The Anti-Corruption Challenges And Solutions Of Multinationals In China

In the 20 some years of entering and growing in China, multinationals have made certain progress in financial achievement. What would be for them to maintain a sustainable growth in this country? Multinationals'entry of China market brought competition, thus created some negative impact, including many"hidden rules"in the market place: commercial corruption. Furthermore, such"hidden rules"became the bottleneck of continuous growth of multinationals in China. This year is the beginning of the state"11th 5-year plan", it is very important in strengthening the anti-corruption action by the state government requirement, thus reinforcing the foundation of the economic growth for the society. After the state government raised the anti-corruption awareness, multinationals should react positively, and bring the good part of their corporate culture into China. They should consider selves'interest as well as all the stake holders', comply with the law as well as the ethical guideline, and take on the social responsibility. So that multinationals can grow together with China in a win-win fashion.This thesis includes five parts: introduction, understanding and fine-tuning the concept of anti-corruption, the forms of anti-corruption act in China, the anti-corruption pitfall of multinationals in China, and solution for anti-corruption act for multinationals in China.In the introduction, several case studies lead to the core theme of this thesis, and state the importance of anti-corruption act for multinationals.The second section of the thesis is about how to understand and fine-tune the concept of anti-corruption. This part mainly induces the current China law and regulations on anti-corruption, comparing the similar definitions in the"Anti-unfair law"and the"Criminal law". Following the newest amendment of criminal law, this section points out that those laws are fundamental for multinationals to comply in China.The third section of this thesis describes form of anti-corruption act in China. It introduces the form of corruption as well as the stands central and local Chinese government taken in recent years, focusing on the problems of multinationals in the serious scenarios of corruption in the industry, in China and even in global.In section four, the anti-corruption pitfalls of multinationals are analyzed. The reasons for frequent occurrence of the corruption cases includes: not understanding Chinese laws and regulations, misread China market environment, mistakenly taking corruption as foundation of deal making. Further more, the internal control in the management process are very much lack of integrity comparing to their foreign head quarters, some of the common business practices well accepted in international circumstance have been mistakenly considered as commercial corruption for various reasons. All these traces indicate that the multinationals are experiencing hardship in dealing with anti-corruption issue.In section five, solutions are provided for multinationals in anti-corruption action. Although there are numerous challenges in facing anti-corruption issues for multinationals, resolutions are still helpful. At one hand it requires the legislative body of the state government in consummating the law and forcing the discipline; on the other hand, corporations need to implement effective management, with impact to the entire business environment through industrial association and chambers of commerce, and taking on social responsibilities.