...Solutions to the Bribery Issues among Chinese Companies In September 2013, a former Politburo member, Xilai Bo, was sentenced to life imprisonment for embezzlement, bribery and abuse of power. With millions of dollars of bribery money, this Chinese communist leader got the punishment of spending the rest of his life in prison, and also brought influential stress and trust problem in China (The Economist, 2013). This incidence also have drawn international’s attention, with such negative reputation a question mark has been put on China’s trust worship, consequently is also weakening of China’s international position and power. Corruption has always been a worldwide focus, with bribery one of the leading problems existing in the contemporary world. Bribery is legally defined as “The offering, giving, receiving of something of value for the purpose of influencing the action of an official in the discharge of his or her public or legal duties” (U.S Office Of Government Ethics). Bribery in deed has helped tons of people achieve their goals in almost every aspect of people’s life: Kids can be permitted to good schools; companies can get privileges in trades; unqualified candidates can be selected for competitive positions. Bribery has brought the society unfairness, and cause disorder in socials reflecting in wealth gap and power distances. The uprising country China, specifically, is one of the world’s leading highly corrupted country. Not only within nation boarders, bribery also happens...
Words: 4256 - Pages: 18
...Case study on NES China – Business ethics 1.Problem Statement The case about a company NES which is a Germany-headquartered multinational company that builds heavy machinery, automotive systems, electrical drives and steel tubes and pipes It began business in China since 1889, with 20 representative offices, 6 equity joint ventures, and 3 wholly owned enterprises. Now The Company wants to set up a holding company to facilitate its manufacturing activities in China. The case brings about the conflict between Western and Chinese business practices and protocols resulting in ethical dilemma. 2.Central issues of the case (2x2 matrixes) | | Importance | | | High | Low | Urgency | High | Obtaining approval for the holding company within a month | Uphold strong ethical culture and good corporate image as a publicly traded company | | Low | Develop a special ethical code to recognize Chinese business culture | Career development of people responsible for the approval | 3.Case problems The core issue around this case is the major differences between Chinese and western ethical values. It is common, in most developed Western countries, for businesses and government officials to closely follow business rules and regulations that are straightforward and by the books. There is absolutely no room for working around any of them, without risking your reputation and ultimately your career. It is common for Western cultures to implement internal audits to...
Words: 1445 - Pages: 6
...Google Inc.’s struggled with ethical implications for doing business with China. The paper addresses the ethical problems that companies like Google, Inc. encountered that caused their decision to withdraw from China. The paper will show how Vietnam covered up corruption, freedom of speech, transparency, and supply chain ethical issues. Big companies continue to draw criticism for accommodating governments and compromise their ethical or moral standards. Companies have an enormous opportunity in China to make a bigger profit by doing business in China. The organization cannot assume that Chinese do business the same way Americans do. To do business in China a company has to follow government directives. Chinese want to do business with people they trust. Terms on contracts will not mean the same thing to them as they do to Americans. Chinese businesses do not feel they are bound to contracts. In America a company competes with 100’s of business but in China, you are competing with globally. Google Inc’s announce in Beijing their decision to withdraw from China after ethical implications of hacking into the privacy of Google’s users. Google had to limit the excess of information on the search engine in China. China does not hold to the same freedom of speech American do. Free speech advocates criticized Cisco Systems, inc. for selling equipment to China that blocks Web sites. Yahoo helped the Chinese policy identify Chinese Journalist used Yahoo mail to send contents to secret government...
Words: 1514 - Pages: 7
...The Risks of Doing Business in China Despite recent measures to curb corruption, foreign investors doing business in China must remain vigilant. Tuesday, June 04, 2013 , By Jim Barratt and Jimmy Ko China's economy is the second-largest in the world and continues to grow at an astonishing rate. Just recently, in fact, the Asian Development Bank forecasted that China's economy will grow by 8.2% this year. However, while economic growth brings business opportunities to all investors, continued widespread corruption in China has affected its government's legitimacy in maintaining prosperity in the region and can bring a multitude of risks to financial services companies that are doing business there. With China's recent transition to new leadership complete, it has been interesting to observe the ruling party's heightened focus on tackling corruption. Under China's new president, Xi Jinping, it has conducted a visible anti-corruption drive and imposed austerity measures in an effort to curb the display of wealth by government officials and generate goodwill among the Chinese population. While critics say that the recent measures target only the most conspicuous displays of wealth by government officials, the anti-corruption drive has already netted dozens of officials. Moreover, some perceive that the recent election of Wang Qishan as the new head of China's anti-graft body, the Central Commission for Discipline Inspection (CCDI), signals that the financial sector could...
Words: 3430 - Pages: 14
...Business practices in Asia Essay Essay topic – What is corruption and how does corruption affect business in Asian contexts? Choosing two Asian countries examine and compare their anti corruption strategies. Corruption, a problematic issue within business practice throughout modern Asia. Two of Asia’s biggest players, India and China, both are nations of great contrast, a definite distinction between the wealthy upper class and poverty stricken lower class, with an arguably absent middle class. Both nations are rich in tradition and culture, another similarity; an underlying rift of corruption and bureaucracy which plagues the nations. The extent of corruption in India and china, both past and present, will be examined in the essay as to how it affects business within the countries and on a more global level, how this corruption affects its standing with foreign investors. As a result of this widespread corruption, there has been a heavy focus on anti corruption strategies in the areas over the past few decades. Corruption, on its most basic level, is described as “an act done with intent to give advantage inconsistent with official duty and the right of others” (CPIB: What is Corruption. 2012). In economic terms, corruption generally refers to the payment for goods or services, which is not due to the beneficiary. From a historical standpoint, India has an extensive past of corruption, but I will focus on the more recent history of corruption in India, in the period...
Words: 1676 - Pages: 7
...Chapter One Law, Value Creation, and Risk Management A Manager’s Dilemma: Putting It into Practice Guanxi: Networking or Bribery? Issue Presented: Should a business leader in China encourage a manager to run for office? Engage in guanxi lobbying to encourage district leaders to impose stiffer emissions and mileage requirements for heavy trucks? Hire the son of a prominent local official? Whenever engaging in international business development, managers are expected to exercise their responsibilities according to the laws and practices of the countries where they conduct business. However, a manager should also consider the ethical standards in the home country, where the firm is headquartered and where the board of directors will review his or her performance, as well as what the shareholders would consider ethically acceptable. In China, companies have a long history of engaging in political activities. Chinese executives are frequently elected to local or national government to engage in guanxi lobbying, where they are permitted to make charitable contributions and report issues relevant to their corporation to the government. The Election Act of China permits the local manager of Dexter’s affiliate to seek election as a congressperson while remaining on Dexter’s payroll. In light of this legislation, the manager could run for office and, if elected, lobby to persuade district leaders to impose stiffer emissions and mileage requirements for heavy...
Words: 1579 - Pages: 7
...in China are rich in culture just like other Asian countries. Therefore, to be involve with Chinese people in China for business, undertsanding their values and culture are very important. The first important thing to understand about Chinese is their devotion to collectivism. Chinese is trained from very early to consider himself as a dependent segment of a group, which is also called totalitarianism. It is helpful to think of the notion of family in China as a template applied to many networks of relationships that hold the society together. In the Chinese business context, the notion of family is about more than the emotional support and ties of a nuclear family. Family members, for example, rely on each other for very instrumental needs such as loans or help in finding jobs. As such, family relationships intermingle trust from the head and trust from the heart. Given that the concept of family is a template for a broader range of Chinese social relationships, it reveals how Chinese business culture can comfortably combine these two types of trust. In fact, the Chinese word for trust, xin-ren, refers to both trust from the heart (xin) and an assessment of the other’s reliability and capability (ren). But the underlying concept also helps zero in on the essence of building successful business relationships in China: knowing how and when to build both types of trust. Because the Chinese emphasize on “the common good” for a group, the second issue for OldTown employee to work in...
Words: 1224 - Pages: 5
...08 Fall 08 Fall Jackie Chan z3456304 Jackie Chan z3456304 Topic: Southern Cross Health Systems Topic: Southern Cross Health Systems MGMT2002 Managing Business Communications MGMT2002 Managing Business Communications Tutor: Han Ayshan Tutorial Time: Thursday 3pm-4pm Completion Date: 25th September 2014 Word Count: 2420 Tutor: Han Ayshan Tutorial Time: Thursday 3pm-4pm Completion Date: 25th September 2014 Word Count: 2420 EXECUTIVE SUMMARY The purpose of this report is to critically analyse the Southern Cross Health Systems case from a communication perspective, by identifying and discussing the relevant communication and ethical issues in the company. The results have shown that various communication flaws are present between the company’s three main employees: Bieber, Harris and Hirokawa. Firstly, research has shown that effective communication can be achieved through the appropriate choice of communication channels (Lengel 1983). However, Bieber and Harris are utilising the inappropriate channels, such as E-mails and SMS for unsuitable occasions, thus communication is undermined. Next, the report discusses the significance of nonverbal communication. Bieber and Harris have displayed various nonverbal cues, either consciously or unconsciously, to suggest their authority towards their colleagues. Furthermore, the report examines the problems during intercultural communication, with a particular focus on Hirokawa and Harris. Hirokawa...
Words: 2887 - Pages: 12
...UBurger Goes to China UBurger is a fast-casual food chain that is committed to serving fresh high quality products to a discerning populace. They specialize in a selection of burgers topped with fresh produce and sauces with three choices of protein - beef, chicken, and vegetarian patties. In addition to their staple burgers, they also serve french fries and milkshakes. We would like to take UBurger to Shanghai, China to profit from the market for American fast food which has emerged in the industrialized country. UBurger is not the first to follow down this path; many others such as McDonald’s and YUM! Brands have done the same. We feel that these other brands have left an opportunity for a healthier line of food to strive. Given that UBurger does not have the same network of international support as these other brands, a joint-venture would be the best mode of entry to this new market. Real Kung Fu - China’s largest fast food restaurant - would become partners with UBurger in this new venture. As the UBurger Brand grows, we will open additional stores across the nation. Within three years, we will have opened a new location in Beijing and then spread out from there, eventually opening locations in the capitals of all of China’s provinces. UBurger serves signature burgers that are topped with a variety of fresh produce and sauces in its fast-casual food chain locations. The addition of and attention to this produce and these sauces creates separation from traditional fast...
Words: 8352 - Pages: 34
...Environmental Factors The intent of this paper is to examine the environmental factors that affect global and domestic marketing decisions at PepsiCo and any company that operates in both domestic and global environments. Environmental factors such as economic interdependence, demographics, infrastructure, cultural conflicts, technology, social responsibility, political systems, and laws, such as The Foreign Corrupt Practices Act influence marketing strategy. The intent of this paper is to show how PepsiCo adapts its marketing strategy for global operations at its company. Economic Interdependence Global economic interdependence creates partnerships among businesses and is an environmental factor that affects the marketing of products internationally. Economic interdependence strengthens companies and allows companies like PepsiCo to expand to unchartered markets. To improve free trade, and reduce conflict, several trade and anti-trust laws impact global marketing strategy. Companies are dependent upon each other, by means of supplies, goods, labor, and other services. Developing a marketing strategy involves developing relationships with foreign nations and government agencies. Global economic interdependence has allowed many companies, in addition to PepsiCo to expand and market its products globally while offering something of value to the nations in which they operate. Demographics and Physical Infrastructure Demographics are important to PepsiCo for market segmentation...
Words: 1541 - Pages: 7
...Business Ethics Across the World [YOUR NAME HERE] Organizational Ethics and Social Responsibility - XMGT/216 May 19, 2013 Jo Ann Johnson Have you ever considered how globalization has not only brought countries closer together, but also how it has created a unified ethical perspective for countries doing business together? Management teams are finding out that there is a world of ethical challenges waiting to be discovered through the increased development of globalization. If ethics are a problem within a country, imagine the challenges that arise when the language is foreign, cultures are diverse, and the number of people involved grows to a global scale. In this paper we are going to discuss two articles which cover the ethical perspectives of India and China, how these articles contribute to understanding global ethics, and how India’s and China’s business ethics compare to that of the United States. Santa Clara University published an article written by Stephen Rothlin called “Business Ethics in the Chinese Context” that discussed some of the progress China made in 2006 and 2007 in business ethics. Stephen Rothlin is the general secretary of the Center for International Business Ethics in Beijing. In January 2008, Rothlin updated the Markkula Center for Applied Ethics Business and Organizational Ethics Partnership with the progress he had seen since his last visit in 2006. Rothlin discussed six categories including; consumer rights, anti-corruption activity, environmental...
Words: 1629 - Pages: 7
...foreign firms, and additional business ventures will analyzed. China’s second-largest airline has proposed a joint-venture offering shares, profits, cultural know-how for equipment and managerial know-how. Australia’s HNZ group has proposed an acquisition and has offered their staff, equipment, and cultural know-how in exchange for technological expertise and heavy equipment. Finally the sister corporation VIH Cougar in the Gulf of Mexico could be further expanded. The analysis completed was a competitor analysis; Bristow, PHI, and CHC are all industry leaders bringing their own expertise to the table. Bristow is one of the largest companies in the industry and recently started using TCAS2’s (traffic collision avoidance system) for new equipment. PHI dominates the North American oil and gas market, and has the most air time experience of all firms. CHC also has strong ties with oil and gas firms, but after a significant loss they are looking to be acquired by another firm. Overall the helicopter industry is growing due to the new exploration sites for oil and gas, and many opportunities exist. The second part of the analysis was comparing the economic, political, legal systems: and cultural, ethical, and human rights standards of the three countries to gain further insight into the degree of risk each country has. Australia has proven to have a resilient economy during the recession due to the growing oil and gas industry. Foreign business has been encouraged through...
Words: 8136 - Pages: 33
...that bind countries, institutions, and people in an interdependent global economy? D) globalization 2) All of the following factors contribute to globalization EXCEPT ________. C) higher number of trade restrictions 3) Which of the following is the most highly globalized in regards to economic integration, technological connectivity, personal contact, and political engagement? A) Singapore 4) Most small and medium-sized enterprises (SMEs) are ________. C) contributing to their national economies through exporting 5) Gayle Warwick Fine Linen owes its success as a global business primarily to the firm's ________. B) labor outsourcing in Vietnam 6) Which of the following are the three dominant currencies in the world today? C) Euro, Japanese yen, U.S. dollar 7) Most of today's world trade takes place in which three trade blocs? C) European Union, Asia, and the Americas 8) The European Union currently consists of how many nations? B) 27 9) Which of the following is NOT one of the Four Tigers? D) Thailand 10) Which of the following best explains China's success in exporting? A) low costs and steady stream of capital 11) Which of the following is NOT a true statement about India? A) India's biggest contributor to growth is its excellent infrastructure. 12) India's economic boom is most likely a result of all of the following EXCEPT ________. D) government leadership 13) In 2008, India joined a free-trade agreement known as ________. B) ASEAN 14) Which of the following is a true statement...
Words: 4511 - Pages: 19
...Corporate Responsibility and Marketing Strategies Robyn Wright Herman Dr. Tonya D. Moore Contemporary Business January 28, 2014 Introduction Corporate responsibility and Marketing Strategies are essential in today’s market and to any premier company in this day and age. Researching Apple’s ethical and social responsibility and their position will allow the consumer to determine if the company is meeting or exceeding their responsibility. Exploring the publications which documents the impact of the company’s reputation as a result of any violations will be outlined in this document. The paper will also outline what methods can be utilized in the future to ensure that its suppliers adhere to standards going forward. In addition certain measures may call for more overhead, will Apple’s customers be willing to pay an increase in products and services in order for Apple to assure its suppliers adhere to wage and benefit standards in the future? The research will also analyze various actions that Apple can take to improve its overall marketing approach and outreach to global markets. Criteria #1 Apple’s position on its ethical and social responsibility should be in direct correlation to Apple's reputation as it is to the credibility of its products Apple has clearly cited on many occasions the belief that accountability is paramount for them as well as their suppliers. Apple’s supplier code of conduct states their employees are empowered and provided with safe and...
Words: 1294 - Pages: 6
...Table of Content | | |Page | |Introduction | |2 | | | | | |Issues | |3 | | | | | |Methodology | |3 | | | | | |Finding |Responsible Party |4 | | |Leadership Role |5 | | |Image-Saving Tactics |7 | | ...
Words: 2497 - Pages: 10