Corruption: The International Evolution of New Management Challenges Harvard Case Solution & Analysis

Many countries are now increasingly concerned with the subject of corruption, and supervisors today must deal with changes in moral standards and laws. International agreements and new laws seek to create a global shift towards the reduction of corruption, therefore management duties are constantly evolving. Yet this issue is ambiguous and complex, creating major challenges for managers. Both Volkswagen and Siemens have lately experienced legal prosecution and public criticism over corruption issues, some relating to internal and inter-corporate relationships. Some cultures seem to accept corrupt practices as part of normal business-government relationships.

With the establishment of personal dealings that include an ongoing exchange of presents and private favours, guanxi is broadly seen as a requirement for business success in China. Some managers may claim that just particular kinds of bribes should be viewed as inappropriate corruption, and that the offering of presents is not unacceptable, that bribes to expedite decisions may be essential. However, this view includes the difficulty of drawing a line to guide decisions of corporate employees, and for many managers it's now crucial to implement clear corporate guidelines in regard to what they consider to be corruption. In this circumstance, until the culture of corruption has changed some supervisors may decide to avoid investing in certain states.

PUBLICATION DATE: September 16, 2009 PRODUCT #: 909M65-HCB-ENG

This is just an excerpt. This case is aboutĀ GLOBAL BUSINESS

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