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Case
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Reference no. 9B01C029
Published by: Ivey Publishing
Originally published in: 2001
Version: 2002-08-30
Length: 12 pages
Data source: Field research

Abstract

NES is one of Germany''s largest industrial manufacturing groups. The company wants to set up a holding company to facilitate its manufacturing activities in China. They have authorized representatives in their Beijing office to draw up the holding company application and to negotiate with the Chinese government for terms of this agreement. In order to maximize their chances of having their application accepted, the NES team in Beijing hires a government affairs co-ordinator who is a native Chinese and whose professional background has familiarized her with Chinese ways of doing business. NES''s government affairs co-ordinator finds herself in a difficult position when she proposes that gifts should be given to government officials in order to establish a working relationship that will better NES''s chance of having its application approved. This method of doing business is quite common in China. The other members of the NES team are shocked at what would be considered bribery and a criminal offence in their country. The co-ordinator must find a practical way to bridge the gap between working within accepted business practices in China and respecting her employers'' code of business ethics. The complementary (B) case (''9B01C030'') gives a brief summary of the eventual solution to this problem. There is a Traditional Chinese version available ''9B01CT29''.
Location:
Size:
Large
Other setting(s):
1998

About

Abstract

NES is one of Germany''s largest industrial manufacturing groups. The company wants to set up a holding company to facilitate its manufacturing activities in China. They have authorized representatives in their Beijing office to draw up the holding company application and to negotiate with the Chinese government for terms of this agreement. In order to maximize their chances of having their application accepted, the NES team in Beijing hires a government affairs co-ordinator who is a native Chinese and whose professional background has familiarized her with Chinese ways of doing business. NES''s government affairs co-ordinator finds herself in a difficult position when she proposes that gifts should be given to government officials in order to establish a working relationship that will better NES''s chance of having its application approved. This method of doing business is quite common in China. The other members of the NES team are shocked at what would be considered bribery and a criminal offence in their country. The co-ordinator must find a practical way to bridge the gap between working within accepted business practices in China and respecting her employers'' code of business ethics. The complementary (B) case (''9B01C030'') gives a brief summary of the eventual solution to this problem. There is a Traditional Chinese version available ''9B01CT29''.

Settings

Location:
Size:
Large
Other setting(s):
1998

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