Monday, June 14, 2010

Refections on the Stern Hu Case

I have just returned from a trip to several tier two cities in China. During the trip, I heard from several Chinese business colleagues about their concerns that Mr Hu's Australian employer had dropped him so suddenly following the resolution of the legal case against him. It appears that many people believe that his employer should have at least supported their employee for a longer period, even in the face of the difficult circumstances and ethical issues that surrounded the case. Some of my colleagues felt that the actions of the company in this respect had sent a negative message about how Australian companies view issues of loyalty and relationships, even in a case like Mr Hu's. No doubt, the Australian company thought that swift action would be read as a positive sign, reinforcing the company's view about the ethical standards it expects its employees to uphold. As always, relationship management is at the forefront of doing business in China.