Succeeding at Business in Southeast Asia

CHAPTER 3The Role Culture Plays in Determining Values and Ethical Standards and Practices

When I was raising money to start FDI Strategies, several investors asked about bribery in China. I told them, “I do not want to go to jail in the United States and I REALLY do not want to go to jail in China.”

When people think of ethics and Southeast Asia, the first thing some people think of is bribery. I often remind our U.S. clients that the lines between bribery and an acceptable business interaction are very arbitrary, but as arbitrary as they are, they exist, and anyone doing business in Southeast Asia needs to protect their company and themselves from issues that could arise.

I call these lines arbitrary because in the United States, we would not judge a company negatively if a representative took a potential client out for a very expensive dinner or to a private luxury box to enjoy a football or basketball game. Despite the fact that this could add up to tens of thousands of dollars, we think nothing of it. Yet, if the representative had handed the potential client this money in cash, it would be illegal. Think of it as dating. You may buy dinner and flowers for your date, but if you simply offer cash, it implies something entirely different. So, I reiterate, these are arbitrary lines, but these arbitrary lines can get you in a lot of trouble, so pay attention to them.

Almost everyone has heard stories of bribery in China or India and, for that matter, throughout Southeast Asia. ...