Evolution of international and Chinese anti-bribery and corruption compliance programs

• Schonfelder, Karen 
• Velamuri, S. Ramakrishna 
• Liu, Wilson 

Indexed by

Scopus ABDC-C

Abstract

Purpose
The　purpose　of　this　study　is　to　explore　the　regulatory　framework　in　China　and　the　extent　to　which　Chinese　multinationals　have　implemented　and　disclosed　their　anti-bribery　and　corruption　(ABC)　compliance　practices.　This　is　done　against　the　backdrop　of　the　evolving　international　ABC　compliance　standards.

Design/methodology/approach
This　study　is　based　on　detailed　reviews　of　the　ABC　compliance　standards　of　international　organizations;　legislation　passed　by　the　USA,　the　UK　and　Chinese　Governments;　seven　semi-structured　interviews　with　leading　experts　in　the　field;　and　comparisons　of　ABC　program　disclosures　of　four　Chinese　with　four　best-in-class　western　multinational　corporations.

Findings
A　high　level　of　convergence　was　found　in　the　ABC　standards　published　by　the　international　organizations.　Several　positive　features　were　found　in　the　Chinese　ABC　regulatory　frameworks　but　our　findings　indicate　that　there　is　minimal　disclosure　around　ABC　compliance　program　practices.　This　paper　shows　that　a　transparent　disclosure　would　represent　an　easy　win　for　Chinese　multinational　corporations　and　contribute　to　raising　their　reputations　internationally.

Research　limitations/implications
While　there　are　numerous　studies　in　the　law　literature　on　ABC　compliance　standards　and　the　extent　to　which　they　are　effective　in　achieving　their　objectives,　this　is　an　emergent　area　in　management　research,　to　which　our　study　makes　a　contribution.　Future　research　could　explore　how　other　emerging　economies　are　tackling　this　important　issue.

Practical　implications
By　proactively　adopting　ABC　compliance　practices,　corporations　can　seize　the　ethical　high　ground　and　build　solid　reputations　with　their　stakeholders.

Originality/value
It　is　believed　that　this　study　is　the　first　academic　study　that　compares　Chinese　and　international　ABC　standards.

Keyword

• Corporate governance
• Corruption
• Risk management
• Code of conducts
• Corporate ethics

Author Community

[Schonfelder, Karen] Calgary, Canada

[Velamuri, S. Ramakrishna] Department of Strategy and Entrepreneurship, China Europe International Business School, Shanghai, China

[Liu, Wilson] China Europe International Business School, Shanghai, China

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