|
Business
Multinationals and their sins in ChinaPosted by Jeremy Goldkorn, June 23, 2008 11:44 AM
From Sexy Beijing: "It's important to get kids into McDonald's early" Last month the bilingual environment website China Dialogue published an article by Paul French called Why is China different for Western brands?. The article did not get much attention when it was published, partly because the Sichuan earthquake was still occupying the news agenda, but it's worth drawing attention to it again. French poses some uncomfortable questions for certain Western companies operating in China. Excerpt:
French provides some examples of how some multinationals treat the mainland China market differently:
There are currently 16 Comments for Multinationals and their sins in China.
Comments on Multinationals and their sins in ChinaWhen the Chinese and their ever level-headed "netizen" guardians start making noise about said examples, then the MNCs will alter things. Until then...why?? The locals love their extra greasy goodies and sugar loaded candy bombs! Those are pretty weak examples listed in the article. I don't love the companies listed above, but I don't think they are discriminating against Chinese customers. Most of these environmental and health related issues here were raised by the citizens of each country then each company attempts to respond in a way that will shut them up, or give the company some sort of excuse to ignore the issue. In popular western brand name places like KFC, you do see healthier options. Last time I went to a KFC in China you could not get fries with a value meal, you could only get corn salad and a "fruit" drink. I think this article is a bit misleading because it doesn't deal with any of the big brands in China. I have never even seen a Burger King in China. McDonalds is not nearly as big as Burger King, but since China has been implementing plans to reduce plastic bags, you may yet see pressure on McDonalds to replicate their plastic saving plans they use in other countries (no straw day.) When these multinationals decide that Chinese people care about the environment, they will advertise their use of recycled paper and environmental donations, other efforts, etc. This has nothing to do with the actual attitudes of Chinese people. I've formulated two reasons that I think would work for any example of this kind of company behavior: 1. Because they can. 2. Because they don't need to. Maybe I should go into consulting. Since you are sarcastically saying they are not level headed, what is your point ?
Americans loved and still love their heart attack foods too, but it is changing. No reason it can't changed for China as well. "Until then...why?? The locals love their extra greasy goodies and sugar loaded candy bombs!" Only if you don't give a shit about China or it's people. In which case, why are you here ? "Those are pretty weak examples listed in the article." There seems to be a presumption among many people, professors and textbooks that MNCs (or any organisation for that matter) make decisions based on natty notions such as law, ethics, morals and justice. Not only are these concepts constantly in conflict in business decision making, but an unremitting stream of examples demonstrates that organisations do as little as they need in order to: 1. stay ahead of the law (and that doesn’t necessarily mean ‘within the law’) and One model suggests that there are three corporate stances in relation to Corporate Social Responsibility (CSR). I propose that there are only two. The third - genuine, altruistic community concern - doesn't exist, in my opinion. Organisational decisions are predicated upon expected outcomes, returns, or assessment of risk-return. Witness the recent brouhaha with foreign MNCs who kicked up a stink over the new Labour Laws. Support for Human Rights has its limits, apparently. The limit here is directly related to profits. Foreign MNCs want none of that warm, fuzzy, 'let the Chinese workers be free' nonsense if it means, for example, they must pay lawful overtime rates. The deliberately erroneous characterisations of the legislation was a scandal. However, there was one foreign voice conspicuously absent from the cacophony of misrepresentation launched by the lusty band of foreign pirates. That lone foreign voice standing up bravely for worker's rights was none other than ... (drum roll) ... NIKE. Draw your own conclusions. I'm not saying that it's particularly wrong for companies to do as little as necessary for the well-being of their community, or to seek a benefit of some kind for what they do. After all, businesses are in business to make money and the entire community benefits from that. However, we need to strip away the artifice of the argument in order to understand the true lie of the land (pun and oxymoron intended). Terence @Chengdude - Totally agree, these things are only publicity stunts anyway - why inflict them on people who probably won't make them profitable? Multinationals see China as a huge market that is naive when it comes to marketing and where they can do what they like. How many parents think that the expensive tins of baby milk they buy for their infants are actually good for them, help their brain to grow and make them smarter? They do so because the manufacturers of these milks blatantly and unethically tell them so. They don't tell them that using their products will increase illness in their baby and retard their brain development. What will be the cost to China? Once again the sins karleen, you put the the problems of unregulated business practices on the shoulders of those nasty foreign MNCs. I would say that Chinese firms are just as guilty of exploiting the 'naive' market, if not more so. and that I would argue is the bigger sin. "Only if you don't give a shit about China or it's people. In which case, why are you here ?"---TOM Better someone with this attitude of not giving a tird and criticizing everything about the way things are done---and not doing anything to attempt to fix the supposed problems---be a burden on Chinese society than be in my country and be a member of the Democratic Whiny Party. They also pay different wages to their workers at home and abroad. The information about Burger King not serving chilled apple slices is inaccurate...I got a cup of apple and carrot sticks with my whopper last month. Wow, very weak examples The Singapore example cites the "National Health Group" - a government agency is demanding these details to go on the packaging. Considering the shocking environmental destruction going on in China by both local and foreign companies these examples seem amazingly trivial. maybe because every single piece of food you can get in a basic chinese restaurant is infinitely more greasy than any junk food in extra-size you will ever find. "I mean, look at the oil stalls in supermarket, where do you think it goes ? do you think they care about health right now ?"---PAUL TERGEIST Right on brother. They don't give a F---. When I was a single digits (not so long ago) and I didn't want to eat my lima beans or perhaps some disgusting vegetables my mom would say the famous line of, "finish it because someone in China is starving and would appreciate that if they had it". I would always tell her to fetch a f---ing envelope and a stamp because I wanted to mail the food to China. |
Jobs in China
Recent Comments
peteryang on
The Internet wages war on the liberal media
Bankers ar on
To die poor is a sin
axis on
The slapped historian speaks
BloggerBil on
Grass-roots journalism meets the modern news weekly
palaboy on
Screw the elderly, I'm keeping my bus seat
Ayse V. on
19 year-old girl arrested for gory murder
Danwei.TV
Danwei Model Workers
![]() Recommended blogs and new media
China Media Timeline
Major media events over the last three decades
Books on China
To die poor is a sin: An excerpt of Factory Girls by Leslie T. Chang.
In Wang Shuo's No Man's Land: Geremie Barme addresses Wang Shuo's 千万别把我当人.
Swimming with Mao, a memoir essay: This memoir piece is by Xujun Eberlein, author of the new short story book Apologies Forthcoming'.
Front Page of the Day
A different newspaper every weekday
From the Vault
Classic Danwei posts
+ Stifled Laughter: How the Communist Party Killed Chinese Humor (2004.11): The Chinese government has systematically stifled crosstalk by bowdlerizing its tradition, restricting its natural growth and evolution, and reducing the form to a sycophantic, unsatisfying -- and unfunny -- shadow of its former self. + People: Dirk Eschenbacher, Ogilvy One (2004.06): Dirk Eschenbacher is Ogilvy One's Regional Creative Director for Asia Pacific, in charge of all interactive creative in the world's fastest-growing online marketing environment. Originally from Munich, he has been in Asia for six years. After living in Thailand for three years running his own web design studio, he moved to Beijing to join Ogilvy One. + Test Questions (2005.06): Test questions from the 2005 gaokao.
Danwei Archives
Danwei Feeds
Via Feedsky
or Feedburner |


