Essay on Carrefore Corruption

2055 Words Oct 26th, 2012 9 Pages
French hypermarket Carrefour is facing a peculiar kind of growing pain for its breakneck growth in China: systemic corruption among its management ranks at the local levels.
As many as eight managerial staff at Carrefour China have been detained by Chinese police in a wide-ranging probe initiated by the company itself over bribe taking by its managers at its city procurement center in Beijing and seven other outlets, including one in Shenzhen.
Their detention is seen as part of radical shakeout precipitated by Eric Legros, the new executive director of Carrefour China. Legros is looking to rein in wayward local managers and tighten up a decentralized procurement system that has set Carrefour on a high-growth path in China but that
…show more content…
A report published by China Business News in February last year revealed the value of kickbacks for a procurement manager working at a Carrefour outlet, who earned a monthly salary of 3,000 yen ($397) but managed to top this up to more than a million yuan ($132,000) every year by devising some innovative forms of bribery such as the acceptance of credit cards, lottery prizes and payments made in exchange for hosting promotional campaigns.

Carrefour aims to rid itself of corruption | |

|

www.chinaview.cn 2006-07-18 10:58:33 |

|

BEIJING, July 18 -- Carrefour China is undergoing an anti-corruption drive in its 75 supermarkets across the country in a bid to improve management. Rapid expansion in China by the France-based retail giant has generated huge profits but also caused problems such as bribes and corruption in stores. The company's Shanghai headquarters yesterday sent a memo to its South China Office urging it to crack down on corruption in its purchasing process. Market analysts said corruption has taken root in the retail sector, particularly in supermarkets. There are too many suppliers like food companies trying to sell their products to supermarkets, but only a few of them will be lucky. Carrefour China has already taken action to root out the problems haunting the company, especially in its

Related Documents