MORAL EDUCATION

Business Scandals and Ethical Development, A Young Adults View

Group Members: 1. Leong Qiyao 2. Tan Ser Qi 3. Chan Foo Sheng 4. Moor Jie Wei 5. Fong Foong Yoke

Class: SN12C

Submission Date: 13/4/2012

Scandal. This subject is synonymously correlated to the front pages of our newspapers or the headlines of the daily primetime news. This word of Greek and Latin origin has managed to develop

into a certain status whereby it is not uncommon anymore as it was a century ago. In fact, it is because of these scandals that actually fills the smiles on every publishing editors face. Lets face it, readers love scandals, be it entertainment scandals, political scandals or any sort of scandals involving high profile identities. However, are they enthralled by these news because they enjoy witnessing high profile identities being brought down to shame or are they reading these news to learn from their mistakes and better equip themselves with precautions? In the case of the young adults of today where their lives are all hyped up with the Internet and the latest gadgets, they are more inclined towards the celebrity section of scandals and are less likely to take interest towards the business and political side of this slanderous topic. Little do they know, that somehow or rather it is a responsibility for them to know the latest on goings in business scandals especially those in the local arena as it will indirectly affect the countrys future developments. Back in 2008, the global media was exploded with the similar headlines -The Sanlu Milk Scandal. The irony was that despite this melamine-contaminated milk scandal, the company was the largest milk producers in China and was one of the oldest brands in infant milk. To add to that, CCTV of Chinas program, Quality Reports Weekly even made coverage on Sanlu whom boasted stringent quality control procedures and extremely rigorous tests on its products back in September 2007.CCTV claimed that over 1,000 different tests were carried out before its products leave the factory. Due to this, a number of its products were exempt from government inspection for having passed government quality checks three times in succession. Hence, adding melamine as a protein booster for substandard milk will not be much of an issue when it comes to governmental inspections. Higher officials in the company took this advantage and decided to favour the lucrative option by increasing milk production with a dangerously high amount of melamine. This decision, was a killer mistake especially to Tian Wenhua , General Manager of Sanlu as she was sentenced to life imprisonment along with her other comrades though with lighter jail sentences and fines. Furthermore, the mayor of Hebei, the town where Sanlu was established along his officials resigned from office due this dairy scandal that had claimed 6 innocent infant lives. Now looking over at the local side of things, Malaysia besides being well-known for its racial and cultural diversity, is also disappointingly famed for a variety of scandals throughout the decades. Taking the Port Klang Free Zone scandal for example, we can observe again that there is again a correlation between businesses and politics and hence the development of a country as mentioned earlier. A plot of land in Pulau Indah, neighbouring Port Klang ,the 16th busiest port in the world

measuring at 1000 acres was suggested to be developed into a free trading zone whereby various investment incentives to investors such as tax exemptions on most products and subsidies are offered. The project was given to Kuala Dimensi Sendirian Berhad and the plot of land was sold to them at RM 95 million by Pulau Indah Development Berhad, the then owner of the land. It was later on sold to Port Klang Authority at RM 1.8 billion including interests. This gives Kuala Dimensi a capital profit of RM 993 million. Initially the cost to develop this trading zone was numbered at RM1.8 billion but later on after completion, the figure was increased to a total of RM 4.6 billion, an amount to which many taxpayers are regarded to be as ridiculously large. Up to 2011, Malaysians witnessed the charges made on a few figures including two high profile politicians. Reaching the fifth year now since its first revelation in 2007 by the Parliamentary Public Accounts Committee, the case is still ongoing and the final verdict is yet to be reached. The reoccurring correlation between business and politics can be further proven again despite one scandal being in China and another in Malaysia. Now, what has this got to do with youths and the future of the country? Well, the youths are bound to lead this country in the future and whether they lead it scandalously or otherwise, it determines the path where the country is heading. Hence, we can see a need for them to learn the significance of these ignominious events to better equip themselves with knowledge and precautions. The awareness of youths in the issue of scandals also determines which political path they choose when it comes to elections. The decision to vote for which party is determined by knowing the background of the candidates. Whether the candidate is clean or dirty. Whether the candidate is experienced or an amateur. Whether he is capable or incapable to be given the mandate of the people. It all comes back to being aware of these scandalous events especially to young adults of today. But, looking at the business side of things, these young adults will also be future economists and business entrepreneurs. They will also need to learn from these scandals to avoid from being in them themselves. Hence, we can call this a win-win situation as both the youths and older generation benefit from being aware on current on goings primarily business scandals. However, being aware with business scandals is inadequate as they need to develop the proper attitude to excel in business. Ethical development is rather important when it comes to the business field as it involves plenty of aspects. In the case of the young adults, it is good to start at an early stage. They can start by adhering to the rules and regulations. Rules and regulations are made to serve as a guideline to promote efficiency. When they are followed accordingly, things are done correctly, safely and of course legally. This will significantly reduce accidents, fatality, lawsuits and most

importantly fraud. By doing so, the countrys corruption rate can be vastly reduced. Up to 2011, Malaysia has lost about RM 1 trillion due to corruption. Imagine this huge amount of funds channeled to rural and infrastructural development instead. And when the rules are obeyed, they do not only reject corruption but they will also report any briberies or fraud that could eventually lead up to corruption. Business is also about how one can express him or herself. Hence they should wear smart, dress appropriately to boost up their self-confidence and also to impress their clients. Giving the clients a good first impression goes a long way. These clients maybe offering a long term business deal, or even a long term employment deal and it is the utmost importance for them to have a positive and comforting first impression. Apart from that, teenagers must also be humble and instill the willingness to learn from mistakes. There is a famous quote stating that a failure is a success if you learn from it. This clearly shows that although there is a failure, it is the lesson learnt from it that matters most as it further prevents the mistake to be repeated again. The youths should not take failures as boulder disrupting their future but as a lesson learned to overcome the boulder. Taking Steve Jobs as an example, he did not lead Apple to be the worlds most valuable brand without mistakes. There was a point in his life where he was sacked from the company he started and according to him, this was one of the best things that has happened to him. It gave him a chance to restart again all over with knowledge learned from previous mistakes. Eventually, he returned to Apple in 1997 and has since evolved Apple from a company based mainly on computers to a brand now famed not only for its entertainment technologies but also the revolutionary iPhone for the telecommunications sector. The young adults should also learn their rights as a consumer. Every consumer be it young or old, has the every right to choose the best brands that offer the best quality and value. If they are disrupted to do so, they can voice out and demand for the best. They have the every right to comment or leave feedbacks on poor customer services. This is essential to improve that certain brand in the sense of quality and service. They also have a right to be protected against poor marketing of goods which are injurious to health and life. Should an injury or dissatisfaction occur due to the products used, the consumers have the every right to complain against the dealer and even demand for compensation. This in turn, reminds the dealer again to adhere to the proper rules and regulations. If this goes on over and over again, a habit of being concern is developed among consumers and will result in better services and quality being provided.

These youths should also understand that business is not solely about making money. They need to know how to differentiate between quality and quantity. When they provide quality products or services, they receive positive feedback and support. This long lasting trust and support between the businessman and the costumers is needed for a long term trading. By looking at it at the long run, more profit can be garnered from positive and satisfied customers. When a secured profit is reached, they must also know how to contribute it back to the community. Profit does not need to be an opponent of business ethics. By being one of the top richest in the world, Bill Gates has set up the Bill and Melinda Gates Foundation to enhance healthcare and reduce extreme poverty. As the saying goes what goes around comes around. When these youths reach a stable income from business, they should contribute back by means of donations, public service and even scholarships. This indefinitely promotes a healthy business environment continuously for more generations to come. In conclusion, we can see the lines connecting the dots between the young adults, business scandals, ethical development and the future of a country. When young adults especially those who aspire to excel in the business field become aware of business scandals, they learn from it, apply and develop it with proper attitude in their business and thus benefit the country with a healthy economical state. These youngsters should be optimistic and be on the lookout for opportunities that could propel them into excellence financially and ethically. They should not yield at their failures but instead be strong and firm in recovering from it. In the process of inventing the light bulb, Thomas Edison said I have not failed. Ive just found 10000 ways it would not work. Edison whom initially failed numerously when inventing the light bulb went on becoming the inventor of many modern gadgets and a successful businessman in which he founded the General Electric Company. Hence, the young adults should take failures as a way that would not work just like Edison did and try on making an impact in this fast globalizing world.

Reference :
1) David Barboza, Death Sentences in Chinese Milk Case, New York Times, 22 January 2009

2) 2008 Chinese milk scandal, www.wikipedia.com, 12 April 2012 3) Port Klang Free Zone, www.wikipedia.com, 12 April 2012 4) Raja Petra ,"Press statement on Port Klang Free Trade Zone Project", www.malaysia-today.net, 20 December 2007 5) Sheila Shanker, How to Build Business Ethics, www.ehow.com, 3 July 2010 6) Anthony Osei Boateng, Developing the Right Business Attitude www.yahoo.com, 26 June 2009