Vacances Sinoroma is a travel agency that used to sell bus tours at low costs to the Asian continent. Although it had triumphs like any other company it had challenges and the management of the company had one way or another to look for an alternative that would help resolve their problems to prevent the company from surfacing.
The regulations that the company were since the company could no longer handle client’s payment well, the OPC had to withdraw the company’s travel agency permit. Sinorama Corporation whose base was in Florida also had to appoint a new provisional administrator (Su et al., 2021). Some of the regulations given by the OPC to Sinorama Vacances was that it was clear that the travel agency could not comply with the law and that the newly appointed administrator was to protect the clients that existed their vacations were to be cross-checked well and that customer’s whose trips were allocated after the ban of the travel agency company were to be refunded.
On the importance of these regulations, perhaps the company used regulations to ensure transparency between the company’s clients and for the customers to still retain their faith in the company’s management. This was also important because it would have led to an end of an era and the beginning of a new era of management that would instill policies for the betterment of the company’s growth and reduce the losses that the company incurred.
Some of the corporate actions that Vacances Sinorama took include; preparing an audited financial statement in compliance with the generally accepted accounting principles for companies that had debt issues (Robinson, 2020). International financial statement analysis. John Wiley & Sons… Vacances Sinorama would have had to report the company’s last performance. The company also had to have management accounting actions that usually companies had to collect and report non-financial information as well. Management accounting action also helps in that it can access challenges that a company may be facing and through this, it would be able to access information on how to allocate costs and services of the organization which would greatly help (Su et al., 2021).
Decentralization of ranks in the company would also help greatly thus would reduce the chances of overlapping of work and thus workers would concentrate in their allocated areas for the betterment of the company’s growth ((Su et al., 2021).). Furthermore, just like in any other company in the supply chain of management would greatly help in that there are functional areas for different personnel with their own assigned work. In the supply chain of command, each worker is answerable to their superiors in a hierarchical way.
The question as to whether the Sinorama business owners acted ethically can be answered in two ways depending on how you are going to argue under the ethical act in entrepreneurs’ personally think that one way or another they were supposed to adhere to the ethical rules. For example, they were supposed to be honest with their clients to tell them of what the company was facing despite their short upcoming (Freeman & Velamuri,2021). The management of the company could at least also put their customer’s focus before anything because for a company to function it has to have customers, this is because the decisions you make affect the investors and customers in your company or agency.
Perhaps the Cinerama management failed to an extent because they had to have risk-tasking attributes in that they are supposed to be willing to take risks and support their employees and reward them for their calculated risks taken.
Corporate social responsibility and social justice are two approaches that quite overlap but they have different meanings in that corporate social justice not only means being socially responsible but also enhancing equity in the business. One way that a company can enhance both of these approaches is by instilling corporate social justice programs that help by reducing inequality in the organizations. Sinorama quite in a way disregarded social justice to their customers in compliance as to what they should have done. They should have been bold enough to face their problems and try to maintain good management by employing social justice and responsibility in their work and to their customers and clients.
In conclusion, perhaps it would be appropriate for companies and organizations to adhere rot the rules, laws, and regulations given. They should also employ corporate social responsibility and justice in their management and follow the ethical values and codes put forward.
Freeman, R. E., & Velamuri, S. R. (2021). A New Approach to CSR: Company Stakeholder Responsibility 1 (pp. 203-213). Routledge.
Su, D. N., Nguyen-Phuoc, D. Q., & Johnson, L. W. (2021). Effects of perceived safety, involvement and perceived service quality on loyalty intention among ride-sourcing passengers. Transportation, 48(1), 369-393.
Robinson, T. R. (2020). International financial statement analysis. John Wiley & Sons.