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Monday, January 12, 2009

Corruption - A tale of a US Company

LA Times today has an article on Avery - Avery Dennison case a window on the pitfalls U.S. firms face in China.

Avery has a long history of doing business in China, since the founder of Avery went to China in College (Pomona) and was fascinated by the place. He even set up a prize for having Claremont Colleges related students go to China (yes, my submission lost).

The problems that Avery is having right now in China my guess is in a pretty gray area, and with the amount of corruption in China, it's hard to separate right from wrong. Entertainment can be a legitimate business expense, and the factory tours where you accidentally visit Disneyland.

My thought is M-F, 8-5PM should be work related, but weekends and nights are acceptable for non-working related activities. Now if you have no factory trips at all that's going over the line, IMHO. Of course when you start getting lawyers involved with zero tolerance, the line may no longer make sense.

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