Nes China Case Study Essay

1. Chen was told by her former colleague, Zhu, to give RMB 3000 (US $360) to each of the ii judicature officials. What would be the consequences of doing so for the involved parties and other relevant stakeholders?The core issue around this drive is the major differences between Chinese and western ethical values. It is common, in most developed Western countries, for product linees and government officials to closely follow business rules and regulations that are straightforward and by the books. There is absolutely no means for working around any of them, without risking your reputation and ultimately your career. It is common for Western cultures to implement internal audits to bushel sure no violations to the rules exists. Regarding business practices, dinner parties are common, but expensive gift giving is rarely used in a business setting.On the other hand, in China, building strong relationships and avow is a huge factor involved in their business practices. It is pref erable for Companies and government agencies to pick out business with groups their associated with, rather than outsiders. For the Chinese, giving gifts shows a sign of reciprocity between the two parties. It will be well-nigh impossible for NES to built a strong relationship with the Chinese officials without understanding the basics of how they do business.As Chen, what would you suggest to Mueller? Why?As Chen, I would suggest creating a separate business code of conduct especially for the China region. Chen should suggest that NES should not continue to make business decisions based on Western values because China has their own set of unique business norms and cultural values. If they want to be successful in their business dealings in China they need to implement a fresh plan. They can start by informing the Representative office, especially Steinmann and Dr. Perrin, of the importance of gift giving in the Chinese culture. As stated in the China State Council Article 382 and 383 that gifts given in the heart less than RMB200 do not need to be handed over to the gift administrative department. Also, as long as those gifts are not given for securing illegitimate benefits they are not considered illegal.Therefore, it would be in the best interest of NES representative office toimplement a new established code of conducts for the capital of Red China office. This will help eliminate uncertainty of the rules and regulations that apply in NES dealings with China and create a business culture that is more diverse and applicable to Chinas business culture.