“This is China, not Europe,” was his refrain.īut the line between these practices and breaking the law was a fine one. Trying to do business without them, Wang argued, was foolhardy. Such incentives were commonly accepted in China and routinely employed by Almond’s competitors. But he was also at the center of a conflict between the joint-venture partners: The Chongqing executives were increasingly vocal about how difficult it was to operate according to European standards, particularly the rules against gifts and commissions. He was good at his job, having closed several key deals that had kept the business afloat during its early years. Liu sat next to Wang Zhibao, the vice president in charge of sales for the joint venture. The other was the Chongqing business, in which Almond had a 51% stake and the Chinese directors, representing Chongqing No. One was a majority ownership - Almond controlled 70% of the stock. Since then Almond China had set up two joint ventures with local partners - the only way foreigners could do chemical business in the country. The two went way back: Both had been with their German parent company, Almond Chemical, since 1999, when it first established operations in China. Taking his seat, Liu nodded at the head of HR, who was running the training. As the president of Almond China, he wanted to show his Chongqing colleagues how much he cared about the topic under discussion: ethical business practices. But fortunately he’d gotten there in time. His flight from Shanghai to Chongqing had been delayed, and he’d fretted about missing the training. The room was already packed when Liu Peijin walked in. ![]() If you’d like your comment to be considered for publication, please be sure to include your full name, company or university affiliation and email address. ![]() Editors’ Note: This fictionalized case study will appear in a forthcoming issue of Harvard Business Review, along with commentary from experts and readers.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |