Culture Clash in the Boardroom.

The article presents a case study about a fictional chemical-manufacturing joint venture in China that involves a German parent firm and its Chinese partner. The German firm has insisted upon scrupulous compliance with Western standards regarding industrial safety, business ethics, and the environment. However, its Chinese partners are annoyed that they cannot use gifts, commissions, and other favors said to be frequently used in China in order to secure business. Disagreement has arisen over whether the joint venture should pay a commission to a potential customer's purchasing agent in order to clinch a very large sale.