Jextra Neighbourhood Stores in Malaysia
Tom Chong is the country manager in Malaysia for Jextra Stores (Jextra), a multinational retailer with supermarkets throughout Asia. The company is based in Hong Kong. Jextra operates ten Neighbourhood Market supermarkets in Malaysia. Chong has two issues he must resolve. One involves a recent conversation with the mayor of a town in which Jextra would like to build a new store. The mayor suggested that Jextra’s application for rezoning would be more likely to be approved if Jextra contributed to building a new primary school. The mayor also wants Jextra to help pay for a flyover at the road intersection for the proposed site. Chong’s other issue involves one of his category managers. The manager may be accepting money and gifts from suppliers. Although Chong has no proof that the manager is acting inappropriately, there are many rumors floating around Jextra’s office.
This case allows students to put themselves in the position of a young, high-potential manager with his first country manager assignment. He has several ethical issues to resolve. On the surface, the issues do not look very complex, because the Jextra Business Conduct Code is clear: no bribery, no conflicts of interest between employees and the company, and no related party transactions. However, resolution of the issues will be more complex because of the specific country context and a lack of information.