1. Would you take the position? If yes, then explain why. Also describe what you might do to prevent a situation similar to the one above.
Yes, I would like to take up the position to work in the PRC. But I would also like to follow the ethical standards and the laws of the country. As was evident from the Rio Tinto Espionage Case, the Rio Tinto Company does not seem to be directly involved in the first charge of receiving bribes. However, though the conduct of the four executives of the Company has been shaped by Rio Tinto`s traditions of extreme greediness. In fact, they are not just the four ordinary workers who were confirmed to be getting the bribes. I am talking about the four top executives of the Company. The truth is that bribery, exploitation, intimidation and espionage on the part of the executives were all aspects of the wide array of methods Rio Tinto employs to maximize its revenues. Rio Tinto is particularly infamous for the application of such evil methods in the developing world where they are generally able to exercise force whosoever needs to be strongarmed to get off applying such unethical tactics.
Nevertheless, the Peoples Republic of China is one such developing country where such unethical tactics might fail. Having no real production operations in the PR China, Rio Tinto and its executives did not get the insights to realize how dangerous such unprincipled and unethical behaviors could be in the country. The guilt of Rio`s executives in the corruption does not imply that one should feel much empathy towards the implicated four. Stern Hu and the other three executives found guilty were not just victims of Rio Tinto`s greediness they were in fact victims of their own greediness.
First of all, they asked for huge bribes for their own benefits. Secondly, though when they enticed the local Chinese steel executives to provide them with classified data they were doing so at the command of the Rio Tinto Company, they were barely unwilling players in it all. They knew very well that the consequences of their Company`s acquisition of the classified business data and consequently being able to charge still higher prices would be enhanced perquisites and dividends for themselves too.
Now as it evident from the Rio Tinto espionage case, it showed that a stern force applied by the PR China has struck a serious blow against the executives of Rio Tinto. It is high time to take up the matter critically which shows anti-worker and unrestrained greediness of all the big corporations. The Australian Government should strictly deal with the future unprincipled and unethical acts of the Australian companies and should take up the following measure:
* Rio Tinto and other private businesses greedy activities should be dealt with iron hand not only in the Peoples Republic of China however in Australia as well. It is well-known that the Rio Tinto Company exploited the Chinese people for many years. However, it is only Rio`s rich executives, and royalty-receiving cronies that considerable benefits from these act not its employees. Hence, instead of payouts to her executive salaries and profits to its shareholders Rio should provide its workforce with generous perquisites. The company should not allow laying off her workforce.
Part B. Assume you are the CEO of Rio Tinto.
2. Considering only the information above, what changes if any would you make to company policy related to doing business in China?
Given the fact is that in the Chinese society where economic power is held by Chinese Communist Party, the formal existence, the corruption and bribery, as in the case of Rio Tinto should not be underestimated. In fact, a section of the capitalist class is simply comprised of big-time criminals who have turned to investing their loot in “legitimate” companies all over the world. More critical, nevertheless, are the following of legal and ethical business norms of the countries to be dealt.
3. Based on this new information, do your answers to questions 1, 2, and 3 change? Explain why or why not.
Yet in the PR China itself the espionage case of the Rio executives was quite popular. One rationale for this is basically that the open-minded Chinese people simply do not appreciate capitalism philosophy and values. Secondly, the foreign-owned firms in the country have a bad reputation on account of mistreating and exploiting the local Chinese people. Despite the fact the Rio Tinto Company did not have production facility in the Peoples Republic of China, the deceitful methods the company applied to attack socially-owned Chinese companies showed the greediness of typical of Western-owned manufacturing companies running in the country. The truth that the Australian government tried forcefully to control the trial proceedings of the Rio Tinto Company only motivated the Chinese working class more determined to see the executive bosses of Tinto being brought to justice. Such behavior by the Australian Government just encouraged the Chinese people to recall the mortification of the pre-revolutionary Chinese era in which the whole industrial regions inside the core Chinese cities a system was controlled by many Western imperial powers who applied direct legal authority and power which consequently helped their companies and staff to be exempted from Chinese law.
Most notably, when the Rio Tinto Company cheated state-owned Chinese firms it was in fact cheating the companies that are jointly owned by the whole Chinese population. In addition, when the executives of Rio Tinto bribed to favor private Chinese steel companies for iron ore supply they were supporting the other western-owned capitalist exploiters to the detriment of the Chinese-owned businesses. Hence, the Chinese Government truly saw Rio Tinto`s activities as critically harmful to China`s socialist sector companies.