Nes China Case Study Essay

1449 Words May 7th, 2014 6 Pages
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 …show more content…
It will be almost impossible for NES to built a strong relationship with the Chinese officials without understanding the basics of how they do business.

4.Corporate culture of NES china
In doing business in China NES strictly adhered to its business principle. This business principle was highlighted in the company’s code of conduct. It required employees to pursue the highest standard of business and personal ethics in dealing with government officials and business customers and to avoid any activities that would lead to the involvement of the company in unlawful practices. It was against giving immediate favors or rewards to individual Chinese officials and customers and instead relied on its advanced technology, management know-how and top quality products and services to give it an edge against it competition. NES already had a representative office in Beijing but Chinese legal restrictions severely limited the activities of this office. It was only allowed to engage in pure administrative activities such as conducting marketing research for the main head offices in Germany, scheduling meetings and trade visits and conveying price and technical information to Chinese customers. It was not allowed to engage in employments contracts with Chinese employees but instead had to go through a local labor service agency that overlooked all personnel issues including recruitment, compensation and dismissal. It had strong ethical culture and good corporate image among the

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