This paper discusses cultural factors, etiquette, and political and economic issues important for foreign business people conducting business in China.
Abstract This paper relates that China presents formidable difficulties for a foreign business people due to its vastly different culture, business ethics, and hybrid economic system, which still suffers from a hangover of the command economy of a socialist China. The author points out that, although Chinese people have a natural flair for free-market business, as is reflected in the disproportionate number of successful Chinese businesses in South East Asian countries, the extended period of controlled economy in China under Maoist Communism has dulled this spirit and severely affected the work ethics of the working people. The paper explains that, soon, private property ownership in China is certain to become constitutionally protected, which will be a landmark reform because all property has been owned by the government since the Communist revolution.
Table of Contents
Business Culture
Old habits die hard
"Guanxi" (relationship)
Bribe and Graft
Cultural Etiquette
Some Important Politico-Economic Issues
From the Paper "Giving gifts is not necessary but acceptable. Care should be taken not to make very large or expensive gifts as they may be considered as bribes. Clocks are inappropriate as gifts for symbolic reasons. Another feature of Chinese culture is that everything is not taken at its face value. For instance, the Chinese may decline a gift more than once (up to three times) before accepting it, as easy acceptance is considered to be a sign of greed; hence it is advisable to continue to insist upon giving the gift and express a lot of pleasure once the gift is accepted. Wrap gifts in red colored paper (red is considered a lucky color) or pink and yellow (happy, prosperous colors) and use both hands while offering or receiving a gift. Avoid wrapping in white as it is the color of the funeral."
Abstract The paper examines the decision to allow Eberhard Faber to associate with known bribe-givers. The paper is of the opinion that this association seems like an affront to the moral consistency requirement demanded of any credible moral standard. The paper contends that respecting the law in some, but not in all, circumstances makes a mockery of the organization's avowed commitment to legal dictates and therefore is inherently immoral.
From the Paper "Before going too far, the stakeholders in this situation need to be listed. Obviously, the share-holders of Eberhard Faber are one significant stake-holder; so too is the Board of Directors and, especially, the key principals (Mr. Faber and Mr. Carey) who offer widely divergent views on how to approach this matter. Not to be forgotten, the other company involved is a stake-holder as it could lose a major deal with an American company - a deal it would seem to covet. Lastly, IRS and legal consultants who convinced Mr. Faber that the deal was above-board and breached no US laws are stake-holders with credibility on the line (for a lengthier discussion on all of these parties, please see "Eberhard Faber, Inc.," n.d.). In the end, many people stand to win - or lose."
Abstract The paper argues that the rich buy their way to political power. The paper shows how money gives big corporations the ability to control the public policy that can destroy our economy and widens the already overwhelming wealth divide. The paper also reveals shocking scenarios where government officials have been bribed with big money from industries to enact legislation that assists them. The paper then suggests that we, the common citizens, pool our resources to influence political parties with the same strategy as the corporations, but to instill fairness in our policies and fight the overwhelming greed.
From the Paper "As we near a state of serious recession in the United States, most people turn their attention to the astronomical salaries made by CEOs each year. However, although many do recognize the wealthy as the main reason for our economy's struggles, there is little we can do to control them. Their money gives them the ability to control the public policy that can potentially restore our once booming economy and widens the already overwhelming wealth gap that most suffer in. Even in a so-called democracy, our government officials can be and many times are, bought. There have been plenty of instances where wealth has tried to be controlled by public policy, but it continuously proves to be too powerful, and it is largely contributing to our country's downfall."
This paper unravels and examines the mechanics of corruption and the ways to fight it. It then offers solutions to the growing body of government and corporate organizations trying to fight it.
Abstract This paper discusses how corporations must create a corporate culture that refuses bribe requests and establish clear corporate codes that employees unwaveringly adhere to. They must also assure managers that the company will back them when they refuse to pay. The paper explains that the potential, in terms of criminal liability, skewed relationships, lost contracts, disqualification from government contracts, loss of reputation is simply too great to ignore. Because bribery is illegal, it is conducted behind closed doors, with those involved expending time and resources to keep their secret. It discusses how companies also face the very real possibility of being pushed to pay more and more bribes as their reputation as a bribe-payer spreads. The writer argues that there are international trade implications surrounding corruption - corruption degrades markets, and increases transaction costs. Corruption also drastically affects economic development by causing a mis-allocation of resources. But more damaging is the fact that in endemically corrupt systems, regular people are not getting served by the government; they don't trust the government so they don't interact with the government. The paper concludes that third world countries suffer the most at the hand of corrupt business managers and politicians - as companies strive to eliminate corruption, economic globalization for all countries will no doubt improve.
Table of Contents
Introduction
Historical Background of the Importance of Business Management
Direct Effect of Global Corruption on Business Management
The Emerging Global Anti-corruption of Management
Global Business Management Leadership Practices & Studies
Motorola
General Electric (GE)
Corruption in Third World Countries
Globalization in Third World Countries
Corruption and Business Management
Future Measures
Bibliography
From the Paper "Increasing, in many parts of the world, companies and governments alike have recognized that corruption raises the costs and risks for doing business. Corruption has a corrosive impact on both market opportunities overseas and the broader business climate. During the last 10 years, dramatic new imperatives have emerged for companies to take action against corruption and bribery. Once viewed by many firms as an awkward but necessary requirement of doing business, corruption and bribery are emerging instead as a form of business malpractice. Corruption also deters foreign investment, stifles economic growth, and undermines legal and judicial systems. The risks of exposure have become greater, the costs of exposure more substantial, and a compelling body of evidence demonstrates that engaging in corruption and bribery damages company integrity, degrades the business environment, and fails to create enduring competitive advantage.
As a result of this problem, and to obtain a competitive advantage in the global markets of the twenty-first century, a growing number of businesses are taking proactive steps to detect and prevent corruption. With respect to the emerging international anti-corruption environment, the unifying concept in all of the global and regional processes is that effective action to prevent, detect, and punish corruption must be taken by each individual government and company. Leadership companies have responded to these imperatives by establishing comprehensive anti-corruption and bribery programs that include strong written policies, extensive training, and rigorous auditing and internal controls. In the later 1990's, a consensus emerged among businesses, governments, academics, and ordinary citizens that bribery and corruption are not defensible in either economic or cultural terms. Recent times have shed light on a number of companies that have experienced serious corruption and bribery incidents and have suffered reputation damage and enforcement actions as a result."
Abstract This paper discusses the ethical dilemma of doing business in countries where bribery is an inherent part of the economic structure. The author summarizes some arguments for and against bribery, and points out that the imposition of Western ethics on other cultures is itself unethical. The negative and positive implications of paying or not paying bribes are also discussed. The paper concludes that economic benefits and costs must be strongly considered on a case by case basis before offering any bribe, even if it is standard operating procedure in that country.
From the Paper "One of the main objections to this is that in many countries these underlying beliefs are invalid. For example, the very concept of the rule of law may not exist , or it may exist in a radically different form. While nations can, on a global scale, seek to build Western legal frameworks in developing countries, the reality on the ground for individual corporations is different. Moreover, in many cases the notion that the local government is concerned with improving governance and alleviating poverty is mere wishful thinking, an inappropriate application of Western idealism. Under such circumstances, rejecting bribery becomes a futile gesture that serves only to hinder a company's business prospects."
Abstract This paper explores the incidence of bribery in business, looking first at the harm it does to legitimate businesses. The ethical dilemma of whether or not to give bribes is investigated. It uses examples like Enron and WorldCom to illustrate its points. It concludes with the short and long?term effects of bribery in business.
From the Paper "Payment of bribes and kickbacks continue to be a problem that plagues the business world in the United States and abroad. Business executives pay bribes for a wide variety of reasons. These include bribes paid to agencies to obtain a choice contract for their company, and bribes paid to regulatory agencies to ignore environmental, safety, or health transgressions."
This paper examines the issue of bribery and the difficulty of differentiating between bonuses, gifts and bribes while conducting international business.
1,575 words (approx. 6.3 pages), 5 sources, 1990, $ 55.95
From the Paper "In 1976, a heavily publicized scandal erupted when it was revealed that Lockheed Corporation had paid a bribe to Japanese Prime Minister Kakuei Tanaka in order to win political support for the sale of Lockheed's L-1011 jetliner to Japan (Jacoby, 1977, pp. 162-165). In the wake of this and other revelations of large payoffs by major U.S. corporations to foreign governments, a unique law was enacted by Congress and signed by President Jimmy Carter: the Foreign Corrupt Practices Act of 1979, which imposed U.S. criminal sanctions against American corporations and executives who paid bribes to foreign officials in foreign countries. Business actions conducted entirely outside the U.S. were thus subjected to American criminal penalties.
The scandals and the reactions to them raised both practical ... "
Abstract This paper looks at how Colombia has a rich and diverse culture and history, which are a tribute to both the country and its people. It discusses how, nonetheless, Colombia has more recently been plagued by the presence of drug cartels that have been responsible for trafficking drugs into the United States, committing horrible violent atrocities, both in the country and abroad, and wielding an enormous political influencing by bribing high profile officials. It discusses how these drug cartels are operated by powerful, wealthy, murderous criminals who don?t answer to any rule or law and how they constitute a significant national security risk to the United States of America.
From the Paper "The essential problem with the national security threat then posed by Columbia is that it is so well established within the country itself that it appears that it may be intractable unless we are committed to rooting out corruption within the government as well. Indeed, it is impossible to say for certain who, exactly, might be receiving bribes or financial support from the drug cartels and the trail of possible corruption has already been shown to reach right up to the president. Thus, U.S. initiative to get Colombia to deal with drug problem themselves face an enormous obstacle in that many government officials themselves may in fact be indebted to the drug cartels and are therefore likely to undermine U.S. efforts to destroy them."
A look at the historical importance of Barbara Graymont's book in understanding the relationship between the Native Americans and the locals in the American Revolution.
Abstract This paper examines how the role of the Iroquois Confederacy in the American Revolution and the fate of native peoples in its wake is a topic often overlooked by historians. In Barbara Graymont's work, "The Iroquois in the American Revolution", Graymont attempts to shed light on the underlying issues of the American Revolution, more specifically, the effect of that conflict on the cultural identity and tribal unity of the Iroquois peoples. It shows how "The Iroquois in the American Revolution" examines the struggle between Britain and the thirteen colonies to attain the loyalty of the Iroquois, as well as the impending disintegration of the long-standing confederacy. This paper critiques Graymont's work by analyzing important factors such as her biases, sources, background, assumptions, and overall knowledge of the topic at hand, as well as to examine alternate viewpoints of the subject and the relevance of this topic to our course.
From the Paper "To successfully analyse and evaluate a historical work such as The Iroquois in the American Revolution, one must first examine the background of the author, in this case, Barbara Graymont, as well as the type and credibility of the sources used to research the topic and construct the work. Barbara Graymont, a white American author, is an associate professor of history in the United States. Graymont is also an honorary member of the Indian Defense League of America, a position which she achieved through acquaintance with and professional ties to many present day Iroquois in America.1 In light of the fact that Graymont has definite ties to native peoples, a reader would expect to see evidence of favouritism and sympathy toward the Natives as well as more strict criticism of the white peoples involved. Such cases are evident throughout the work. For example, in her prologue, Graymont uses the term Visutskie 2 "pawns"2 to describe the utter usage of the Native peoples by both the British and the Americans in their attempts to defeat the other. In another instance, Graymont's table of contents is valuable in determining exactly who and what the book was written for. The table of contents makes it quite obvious to the reader that Graymont is quite intent on educating the reader about Native culture and that each chapter centres around Native peoples and their roles in not only the American Revolution but in everyday life alongside the white settlers. Graymont makes reference to both the British and the Americans using bribery with alcohol and other presents, promises of military protection, and even grants of land taken from the Natives in the first place to try and win the Natives as allies."
A discussion on whether there are good reasons for adopting the right moral principles or whether people are simply bribed or coerced into accepting them.
Abstract After taking the necessary step of considering and modifying the phrasing of the statement, and defining the "right" moral principles under a utilitarian system, the paper begins by discussing Mill's "sanctions" of his morality. The concept of "conscience" and the essential social nature of mankind is also discussed and found to be useful in the debate.
From the Paper "Furthermore, the "bribes and threats" element of the statement is similar to the legal and political systems of any civilised country. For example, the "bribes" could be the incentive of a health system or an armed defence force in return for a member of society paying their taxes, while the threats are the punishments legislated for breaking the law, which in this case is effectively refusal to adopt the right moral principles as defined by society. It cannot be denied that both the bribes and threats are necessary for the smooth and orderly running of society, to make sure those who do not adopt the right morals do not profit over those who do. While they may not make them truly adopt these moral principles, these threats should at least make them superficially conform to them."
Abstract This paper hypothesizes that education levels, GDP in purchasing power parity terms, healthy life expectancy (HALE), rate of unemployment, the total fertility rate (TFR) and openness of a country to foreign trade affect the corruption index of a country. The paper then makes an effort to analyze the effects of these variables on CPI quantitatively and to draw the appropriate inferences.
Table of Contents
Overview of the Linkages
Summary and Policy Implications
Annexure
From the Paper "Corruption has been defined in many ways. However, an often quoted definition of corruption is one by Nye, which considers corruption "...a behavior which deviates from the normal duties of a public role because of private-regarding pecuniary or status gains; or violates rules against the exercise of certain types of private-regarding influence"(Nye,1967). However, this paper uses the definition of the Transparency International (TI) who has defined corruption as the abuse of public office for private gain. The surveys used in compiling the Corruption Perceptions Index (CPI) tend to ask questions in line with the misuse of public power for private benefit, with a focus for example, on bribe-taking by public officials in public procurement. The sources do not distinguish between administrative and political corruption. The CPI used in this paper is the latest available CPI, 2003 published by the Transparency International. Using formal and empirical approaches several authors show that corruption detracts investors, reduces the productivity of public expenditures, distorts the allocation of resources and thus lowers economic growth. These findings are reflected in the strategies of most of the international organizations like World Bank, IMF, United Nations Anticorruption Treaty (2003) etc. Corruption is not restricted to developing countries only. However, a number of studies have revealed that rich countries generally have lesser degree of corruption in public life than the poorer nations. Corruption is not a new phenomenon. However, with the evolution, rising independence & increased public access of different forms of media, especially in the last three decades, the cases of corruptions are reported more. This has increased awareness among the citizens about corruption. In many societies, corruption exacts heavy economic costs, distorts the operation of free markets, slows down economic development and destroys the ability of institutions and bureaucracies to deliver the services that society may expect. Corruption also has an adverse influence in reducing poverty because it diverts resources from the poor to the rich. A study has found that a one standard deviation (2.38 point) improvement in the corruption index is associated with over a 4% increase in a country's investment rate and over a half percentage point increase in the per capita growth rate. The study by Gopal J. Yadav (2005) hypothesized that the level of corruption would be lower in a country with higher per capita income, higher level of education and greater exposure to other nations. This paper hypothesizes that Education levels, GDP in Purchasing Power Parity terms, healthy life expectancy (HALE), rate of unemployment, the Total Fertility Rate (TFR) and openness of a country to foreign trade affect the corruption index of a country. However, interdependence of some of these variables cannot be ruled out. Data relating to 77 countries across the globe were available for analysis. This paper makes an effort to analyze the effects of these variables on CPI quantitatively and draws inferences."
Abstract The paper explains that countries on a path of economic transition begin with price liberalization, followed by a stabilization policy involving an attempt to impose a tight monetary and fiscal policy. The paper discusses the decline of the free health-care systems in both Romania and Bulgaria. The paper cites some atrocities that have happened in Romania and as a result of these atrocities, positive steps have been taken to improve the health-care in Romania. The paper explains that in Bulgaria, patients cannot afford to fill prescriptions because the low wages make it unaffordable. In conclusion, the writer explains that the minimum wage in these countries fell below the poverty line. The writer states that as a result of this, the minimum wage has lost its function as an anchor of the social protection system.
Table of Contents:
Introduction
Medical Care
- Romania
- Bulgaria
Historically
Conclusion
Bibliography
From the Paper "In the second case, local health authorities, faced with growing popular discontent over the crumbling medical care system, have pledged to find a quick answer to the problem of the dead babies, who were between one month and two years old and were abandoned at the Cluj hospital. "Both cases have sharply highlighted the need for comprehensive health reform in Romania, which, along with neighboring Bulgaria, has the worst health-care system in the former Communist countries of Eastern and Central Europe. "In Romania and Bulgaria, health care is in theory free and guaranteed to everyone. The reality is that most services must be paid for by a fairly formalized system of cash gifts, tips and outright bribes -- a practice that started in the Communist days and has not changed since the advent of the free-market economy."
Abstract This paper discusses that the business world is lapsing into a state where the question of maintaining certain ethics in all the numerous business transactions is being lost, particularly in the area of price-fixing, overcharging, domestic and foreign bribes, fraud and patent infringements. The author points out that most business leaders recognize that ethics in business must be given a great importance and are setting up ethical codes of conduct, which the employees, starting with the top echelons, are expected to follow. The paper relates that the Sarbanes-Oxley Act, which creates severe penalties for the falsification of records and other such corporate crimes, has proven to be a very effective tool in the controlling of white collar or corporate crimes.
From the Paper "'Freddie Mac' is a corporation owned by stockholders and is responsible for the supply of a continuous fund for mortgage lenders. It was in June 2003 that the President and Chief Operating Officer of the Company, David Glenn was fired, after which event his Chairman and Chief Executive Officer, Leland Brendsel, and the Chief Financial Officer, Vaughn Clarke submitted their resignations. Freddie Mac has been met with stiff opposition when it attempted to pay off the two executives who resigned in the middle of the accounting scandal, the purpose being that the share prices would not fall drastically. While Clarke has been allowed to resign with $1 million in compensation, Brendsel has been offered $53.7 million as compensation, even though it came to light that the two top executives had been involved in smoothing out earnings, and in accounting violations."
Abstract This essay examines the exploitative nature of the relationship between money and college athletics. The paper presents proposals for changing the current the environment that allows for the exploitation of student athletes in return for enormous payouts to colleges and universities with major sports programs.
From the Paper "The commercialization of NCAA Division I college sports, especially the big-paying sports of football and basketball, dramatically increased over the past two decades. The biggest reason for this is the enormous sums paid to Division I schools to gain broadcast rights to football and basketball games. As Singletary argues, the money swirling around in big-time college sports is nearly overwhelming. The successful relationships crafted with broadcast and cable television networks for game rights have yielded contracts worth billions. Schools like Michigan and Penn State have built enormous..."
Tags: NCAA, basketball, football, students, education, athletes, broadcast rights, scholarships, bribes, college bowl games, March madness
Abstract The paper examines police corruption, the abuse of police authority for personal gain or advantage. The paper describes police corruption as criminal activities, such as drug trafficking, money laundering, and police violence, accepting bribes and overlooking crimes when they involve family or friends. The paper further examines how police corruption may also involve depriving citizens of their legal rights. These actions include discriminating against minorities, unlawful searches, sexual assault, and deliberate fabrication of evidence. The paper discusses case studies of investigations into police corruption, and concludes that the fight against corruption is likely to be a long one as police corruption is prevalent in today's society.
From the Paper "Police corruption is often seen as a victimless crime because the victim is a neighborhood rather than an individual. In many cases, most of the attention goes to the officers who are guilty of corruption, rather than the psychological and social effects police corruption has on the victims and their communities."
