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Corporate Social Responsibility
News
8.16.2005 ET
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Behaving with Integrity is Critical to Success in China, Deloitte & Touche Chairman Tells 2005 China IT Services Summit
Recruiting, hiring and nurturing talent that's home-grown is the first key to success when entering a new market, Allen said
(CSRwire) New York - Sharon L. Allen, chairman of the board of Deloitte &
Touche USA LLP and the first woman chairman of the board from a leading
professional services firm, told a meeting of IT outsourcing executives
that ethical behavior on the part of U.S. Firms is critical to success in
building relationships with the Chinese market.
Addressing an audience that included government officials from both the
United States and Peoples Republic of China, IT executives and global
outsourcing experts gathered for the International Executives
Association's 2005 China IT Service Summit, Allen observed, "As we review
our collective efforts to construct a strong Chinese presence and compete
for business there, I'd like to suggest one U. S. export that is
critical to being successful. And that's ethical behavior."
She explained, "Just as everywhere else in the world, behaving with
integrity and deference - being a good guest, if you will - is key to
doing business with China. The Chinese have the longest sustained cultural
and social identity of any people on earth. To be successful, patience,
understanding and a commitment to building trust, is paramount."
To establish its stake in China, Deloitte Touche Tohmatsu has committed to
investing U.S. $150 million over the next five years, the most significant
investment it has ever made in a single country. Deloitte & Touche USA LLP
is the U.S. member firm of Deloitte Touche Tohmatsu.
Suggesting an approach to forging successful relationships in China, Allen
said, "Nothing can help bridge the cultural gap better than true
integration. We've made it a priority to build our individual national
firms organically on foreign soil. I believe recruiting, hiring and
nurturing talent that's home-grown is the first key to success in a new
market."
She continued, "We've seen some major American corporations try to succeed
by exporting leadership and working groups from the U.S., with little
regard for building a country base. To me, that invites failure."
"We celebrate and embrace cultural differences, because that's built into
our DNA. And we develop our national practices with that in mind. It's not
only our philosophy. It makes eminent business sense, especially in
China."
Allen began her 30-plus-year career with Deloitte & Touche in Boise,
Idaho, and rose to become the first woman chairman of its U.S. Board of
Directors in May 2003. She leads the firm's governance process and
oversees the firm's relationships with a number of major multinational
clients. Allen also serves on the board of the global organization
Deloitte Touche Tohmatsu, for which she chairs the risk management
committee and serves on the board's global governance committee.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss
Verein, its member firms and their respective subsidiaries and affiliates.
As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any
of its member firms has any liability for each other's acts or omissions.
Each of the member firms is a separate and independent legal entity
operating under the names "Deloitte," "Deloitte & Touche," "Deloitte
Touche Tohmatsu," or other related names. Services are provided by the
member firms or their subsidiaries or affiliates and not by the Deloitte
Touche Tohmatsu Verein. Deloitte & Touche USA LLP is the U.S. member firm
of Deloitte Touche Tohmatsu. In the U.S., services are provided by the
subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte
Consulting LLP, Deloitte Tax LLP, and their subsidiaries), and not by
Deloitte & Touche USA LLP.
Excerpts from 2005 China IT Service Summit
Five Key Issues to Consider In Doing Business with China
"For U.S. firms now doing business in China - or thinking hard about
alliances with Chinese companies -- I think there are at least five key
issues to consider. They underline the challenges we all face."
First, as a global organization we must acknowledge that there might
be financial risks coming from political decision made on foreign shores.
Second, while corporate principles and rules are improving, and the
quality of financial data is getting better, there's still a way to go.
Third, finding skilled workers in many sectors is difficult and
becoming more expensive. Turnover remains high and not enough students
are being trained to meet the demand. In 2003, Chinese colleges and
universities accepted 3.8 million new students -- only a tiny fraction of
China's 1.3 billion population.
Fourth, business culture is quite different from what we're used to,
particularly in the role of government.
Finally, Chinese state-owned enterprises are just starting to
understand the need to sharpen their strategic focus on value,
profitability, branding and training.
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