David Z Wang

1
Effective Ethical Leadership For Joint Ventures
in China

• David Z Wang
• Charlene-Jayne Chang
• Edmund Twohill

8 Mar 2007
2
Key Issues
R1

• Zero tolerance for
• corruption
• Mend bad publicity

2

• Joint Venture in China
• Contrasting Corporate
• culture
• Mitigating Risk
• Reputation Risk
• Shareholder equity

R2

• Instilling internal
• management control
• Enforce corporate
• governance

R3

• Education and effective
• communication
• Training development

Issues
3
Key Criteria
1
Reputation of Dynacoat
2
Consider local culture and practices
3
Long Term Potential and Sustainability Of the
Company
Criteria
4
Key Recommendations
R1

• Zero tolerance for corruption
• Make a strong stand
• Gain positive publicity

Implementation
a
b

• Sack Albert Ching
• Legal action

• Set up a taskforce
• Thorough investigation
• PR Campaign
• Compensation
• Package

R1
5
Key Recommendations
R2

• Internal Management Processes
• Control processes

Implementation
a
b

• Internal Audit Unit
• Internal Evaluation
• Quarterly audit
• Joint teams from
• China and Germany

• Operations Review
• Committee (ORC)
• Middle management
• review
• Collective ownership
• Feedback session to
• Kim

R2
6
Key Recommendations
R3

• Education
• Long term solution

Implementation
a
b

• Develop middle
• Managers
• Ethics leadership
• training in HK
• Send managers on
• exchange to Germany

• A strong ethical
• corporate culture
• Train employees with
• support of ICAC
• Orientation package
• to new employees

R3
7
Timeline
Accuforms Mission
Model for corporate governance
Operations Review Committee (ORC)
Review of policy/ Feedback
Restoring Reputation
Training Adherence to change
Review/ Feedback
Effecting Culture
Long Term Growth
Public Relations Workshops, conferences
social projects
3
6
9
12
months
Timeline
8
Conclusion
R1

• Zero tolerance for
• corruption
• Mend bad publicity

A model for JVs in China
Result
R2

• Instilling internal
• management control
• Enforce corporate
• governance

Internal operational risk minimised
Result
R3

• Education and effective
• communication
• Training development

Long Term Sustainability
Result
Conclusion
9
Effecting Ethical Leadership in China

• David Z Wang
• Charlene-Jayne Chang
• Edmund Twohill

Q A
8 Mar 2007