RIVERINA DAIRIES: A COMMUNICATION &

ETHICAL ANALYSIS

Authorised by Mel Gibson, Chief Executive Officer,

Riverina Diaries

By Rahul Kapadia M.D. Industrial-organisational

11/5/2017
Psychology, Senior Organisational Development
Consultant, F2F Inc.

Rahul Sunil Kapadia, F2F Inc. z5116156

 Riverina Dairies: A communication & ethical analysis

EXECUTIVE SUMMARY
This report identifies and analyses the key communicational and ethical issues affecting senior
management of Riverina Dairies (RD). The analysis is based on the information provided by RD about
its senior management, with the method of analysis involving linking the issues to its possible effects on
the organisation. Firstly, it has been identified that specific issues affecting individuals can be attributed
to the organisation not having a consistent implementation of the communication and ethical standards.
After the broader problem identification, the report then identifies specific individual deficiencies in the
Senior Managements communicational and ethical practices. With deficiencies in verbal, nonverbal
communication, interpersonal and intercultural communication and emotional intelligence being
identified.

The report finds that these individual issues are pivotal not only because it affects the performance of the
Senior management team but also because that these practices will then influence the Organisations
culture and ethical philosophy.

Recommendations are separated into sections for communication and ethics. For each section,
recommendations for company policies and personal development programs are provided.

These recommendations include:

Revising the ethics and communication policy, and creating a cultural training program for its
expatriate board and management members.
Individual programs and actions that should be take regarding the issues.

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Riverina Dairies: A communication & ethical analysis
1 Table of Contents

Executive Summary ............................................................................................................................................................. 1

1.0 Introduction............................................................................................................................................................... 3
1.1 Purpose of the report 3

1.2 Background of the report 3

1.3 Scope of the report 3

1.4 Method of investigation 3

2 Fundamental aspects of Communication .............................................................................................................. 4

2.1 Organisational Communication 4

2.2 Impediments to effective communication 4

3 Ethical issues .................................................................................................................................................................. 5

3.1 Corporate Social Responsibility (CSR) 5

3.2 Ethical perspectives of the Senior Management 5

4 CEOs values .................................................................................................................................................................. 6

5 Interpersonal Communication .................................................................................................................................... 6
6 Generalisations & Ethical Persuasion ...................................................................................................................... 6
7 Nonverbal communication ......................................................................................................................................... 7
8 Intercultural communication ...................................................................................................................................... 7
8.1 Process of Adjustment 7

8.2 Cultural Distinctions 8

9 Detriments to teams ................................................................................................................................................... 8

9.1 Groupthink 8

9.2 Team development 8

10 Emotional Intelligence ............................................................................................................................................... 9

11 Conclusion ................................................................................................................................................................... 9
12 Recommendations...................................................................................................................................................... 9
12.1 Communicational Practices 10

12.2 Ethical Practices 10

13 References ............................................................................................................................................................... 11

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 Riverina Dairies: A communication & ethical analysis

1.0 INTRODUCTION
1.1 Purpose of the report
The purpose of the report is to identify and analyse the key communication and ethical issues
that are affecting the senior management of Riverina Dairies (RD). The report will then
recommend specific measures for the company and employees to undertake.

1.2 Background of the report

RD is a family owned dairy that has expanded its operations from Australia to exporting a
large proportion of its products to South Eastern Asian countries. The company has undergone
significant changes in recent years by moving into a Joint venture with Mengyu Dairy, a
leading Chinese distributor of dairy products. The resulting changes in the board and
management is significant for the organisation moving forward.

1.3 Scope of the report

The report will analyse the issues and provide recommendations based on the information
provided by RD regarding the select individuals and how it will affect the organisation. The
report will not cover the previous members of senior management that may have influenced
the organisations practices.

1.4 Method of investigation

The report uses the information obtained by RD, about its select employees, and journals,
articles to further supplement the analysis.

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2 FUNDAMENTAL ASPECTS OF COMMUNICATION

To understand the specific communicational and ethical issues of the managment, a broader perspective
of the organisation is required.

2.1 Organisational Communication

The completion of basic functions of an organisation, and achievement of key objectives for an
organisation are dependent on how effective organisation communication is (Durham, 2017; Durham,
2016). In fact, in Watson's Wyatt study it was found that a significant proportion of companies that had
effective communication practices provided a higher return to shareholders (Baldini, 2009). Apart from
the financial returns, a companys leadership that has strong communication practices will have an
organisational culture conducive for change, adaption and innovation (Awal et al., 2006).

For RD that has undertaken changes in its competitive environment, the importance of its organisational
culture and how communication occurs is vital, with both being linked (Watkins, 2013). Ethical
standards, productivity and feedback are all aspects that are influenced by workplace culture and vice
versa (Awal et al., 2006; Durham, 2016). CEO Mel Gibson is vital in creating a strong corporate
culture. With the example of the open-door policy, he wants feedback and ideas to be flowing in the
organisation. However, CFO Gillian Gibson and COO of manufacturing services Ed Sheeran restrict
feedback. This is significant because how leaders communicate without consistent standards affect
employees attitudes and motivations and performance (Awal et al., 2006). That is why individual
issues can be symptomatic of broader issues of companys culture.

2.2 Impediments to effective communication

Noise is a broad term that is used to categorise anything that interferes with receiving a
message (Durham, 2016). Ed Sheerans playing of music in the background of meetings is an
example of physical noise that impedes the communication occurring in meetings. General
manager Ziguang Wong, experiences semantic noise because of the colloquialism farmers use.

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3 ETHICAL ISSUES
The ethical perspectives of the various individuals in the senior management and how if fits with RD is
crucial regarding how the decision-making process occurs.

3.1 Corporate Social Responsibility (CSR)

The company brands itself as a green and clean company that has very high hygiene and safety
standards. The company also has a triple bottom line as it focuses on financial returns, environmental
and labour practices (Durham, 2017). The company also has a social contribution approach to CSR,
with significant focus being put on all stakeholders involved. However, there are significant differences
in the ethical perspective of key management members, which can affect the firms operations and
culture (Bazerman & Tenbrunsel, 2011)

3.2 Ethical perspectives of Management

The differing ethical positions of the Senior management can impact on RDs ethical philosophy. The
CEO supports the stakeholder theory, with regular charity and community assistance and has
deontological position, abiding with the company policy regardless of the outcome. The CFO has a
teleological position with her beliefs exemplifying ethical egoism, and makes decisions based on the
shareholder theory (Durham, 2017). This however is a clear conflict of interests as she is a major
shareholder of the company as well. There are also concerns regarding her managerial ethics and the
way she operates with employees. COO of Exports Quinxin Zhang, who refused to partake in
facilitation payments was then forced to give bribes. The conflict between the two perspectives of
ethical absolutism and relativism is less of an issue, than the CFO forcing Quin to undertake actions that
went against her values.

This unethical behaviour by the CFO is concerning because it is bullying and by focussing on the results
as opposed to the quality of decisions made, this will have consequences on the ethical philosophy of the
company (Bazerman & Tenbrunsel, 2011).

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4 CEOS VALUES
Most individuals have different attitudes, values and beliefs that shape who they are. According to
Schwartzs value model, Mel Gibsons values conservation (Schwartz, 2006). This is vital because
values guide actions and as a company that has taken a vital strategic decision in joining a joint venture,
there is a conflict of the companys strategic path and what CEO Mel Gibson values.

5 INTERPERSONAL COMMUNICATION
Interpersonal skills are vital in building and maintaining relationships with all stakeholders of
an organisation (Durham, 2017). The communication climate is integral to building trust in
interpersonal relationships and a negative climate is reflective of the lack of trust between the people
communicating. For Gillian, there is a negative climate with her staff, due to the staff not feeling valued.

Another aspect that has been identified is the COO of sales and marketing Hugh Jackman and his over
disclosure of private and personal information. Although done under the influence of alcohol, for Hugh
Jackman over disclosure could be a stumbling block in relationship management (Durham, 2017). Sales
manager Mariah Carys is perceived by her staff to be distant, and for her under-disclosure can hinder
relationship development.

6 GENERALISATIONS & ETHICAL PERSUASION

Communication practises with external stakeholders such as consumers and suppliers are also vital
(Durham, 2017). COO of Sales and Marketing, Hugh Jackman and how he influences his marketing
and sales staff to operate is pertinent to this issue. Although he instructs his staff to conduct research of
potential customers, there can be issues if the staff makes marketing decisions based on generalisations
about higher and lower income consumers that could lead to incorrect conclusions being made about the
consumers needs (Durham, 2016).

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 Riverina Dairies: A communication & ethical analysis
Hugh also tells his staff that are communicating with retailers and distributors to use Ranks model of
persuasion to intensify and downplay qualities when required (Durham, 2017). This however can be
unethical, if the persuasion is done in a manipulative manner, and can harm the image of the company.

7 NONVERBAL COMMUNICATION
Nonverbal communication is pivotal in impression and relationship management (Durham). Gillian
Gibson puts large amount of focus on her physical appearance by only wearing expensive designer
clothing. But body appearance is a channel of impression management and as a result she is perceived to
be Princess Precious and the fact that she displays high power body displays means she is also
perceived to be domineering (Durham, 2017). Sales manager Mariah Carys is also unaware of the
nonverbal messages she is sending or receiving. Her lack of understanding of proxemics and facial
expressions indicates someone that exhibits aspects of Dyssemia (Durham, 2017).

8 INTERCULTURAL COMMUNICATION
The cultural background of employees influences how employees communicate, operate and
their beliefs and values (Durham, 2017). For RD, this is one of the most important areas
where issues need to be identified and resolved because of the number of Chinese expatriates
it will have on its board and will employ.

8.1 Process of Adjustment

For general manager of Ziguang Wong, his fellow colleagues noted the cyclical nature of his attitude,
indicating he is undergoing a process of adjustment to a new cultural context (Oberg, 2017). This is
positive; however, he is having difficulty in understanding the cultural distinctions between him and the

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farmers indicating he consciously incompetent and is unsure how to improve. No apparent assistance
from RD has complicated the issue.

8.2 Cultural Distinctions

The focal issues regarding Ziguan and the farmers stem from the different cultural distinctions. Australia
is largely an individualistic country, and the farmer put their interests first. Ziguan from a collectivist
culture, operates with notion of looking at how decisions benefits everyone. Individualism and low
context are linked as farmers want clear answers from Ziguan, which conflicts with Ziguans high
context preferences (Durham, 2017). There are also differences in long-term and short term
orientation, indulgence and restraint, making it more difficult for Ziggy to persuade the
farmers to form a cooperative. With 40% of the management and board coming from China,
potential conflicts between stakeholders could be possible.

9 DETRIMENTS TO TEAMS

9.1 Groupthink
The constant need for consensus and harmony within a team can be detrimental to effective
group decision making (Durham, 2017). For COO Ed Sheeran, there are clear symptoms of
groupthink; with the instance of direct pressure on one of the managers to confo rm and her
resulting self-censorship as well as Eds interpretation of the managers silence indicating
illusion of unanimity (Janis, 1972). As a result, feedback, potential issues and creativity is
stifled between these managers, due to the fear of causing conflict.

9.2 Team development

Various aspects of team development must be adhered to for a team to work as a cohesive unit.
Ed Sheerans Quality control team (QCT) exhibits significant team development issues. None
of the QCT members have clear roles and formal/informal norms that are associated with team

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 Riverina Dairies: A communication & ethical analysis
excellence (Durham, 2017). Also, Eds expectation of immediate results is not possible as
teams need to go through stages of team and trust development, and QCT are currently at a
calculus stage, where neither party knows each other (Durham, 2017).

10 EMOTIONAL INTELLIGENCE
The ability for individuals in the workplace to recognise, manage and adapt their emotions is
vital in the workplace. A lack of emotional intelligence from a leader can make them appear as
insensitive (Durham, 2017). Mariah Cary exhibits symptoms of low emotional intelligence
when she is unable to control her outbursts of anger, and is unable to empathise with her sales
employees when she makes them partake in constant emotional labour.

11 CONCLUSION
The individuals in Riverina Dairies Senior management exhibit deficiencies in various communicational
and ethical practices. The inconsistent implementation of communication and ethical standards explain
the importance of specific issues such as individuals not understanding nonverbal cues or the importance
of trust development in teams. As it not only present issues for the individual and their staff, but will
eventually impact the performance and workplace environment of the organisation. RD also prides itself
on its ethical philosophy and its stance on CSR, however just one individual in the management team
operating unethically can impact on the decision- making process of employees and the firms ethical
philosophy. The intercultural issues faced by one expatriate employee can also reoccur for other
expatriate employees, and this is especially important in the context of RDs joint venture with Mengyu.

12 RECOMMENDATIONS
For the specific issues that have been identified, company actions and personal development programs
for individuals are recommended.

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Riverina Dairies: A communication & ethical analysis

12.1 Communicational Practices

It is recommended that the Senior management in consultation with the board revise the communication
policy to ensure is consistent in its implementation amongst the management team by the next quarterly
meeting. Each member of the management team should undertake communication training courses with
the Australian Institute of Management with the aim of achieving a common standard of communication
practices within the management team. The training courses should be tailormade to address specific
deficiencies within each member. The COO of manufacturing services needs to undergo people
management training with the desired outcome of stronger leadership for his Quality control team.

With the input of General Manager Ziguang and its expatriate employees, the board should develop a
cultural competence training and assistance program that can assist these employees in their process of
adjustment. The General manager should undertake external competence training immediately, so that
he can recognise cultural differences and adjusting his communication style accordingly.

12.2 Ethical Practices

It is recommended the CEO in consultation with the board and public relations agency Ethical Strategies
should develop a new ethics training program focussed on the written code of ethics and conduct of RD,
and aim to promote the program at all levels of the organisation before the end of financial year. The
board should be notified of the CFOs transgressions, and appropriate in house counselling should be
initiated immediately. COO of Exports should follow the reporting procedure regarding the CFOs
behaviour and should be provided with necessary counselling services immediately.

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13 REFERENCES
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2017].
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Web. 7 May 2017
4) D. Watkins, Michael. "What Is Organizational Culture? And Why Should We Care?". Harvard
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UNSW
11) Durham R. A., 2017, Lecture: Intercultural communication, Managing Business Communication,
UNSW
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13) Durham R. A., 2017, Lecture: Emotional intelligence & Perception, Managing Business
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15) Oberg, K. 1960. Cultural Shock: Adjustment to New Cultural Environments. Missiology: An
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