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Tile Shop

In: Business and Management

Submitted By Kjansen1406
Words 284
Pages 2
The article I found was on Tile Shop Holding Inc. that was involved in violating business ethics. Tile Shop is a publicly traded retailer of stone tiles and related product (Anthony, 2014). In January 2014 an audit committee investigation was being done.
Violated law
In the investigation the report found no evidence that the company’s financial statements were inaccurate however it did found problems stemming from inappropriate vendor relationships with Fumitake Nishi (Anthony, 2014). Fumitake Nishi is the brother-in-law to Tile Shop CEO. Tile Nishi started a Chinese export trading company, in 2011. He didn’t tell the Tile Shop the nature of his operations, and between 2011 and 2013, millions of dollars in payments were processed by Beijing Pingxiu, his export trading company. (Anthony, 2014)
Responsible
In this article the person that is responsible for this violation is the CEOs brother-in-law. Fumitake Nishi is the person that is responsible for the business ethic violation within this company (Anthony, 2014). The underlying cause of this violation is greed. Nishi got greedy and wanted more money than he was making legally.
Outcome
The outcome in this situation was that Nishi was fired for multiple violations of the company’s business ethics policy. The company will be actively pursuing recovery from Nishi of all monies he received from sources other than the company (Anthony, 2014). With this violation it didn’t go to court nor did it disclose how any stakeholders were affected.

References
Anthony, N. (2014). Tile Shop CEO's brother-in-law fired for violations of business ethics policy. Retrieved January 16, 2016, from

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