We have written a lot about how to train local employees effectively. The arrest of four Rio Tinto employees in China underscores that training not only protects the corporation, but can also reassure and protect the local workforce. For multinationals operating in China, this may be a good time to refocus training efforts.
Whether or not the allegations against Rio Tinto are true, employees of multinational companies working in China are suddenly and understandably nervous. As a recent article in the New York Times indicates, business customs in China seem to have changed overnight, leaving employees wondering what they can and cannot do. Employees of multinational companies in China are now worried about a number of traditionally customary business practices, including hosting meals for Chinese officials, for fear that they might face corruption charges. Focused, in-person training can provide detailed guidance and reassurance to local employees.
In-person training can help employees distinguish between what is “customary and appropriate” and “customary and inappropriate”. It also allows for discussion and reinforces the corporate message that it is better to err on the side of caution in questionable situations. A discussion of local law requirements, company policy and hypothetical scenarios can help employees navigate the gray areas. While training won’t prevent a government enforcement action, it can make situations that would give rise to enforcement actions less likely.
