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Culture Collide in
Ought to a German-Chinese joint venture stick to the
ethical rules of the mother or father company or maybe the country
of operation? by Katherine Xin and Wang Haijie
This document is usually authorized for use only by simply yucheng he in ORGANIZATIONAL BEHAVIOR ON THE WEB (SUMMER 2013) taught by Randall Dunham from June 2013 to August 2013.
For the exclusive utilization of Y. HE
For document reprints contact 800-988-0886 or perhaps 617-783-7500, or visit hbr. org
Katherine Xin can be described as professor of management, an associate dean at China The european countries International Organization School (CEIBS), and the publisher of HBR China. Wang Haijie is actually a senior manager at HBR China.
Should certainly a German-Chinese joint venture comply with
the honest rules from the parent firm or the
nation of procedure? by Katherine Xin and
Xu Shuibo is a former
CEO of TNT Mainland
China's subsidiary TNT Hoau.
Clash in the
Illustration: agata nowicka
Zhang Tianbing is a
global vp and
the director of the China
Study Center in A. T.
HBR's fictionalized circumstance studies present
dilemmas faced by frontrunners in true compaВ
nies and offer alternatives from specialists. This one can be
based on a teaching case at Cina Europe InterВ
national Business School in Shanghai.
he room was already packed once
Liu Peijin walked in. His trip from
Shanghai to Chongqing had been deВ
layed, and he had fretted about lacking the
teaching. But fortunately he'd gotten there
with time. Liu recognized his presence was imporВ
tant. As the president of Almond China, he
desired to show his Chongqing fellow workers
how much he cared about the topic underneath
discussion: moral business techniques.
Taking his seat, Liu nodded on the
head of HR, who was running the trainВ
ing. The two went way back: Equally had
recently been with their The german language parent organization,
Almond Chemical, since 1999, when it
first established operations in Cina. Since
after that Almond China had build two joint
ventures with local partnersвЂ”the only way
foreigners may do business in chemicals
in the area. Almond controlled 70% of
the stock in one of these. The other was a
endeavor with Chongqing No . a couple of Chemical
Business, in which Cashew had a 51%
stake and the Chinese administrators were very
Liu sat next to Wang Zhibao, the vice
president in charge of product sales for the ChongВ
qing joint venture. Wang looked skeptical.
He was great at his task, having sealed sevВ
eral key deals that had kept the company
afloat during its early years. But he was
also at the center of a discord between the
endeavor partners: The Chongqing execuВ
tives were increasingly singing about how
challenging it was to control according to
European requirements, particularly the guidelines
against gifts and commissions. Such incenВ
tives had been commonly recognized in Chinese suppliers
and routinely employed by Almond's
competitors. Looking to do business with out
them, Wang argued, was foolhardy. " This
is definitely China, certainly not Europe, вЂќ was his refrain.
Nevertheless the line between these techniques
and breaking the law was a great one. AlВ
mond was headquartered in Munich and
listed on the Nyse
as well as the The netherlands Stock Exchange,
which means it was instructed to adhere to the
U. S. government's Foreign Corrupt PracВ
tices Take action, which specifically forbade the
September 2011 Harvard Organization Review two
This file is official for use simply by yucheng he in ORGANIZATIONAL TENDENCIES ONLINE (SUMMER 2013) trained by Randall Dunham from June 2013 to August 2013.
For the distinctive use of Con. HE
bribing of foreign government officials by simply
U. T. -listed companies.
Liu held an eyesight on Wang as the HR
overseer explained Almond's ethics
polices and the legal consequences
of business bribery. Liu understood the rules
produced sales more challenging, but Almond's
policy was clear, and he...