Monday, August 19, 2013
JP Morgan in Bribery Probe for China Hiring Practices
JP Morgan is under scrutiny by the US Securities and Exchange Commission, because of questionable hiring practices in China.
Due to China's business and political environments, companies with the right personal connections, or "guanxi" can sometimes gain a competitive advantage. But the SEC is investigating to see whether JP Morgan has gone too far, and violated bribery laws by hiring the children of state-owned company executives, in order to win contracts.
Watch Mike Chen as he discusses the practice of hiring the children of officials or executives in China, and when this may be a problem.
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