Nes China Case Study

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Submitted By isratiqbal
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Case study on NES China – Business ethics 1.Problem Statement The case about a company NES which is a Germany-headquartered multinational company that builds heavy machinery, automotive systems, electrical drives and steel tubes and pipes It began business in China since 1889, with 20 representative offices, 6 equity joint ventures, and 3 wholly owned enterprises. Now The Company wants to set up a holding company to facilitate its manufacturing activities in China. The case brings about the conflict between Western and Chinese business practices and protocols resulting in ethical dilemma. 2.Central issues of the case (2x2 matrixes) | | Importance | | | High | Low | Urgency | High | Obtaining approval for the holding company within a month | Uphold strong ethical culture and good corporate image as a publicly traded company | | Low | Develop a special ethical code to recognize Chinese business culture | Career development of people responsible for the approval |

3.Case problems The core issue around this case is the major differences between Chinese and western ethical values. It is common, in most developed Western countries, for businesses and government officials to closely follow business rules and regulations that are straightforward and by the books. There is absolutely no room 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 make sure no violation to the rules exists. Regarding business practices, dinner parties are common, but expensive gift giving is seldom used in a business setting. On the other hand, in China, building strong relationships and trust is a huge factor involved in their business practices. It is preferable for Companies and government agencies to conduct business with groups their associated with,…...

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