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How to manage client entertainment in China

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  • Sun, Francis

Abstract

Client entertainment is a popular business practice that Chinese managers often use to facilitate business relationships and promote sales. Multinational enterprises (MNEs) operating in China, however, have been frequently involved in corruption allegations caused by client entertainment. This article explains client entertainment's purpose, prevalence, and persistence in China and identifies the pitfalls that foreign firms often encounter when they practice client entertainment in that country. Based on field observations and first-hand experience as well as research on public and survey data, this article also provides eight prescriptive guidelines that can potentially help firms manage client entertainment more efficiently and effectively without causing ethical and legal problems.

Suggested Citation

  • Sun, Francis, 2016. "How to manage client entertainment in China," Business Horizons, Elsevier, vol. 59(4), pages 401-410.
  • Handle: RePEc:eee:bushor:v:59:y:2016:i:4:p:401-410
    DOI: 10.1016/j.bushor.2016.03.003
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    References listed on IDEAS

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    1. Evenett, Simon J. & Hoekman, Bernard M., 2005. "Government procurement: market access, transparency, and multilateral trade rules," European Journal of Political Economy, Elsevier, vol. 21(1), pages 163-183, March.
    2. McCubbins, Tipton F., 2001. "Somebody kicked the sleeping dog--new bite in the foreign corrupt practices act," Business Horizons, Elsevier, vol. 44(1), pages 27-32.
    3. Sherry, John F, Jr, 1983. " Gift Giving in Anthropological Perspective," Journal of Consumer Research, Oxford University Press, vol. 10(2), pages 157-168, September.
    4. Hongbin Cai & Hanming Fang & Lixin Colin Xu, 2011. "Eat, Drink, Firms, Government: An Investigation of Corruption from the Entertainment and Travel Costs of Chinese Firms," Journal of Law and Economics, University of Chicago Press, vol. 54(1), pages 55-78.
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    1. repec:eee:jbrese:v:91:y:2018:i:c:p:94-107 is not listed on IDEAS

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