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The following article was published in our article directory on March 22, 2011.
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IBM HangHuiAn or from internal in China factional struggle

Article Category: Advice

Author Name: xia zihui

Chinese foreign bribery stealth again in America by exposure -- first in China, IBM has to expose the huge "again bribery" scandal: the United States securities and exchange commission (SEC) says, has reached an agreement with IBM, IBM was willing to end the cost $10 million "bribery door" events. Actually, this is not the first time IBM in China, the last is suspected of bribery scandal during 2002 to 2004, the company of China construction bank former governor to ZhangEnZhao bribery. In addition, IBM has also been reported in countries such as South Korea, Argentina has similar bribery case, the Japanese government is urgent to IBM recovered enterprise income tax, amount up to 300 billion yen (about 22.74 billion yuan), this is by far the highest amount of Japan's domestic tax evasion case. So many cases of alleged corruption within business focus eruption or be revealed to the company blue, people have to the image of the giant of understanding.

China's new case or from internal factional struggle

According to have publicly data shows: the SEC charges IBM to provide transnational tourism, entertainment, gifts and cash rewards to China some officials form such as paying bribes, violates the "reverse overseas bribery law, which mentioned the IBM in China's two wholly owned subsidiaries, namely IBM (China) investment Co., LTD and IBM global services (China) Co., LTD, saying China two main managers and more than 100 employees involved.

The SEC said, during 2004 to 2009, can verify the IBM in China is as high as 114 up illegal crime. Its main bribery form is: IBM employees in several Chinese travel agencies, used to pay bribes fund established Chinese government officials overseas tourism and other travel expenses. In addition, still use commercial partners to establish bribery fund, provide cash reward and government officials unfair gift (such as notebook computer, digital camera, etc.).

However, many new letters, nor reporters that IBM query what specific bribery persons, also not clear which IBM staff involved in China. To this, a personage inside course of study says, "IBM reached settlement with the SEC, and pay a $10 million, means that this matter has elder brother." He said unless other reasons, or never announce specific list. He said, "in fact in internal can through breaking news, personnel adjustment, and which several managers and guess a sudden resignation, but probably not convenient said foreign."

It is worth noting, more than one the personage inside course of study thinks the case exposure is the result of internal factional strife. 1 July 2009 the greater China region, IBM chief executive Frederick &frederic William maitland, concurrently ZhouWeiKun succeed retired chairman of IBM in the greater China region. Power of alternating process, appear some twists and also nothing important. But early 2010, then-president industry and the ministry of information minister wake naming request vigilant IBM is promotion of "wisdom of the earth", China's state information security threat. This let English team have suffered huge pressure. According to people familiar with the matter say, IBM China immediately launched a powerful government public relations offensive, and through a lot of media pr means weakening the negative social influence further enlargement. He speculated that, many serious violation occurred during this time. The English team to promote "wisdom the earth", because it is IBM chief executive Sam Palmisano (Sam Palmisano) with U.S. President barack Obama hit it off an established American future competitive advantage of global expansion "policy".

An understanding of IBM's insiders told a reporter, "the SEC if not through the ', 'can't learn in ghost in China so detailed IBM bribes materials, will accurately case' crucify '." He thinks, the person in risking exposure will circle the risk of not mix down, must be large enough to return will cooperate with the SEC gather evidence. These returns, except limited bonuses are more likely to be outside from Ben maimon current IBM fervid involved instead.

Industry insiders uncover pr bribery trick

No matter how, why IBM enforced ultimately the only loser unlucky is still China. In fact, if not the case exposure, IBM is in China "wisdom the earth" gained ground quite abundant, all parts of the project and are carried out.

The data shows, the past year, IBM in China between the "wisdom earth" has won the bid more significant projects. For example, shenyang, nanjing and guangzhou, shenzhen and other cities "home" the wisdom of construction. In addition, IBM is still in jinan, etc established a special project team. October 2008 to Qingdao hisense, IBM Internet companies for investment, to strengthen the layout of intelligent transportation market.

However, with an abrupt end, this lively crime. According to some web technology reports, officials said: south China somewhere now IBM "wisdom the earth" project has become a hot potato, many local governments have been temporarily froze correlation cooperation, lest affected. So how exactly pr bribery? An anonymous senior pr people industry for many years, told reporters while gimmick is various, but truly effective only one rule: "interests transmission". He for example, enterprise in order to get a list of, besides his tender alliance, but also through a local partner companies, pr companies, travel agencies work.

This personage introduction said, "when a list when umems, directly again find relevant personage talk about conditions, even send money, who dare to accept? Who know to isn't a trap? However, relevant personage have relatives and friends, classmates, lover of interpersonal relationship, such as going to a person, things become half." At this moment, the local pr companies, travel agencies and partner of the company will become a big enterprise smashed open market open sesame. "Through these operations, such as the seminar held some third parties, all parties to please to together, then to release 'labor", "souvenirs first building" form of trust each other emotional foundation."

He also said that actually travel, notebook computers, digital camera, etc just face can see part, belong to the pediatrician foreplay ", the real deal hidden in the part, but after amount and format doesn't exposure. For the SEC refers to "IBM employees in several Chinese travel agencies, used to pay bribes fund established Chinese government officials overseas tourism and other travel expenses", he said, this is obviously the IBM aspects has not processed details. He said, "change me to handle, will not appear this kind of" follies "."

In addition to the name of tourism, hair conference, this personage also gift etc, "hu said, introducing co-operative research, writing, do a training class, consult royalties project's business trip etc, it is very common for packaging pr bribery form." He also said that the notebook computer, digital camera, etc can work name, and the form of third party long-term loan disguised, giving not caught "pain feet."

Reporter observation

The need of wisdom for bribery

The past 1 years, from ocean the other shore involving Chinese officials suddenly spread to many of the "foreign bribery" case, besides part had examined the case of domestic outside, still have a lot of cases have become "WuTouAn". But one of the background.they often 8-year old son, detail is superb, let heard of people can't help to lambaste the moth too corruption, these too far. The comprador

But think about it, why these cases can't verify go? One important reason is the judicial system with the United States concerned. American judicial reconciliation system like business, and any blame as long as willing to spend money, ultimately this big companies can retreats. From their point of view, there is no need to shore and hurt their integrity of muscles, such doing also makes sense. But just left us a myth, the government by law society can neither wrong a good man, also had better not let a illegal villains, so how heavy responsibility.

Since cannot press diagram suo ji find domestic moths (who let americans care??!!) And then with the same reason that Europe and the penalties of judicial reconciliation in private company, until they would cooperate actively dedicate the moth so far. Because, since these companies in China to dismiss admitted that why only committed to the United States government offer fine, actually we are more should pay for it? This is a stupid the bribery regulation, but certainly useful gathered.

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