Company policy related to doing business in china

Assignment Help Case Study
Reference no: EM13839643 , Length:

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

Write your best formal prose, quote the text

Write your best formal prose, quote the text often to make your case. Follow the style guidelines on the syllabus, including use of informatory footnotes, embedded quotes and

In what ways does leadership influence culture

Case Study - The Enron Story. How can what happened at Enron be explained by some of the theories of leadership that you have looked at? In what ways does leadership influence

How would you define zappos target market

How would you define Zappos' target market? Briefly describe its approach to serving this market and has Zappos' emphasis on customer satisfaction contributed to its profitab

Explain the main factors that you should consider

Explain the main factors that you should consider before deciding whether to buy a laptop or a tablet - Identify the key features of a laptop and a tablet. Next, discuss thre

Case study-understanding the court system

Summarize the seminal facts of the case that you chose and explain the main laws that have been violated in the case that you chose and describe the possible penalties that co

Discuss the eithical issues in the case study

How would you respond to RN Jolie when she tells you to lie about what happened to Mrs Davis and what are your responsibilities in this situation and what should you do to sta

Explain how google analyzed their value chain

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

Why did the federal government shift to the cloud

Explain the differences in the first and second halves of the Information Age, according to Gartner - Register for a free account at gartner.com. Search for the latest webinar

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