Compliance Of Internal Control Of Commercial Bribery Of Foreign Enterprises After The Event:Multiple-Case Study

Since the reform and opening up,China has entered the new era of marketing economy.Our government attracts the investment from foreign enterprises through various preferential policies with the aim of promoting the rapid development of the economy in China in this way.However,the entry of the foreign enterprises in China is a double-edged sword for China.On the one hand,the enterprises with foreign capital inject vitality to the Chinese economy,promoting the industrial structure optimization and upgrading in China,and also benefit the sustainable development of Chinese economy;on the other hand,the entry of foreign enterprises intensify the competition between the enterprises in the industry,which has some negative impact on Chinese economic restructuring and the protection of the ecological environment.The foreign enterprises must be operated in compliance in accordance with Chinese law,however,in recent years,the exposure of commercial bribery cases of the foreign companies in China have continuously increased,these bribes not only leave negative consequences for the enterprise itself,but also set bad examples for the domestic enterprise,which is harmful to the macroeconomic regulation,deteriorates the environment for investment and damages the fundamental welfare of our people.So it is necessary to strengthen the research on the bribery problem of the multinational companies in China,and urge them to strengthen the construction of compliance in order to avoid China to become a hotbed for "foreign corruption" and maintain the environment of fair competition in Chinese market economy.The methods of case analysis and normative analysis are used in the paper,with the bribery cases of the three companies—SIEMENS,Avon and Glaxo Smith Kline as the objects for research which had big influences,and compare the changes in the internal control of compliance before and after exposure in order to evaluate the internal governing effect of the anti commercial bribery.Among them,the pharmaceutical industry as a commercial bribery cases prone industries,the recent selection of Glaxo Smith Kline cases,we can see that the development of international and domestic regulatory compliance in the internal control of the situation.From the views of the analyzed results,the Siemens and Glaxo Smith Kline increase their investment in the internal control of the enterprise after accepting the punishment in the bribery case,especially in the aspects of internal controlling environment,internal controlling activities and assessment of risk.The Glaxo Smith Kline constructed a new framework of the risk control in 2014,and redefined the intercalation and responsibilities of the risk management departments.The Siemens even set up a new post called officer of compliance,and issued the first inspecting report for officer of compliance in 2009,then it established the new compliance system through the compliance project,the establishment of the compliance organization and the compliance tools.After a series of change,Siemens and Glaxo Smith Kline slowly went out of the bottom.On the contrary,the Avon is weak in taking measures of the construction of internal control after the bribery case,and the performance of its company suffered a disastrous decline and went into dilemma.The study in this paper proves that how important is the compliance construction of the internal control which anti the bribery in the development of domestic and foreign enterprises,the lessons obtained from the comparison of the multi-cases has certain significance for the reference on how the enterprises strengthen the compliance construction of internal control.