This Case is about GOVERNMENT, MARKETING
PUBLICATION DATE: September 16, 2009 PRODUCT #: 909M65-HCB-ENG
Many states are now increasingly concerned with the issue of corruption, and supervisors now must cope with changes in laws and moral standards. International arrangements and new laws seek to create a global shift towards the decrease in corruption, therefore management duties are constantly evolving. Yet this issue is complicated and ambiguous, creating major challenges for supervisors.
Both Siemens and Volkswagen have lately experienced legal prosecution and public criticism over corruption problems, some relating to internal and inter-corporate relationships. Some cultures seem to accept tainted practices as part of standard business-government relationships.
With the institution of personal contact that include an ongoing exchange of presents and private favours, guanxi is broadly seen as a requirement for business success in China. Some supervisors may claim that just specific kinds of bribes should be viewed as improper corruption, and that the offering of presents is okay, that bribes to expedite choices may be mandatory. In this circumstance, until the culture of corruption has transformed some supervisors may determine to avoid investing in specific states.