Summary Of Case Study

723 words - 3 pages

In the case study Chrysler and Gao Feng: Corporate Responsibility for Religious and Political Freedom in China by Michael Santoro, he states that multinational corporation doing business internationally faces complex ethical issues. The ethical dilemma Chrysler encounters is the corporate responsibility for religious freedom in China. In May 1994, Gao Feng a Christian was arrested in Beijing for planning a private worship service to remember the fifth anniversary of the Tiananmen Square massacre. At the time of the event Gao was a 26 year old employee of Chrysler joint venture Jeep. Later, he was accused of violating Chinese laws opposed to practicing religion outside of a state authorized location. Even though, the Article 36 of the Chinese constitution provides the freedom of religion, but the government restricts religious practice. The government restricts the religious practices so they can manage the growth of religious activity. Gao was accused and was not formally charged, but he remained under detention for five weeks. Upon returning to Jeep and informing his supervisor that the Chinese police incarcerated him for a month, Gao was requested to prove proof. The Chinese police gave him proof in a form of a note addressing that he was incarcerated for three days and released without trail.
On the other hand, the company interests are at risk. In China the main key to success is to maintain good relations with the Communist parties, which they mainly control the economy. For multinational corporations they have to spend many years creating good connections in China for their business to function. For example, General Motors, Motorola, and Hewlett-Packard are conscious that they risk billions of dollars if they take a position on human rights instead of the Chinese government. For instance, the Gao incident can cause Chrysler a serious problem resulting in financial consequence. An experience executive with a vast experience in China said “…this would be a very serious situation, which, if not handled properly could have serious repercussions for my company” (Santoro, 3). The case is considered serious, because the company can lose millions of dollars and even contracts to their competitors. Chrysler could fire Gao for poor...

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