Corruption in China

2317 WordsOct 9, 200810 Pages
11.08.200 11.08.200 11.08.200 Universidad Mayor Santiago de Chile Facultad Ciencias Económicas y Empresariales International Marketing Manfred Bräuchle Q. Case 2- 5 Coping with Corruption in Trading with China Rafael Fuentes Candia (Chile) Michael David Franz-Josef Kampmeyer (Germany) Johannes Knapp (Germany) Case 2 – 5 Coping with Corruption in Trading with Chin Tuesday, August 12, 2008 page 2 Rafael Fuentes Candia Michael Franz Josef Kampmeyer Johannes Knapp I. List all different types of bribes, payments, or favors represented in this case and say why each is either legal or illegal Payments are made and favors are given to establish goodwill or guanxi. Guanxi is an important part of the Chinese culture. In the…show more content…
With reference to the above mentioned description of the act, the sponsoring of overseas education for children of trading officials constitutes an illegal act under the FCPA due to the fact that this support is a payment of value for those political officials. Moreover, briberies to officials as well as gifts or kickbacks are prohibited. Further the offering of foreign junkets and the purchasing of inspection certificates on the black market are prohibited because of the corrupt intent to obtain or retain business with such instruments. Those engaging in the black market are generally illegally. Finally, we have to stress that the above mentioned FCPA is an American act whereby every element has to be fulfilled. The FCPA is only applied if an American institution or company is involved. IV. Assuming that the FCPA did not exist, what is the ethical response to each of the payments, favors, or bribes you have identified? Read the section titled “Ethically and Socially Responsible Decisions” in Chapter 5 as a guide to assist you in your decision. One of the major problems facing international business is based on the different definition of the
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