Somebody wants to take direct personal advantage from you, even when you think to have everything under control. And often, “the weakest point is the most trusted local manager”, observes Stephane J. Grand. Frauds, indeed, are always committed for a reason that can be felt by any person inside a company, at any level; it’s a personal or financial need that stimulates an employee to commit a crime. The need finds ground to grow in the vast majority of companies, especially in distant subsidiaries where control is feeble, communication is irregular, and protocols aren’t observed. In addition, among other factors, China’s weak legal system, cultural differences, complex language, and intricate supply chain structure make foreign enterprises’ business a highly defenseless target for self-serving people.
The first case study of our series shows that often employers just hire the wrong person, trusting him/her on the experience and market knowledge. Usually, the fact that China is “so different”, leads foreign business owners to hand all the responsibilities to whom they deem “capable” just because of his/her origins or ability to speak the Chinese language. On top of that, leaving the freshly new Chinese entity completely unmonitored will most likely cause big troubles. Solutions and preventive measures to avoid scams happening are to be promptly taken, no matter what’s your budget.