Westchester Distributing free essay sample

Moon. He thought the company wanted him to meet certain targets by any means necessary. Mr. Carter felt management’s expectations were unrealistic and needed more input from the ground level. George Pavlov was Carter’s sales manager. He was fully aware of Carter’s actions, but did nothing to stop him. In fact, over 50% of Mr. Moon’s kickbacks were covered under his expense reimbursements. Joe Roberts, VP of Sales, was unaware of Mr. Mario and Mr. Pavlov’s actions until Mr. Moon demanded a refund for the slow moving beer. Mr. Roberts should have gone straight to Patton instead of contacting Mr.Moon. Although Joe’s intentions were to prevent any future detriment to the company, he stole a neon sign to bribe Mr. Moon. Although the three employees had very different roles in giving Mr. Moon kickbacks, Vince Patton should fire all of them. Recommended Actions To prevent this from ever happening again, Vince Patton should implement internal controls. We will write a custom essay sample on Westchester Distributing or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The costs associated with violating the CABC are too great to risk. If the plant is closed for 45 days, there will be a loss of sales, inventory could spoil, employees could begin to look for other jobs, and customers may switch suppliers.Westchester should have formal written procedures for employees to adhere by. This manual should not only state the policies and procedures to be followed, but also the consequences of not abiding by these rules. Westchester should require forms and documentation for back up and review and create a division of duties so that no one person controls the entire transaction. Currently, drivers report the number of broken bottles, but there is no way to verify accuracy of reported numbers. Management should request customers return broken bottles and sign a report verifying the number of bottles.In addition, all customer reimbursements should be processed at headquarters and paid via check. Broken bottles should be recycled, resulting in a decrease in glass and metal costs. By implementing these new policies Westchester can deter employees from overinflating expenses and increase company revenue. Employees should be bonded to make them legally negligible for their actions. Carter Mario should have been reprimanded the first time he was caught stealing. Even if it was unintentional, he should have received a written warning. In economics we learned that people are risk seeking in low probabilities of being caught.Following this logic, there should also be physical security of assets and information. Most employees have open access to point of sale merchandise. Theft can be reduced by restricting access. Lastly, he should hire an internal auditor to make sure employees are adhering to company policy and procedures. Even though it may be costly to hire an additional employee it would pay off in the long run. Conclusion It is appropriate to fire all three parties involved. Management cannot have a reputation for being lax and allow employees to go unpunished for not following company rules.It is also important to weed out the unethical employees so that they don’t influence other employees. Most likely, the California Alcoholic Beverage Control will find out regardless of how Westchester handles the situation. This is a very delicate situation, and any party involved could get upset with Westchester and report the violation. Westchester can buffer the impact on reputation by reporting the situation to the ABC, terminating the three employees, and implementing internal controls to minimize risk of this happening again.