To see how this works, suppose you work for a New York-based company that wants
to build a stronger business presence in China’s fast-growing consumer markets.
Suppose also that your promotion and future career with this company is heavily
dependent upon your success in securing a China deal. Suppose you are aware that
the Chinese Government has lax oversight regulations, poor inspections, and only
minimal enforcement procedures across a wide range of the products it makes, including
children’s toys, prescription drugs, candy, milk products, and even dog food.
Finally, suppose that your own government consistently turns a blind eye to such
consumer abuses because it does not want to risk alienating an important trading
partner. Question: How would you approach your company’s objective – and your
personal responsibility – to secure new business dealings in China? Where do you draw
the line? What is an acceptable risk here? And would you be willing to jeopardize your
job and take a strong position against any such deals?
In the final analysis, managers should remember two things about this ethical
challenge. First, with different names and in different forms, bribery and corruption
can be found throughout the global political and business environment; it is not the
exclusive province of poor countries. Second, managers often have a choice in how they
respond to corruption. In some cases, governments can help to minimize such practices.
When this is not the case, companies can choose not to reinforce such behavior and
hold their ground or do business elsewhere. While this may, at times, lead to short-term
losses, it typically leads to long-term gains. The bottom line for managers and their
companies is understanding what they stand for and not sacrificing principle for shortterm
promises.