culture which is one of Malaysia’s
specialities with proper steps through maintaining the cleanliness of our nation.

4.0 Conclusion

4.1 Does Malaysia have laws to nix ‘offensive’ brand names or ones that cause
‘public anxiety’? Lawyers explain

In conclusion, although the issue with the brand name of “Timah'' has gone
unnoticed by authorities and the public for many years. In our opinion, it was wise
that N.V Subbarow brought it up now as it was one of his responsibilities to shield
buyers from improper marketing as the member of Consumer Association of Penang
(CAP). Although the brand name is legal, it is still unethical to use a name that
represents people from a particular community and hurts their religious sentiments.
Many people may look at it from a different view but as a local product, the
manufacturers of “Timah” hold a responsibility towards people’s sentiments
especially because the brand is a locally made whisky and they are familiar with the
culture and beliefs of people in Malaysia. There were comments made in the Cabinet
that the name “Timah” is shortened from “Fatimah” which is a common Muslim
female’s name in Malaysia. Taking the idea, it shows as if drinking a Malay woman.
(Augustin, 2021) The manufacturers of “Timah” clearly understood some of the

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public’s frustrations, took responsibility to clarify the misinterpretation and even
agreed to consider changing their name (Jaafar, 2021). According to the law in
Malaysia, keeping the name “Timah” is legal, so based on that the authorities made
the right decision by not instructing “Timah” to change its name but to add the
meaning behind the brand name to avoid any future miscommunication and public
anxiety.

4.2 Growing concern over illegal stalls

In conclusion, roadside stalls are clearly illegal as they cause many problems
towards authorities and the general public. Too many illegal stalls accumulating at
one side may endanger traffic users. Sometimes they also occupy parking bays which
leads to vehicle owners feeling frustrated because they are left with fewer parking
spots. On top of that, these illegal roadside owners are not registered with relevant
authorities which does not require them to follow proper guidelines set by the
authorities to set up an eatery, so they might not be hygienic. On the other hand, some
people defend roadside stalls because their food is cheap and allows them to save
money especially in big cities like Damansara where living expenses can cause a
fortune. During Covid-19, many people have also lost their income and resorted to
setting up illegal roadside stalls to survive. Although it is illegal, people have been
supporting these small businesses because they understand their situation during these
desperate times. Authorities have yet to settle this issue for good because giving them
monthly summons or raiding their stalls is not a permanent solution. These illegal
roadside stalls are operating because there is sufficient demand for them in the market
to make a profit. Authorities should offer them a strategic location with low rent for
them to do business safely.

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References

Augustin, S. (28 October, 2021). Drinking Timah is like drinking a Malay woman, says PH
MP. Retrieved from Free Malaysia Today:
https://www.freemalaysiatoday.com/category/nation/2021/10/28/drinking-timah-is-
like-drinking-a-malay-woman-says-ph-mp/

Carvalho, M., & Rahim, R. (28 October, 2021). PKR MP: Drinking Timah whiskey is like
'drinking Malay women'. Retrieved from www.thestar.com.my:
https://www.thestar.com.my/news/nation/2021/10/28/pkr-mp-drinking-timah-
whiskey-is-like-039drinking-malay-women039

Channel News Asia. (15 November, 2021). Malaysia’s Timah whiskey issue resolved;
manufacturer does not have to change name: Ministers. Retrieved from Channel
News Asia: https://www.channelnewsasia.com/asia/malaysia-timah-whiskey-name-
change-wee-ka-siong-2314391

DayakDaily. (29 October, 2021). Timah whiskey issue: Respect sensitivity of other races and
religions, says Fatimah. Retrieved from dayakdaily.com:
https://dayakdaily.com/timah-whiskey-issue-respect-sensitivity-of-other-races-and-
religions-says-fatimah/

Department of Statistics Malaysia Official Portal. (7 May, 2015). Population Distribution

and Basic Demographic Characteristic Report 2010 . Retrieved from
www.dosm.gov.my:
https://www.dosm.gov.my/v1/index.php?r=column/ctheme&menu_id=L0pheU43NW
JwRWVSZklWdzQ4TlhUUT09&bul_id=MDMxdHZjWTk1SjFzTzNkRXYzcVZjdz
09

Government of Malaysia. (2006). Laws of Malaysia. Kuala Lumpur: The Commissioner of

Law Revision Malaysia. Retrieved from

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 http://www.doa.gov.my/index/resources/info_doa/akta171_kerajaan_tempatan_1976.
pdf

Jaafar, F. (29 October, 2021). Timah agrees to consider changing its name. Retrieved from
The Malaysian Reserve: https://themalaysianreserve.com/2021/10/29/timah-agrees-to-
consider-changing-its-name/

Lim, I. (2 November, 2021). Does Malaysia have laws to nix ‘offensive’ brand names or
ones that cause ‘public anxiety’? Lawyers explain. Retrieved from Malay Mail:
https://www.malaymail.com/news/malaysia/2021/11/02/does-malaysia-have-laws-to-
nix-offensive-brand-names-or-ones-that-cause-pub/2017719

Ping, O. L. (18 October, 2021). TIMAH Whisky explains 'controversial' name after call out
by Consumer Association of Penang. Retrieved from Advertising Marketing:
https://www.marketing-interactive.com/timah-whisky-explains-controversial-name-
after-call-out-by-consumer-association-of-penang

Priya, S. S. (27 July, 2021). Growing concern over illegal stalls. Retrieved from The Star:
https://www.thestar.com.my/metro/metro-news/2021/07/27/growing-concern-over-
illegal-stalls

Umpang, M. (29 October, 2021). MP says Timah whisky issue dangerous precedent, will
make Malaysia laughing stock. Retrieved from www.theborneopost.com:
https://www.theborneopost.com/2021/10/29/mp-says-timah-whisky-issue-dangerous-
precedent-will-make-malaysia-laughing-stock/

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Appendix

Article 1: Unethical but legal (Read from left to right)

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ii
iii
iv
v
vi
Article 2: Ethical but Illegal (Read from left to right)

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viii