Date: Oct 15, 08
TO: Kai Mueller
BY: Lin Chen
PARTICULAR DATE: April 1998
SUBJECT: NES AG – Gifting in China
NES AG's issue is that needs acceptance to become a having company in China. However , its code of ethics conflicts while using local personalized of gifting to as a means of reaching certain outcomes. The problem for a while is that the company needs to get the approval within a month. Over the years, not getting the approval would harm shareholders or perhaps, if NES AG offers gifts to officials, it will eventually violate NES's ethical code.
The talents of the business are that it must be established and experienced in China which has a strong status for its excessive technology competence, quality, and professional supervision. The disadvantages are the lack of license to conduct organization directly being a holding company, inability to manage workforce, lack of control over a lot of management aspects. Employees might not be performing very well knowing they can not be dismissed and govt restrictions within the office currently threaten you can actually flexibility and impair upcoming planning and expansions. Getting holding firm status would give NES AKTIENGESELLSCHAFT more possibilities, flexibility and lower its operational risk in Cina.
Knowing that a practice does not comply with business standards, I believe that it will be in the business stakeholders' welfare to give the products to the officials. While popularity is definitely crucial, the Chinese market is the biggest in the world and giving it up over a lot of gifts can be considered undesirable service to the shareholders. Gift-giving is common practice in China and tiawan and without that; it is less likely to get approval to get the application. This is also true considering the one-month time limit to discover the approval. If we do not provide the gifts, Mister. Zhu will lose face and you will be unlikely to help us in the foreseeable future. Furthermore, certainly not receiving Mister. Zhu's help will make endorsement process for a longer time and more cumbersome. If the items are given, we all...
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