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Eight purchasing managers at Carrefour's China operations have been detained by local police on suspicion of taking bribes from food suppliers, the latest in a series of corruption problems to face multinationals in China. One of the biggest foreign retail chains in China, Carrefour handed the information to the police after an internal investigation, the company said on Monday.
Local media reported that the officials all worked in meat purchasing, but the French retailer refused to confirm the details. There was no indication the officials had been taking bribes to accept sub-standard goods, but the detentions underline the challenges for retailers in China in ensuring product safety at a time of uncertainty about the quality of Chinese manufacturing.
The allegations also underscore the difficulties companies in China face with purchasing, where bribery can be commonplace.
- Financial Times, 28 August 2007
Based on the above information, if you worked in Carrefour's purchasing department in China and suspected that the bribery took place in your company, what would you do? Advise.
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