Company policy related to doing business in china

Assignment Help Case Study
Reference no: EM13839643

A Case of Morphing Legal Charges in China

The Rio Tinto company of Australia is one of the largest producers of iron ore in the world. It is a major supplier to China, which has the largest steel industry in the world. This relationship, however, has been strained over the past several years. The tension and complexity of this relationship was highlighted by the prosecution of Rio Tinto executives by the Chinese government. The executives were originally charged with espionage, accused of bribing Chinese steel industry officials for information that would enable the company to inflate iron ore prices. The execu¬tives were detained in China for nearly a year pending the trial. The case was "considered the most closely watched prosecution of executives from a foreign country" This was due to the potential implications for the many companies that currently and hope to do business in China.

However, when the executives arrived at trial the charges had been changed. Now the Rio Tinto executives were charged with accepting $12 million worth of bribes from Chinese steel industry officials. These officials presumably attempted to gain pricing information for iron ore to aid in their negotiations for allocations.

Chinese prosecutors (and officials) did not explain why the charges were switched, why they would charge foreign executives for accepting bribes, or why they have not yet charged or arrested anybody from steel companies that offered bribes.

"Chinese police and prosecutors have considerable leeway to arrest and even indict suspects for one offense and then change course and bring than to trial on different charges. [Such practices) prompted fears among mining company executives, foreign workers, and investors that they could be subject to legal penalties if they get into disputes with their local partners "

What Would You Do?

Considering only the information above, answer the following questions.

Part A. Assume you are a high-potential, rising-star manager within Rio Tinto and are offered a position at a company facility in China.

Because China is the company's biggest customer, an assignment there is likely to advance your career.

1. Would you take the position? If yes. then explain why. Also describe what you might do to prevent a situation similar to the one above.

2. If no, then explain why you made this choice. Also explain bow you would communicate this decision to the manager who offered you the position.

Part B. Assume you are the CEO of Rio Tinto.

3. Considering only the information above, what changes if any would you make to company policy related to doing business in China?

Part C. Additional information came to light after the trial. Just before the executives were detained, the Chinese steel industry association complained about inflated iron ore prices and blamed Rio Tinto and others for a breakdown in iron ore contract talks. Additionally, "Rio Tinto scrapped plans to accept a $19.5 billion investment from Chinalco, one of China's biggest state-owned mining groups.

4. Based on this new information, do your answers to questions 1, 2, and 3 change? Explain why or why not.

Verified Expert

Reference no: EM13839643

Case analysis - google

Write a summary of the case study. In your paper explain how Google analyzed their value chain for the purpose of determining where they were able to create value when using

What is a secondary intention wound

Discuss the complications this organism may have on wound healing and other body systems and what special infection control considerations would you implement for Mr Jones?

What impact did his decision have on patient safety

What impact did his decision have on patient safety, on the risk for litigation, on the organization's quality metrics, and on the workload of other hospital departments?

How effective you think they are for tylers success

What are some of the supports that have been put into place for Tyler's success in kindergarten? List at least 3 different supports and how effective you think they are for

What recent developments in world trade have made

According to Ferry, what recent developments in world trade have made it urgent for France to have colonies - what arguments against imperialism have been raised by Ferry's cr

Case study- opening your new dunkin donuts locations

Case Study: Opening Your New Dunkin Donuts Locations. Assumption and Context: You have been the manager of a Dunkin Donuts store in the Midwest for the past two years. The s

Develop information systems functional requirements

ISFM-300 Case Study, Stage 2: Business Process Analysis and Functional Requirements. This assignment demonstrates how business processes are analyzed to develop information s

What are marketing strategies that are currently being used

What are the marketing strategies that are currently being used, and are they effective in reaching their target market? Do you believe that Toyota should convert all their

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd