Nes China Businees Ethics

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International Business Case Study 3: NES China Business Ethics Guo Wu, Gideon Greif Overall, we think in order to get the approval of the application from government officials within one month. We will suggest Mueller to negotiate with senior official in NES AG about compromise based on the local culture and build great Guanxi with the government by sending gift to the government officials through third party such as public relation company. Adapting Culture According to the MacDonald’s case, we learned that as a foreign company, it is truly important to adapt the local culture when operating. In China, gift-giving is common in business and it actually become a kind of culture recently. According to (LCB, 2013), “The goal of a regular gift is to demonstrate your respect for an individual and your commitment to creating or maintaining a relationship with them.” Basically, an actual bribe in China is considered as hard currency in red envelope. Although, the difference between bribery and gift is not significant, gift still convey the meaning of goodwill. Ethical defining As we discussed in class, ethical defined as more goodness than harm. Also, NES’s principle demonstrate its responsibilities to society and to the operating country. The gift-giving culture in China had already formed completely which is not because of NES’s wrongdoing and it is impossible to be changed just by one company. Furthermore, in this case, Mueller and NES Beijing representative office actually have no time to wait and try to change the situation in China. Moreover, just like Chen said that the intent is to motivate officials that handle the application without delay but still legally and fairly. The application and establishment are not harmful to this country and it is completely legal. Actually, since the holding company established, it will offer more opportunities of

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